European financial services companies are expected to
spend a total of £27bn on IT services in 2005, but less than 30%
will outsource any strategic projects by the end of 2006, says
analyst Gartner.
“Most financial services providers (FSPs) currently use
outsourcing tactically to augment staff for faster project
turnaround or to reduce operational costs, rather than for
strategic value,” said Gartner analyst Kimberly
Harris-Ferrante.
“FSPs should now begin outsourcing strategic projects in order
to gain larger-scale, enterprise-wide value,”
she said.
Strategic projects have different dimensions to normal, tactical
projects, Harris-Ferrante said. They are more complex in that they
focus on blending the use of IT outsourcing and business process
outsourcing to enhance and transform the organisation.
She said the nature of strategic projects means they require a
different structure of contracts, relationship model and
metrics.
