I was talking to Andrew Rigby, the head of outsourcing at legal firm Brodies yesterday. He says that now that we are coming out of recession banks are outsourcing everything to cut costs.
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He said there is a major push by banks towards outsourcing the middle office.
He says this includes things that were seen as too core to outsource in the past. Fund management and all the IT related to it is an example.
“Now that we are coming out of recession banks are looking at their spend and where they can make savings. What I am seeing is banks are outsourcing everything.”
Robert Morgan from consultancy Burnt-Oak Partners says banks are investigating outsourcing more than ever. “There are a lot being investigated but not many green lights at the moment.”
He agrees that the middle office is an area banks are looking at outsourcing.
He envisages deals seeing, for example, IBM in the middle office and HP in the back office.