London Stock Exchange outsources to outsource

IT outsourcing has moved way beyond just cutting the cost of internal IT and now finds itself as an important mechanism for businesses to generate new business lines.

Gone are the days that a business looking to move into a new area has to build its own IT to support it. It can work with an expert. They call them partnerships these days more often than not.

I wrote an article yesterday about how the London Stock Exchange is offering finance firms a platform based reconciliation service. The exchange offers finance firms its UnaVista reconciliation platform as a service.

Now in an effort to increase its customer base for this it is working with Indian IT service provider Wipro. Wipro has the infrastructure and expertise delivering software to customers globally via platforms so the partnership makes sense. It gives the stock exchange global reach.

The multi-tenanted platform is aimed at finance firms but could potentially go wider in the future. The combination of the exchange’s good trusted brand and Wipro’s reliable and secure infrastructuremight be attractive to customers.

So this is an example of an IT services firm supporting businesses in generating new revenue streams, rather than just cutting costs. This is how most services firms sell themselves these days.

It is also likely to increase as service providers invest in global delivery services and the infrastructures to support them.