While large banks continue to differ in their overall attitudes toward IT and business process outsourcing, buy vs. build IT decisions, and the use of Software as a Service (SaaS), their comfort with IT outsourcing is growing, finds a report by the Aite Group which surveyed 80 chief information officers (CIOs) and senior information technology executives at large financial institutions across North America, the Asia-Pacific, and Europe and the Middle East.
Nearly half of large financial institutions (46%) favor software from vendors, while a minority (16%) prefer to build technology in-house. With IT budgets on the rise, survey respondents have identified corporate banking, consumer banking, payments, and small-business banking as the top lines of business on which to focus technology projects in the next 24 months. Growing budgets, combined with a growing acceptance of IT outsourcing, are creating fertile ground for bank-focused technology vendors.
“Banks’ reliance on third-party vendors has never been as high as it is today,” says Gwenn Bézard, research director with Aite Group and co-author of this report. “Even so, today’s reliance will most likely pale in comparison to the level it will reach in years to come. Aite Group expects large banks in particular to become leaner organizations that rely on third-party vendors for a growing share of their operational and IT needs.”
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