27 June 2008 | Paul Snell
Financial services firms will begin a "new wave" of outsourcing and off-shoring deals to cope with the current tight financial conditions in the sector.
But only 54 per cent of 70 financial services staff surveyed felt their company understood how to get good value from such deals.
A study carried out by Navigant Consulting for the Management Consultancies Association and British Bankers' Association found 40 per cent of firms plan to increase their use of outsourcing over the next five years.
The report said economic uncertainty was making firms look again at outsourcing plans to make cost savings. Andrew Stewart, head of financial services - Europe at Navigant, said in the report: "There's definitely a big focus on cost and efficiency, but some organisations are still developing new products and look to outsourcers to help support that process."
And companies have also discovered the need for a new procurement approach to deals. The report said traditional procurement relationships - that put suppliers "through the wringer" - work against establishing the trust needed with vendors to tackle unforeseen problems in the future.
The report urged firms to understand the type of relationship they want with their supplier before outsourcing, if they want to deal with a single supplier, or would prefer a multiple-vendor deal.