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Oct 20, 2008


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Thanks for your insights. I agree with Peter and hopeful on better terms. :)

IMO, banks are more likely to start with infrastructure (in some cases long overdue) and move to transactional/shared services projects. Branch automation is also hot. Not sure about the KPO w/respect to the privacy issues.

Hi Phil

I find you comments on the BPO space informative. The new or next step advantage for most of these industries is KPO. Knowledge Process Outsourcing. What are your views here and your thoughts on how the space is being embraced.




I agree - planing and evaluation will be rife in Q1 and we'll see a lot of contract activity from Q2 onwards next year. I do think many of the banks will see out the year to find stability in this market, before making serious sourcing plans after the New Year, hence my Q1 prediction for the sparking of new activity,



Great observations, as usual.

I agree that Q1 will be busy, but the contract awards aren't likely to materialize until Q2/3. That is, unless the desperate take to perpetuating rate card agreements and call that 'outsourcing'.

I am sincerely hopeful that rationale minds will use this window of opportunity to fundamentally restructure their business operations using third-party expertise, and not simply trim the edges with more staff augmentation sourcing.

To the Service Providers of the world: THIS is your chance to re-set the game through terms that are in the best interests of Clients and Providers, alike.



Most of the leading insurance providers in my experience already use outsourced IT services with heavy offshore elements. However, the Insurance sector is one of the slower-moving sectors to move into broad business process outsourcing for initiatives such as offshore claims processing and F&A BPO.

One of the barriers to offshore-outsourcing insurance services relates to the lack of domain expertise among vendors. In recent years, there have been several changes in the regulatory framework and statutory requirements in the sector, which may be varied from state to state. As a consequence to their relative offshoring immaturity, insurance companies have tended to report lower savings from their outsourcing efforts, when compared to their banking or securities counterparts. I expect this to pick up later next year as the banking sector moves more heaviliy into outourced models and we have a "trickle effect" into the insurance sector - especially with the tightning markets and maturing vendor delivery models in this sector,



Hi Phil,

Wonder what your thoughts are about insurance.



Will be interesting to see if Obama, if he gest in, pushes back on a lot of the offshore outsourcing the banking sector is considering,


I am concerned that banks will be so flush with handouts from the government's bailout fund, they will have little incentive to look for operational cost savings.

Hi Phil,

Interesting article. I agree - and have already been having some conversations with a couple of major European banks regarding an accelerated outsourcing strategy. IT apps and F&A are among the areas I see being considered - also other areas like payroll and payments,

Erik Snijder

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