Cost Reduction and Improving Agility Remain Top Priorities for Financial Firms Looking to Outsource, eClerx Survey Finds

New York - 7 November 2011

Financial services marketplace increasingly turning to outsourcing as a business model

eClerx, a leading knowledge and business process outsourcing firm to the global financial services industry, today announced results of a survey of global senior decision makers in financial services from the compliance, operational and risk business units. According to the survey, reducing operational costs and improving business agility are the top two reasons financial services organizations are turning to outsourcing.

Some of the key findings of the survey include:

- The top two processes financial services firms are looking to outsource are reference data management and settlement

- Client and regulatory reporting, collateral management and asset services are among the most important processes for firms to outsource

- Cost reduction and improving agility of the organization ranked as the top decision factors for financial firms when considering outsourcing

- 100% of survey respondents were either interested to learn more about outsourcing, currently outsourced services, or were at least considering it an option; 0% were skeptical of outsourcing as a practice for financial services

- When selecting an outsourcing partner, the most critical criteria were robust operations and risk management practices, and information security standards; relevant experience of domain was also highly ranked

“Firms throughout the financial services industry are looking for new ways to lower operating costs,” said Rodney Nelsestuen, Senior Research Director at TowerGroup, a Corporate Executive Board company. “More institutions are pursuing outsourcing since it can reduce their operating rate, but also allows them to focus internal energy on creating the agility and flexibility needed to compete successfully in a volatile marketplace.”

“As global economic conditions continue to plague the financial services industry, many organizations are increasingly considering outsourcing as an important part of their business strategy,” said Alberto Corvo, Managing Principal, Financial Services, eClerx. “Our clients are always looking for ways to manage their regulatory risk and to keep up with the fast-paced market.”

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