Keeping up with the digital transformation of the financial industry can be difficult without the right talent and resources on your team. With a trustworthy outsourcing partner, however, staying ahead and maintaining a competitive edge are much simpler to accomplish.
Outsourcing – the practice of utilizing staff and resources from a third-party provider – comes with many essential benefits for financial institutions. Understanding these benefits and finding the best outsourcing partner is the key to boosting cost-effectiveness, productivity, and profitability.
In this article, I will shed light on what outsourcing looks like for financial providers and cover 3 of the main benefits to consider. Keep reading to learn about how our teams at CPQi can help you achieve optimal financial services outsourcing!
What is Outsourcing for Financial Institutions?
When it comes to defining outsourcing, there are two main categories:
- Outsourcing staff
- Outsourcing resources
Outsourcing staff is the practice of delegating essential tasks and actions to third-party service providers, rather than in-house staff. This can include everything from customer service to project management. When you outsource staff, you eliminate the need to search for and onboard permanent talent for your team.
By comparison, outsourcing resources is the practice of utilizing technology and other digital products and services owned by a third party. Rather than investing your institution’s capital into such technologies, outsourcing allows for these resources to be used as needed without having to spend thousands on new onsite equipment.
For financial institutions, outsourcing can take many forms. A few popular use cases include:
- Managed Services: When a financial institution introduces new technology into its infrastructure, managed services are employed to help maintain these digital systems and networks. Managed services sometimes employ both talent and physical resources to ensure the technology stays up to date and operating smoothly.
- Platform Implementations: Digital financial platforms are growing in popularity – but for these platforms to be effective, financial institutions need a partner that is highly experienced in the implementation of such platforms. Third-party platform partners can help not only implement new tools, but also integrate legacy systems and build custom software designed specifically for each institution.
- Cloud Migrations: The cloud is an integral enabler for financial services – but cloud computing can quickly become confusing without the right experts on your team. As such, outsourcing is highly utilized for cloud migrations and other cloud-related services.
The Benefits of Outsourcing Financial Resources and Staff
Though there is much to be gained from outsourcing for financial services, there are 3 key benefits that made it immediately advantageous:
1. Boosted Cost Efficiency and Productivity
When your institution has to invest money into permanent new staff and technological resources, costs can run up quickly.
With outsourcing, however, financial institutions can avoid costly up-front investments. Rather than having to commit both large amounts of time and money to digital objectives, outsourcing allows for more time spent focused on your own customers with services that stay within budget.
In turn, not only is an institution’s cost efficiency boosted but its overall productivity as well. Outsourcing enables your already busy staff to focus more on innovation and customers, instead of learning how to operate new technology.
2. Greater Access to Specialized Talent
Although the financial industry continues to expand into the digital space, the pool of talent for institutions to recruit from only seems to shrink.
As a result, institutions that try to onboard full-time staff find themselves competing with other financial businesses for the same people. This leads to staff shortages and frustration on behalf of existing team members, who sometimes need support to handle increasingly large and complex workloads.
Outsourcing provides institutions with the opportunity to access specialized financial talent that is pre-curated by a third-party company. Not only can this alleviate stress from the backs of your team, but it can help cut costs further by reducing the need for onboarding, hiring, and training new employees.
3. On-Demand Advanced Technologies
Depending on where your financial institution is at in its digital journey, introducing technologies such as cloud computing and digital platforms can be not only costly but extraordinarily complex as well.
With the right outsourcing partner, these technologies are available to you when you need them. Plus, there is no need to invest extra time or money into the implementation of such technologies – your outsourcing partner will work with you to create a solution that is made for your needs specifically.
When employed correctly, these advanced technologies can increase your institution’s speed, scalability, and flexibility.
Final Thoughts: How CPQi Optimizes Outsourcing for Your Institution
Here at CPQi, we offer a variety of services to help empower financial institutions to stay ahead of the digital curve.
Our staff and resource augmentation solutions provide you with the talent and teams you need to optimize your business model. Additionally, each member of our staff is regularly trained in the nuances of both technology and finance – ensuring you always have experts giving you advice and carrying out your chosen solutions.
CPQi’s outsourcing utilizes split-site and nearshore offices to provide you with team members and services that work within your timezone.
For more than 15 years, our skilled leadership and technology teams have been transforming financial institutions for the better. Contact us today to learn more about what our custom outsourcing solutions can do for you.
Written by Mauro Mambretti, CSO of Latin America at CPQi