Mr. Anderson as Managing Director of Trestle Group in Switzerland you have had the chance to work on some complex IT and business process outsourcing projects involving transformations of organizations and nearshore and offshore sourcing models.
With your experiences in the financial industry, could you please give us a short introduction on outsourcing of IT and business processes in this industry in the DACH countries?
ITO and BPO are at the same time very similar in how to approach them in terms of approach, control structures, setting measurable KPIs and the like, however they are very different animals in terms of content, players involved and general acceptance as to the depth of outsourcing that is accepted.
The financial services industry in the DACH region have a much longer history in sourcing larger portions of the IT value chain compared to BPO, where there has been reluctance to carve deeper into the value chain.
One trend we see with our clients is a growing willingness to move away from strict extended workbench (ITO) or body shopping (BPO) approaches and more to solutions or service oriented approaches. This is a paradigm shift for both supplier and the industry.
Having said that, given the fact that the financial services industry is relatively conservative, the majority of work is still done on a T&M basis for ITO and less aggressive, often headcount based, models for BPO – especially given the fact that many clients still feel more comfortable with a SSC model than pure outsourcing of their business processes.