The post 2008 regulatory landscape and the significant change in return on equity performance, means that IT operations will need to significantly reduce cost. It is no longer sufficient just to focus on identifying what work can be sent to offshore locations and what work needs to be performed at headquarters.
In today’s world, cost savings need to be found on more complex systems where outsourcing to non-time-zone aligned locales may have previously been ruled out. A multi-level strategy of leveraging local staff, offshore staff and nearshore staff is critical if IT leadership is going to be able to continue to satisfy the constant yearly requirement to cut budgets without cutting service levels to the business. The introduction (some would argue re-introduction) of lower cost, time-zone aligned nearshore technical development centres into the equation has opened up opportunities that have not been there for large and medium-sized financial institutions.