Moving a larger number of IT projects and cost structures to third-party providers has enabled financial services institutions (FSIs) to cull internal IT expenditures, primarily related to staff costs. In many cases, these cuts did not result in direct job losses but instead entailed the migration of IT employees from the FSI’s cost base to the vendor’s.
Based on TowerGroup research by Virginia Garcia, senior analyst, Financial Services Strategies & IT Investments practice. TowerGroup is a leading advisory research and consulting firm focused on the global financial services industry. E-mail: vgarcia@towergroup.com
