Financial institutions cutting costs with managed services, says Sungard

26 May 2014   Category: News, Asia, Asia Pacific   By Derek Au

Financial institutions are integrating IT service offerings into their software tools to better control risks, manage costs and utilise resources more strategically, according to technology services provider Sungard.

The US company said that regulations, operating costs and back office requirements diverted resources from allowing financial institutions to fulfil core strategic initiatives, prompting firms to use software tools such as hosting, cloud and managed services.

Sungard said that multi-system environments and siloed infrastructures can slow innovation and hinder market strategies for new products and geographies. This can spur investment in trusted vendors for systems rationalisation and a reduction in total cost of ownership, in which cloud services play an important role, allowing firms to free up internal resources, the vendor claimed.

While more resources are being diverted to growing regulatory requirements, Sungard said, firms were considering handing both core and non-core operations to third-party managed services. As firms continue to outsource more operations, they can rationalise the number of strategic vendor partnerships to form a cohesive network of trusted partners, the company argued.

“Regardless of the size, type and location of a financial institution, many firms will underpin business strategies with managed services models to help address the complex and wide ranging challenges facing the industry,” commented Nasser Khodri, managing director, Asia-Pacific, Sungard.

“As a result, third party specialists need to offer the security, scalability, global expertise and local presence to help firms reduce complexity, enhance efficiency and focus on business objectives to drive profitability internationally and regionally.”