Despite the fact that some business areas are too risky to outsource, the financial services industry outsources IT applications development and maintenance to realize a higher return on IT investment and reduce the total cost of ownership. Access to a skilled IT workforce, through outsourcing, allows financial services firms to focus on core business areas and less on the technological aspects of the business.
A manager of information services from a insurance company comments:
“We are not an IT applications development company, we are an insurance company. So, the decision to outsource our IT applications was made to better utilize our skills in core business development and leave applications development to IT experts.”
