Outsourcing in Small and Medium Banks

Tutorial

Overview:

Actually we notice a strong change in banking: The concept of the universal bank is abandoned. Especially for small banks it is necessary to specify their market position The self-image of popular banks changes to a sales organization.

Other processes are outsourced, like back office processes, transaction processes and IT services. But sometimes the outsourcing of information system (IS) services seems not to be an individually reasoned strategy but a risk avoiding reaction on general management strategies.

The objective of this workshop is a more complex understanding of the tasks in IS outsourcing processes and their needs under the conditions of small and medium banks. The following items will be discussed:

• reasons for (and reasons against) outsourcing


• different kinds of outsourcing (in the phases of plan / build / run / support)


• criteria of decision and selection


• aspects on the contracts


• cooperation between the bank and the service provider


• change management during the contract’s lifetime