by Hilary Weatherstone, Director of Technology in Lloyds TSB Coporate Markets’ Corporate Asset Finance division
The trend more recently has been for corporates to move torward multiple specialist service providers.
Fuelled by two key developments in the past decade, the outsourcing industry has passed the point of critical mass. Firstly, customers have become increasingly educated about the best way to go about outsourcing their non-core functions. And secondly, this has given them the ability to choose the most appropriate outsourcing partner with much more success, as publicly available and anecdotal experience on outsourcing becomes more accessible.
Indeed, the market has witnessed successes in outsourcing and learnt from the disappointments of others. And as this market has matured, companies have increasingly moved to a model using multiple outsourcing partners who provide specialist services, rather than larger corporates who act as prime contractors. This shift has brought advantages and challenges – one of which is to ensure that the future investment necessary to fund the on-going technology requirements will be available and appropriately structured from both the outsourcer and its customer’s perspective.