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Outsource or insource?

I have spoken to many vendors over the years about their business and how prospects are looking and I usually get the same response.They are always competing with inhouse developers. This despite a growing list of failed in-house developments and a increasing list of new developments needed to be compliant.

Equally I speak often to financial services firms about their development plans and they are often frustrated by in-house developments but also a lack of choice in vendor solutions. None of this makes sense to me.

I know of a huge number of great system solutions in the market but clearly they are not getting their message accross. At the same time I keep hearing about the huge investment that Financial Services firms will spending to meet regulatory inspired developments

What is the real problem with outsourcing? Is it a policy issue, a fear or risk or cost issue or may be about control?

Why is back office outsourcing still left in the eighties? Whyare the benefits offered by Cloud computing not getting the attention they deserve. What about SaaS, this is a great way to futureproof the business and make strides away from in-house development and processing?

The Post-Trade Forum debate hosted by the London Stock Exchange has attracted some top names in the business to debate the pros and cons of outsoucing and vote, if it is really a future solution for all types of FS firm.

All this and more will be debated in the next Post-Trade Forum where for once we will be putting direct questions and pushing for answers. Visit for more details.


Comments: (2)

A Finextra member
A Finextra member 21 July, 2011, 14:56Be the first to give this comment the thumbs up 0 likes

A piece of advice I was given in 1985 by an outsourceer was if the service you are considering to outsource went wrong, would it cause reputational damage?

If the answer is YES keep in-house, as compensation paid under contractual arrangements does not restore your reputation 

I think this is still a valid question and the answer has no changed

Gary Wright
Gary Wright 21 July, 2011, 16:25Be the first to give this comment the thumbs up 0 likes

Thanks Aiden

Yup that still olds true and will never change but today we have greater technology more knowladge and understanding that will reduce risks. It all comes down to does the benefit outway the risk and can the business better service the client with outsourcing. If so what? 

Gary Wright

Gary Wright


BISS Research

Member since

19 Sep 2007



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Post-Trade Forum

The Post Trade Forum's aim is to propagate debate and discussion between senior practitioners in Post Trade Operations in the global securities market; to bring about increased awareness and knowledge across both buy-side and sell-side financial institutions in financial products and be a focal point for firms and practitioners to air views.

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