20 August 2017
Find out more

FS industry security concerns drive UK outsourcing market

04 August 2017  |  7727 views  |  0 Cloud plug

The financial services sector drove the UK outsourcing market to record levels in the first half of 2017, with big firms signing major IT contracts.

Of the £5.2 billion in outsourcing deals struck in the first six months of the year, £2.9 billion - 55%, - came in the FS industry, compared to just £428 million in H1 2016, according to the Arvato UK Outsourcing Index.

Much of this spending was on IT, with private sector contracts in this area worth £3.8 billion during the period. The FS industry was responsible for the vast majority of this, with security a major driving force as firms ramped up spending on network infrastructure, security architecture and cloud computing.

Lloyds Bank alone agreed a £1.3 billion, 10-year mega outsourcing deal with IBM in June which will see 1500 staff and contractors moved to Big Blue.

Patrick Quinn, CEO, Arvato Financial Solutions UK & Ireland, says: "Strengthening security and data protection are top of the agenda for the sector and businesses are increasingly turning to partners to deliver resilient infrastructure and architecture in the wake of high profile cyber-attacks and to prepare for the new data privacy legislation."

One outsourcing area that has emerged as a concern in recent days is the FS industry's reliance on Amazon Web Services. Citi, HSBC and JPMorgan are among the big banks to use AWS, prompting a discussion on the Hacker News forum about how a data centre could prove a tempting target for terrorists or hostile states.

"If you wanted to blow something up to make the west suffer, an AWS datacenter would probably be a pretty good target. I wonder at what point that becomes a legitimate national security concern, and the government steps in to provide protection," writes one contributor.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Lloyds Bank inks £1.3 billion IT outsourcing deal with IBM

Lloyds Bank inks £1.3 billion IT outsourcing deal with IBM

09 June 2017  |  12523 views  |  0 comments | 19 tweets | 31 linkedin
Lloyds plans to transfer over 1900 staff to IBM in £1.3 billion outsourcing deal

Lloyds plans to transfer over 1900 staff to IBM in £1.3 billion outsourcing deal

13 March 2017  |  11615 views  |  1 comments | 21 tweets | 25 linkedin
Amazon signs up tech firms to financial services cloud programme

Amazon signs up tech firms to financial services cloud programme

30 November 2016  |  8906 views  |  1 comments | 16 tweets | 17 linkedin
BBVA travels deeper into the cloud

BBVA travels deeper into the cloud

21 October 2016  |  10145 views  |  0 comments | 13 tweets | 16 linkedin
Deutsche Bank and HP ink multi-billion dollar IT outsourcing pact

Deutsche Bank and HP ink multi-billion dollar IT outsourcing pact

24 February 2015  |  6790 views  |  0 comments | 2 tweets | 2 linkedin

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.worldpaymentsreport.comvisit www.dorsum.eu

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
9805 views comments | 23 tweets | 23 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
8317 views comments | 19 tweets | 23 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
7885 views comments | 10 tweets | 7 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
7651 views 0 | 2 tweets | 1 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
7128 views comments | 15 tweets | 13 linkedin

Featured job

Find your next job