In our recently published Supplier Landscape (for more information, see here) we highlight the need for Financial Services companies to reduce costs and accelerate the pace of change by using standard software and relying more on vendors as they transform their cost base and business model in the face of new demands from customers, new regulations and powerful new competitive forces. We returned to this issue recently in More FS Outsourcing as a result of announcements from Metro Bank and UBS.
Recognising this trend, and its importance in the retail and telecommunications sector as well, TCS has announced the formation of a Digital Software and Solutions Group to supply modular software solutions. This is a logical approach, echoing Accenture’s move to create its Digital division, see here.
When we met the TCS management last year we discussed the importance of building software that can be replicated across customers and the use of shared services to improve margins and overall returns. Financial Services customers should also enjoy lower TCO and reduced ongoing costs, particularly if they can discard bespoke legacy systems. TCS also highlighted the success of the Diligenta platform (which runs life and pensions admin operations for eight UK customers) and the success they have had with the BanCS platform in terms of efficient and cost-effective on-boarding of new customers.
Cost transformation and the opportunities for vendors created by the unprecedented pressure on infrastructure, services and in-house IT teams will be recurring themes for the TechMarketView FinancialServicesViews research stream. For more information about becoming a subscriber, please contact Deb Seth of our Client Services team.