How do you know when it's time to outsource your ATMs?

From ATM Marketplace –

“There are something like 6,800 FDIC-insured banking institutions in the U.S., and every one of them has a reason to consider outsourcing some — or all — of their ATM operations. And that reason is cost.

Easiest to calculate is the cost related to fleet operation. An often-cited study by Dove Capital Partners estimated that a large bank could save almost 20 percent on its direct costs per month per ATM by outsourcing to a third-party managed services provider. This does not include additional savings on items such as contract administration, power and communications.

There are also the harder-to-quantify but no less real costs of opportunity lost because resources that might have been better used to build profits were, instead, devoted to the cost center of ATM operation, maintenance and management.”

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Outsourcing: It’s Not About What But Who

From Bank Director -

Finding the right outsourcing firm is critical for the success of your financial institution.

Mortgage Outsourcing

From Bank Director

Mike Baker of Sutherland Global Services outlines how banks can outsource their mortgage lending processing without negatively impacting the customer's experience.

Making Outsourcing Work for Your Bank

From Bank Director

Beth Merle of Sutherland Global Services provides insight into which services can be outsourced.

Some Re-Assembly Required

From Deloitte CIO Journal

“Business decisions do not occur in isolation; and, with today's technological advancements, business services systems and solutions don't necessarily depend on local applications, local processing power, or local storage anymore. Location simply doesn't matter as much as it used to from a cost-benefit perspective. With this in mind, many companies are realizing that operational choices that once made sense may now seem obsolete, and they are rethinking their outsourcing and offshoring strategies. A more integrated approach to your company's business processes may unlock significant value. Now is the time to evaluate whether your company should consider an operational shift in its global business services architecture.”

Banks Need Industry Standards for Managing Vendors

From American Banker

“Banking regulators have increased their attention of third-party service providers and debt collectors as they seek to prevent consumers from unfair, deceptive and abusive conduct. Already, they have levied hefty fines on financial institutions for violations by such third parties.

Recent scrutiny of collections litigation, for instance, finds banks can outsource certain functions, but not compliance accountability. Both the bank and the vendors need to ensure payments are processed in a timely manner, bank and vendor systems are synchronized to reflect true account activity and collection attorneys are compliant with continuously changing state and federal laws.”

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The End of Indian IT Staffing as We Know It

“India's IT outsourcers are promoting "mini CEOs" capable of running businesses on their own, while trimming down on the hordes of entry-level computer coders they normally hire as they try to squeeze more profits out of their staff.’

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