MANAGING YOUR OUTSOURCING VENDOR IN THE FINANCIAL SERVICES INDUSTRY

Financial services firms that outsource their IS functions enter a significant and deep relationship with their vendors. They depend upon the vendors' ability to deliver timely and efficient services, to provide platforms for delivering new and improved financial products, and to anticipate and prepare for marketplace and regulatory changes. The outsourcing relationship is one of mutual dependency and shared risks. The client must lead and manage that relationship because of its enormous impact on the client's business. Thus, to obtain the benefits of outsourcing and reduce its risks the client must make managing the relationship a key component of its business strategy and planning.