IH vs. Outsource
If your financial institution is in the process of trying to determine whether to outsource your core or other functions, your vendor may not be the right source for the information you will need to make an informed decision.
You have received an outsourced proposal from your vendor of choice, but are having a difficult time interpreting the difference between that and what you pay today for your IH hardware and software. Let Remedy's team of experts help you in defining the technical, business, and financial issues that will help you make the decision on whether to move to an outsourced core, or to remain in-house. Our outsourcing analysis considers the following elements:
- Define the proposed configuration of the Outsourced Systems the Bank is considering.
- Review the Outsourced proposal to ensure that the correct elements are included.
- Build Proprietary Financial Models to show the difference in 5 year Total Cost of Ownership.
- Define the Potential Internal Cost Savings associated with the Outsourcing decision
- Define Cost Saving measures in the event that client moves to outsourcing
- Arrange vendor discussions to speak to proposal, and technical gaps based on the internal discussions.
And, in the event that the client opts to move to an outsourced system, Remedy has the expertise to help you negotiate market rates for those services.
With years of experience in analyzing the risk vs. reward of moving banks and credit unions from In-house to an environment hosted by your core provider, the Remedy team has realized that this is not an easy decision.
Most vendors do not have the experience running a financial institution to understand the many decision points faced by senior management, so consider getting a second opinion before making the decision.
What Are the Criteria?
Financial institutions need a rounded approach to decide if outsourcing (ASP) is the right choice: