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*This webinar is offered for informational purposes only, and the content should not be construed as legal advice on any matter.
Procurement in Financial Services: Trends and issues for 2013
Technology and Sourcing webinar series 2013
Wednesday 27 February 2013
WELCOME
CALL IN NUMBERS:UK Standard International: +44 (0) 208 118 4396Conference Code: 706 380 941
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Welcome
You are on mute
We cannot take questions as we go, but there will be time at the end of the session
Duncan PithousePartner, DLA Piper This is webinar 1 in the Technology and Sourcing 2013 webinar
series.
Future webinars:
Effective Contracting for Agile - Thursday 21 March 16.30 - 17.15 GMT
IP Protection in China: the legal and practical challenges for Inbound and Outbound work in the PRC - Wednesday 24 April 16.30 - 17.15 GMT
To attend any of the above webinars please email
Scott ThielForeign Legal Consultant,DLA Piper
February 2013Procurement in Financial Services: Trends and issues for 2013
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Speakers
Duncan PithousePartnerLondon
Scott ThielForeign Legal ConsultantHong Kong
Duncan is a partner in the London Technology Sourcing & Commercial group. He works with clients on a wide manner of IT and business process sourcing matters, across sectors such as financial services, insurance, manufacturing and hospitality.
Duncan can be reached at [email protected] or on +44(0)20 7153 7264
Scott is the location head of the Intellectual Property and Technology team in Hong Kong. Scott specialises in the areas of outsourcing and complex technology transactions, advising both users and suppliers of IT, outsourcing services and in relation to all aspects of the procurement process.
Scott can be reached at [email protected] or on +852 2103 0519
February 2013Procurement in Financial Services: Trends and issues for 2013
Agenda
1) Impact of regulations
2) Big data
3) Bank to bank services
4) "Value chain"
5) Evolution in outsourcing strategy
6) Diversification in service delivery locations
7) Maturing cloud solutions
4February 2013Procurement in Financial Services: Trends and issues for 2013
Impact of Regulations
5February 2013Procurement in Financial Services: Trends and issues for 2013
Impact of Regulations
Significant regulatory impact across the sector over the next 12 to 24 months.
Ring-fencing and RRPs in the UK
Ring-fencing in Europe
To be taken very seriously!
UK proposals indicate a wide ranging impact on sourcing agreements
These include: separation of banking functions = separation of service delivery?
divisible contracts
impacts on specific contract terms
6February 2013Procurement in Financial Services: Trends and issues for 2013
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Increased Regulation in Asia
Regulation on outsourcing – ensure global outsourcing policies are up to date and compliant
Sector driven initiatives focussed on ensuring that party supplier arrangements support business continuity objectives and customer protection
Data privacy regimes across the world becoming more stringent, increasingly cross-border issues add odds with some protectionist regulations
February 2013Procurement in Financial Services: Trends and issues for 2013
Big Data
8February 2013Procurement in Financial Services: Trends and issues for 2013
Big Data
What is "Big Data"? greater volume?
new types of data and analysis?
new requirements for real-time analytics?
Volume + velocity + variety
Benefits for banks: risk management / fraud detection
targeting
customer experience
9February 2013Procurement in Financial Services: Trends and issues for 2013
Big Data
Challenges: ROI analysis
system readiness
system integration
data usage
10February 2013Procurement in Financial Services: Trends and issues for 2013
Bank to Bank Services
11February 2013Procurement in Financial Services: Trends and issues for 2013
Bank to Bank Services
Historically / currently limited to portfolio administration
Banks beginning to: appreciate potential commercial value of their IP
see their own support functions as potential service providers
Requires interesting mind-shift for service provider bank acting as service provider
meeting customer requirements
liability
independence
12February 2013Procurement in Financial Services: Trends and issues for 2013
Bank to Bank Services
Potentially solves a few problems, e.g. track-record
quality
compliance with laws / regulations
Could also address ring fencing / RRPs?
Makes procurements shorter / easier?
13February 2013Procurement in Financial Services: Trends and issues for 2013
Value Chain
14February 2013Procurement in Financial Services: Trends and issues for 2013
Value Chain
A different question: what are the key drivers behind outsourcing in 2013? regulatory impact;
portfolio rationalisation / simplification;
cost savings;
flexible access to skills and resource.
The usual suspects: infrastructure, AD / AM, F&A, FM, contact centres, HRO etc.
Movement up the "value chain", and increased proximity of the outsourced activity to the customer's customers.
Functions such as knowledge process outsourcing, regulatory compliance, front office
15February 2013Procurement in Financial Services: Trends and issues for 2013
Value Chain
What does this mean for the contract terms? a greater level of prescription on the "how"
revised thinking on liability
redoubled focus on confidentiality / data security
different service levels
consideration of impact on the customer's customers
16February 2013Procurement in Financial Services: Trends and issues for 2013
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Evolution of Outsourcing Strategy
February 2013Procurement in Financial Services: Trends and issues for 2013
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Evolution of Outsourcing Strategy
Shift from cost-saving to added value as key driver
Recognition that outsourcing of business processes will be the key to remaining competitive and maximizing profitability
Widening of realistic options – offshore, domestic, nearshore
Increasing competition => banks are investing in providers that will improve customer experience and attract / retain business
Quality of service paramount – emphasis on service levels, amounts "at risk" and disaster recovery
February 2013Procurement in Financial Services: Trends and issues for 2013
Diversification in Service delivery Locations
19February 2013Procurement in Financial Services: Trends and issues for 2013
Diversification in Service delivery Locations
Diversification away from the China and
India as preferred suppliers
Still growth but slowing down Increasing salaries More important than ever for customers to exercise due
diligence on potential vendors
Increasing preference for: Philippines Malaysia Domestic / nearshoring (especially with political pressure)
20February 2013Procurement in Financial Services: Trends and issues for 2013
Maturing Cloud Solutions
21February 2013Procurement in Financial Services: Trends and issues for 2013
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Maturing Cloud Solutions
The strategic potential of Cloud will take on even greater importance throughout 2013:
Cloud providers – following high profile crashes, regulation and customer requirements are expected to drive enhancements in business continuity and disaster recovery
Could based "Disaster Recovery As A Service"
Cloud subscription models including pay as you grow” approach to allow companies to pay only for the capacity they need, when they need it
Integration challenge of multi vendor cloud/traditional solution providers
February 2013Procurement in Financial Services: Trends and issues for 2013
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THANK YOU
Webinar Series 2013Procurement in Financial Services: Trends and issues for 2013
Duncan Pithouse, Partner, Technology & Sourcing Group - London
Scott Thiel, Foreign Legal Consultant, Technology & Sourcing Group – Hong Kong
