Codestone

Category: Support & Managed Services

A number of top banking organisations in the US are to invest in outsourced IT as they look to cope with shifting industry conditions.

Financial firms such as Citigroup, JP Morgan and Bank of America are set to spend nearly $5 billion (£3.1 billion) on outsourcing computing and back office projects to India this year, reports the Economic Times.

This trend is being driven by the introduction of new industry regulations and a wave of merger and integration activities following the economic downturn.

As such, many companies are looking to outsourced IT as a means of ensuring that the consolidation of software applications, data centres and trading platforms can be conducted without disrupting their clients' ability to access their money.

Amneet Singh, vice-president for global sourcing at Everest Group, said banks are therefore pursuing "more strategic and deeper partnerships" with their managed services providers.

Earlier this month, Everest published a report showing that the value of the worldwide outsourced IT market is on the rise due to the recovery of the global economy.

Posted by Shannon Wells