Taiwan's financial services companies were told at a recent forum to consider outsourcing as the sector faces greater consolidation and competition. Egbert Chan, IBM financial service senior service executive for Hong Kong and Taiwan, said banks should consider outsourcing non-core operations as a way to transform their business. Singapore-based DBS Bank has reduced its IT budget by 20 percent since outsourcing those functions to IBM in 2002, according to DBS Bank IT director Francis Ng. He said the financial services industry has become much more complex and competitive, and that outsourcing tasks such as IT management, supplies procurement, and call centre operations was the most effective way to reduce costs. IBM Business Consulting Services financial services partner Kim Gun-woo said Kookmin Bank in South Korea tapped IBM to help it streamline processes, customer data, and IT product design after completing a series of mergers in 2001. Recently, Bowa Bank in Taiwan became the first local financial institution to sign a major IT outsourcing deal, giving IT management over to IBM under a seven-year contract. Bowa Bank expects 25 percent cost savings. "Taiwanese banks have realised the importance of providing one-stop service by establishing holding companies, like the banking industry in other countries, and I believe they will further adopt the outsourcing model as others did," said IBM Business Consulting Services manager Jason Chen. Copyright 2004 INFORMATION, INC. |
