Enabling Usage-Based IT Costing in the Banking Sector

As economic conditions result in increased exposure to market volatility and margin erosion, banks are looking to exchange fixed IT cost for variable IT cost structures. This has driven a change of internal mindset towards an increased acceptance of outsourcing to achieve IT cost optimisation. This paper examines findings from two industry case studies in outsourcing on cost, risk and technology costing, both from the viewpoints of the bank and the technology provider.