IT sourcing models in financial services need to evolve to meet the challenges of the current financial crisis. Complex and inflexible systems generate high costs and hinder business innovation. Outsourcing IT to a service integrator can provide a solution, allowing companies to focus on core competencies, escape complexity, and position IT for future success. IT spending in global financial services is expected to decline, with pressure on IT services and internal services expenditure. However, IT is problematic for many financial services companies due to its rigid, complex, and inflexible nature. The demand for flexibility in internal IT departments is increasing due to high market volatility, stricter regulation, and increased M&A activity.
