by Fintech News Singapore June 6, 2024 In this era of technological innovation, companies are increasingly entrusting critical services to external partners. From handling operations to managing human resources and steering application development, the outsourcing landscape is undergoing a significant change. In the financial sector alone, the global outsourcing market is projected to reach a value of US$68.
8 billion by 2030. This growth is not just a result of increasing demand and shifting market dynamics, but a direct consequence of the transformative impact of advanced financial technology (fintech) on the sector. The rise of fintech has driven financial institutions (FIs) to re-evaluate and reform their operational models.
These institutions are seeing the need to sharpen their competitive edge and transform the delivery and management of financial services. “Banks are starting to realise that because they’re not as agile as fintech providers, they need to tap into the providers’ expertise for innovation,” says Dr Patrick Thng, Principal Lecturer of Information Systems at Singapore Management University (SMU) . However, the rapid growth and diversification of outsourcing did not come without its own set of challenges.
As FIs increasingly rely on outsourced services, the efficient management of these relationships becomes paramount. In the IEOM award-winning paper titled “Reimagining the Management of Outsourcing Life Cycles in the Fintech Era for Financial Serv.
