A tech consultancy head says while banking and financial services won’t be immune to the recession, nearshore outsourcing will protect businesses from further economic damage
LONDON: The UK head of a global technology consulting firm to leading banks says the UK’s financial services sector won’t be immune to the recession but nearshore outsourcing will “soften the blow”.
Martin Hartley, Managing Director of emagine, a management and technology consulting firm to the global banking and financial services sector, said the looming recession will be “sharp but short” but may still cause “severe damage” if firms are not prepared for such an event.
With interest and borrowing rates rising, following a series of mass U-turns by the government, financial services firms are at risk of reduced spending and investment – a domino effect likely to impact the sector’s ability to keep up with consumer demands and trickle down to consumers.
Hartley, whose clients include HSBC, Credit Suisse, Bank of America, and other tier 1 investment banks in need of digital and tech solutions, said:
“Firms will be increasingly looking at ways to streamline processes in a time- and cost-efficient way to ensure strategies can continue on as business as usual.
“Banking and finance won’t be immune to the recession – who is? – so, an agile approach needs to be taken to soften the blow, protect businesses from further damage, and most importantly, for the survival of the economy.”
Nearshore outsourcing services, the implementation of services in a neighbouring country, involves careful strategic planning, management and integration, and strict protocols to ensure the levels of security and safety required by the finance sector.
It offers the speed, agility, and flexibility needed to deliver mass projects on a global scale, Hartley explained, which would be a “near impossible task domestically”.
He said: “Imagine trying to skill up and secure and deploy a team of 35-40 in London within one month? The cost, timings, and sourcing would make for a logistical nightmare, not to mention the process of finding such elite and specialist experts within a limited talent pool.
“Nearshoring to a place such as Poland, where the high-quality and calibre of work is possible thanks to incredibly high levels of education, unrivalled English-speaking skills, and a good culture-fit, feeds into the high standards and expectations of the UK’s finance sector.
“The banking and finance sector is increasingly depending on technology, consulting, and nearshore services, and it’s only going to get bigger. It complements UK operations perfectly and will enable an uptick in niche disciplines which will serve to enrich the sector in the long term and avoid the severe damage the recession is predicted to cause.”