From the McKinsey Quarterly, a "Web exclusive, January 2006" titled:
Rethinking wholesale-banking operations (registration required)

The main ideas:
Since "no more than 10 to 15 percent of all back-office activities" support specific product lines, banks should create shared services organizations and "centers of excellence." They should also move support staff away from "high cost metropolitan locations such as New York and London." At the same time, McK also advises that "the front and back offices work together earlier in the product-development cycle — even during the initial design phase."

The footnote:

This article was adapted from the original version, published in McKinsey on IT, Number 2, Spring 2004.

If the fabled McKinsey & Co. can repurpose content from Spring '04, then so can Bank Systems & Technology! Here's the cover story and related features on outsourcing from the two-year-old-but-still-relevant March '04 issue:

Pump Up The Volume ICICI Bank achieves exponential growth at fractional cost.

Patriots: Will the Winning Streak Continue?
The JPMorgan Chase-Bank One merger has become a bellwether for IT outsourcing.

TransAtlantic Farms Out Check Images
Miami bank's courier costs melt like a snowball in South Beach

United States' Secret Weapon Revealed!
Offshore outsourcing can help banks in global competition, if they dare to use it.

CMM for Everyone
Banks should scale the CMM curve, especially when outsourcing IT.

I hope you find something of value for you in our "BS&T Classic" collection. Enjoy!

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