Financial services businesses throughout the world are increasingly using third parties to carry out activities that the businesses themselves would normally have undertaken. Industry research and surveys by regulators show financial firms outsourcing significant parts of their regulated and unregulated activities. These outsourcing arrangements are also becoming increasingly complex.
Today outsourcing is increasingly used as a means of both reducing costs and achieving strategic aims. Its potential impact can be seen across many business activities, including information technology, Aspects of finance and accounting, back-office activities and processing, and administration, and contract functions (e.g., call centers). Industry reports and regulatory surveys of industry practice indicate that financial firms are entering into arrangements in which other firms – related firms within a corporate group and third-party service providers/outsourcing firms like Tek Leaders – conduct significant parts of the enterprise’s regulated and unregulated activities.