Outsourcing and IT Services in Financial Services Infrastructure Outsourcing (Review Report)

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1 A Datamonitor report Outsourcing and IT Services in Financial Services Infrastructure Outsourcing (Review Report) The growth areas in financial services infrastructure outsourcing to 2008 Published: Oct-06 Product Code: DMTC1655 Providing you with: Coverage of infrastructure service areas such as desktop, network, data centers and security outsourcing across the financial services sector Individual market segment analysis, enduser insight and spend to 2008 Focus on the western European and North American financial services sectors, but provides global spending data Use this report to... Benefit from analysis of individual market opportunities

2 Outsourcing and IT Services in Financial Services Infrastructure Outsourcing (Review Report) DMTC1655 Introduction Infrastructure outsourcing is the most mature outsourcing market within the financial services sector to date, but significant opportunities continue to exist with interest levels remaining high. This report covers infrastructure service areas across the financial services sector. It provides individual market segment analysis, end-user insight and spend forecasts to This report offers a market overview going into detail around the most significant financial services growth opportunities in the infrastructure services space. Backed by large scale end user research and data, Datamonitor highlights sector trends and how this affects the market. The report also includes a case study of ABN AMRO's sourcing strategy. Finally a global data set of infrastructure services spending in the retail banking, insurance and financial markets has been included. Key findings and highlights Infrastructure outsourcing opportunities in Western European and North American financial services (Market Focus) ABN AMRO: a turn-around story (Strategy Focus) End-user trends in financial services outsourcing (Customer Focus) and Infrastructure Outsourcing in Financial Services (Databook) Reasons to buy Benefit from analysis of individual market opportunities Understand financial services institutions plans relating to infrastructure outsourcing and investment Learn from case studies of the leading users of advanced sourcing strategies Contact us...

3 Sample pages from the report Outsourcing & IT Services in Financial Services Infrastructure outsourcing Figure 24: Desktop outsourcing revenues and growth prospects by biggest 10 countries 12% 10% CAGR % 6% 4% 2% Spain Australia Canada United Kingdom France Italy Netherlands Germany Japan United States Outsourcing & IT Services in Financial Services Infrastructure outsourcing 0% Market size 2005, $m Figure 20: Infrastructure outsourcing by region, 2006, $m Source: Datamonitor D A T A M O N I T O R Table 17: Desktop outsourcing revenues and growth prospects by country, $m North America 43% Country Argentina Australia Austria Belgium Brazil Canada Chile China Colombia Czech Republic Middle 55 East/Africa 58 Denmark Finland % Latin America France % Germany Source: Datamonitor Greece Gulf States Table 13: Infrastructure outsourcing by region, 2006, $m Asia Pacific 19% Asia Pacific Europe Latin America Outsourcing Middle & East/Africa IT Services in Financial Services Infrastructure outsourcing North America Europe 29% Figure 16: The financial services infrastructure outsourcing D A T A M O N I T O R Maintenance/Support/ /Break fix Outsourcing & IT Services in Financial Services Infrastructure outsourcing DMTC1655/ Published 10/2006 Network management Region Page Datamonitor. This brief is a licensed product and is not to be photocopied 49 3,368 Asia Pacific 3,741 4,209 4,787 5,489 6,298 Mainframe/servers 7,240 8,744 9,418 Europe 6,438 6,759 7,148 7,608 8,143 Latin America ,093 1,331 1,616 1,940 2,311 Currently outsource Currently offshore outsource Highly consider outsourcing Middle East/Africa ,026 1,178 Security and Privacy North America 9,406 10,075 10,793 11,557 12,360 13,187 14,029 Total 20,471 22,059 23,914 26,056 28,500 31,195 34,174 Storage Source: Datamonitor D A T A M O N I T O R 0% 5% 10% 15% 20% 25% 30% 35% Proportion of respondents Source: Datamonitor D A T A M O N I T O R Outsourcing & IT Services in Financial Services Infrastructure outsourcing As indicated in DMTC1655/ Figure 7, the Published use of infrastructure 10/2006 amongst the financial services institutions continues to increase, although respondents indicated that they are still cautious about outsourcing their infrastructure-related services Datamonitor. This brief is a licensed product and is not to be photocopied Page 44 offshore. Maintenance/Support/Break fix tend to be the most offshore outsourced service, with 15.2% of respondents specifying that they currently outsource this function offshore, whilst Network management is claimed to be the least offshore outsourced type of service, with only 8.6% of respondents currently offshore outsourcing this function offshore. Maintenance/Support/Break fix is the most outsourced area, where a third of respondents said that they outsourced these types of services to third parties. Security and Privacy and Storage are the least outsourced elements of infrastructure services, with only 22.6 % and 22.2% of respondents respectively saying that they currently outsource these areas of their infrastructure. Outsourcing & IT Services in Financial Services Infrastructure outsourcing DMTC1655/ Published 10/2006 Datamonitor. This brief is a licensed product and is not to be photocopied Page 38 Request more sample pages...for FREE!

4 Outsourcing and IT Services in Financial Services Infrastructure Outsourcing (Review Report) DMTC1655 Table of contents DATAMONITOR VIEW CATALYST SUMMARY METHODOLOGY EXECUTIVE SUMMARY Introduction Infrastructure outsourcing opportunities in Western European and North American financial services (Market Focus) ABN AMRO: a turn-around story (Strategy Focus) End-user trends in financial services outsourcing (Customer Focus) Infrastructure Outsourcing in Financial Services (Databook) Summary Despite relative maturity, infrastructure outsourcing in FS continues to grow The desktop services market is likely to experience a single digit growth - Desktop services are increasingly getting commoditized - The move to mobile working will drive the growth Networking and Communications growth will be driven by the move to IP - WAN solutions revenues have traditionally been greater than LAN solutions though the balance is changing - Mobility and IP convergence are part of a new wave of revenue growth Managed data center services will continue to see strong growth to Managed services are driving the growth in the market - Regulation drives the need to replicate data around the globe in the financial services industry - Storage services are growing as a result of growth in outsourcing - Space is at premium in data centers - Mainframe management services are back in favor Security managed services will be the fastest growing market ABN AMRO: A TURN-AROUND STORY (STRATEGY FOCUS) Summary Corporate restructuring: realigning the organization with the corporate strategy - Group shared services initiative aims to generate efficiencies across geographies and lines of business - Cost discipline is reaping significant benefits but at the group level profitability remained a concern in 2005 Can the wholesale business be key to both past problems and future growth? IT outsourcing: the enabler of corporate change - Key contract details of ABN AMRO's main outsourcing relationships - ABN AMRO's strategy and guiding principles for successful IT outsourcing Success of outsourcing focused IT strategy will be judged on bottom line impact! END-USER TRENDS IN FINANCIAL SERVICES OUTSOURCING (CUSTOMER FOCUS) Summary Outsourcing is a major enabler of change in the financial services sector - Outsourcing is intrinsic to meeting corporate objectives - "Variabilization" of costs and overall IT rationalization are the primary motivators for outsourcing Outsourcing is a major vendor opportunity despite high take-up levels - Increased outsourcing by current customers will fuel IT domains outsourcing market growth - Applications development is touted as the most outsourced area in the financial services sector - The use of infrastructure outsourcing in the financial services continues to increase Internal servicing remains the default situation with many FSIs apprehensive of outsourcing INFRASTRUCTURE OUTSOURCING IN FINANCIAL SERVICES (DATABOOK) What is this report about? Catalyst Methodology Definitions Infrastructure outsourcing in financial services Desktop Outsourcing Request more sample pages...for FREE!

5 Network & Communications Outsourcing Hosting and Managed Services Table 23: Hosting and Managed Services outsourcing revenues and growth prospects by country, $m APPENDIX TABLES Table 1: Infrastructure services spend in North America by BPO service area, $m Table 2: Infrastructure Services spend in Western Europe by BPO service area, $m Table 3: Network and communications services revenues in North America, $m Table 4: Network and communications services revenues in Western Europe, $m Table 5: Data center services spend in North America, $m Table 6: Data centers spend in Western Europe, $m Table 7: ABN AMRO has experienced far better profitability in the mid-market than in the massretail segment Table 8: The financial services main IT business objectives highly likely to be achieved through outsourcing Table 9: The financial services institutions infrastructure and applications outsourcing Table 10: The financial services overall outsourcing strategy by line of business Table 11: Global infrastructure outsourcing by service type, , $m Table 12: Infrastructure outsourcing by line of business, , $m Table 13: Infrastructure outsourcing by region, 2006, $m Table 14: Infrastructure outsourcing revenues and growth prospects by country, $m Table 15: Desktop outsourcing by lines of business, , $m Table 16: Desktop outsourcing by region, 2006, $m Table 17: Desktop outsourcing revenues and growth prospects by country, $m Table 18: Network & Communications outsourcing by lines of business, , $m Table 19: Network & Communications outsourcing by region, 2006, $m Table 20: Network & Communications outsourcing revenues and growth prospects by country, $m Table 21: Hosting and Managed Services outsourcing by lines of business, , $m Table 22: Hosting and Managed Services outsourcing by region, 2006, $m FIGURES Figure 1: Financial services infrastructure outsourcing spending by market segment, Figure 2: Desktop services spend in North America and Western Europe, $m Figure 3: Network and communications services revenues in North America and Western Europe, $m Figure 4: Data center services North American and Western European revenues, $m Figure 5: The demand for security management services is growing Figure 6: Market capitalization (March 2006)- revenue (FY 2005) ratio Figure 7: ABN AMRO's new corporate structure Figure 8: ABN AMRO's operating result is still not as strong as it should be Figure 9: The group restructuring effort aligns business structure more closely with corporate strategy Figure 10: The financial services primary IT and business objectives / objectives highly likely to be achieved through outsourcing Figure 11: The financial services top five IT business objectives highly likely to be achieved through outsourcing, by line of business Figure 12: The main drivers for outsourcing in the financial services Figure 13: Infrastructure / applications domains currently outsourced Figure 14: The financial services infrastructure / applications outsourcing (at least one function) Figure 15: The financial services applications outsourcing Figure 16: The financial services infrastructure outsourcing Figure 17: The financial services overall outsourcing strategy Figure 18: Global infrastructure outsourcing by service type, , $m Figure 19: Infrastructure outsourcing by line of business, , $m Figure 20: Infrastructure outsourcing by region, 2006, $m Figure 21: Infrastructure outsourcing revenues and growth prospects by biggest 10 countries, $m Figure 22: Desktop outsourcing by lines of business, , $m Figure 23: Desktop outsourcing by region, 2006 Figure 24: Desktop outsourcing revenues and growth prospects by biggest 10 countries Contact us...

6 Outsourcing and IT Services in Financial Services Infrastructure Outsourcing (Review Report) DMTC1655 Figure 25: Network & Communications outsourcing by lines of business, , $m Figure 26: Network & Communications outsourcing by region, 2006 Figure 27: Network & Communications outsourcing revenues and growth prospects by biggest 10 countries Figure 28: Hosting and Managed Services outsourcing by lines of business, , $m Figure 29: Hosting and Managed Services outsourcing by region, 2006 Figure 30: Hosting and Managed Services outsourcing revenues and growth prospects by biggest 10 countries Request more sample pages...for FREE!

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8 Outsourcing & IT Services in Financial Services Infrastructure Outsourcing (Review Report) DMTC1655 Interested in this topic? Financial Services Outsourcing portfolio, launched in January 2003, analyzes infrastructure, application and BPO opportunities across the financial services industry. It examines the IT services market across both systems integration and professional services with a particular focus on outsourcing. Use this portfolio to understand the impact of business trends on IT strategies and IT spending trends, with resulting implications for vendor go-to-market strategies. Other reports available in this series BPO and Sourcing Trends in Retail Banking (Customer Focus) This brief looks at retail banking BPO spanning sector specific operations and horizontal functions, highlighting strategic development direction of individual market segments. The key drivers and barriers to outousrcing are also described. Published: Sep-06 Product code: DMTC1316 BPO and Sourcing Trends in Insurance (Customer Focus) This brief provides insurance end-user insight in terms of take-up, planned BPO and attitudes to BPO and offshore sourcing. Published: Sep-06 Product code: DMTC1653 Outsourcing and IT Services in Financial Services Model (Interactive Model) Forecasts and analysis of financial services outsourcing services Published: Jul-06 Product code: IMTC0016 BPO in European and North American Insurance (Market Focus) The insurance sector remains the most open FS sectors to BPO. The sector's use of BPO continues to expand with health insurance and life insurance process outsourcing generating the greatest vendor opportunity. Published: Apr-06 Product code: BFTC1300 Policy Administration BPO in UK L&P Analyzes market opportunity for business process outsourcing in UK life and pensions. Published: Dec-05 Product code: BFTC1161 For more information about our products visit Subscribe to Monitor A monthly update of Datamonitor's new products, delivered to you by . [email protected]

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