2020 Foresight Report: Best Practices in Card Outsourcing


#168635

74pages

Timetric

$ 3800

In Stock

Synopsis

This report provides detailed insights into the following topics:

  • Card outsourcing models
  • Key offshore outsourcing locations
  • Emerging trends
  • Best practices in vendor management
  • Best practices in outsourcing of key business operations related to the card industry

Executive summary

Cards make up one of the most outsourced business operations in the financial services sector. Indeed, a large numbers of banks and card issuers have either outsourced specific functions or their entire their card operations. The primary factors driving such practice have been largely similar to those recorded in the outsourcing sector in general, and include cost reduction, gaining a comparative advantage, access to cheap/skilled labor, a lack of in-house expertise and risk management advantages. 

Card outsourcing is fast-moving towards the adoption of cloud technology and onshore and nearshore models, driven primarily by cost advantage and government initiatives such as tax benefits. In addition, there is an increased focus on value added services such as behavior analysis and fraud prevention schemes.

Scope

  • This report provides a comprehensive analysis of the key outsourcing activities in the card industry across the globe
  • It provides insights on various outsourcing models used by card issuers and their risk exposures
  • It provides analysis on the attractiveness and level of various card outsourcing activities in key offshore locations
  • It outlines the emerging trends in card outsourcing
  • It details the key best practices in vendor management with case examples
  • It explains the potential scope of outsourcing of key business operations associated with cards along with best practice case examples

Key highlights

  • Cards make up one of the most outsourced business operations in the financial services sector. A large numbers of banks and card issuers have either outsourced specific functions or their entire their card operations.
  • The primary factors driving card outsourcing have been largely similar to those recorded in the outsourcing sector in general, and include cost reduction, gaining a comparative advantage, access to cheap/skilled labor, a lack of in-house expertise and risk management advantages.
  • Card outsourcing is fast-moving towards the adoption of cloud technology and onshore and nearshore models, driven primarily by cost advantage and government initiatives such as tax benefits respectively. In addition, there is an increased focus on value added services such as behavior analysis and fraud prevention schemes.
  • Card issuers remain responsible for their business actions, even though the vendor is given the authority to act on their behalf. Outsourced operations must be monitored closely to ensure adherence to a contractual agreement.
  • One of the best ways of judging the perceived quality of performance is communicating with those firms already doing business with the vendor. Card issuers can also engage in market research and take advice from professional advisors.

Reasons to buy

  • Make card outsourcing work for you
  • Learn from best practice and read case studies
  • Find out the key risks and challenges beforehand and select a model to minimize them
  • Gain insight into the current developments in card outsourcing
  • Gain insight into key drivers of card outsourcing to check if your organization fits in the picture