More Than Simple Cost Conservation
IT support in Houston is becoming increasingly characterized by outsourced solutions and there’s a good reason for that. Especially when it comes to banking institutions, literally millions can be saved annually through properly applied and outsourced tech support. There are several reasons why, including:
- More cost-effective regulatory compliance
- Cybercrime reduction
- Expense management and specialized knowledge
Around $270 billion annually, or roughly 10% of a given banking institution’s revenue, is lost due to compliance issues. It’s hard to keep on top of such technological legal requirements— they’re in continual flux. The year 2008 saw a banking meltdown that resulted in a worldwide recession. Certainly, more legal red-tape won’t prevent underhanded operational tactics from facilitating the same kind of recession in the future, but that doesn’t mean people won’t try by creating such regulations. Certainly, some are there for the protection of clientele, business, and country. But some have a more political nature, and either way you slice it, being found out of compliance is expensive. Additionally, there are those who are always looking to discover businesses that aren’t properly compliant, because penalizing them can be lucrative.
With an outsourced solution, a sort of shared liability occurs. This is easy to illustrate through HIPAA, which is a group ensuring medical institutions remain in compliance. If a healthcare facility is found out of compliance, they get fined, and so does the MSP organization providing them tech support. The same is true with many compliance issues in the banking world, giving MSPs an inbuilt prerogative to ensure all operations are in full compliance.
IT support in Houston can substantially curtail operational costs related to cybercrime losses. The Ponemon Institute reported that the average losses in 2016 from cybercrime related to the financial services industry were higher than any other industry at $16.5 million. It makes a lot of sense to outsource security if it’s possible to recoup even a fraction of that $16,500,000.
Expense Management and Specialized Knowledge
It turns out there’s a long history of outsourced tech solutions in the banking industry. A great example is BPO or Business Process Outsourcing. In the early 90s, banks began using BPO as a means of defraying the cost and obtaining industry expertise which didn’t require internal training or employment solutions. Amex started doing this back in the early 90s and they certainly aren’t the only organization to do so. As a matter of fact, it is expected that outsourcing will increase in popularity in the future precisely because it is so effective.
If you’re using an in-house approach to management of your technological solutions— like business processing, cybercrime, and regulatory compliance— you’re definitely going to have more control. But this comes at the expense of opportunity cost through decreased success. Why? Time-to-market increases and management has to focus on sustaining operations rather than developing innovation— outsourcing solves these problems.
A Reliable IT Banking Solution
IT support in Houston through ICS is designed to help diminish the cost of operations by leveraging specialized knowledge and cutting-edge innovation against a continuously fluctuating tech environment. We can decrease cybercrime and compliance losses while increasing internal developmental advances— all more cost-effectively than internal solutions. Contact us to find out more.