Outsourcing and its Profitability for the Swiss Financial Sector
Moser, Phil (2024)
2024
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024051311322
https://urn.fi/URN:NBN:fi:amk-2024051311322
Tiivistelmä
Outsourcing is a global trend that has become increasingly important due to the forces of globalization and technological developments. The practice of outsourcing specific business activities to achieve cost savings or other advantages and remain competitive is a phenomenon that transcends geographical and economic borders. This includes the Swiss financial market, which is well known for its profitability and stability.
The objective of this thesis is to identify the implications of this trend for the profitability of Swiss financial service providers. Furthermore, it aims to provide a generic strategy that financial institutions in Switzerland can follow to leverage the benefits of outsourcing.
In order to provide a more comprehensive understanding of the subject matter, the concept of outsourcing is initially discussed, followed by an examination of the associated theories and concepts, the various types of outsourcing, and the theoretical effects on profitability.
To corroborate the findings, interviews were conducted with Swiss financial institutions and peer-reviewed studies were consulted. The results demonstrate that outsourcing has a beneficial impact on the already high profitability of Swiss banks. Moreover, the effects are more pronounced in the case of smaller banks, while they are weaker in the case of larger banks.
Information technology outsourcing (ITO) can be regarded as an industry standard. This strategy has been demonstrated to enhance the profitability of most financial institutions that have been interviewed and thus represents a generic solution for many banks.
The objective of this thesis is to identify the implications of this trend for the profitability of Swiss financial service providers. Furthermore, it aims to provide a generic strategy that financial institutions in Switzerland can follow to leverage the benefits of outsourcing.
In order to provide a more comprehensive understanding of the subject matter, the concept of outsourcing is initially discussed, followed by an examination of the associated theories and concepts, the various types of outsourcing, and the theoretical effects on profitability.
To corroborate the findings, interviews were conducted with Swiss financial institutions and peer-reviewed studies were consulted. The results demonstrate that outsourcing has a beneficial impact on the already high profitability of Swiss banks. Moreover, the effects are more pronounced in the case of smaller banks, while they are weaker in the case of larger banks.
Information technology outsourcing (ITO) can be regarded as an industry standard. This strategy has been demonstrated to enhance the profitability of most financial institutions that have been interviewed and thus represents a generic solution for many banks.