About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Keeping a Team Onshore to Monitor Data Quality is Key, Agrees Offshoring and Outsourcing Panel

Subscribe to our newsletter

Institutions should keep a small team of data experts on board in order to adequately monitor that service level agreements are being met by outsourcing providers and data requirements are being catered to by offshore teams, agreed FIMA 2008’s panel on offshoring and outsourcing.

Susan Outzen, business relationship manager in the enterprise data management (EDM) division at HSBC, talked about her previous experience at UBS, where the bank kept a small team onshore to deal with high risk data while they outsourced the low risk data. “It was good to have that expertise remaining in-house to monitor what was going on and reacting to any problems that the outsourced unit experienced,” she explained. HSBC has decided to take the offshoring approach to deal with capacity issues and increase their data capacity across the organisation, Outzen continued. “It was not primarily driven by cost savings because these were only around 25-30%,” she said.

Predrag Dizdarevic, president of KonsultLab and chair of the panel, recommended finding a good onshore team to control the outsourcing or offshoring relationship. Jean Pierre Gottdiener, independent consultant, seconded this notion and urged firms to hire an “available and aware” team. “The staff needs to be aware of the issues that may crop up and the service level agreement must be very clear,” he added.

Dizdarevic listed some of the potential pitfalls within outsourcing agreements for the delegation and these included issues such as liability when a vendor makes a mistake, complications in the internal delivery of data and meeting certain legal requirements. He said that pricing could also be an issue: “Don’t expect these vendors to offer a commoditised price because this business is in the early stages of development and they are likely to charge higher one off project rates.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Navigating a Complex World: Best Data Practices in Sanctions Screening

As rising geopolitical uncertainty prompts an intensification in the complexity and volume of global economic and financial sanctions, banks and financial institutions are faced with a daunting set of new compliance challenges. The risk of inadvertently engaging with sanctioned securities has never been higher and the penalties for doing so are harsh. Traditional sanctions screening...

BLOG

Reconciliation and the Silent Revolution Reshaping Financial Operations

By Sarva Srinivasan, head of global strategy and managing director at NeoXam, Americas. In most financial institutions, reconciliation has traditionally lived quietly in the background. It is often viewed as a necessary control process that ensures transactions, positions and balances match across systems and counterparties. Important, yes, but rarely considered fundamental to the business. But...

EVENT

Eagle Alpha Alternative Data Conference, London, hosted by A-Team Group

Now in its 8th year, the Eagle Alpha Alternative Data Conference managed by A-Team Group, is the premier content forum and networking event for investment firms and hedge funds.

GUIDE

Regulatory Data Handbook 2019/2020 – Seventh Edition

Welcome to A-Team Group’s best read handbook, the Regulatory Data Handbook, which is now in its seventh edition and continues to grow in terms of the number of regulations covered, the detail of each regulation and the impact that all the rules and regulations will have on data and data management at your institution. This...