SOURCE: Bradway Research LLC

October 06, 2009 08:30 ET

Mid Tier Banks Act to Raise the Competitive Bar and Prescribe the Future of Outsourcing

New Research Report Analyzes Ramifications of Vendor Selections

FRAMINGHAM, MA--(Marketwire - October 6, 2009) - Bradway Research LLC has published its analysis of two significant mid tier bank outsourcing selections. The two banks, with assets ranging between $2.5 billion and $6 billion, completed and announced the selection of a new outsourcing vendor relationship in 2Q2009. The report analyzes the ramifications of these two decisions for the mid tier market, which includes just over 500 banks with assets between $1 billion and $10 billion. The fact that these two banks selected a modern, comprehensive solution that extends well beyond a core bank processing solution is prescriptive for future vendor selections by mid tier banks. A second key factor for these banks was the vendor-client relationship and a vetting of client references. The combination of these two factors defines the future of outsourcing.

According to Bill Bradway, founder and managing director of Bradway Research, "These two banks have made game changing decisions for their future. A modern, comprehensive banking solution capability will enable better customer service, improve operating efficiencies, and enable faster time to market execution to better compete with national and local banks." Bradway continued, "Just as significant was the effort made by both banks to focus on the relationship track record of the selected vendor. This factor is particularly relevant to achieve success throughout a multi-year outsourcing relationship, starting with a successful conversion."

The analysis identifies five major ramifications from these two deals for the future of outsourcing which will drive market share gains or losses among the bank outsourcing vendors. The report identifies a handful of other outsourcing vendors that also offer a modern comprehensive outsourcing solution that may be capable of meeting the needs of mid tier banks.

For more information about this report go to www.bradwayresearch.com/FutureofOutsourcing.htm.

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