By Art Gillis
The numbers are in, and even though in-house is still a preferred method for community banks, outsourcing has gained in popularity. In 2005, new buy decisions among banks, thrifts and credit unions were as follows:
In-house 56% Outsource 44%
In the years before 2005, outsourcing ran at about 23%. The reasons most bankers give for this turnaround is attributed to the increased complexity of maintaining a fully compliant and secure system. Another reason is the expansion and power of present-day systems. Here's my take. "When the goin' gets tough, bankers rely on strong third parties."