Automation of functions and processes is becoming an increasingly important success factor in the financial services industry. It is therefore important that Swedish financial companies think carefully before outsourcing business processes so that they do not miss out on efficiency and automation opportunities. At least that is what Clara Consulting believes
– Swedish financial companies risk falling behind in digital development when they outsource their business processes, which in turn can lead to major problems in the future.
The words of Fredrik Olsson, Managing Partner at Clara Consulting. He cannot stress enough how important it is to safeguard the skills within both the company and the country and points to the great opportunities for innovation in Sweden.
– We are an innovative country and will continue to be so. If Sweden is to lead the way in the financial sector, we must continue to invest in the skills here. Sweden has long been at the forefront internationally, and Stockholm in particular, when it comes to financial services development and IT. With that in mind, it’s strange that many companies seem to think that their business processes and supporting IT services can be produced better and cheaper in other countries,” he says.
So why do companies outsource their skills despite good incentives not to? The main reason is lower wages. In times of inflation, with an impending recession and high electricity prices, it is perhaps not surprising that companies choose the more short-term profitable options.
– There has been a bit of a trend in recent years for Swedish financial companies to outsource business processes to other countries where wages are lower, including the Baltic States and India,” says Fredrik Olsson.
In addition to losing specialist skills in Sweden, the problem is that the countries we outsource to have no incentive to automate and streamline the work. Something that is very important for Clara Consulting. They help their clients from procurement to implementation in systems support and processes and advocate automation rather than outsourcing.
– Since their own business model does not require work to be automated, they have no incentive to do so for their customers as well. Keeping control of
their business processes is to future-proof their business,” says Fredrik Olsson and continues:
– The financial services industry is in the midst of a technology shift that is pulling more and more towards cloud-based solutions. In the midst of this shift, outsourcing critical parts of the business to other countries is a major risk in the long term, as it can result in both higher future costs and difficulty in remedying the loss of expertise from Sweden. There needs to be more strategic thinking rather than short-term cost cutting by moving operations out of the country.
What is unique about Clara Consulting is that they understand both the business and the technology. By operating in both the IT and financial services industries, they create a breadth where they understand all aspects of asset management. When it comes to streamlining through automation, Clara Consulting stands out for their understanding of both the business and the technology.
– We understand the requirements and function of the business while being able to help implement and develop technical solutions. With a mix of both senior and junior skills, we are available to guide our clients in assignments large and small,” says Fredrik Olsson.