PRESS RELEASES
2011   2010   2009   2008   2007   2006   2005   2004   2003   2002  

October 02, 2008

GUIDE TO BEST PRACTICE IN OUTSOURCING ATM TESTING

Free guide from Level Four aims to assist banks to successfully outsource ATM testing

London, 02 October 2008. Level Four, a leading supplier of open standards-based ATM software, today launched its guide to outsourcing ATM testing. The current economic environment is squeezing expenditure within the financial services sector and forcing a renewed focus on operational efficiencies, which is pushing outsourcing higher up the agenda. In the past, banks have had varying degrees of success with outsourcing projects and have faced numerous challenges in delivering the expected value. In response to this growing trend, Level Four has created a guide which draws upon the past experiences of banks and aims to provide guidance on the strategies and processes required to make the outsourcing of ATM testing a success.

A survey conducted by the Management Consultancy Association (MCA) and the British Bankers Association (BBA) found that 41% of financial services managers expect to increase outsourcing due to the credit crunch. ATM testing is one key area where this trend is increasingly evident, due to the significant cost savings which can result from outsourcing. As the complexity of ATM systems continues to increase, the headcount costs associated with manually testing ATM functionality have also been growing steadily. By outsourcing, banks can potentially make significant financial savings, if the project is defined and executed properly.

Past experience in outsourcing shows that it is essential for banks to have a clear understanding of the issues involved. The MCA and BBA study found that only 24 per cent of financial services managers said they adequately understood the offshoring industry. This demonstrates the lack of understanding of how to get the most value from outsourcing and needs to be addressed if this strategy is to be implemented successfully. Level Four’s guide builds on the previous outsourcing experiences of financial institutions to provide a set of best practices to help banks to effectively outsource their ATM testing capabilities.

Ian Kerr, CEO of Level Four said: “In today’s economic climate, banks are looking at ways to cut costs and outsourcing is increasingly top of the agenda. While outsourcing can generate significant cost and efficiency gains, a number of points need to be considered in order for banks to get the process right. There is a tendency for banks to repeat past mistakes, for example it is often assumed that banks should outsource areas where they do not have expertise. In fact, the reverse is true. It is crucial that banks only outsource what they know, giving banks increased control over the process through effective internal management. There is a lack of much needed guidance on issues such as this, which may in part explain why outsourcing has generated mixed results in the past. The guide aims to provide essential advice to help banks that are considering outsourcing to do so successfully.

For a free copy of the Outsourcing Guide, please visit www.levelfour.com

---ENDS---

(end)