December 17, 2012 — New York, NY

Kalpesh Master, managing partner for managed services, SunGard’s global services business, said, “As cost pressures and regulatory requirements continue to challenge financial institutions’ and corporations’ ability to grow revenue, they are looking to trusted  outsourcing providers for additional managed services. This is particularly true in relation to back-office functions, as well as areas that do not contribute directly to revenues but were previously considered too risky to outsource, such as tax processing, actuarial modeling and retirement plan recordkeeping. The shift will help firms recognize cost savings from service providers’ economies of scale, domain expertise and quality integrity, while helping firms focus resources on core business areas that directly contribute to revenue generation.”

SunGard has identified ten trends in managed services and outsourcing for 2013:

1. As outsourcing matures, firms will look to their service providers as partners for a complete solution that bundles software with professional services, custom application development and managed services, as well as thought-leadership.

2. The Business Process-as-a-Service (BPaaS) model will gain momentum because firms can leverage a utility model that serves multiple companies, provides economies of scale and supports an efficient end-to-end business process.

3. Firms will continue to seek software solutions delivered on a Software-as-as-Service basis, so they can select software components in the cloud to create a single, customized solution.

4. Customers of Business Process Outsourcing (BPO) services will look beyond traditional application hosting and staff  augmentation or replacement models to add domain-specific business services and thought leadership.

5. IT executives will outsource more IT infrastructure and application management services to help reduce total cost of ownership and free up internal resources.

6. Firms will look for outsourcing providers that can offer cloud computing to help more quickly prototype and develop applications.

7. Compliance with regulatory and operational risk requirements are leading firms to look more closely at the integrity of outsourcing service providers and to demand strong Service Level Agreements.

8. Firms are moving towards service contracts that are based on a variable cost model, which transfers risk to the service provider and helps firms save money and better manage the peaks and valleys of demand.

9. Adhering to best practices and global certifications and standards such as COPC, ITIL and Lean Six Sigma will help outsourcing providers offer customers more efficient and higher quality services.

10. Firms will look to managed services providers to operate and maintain new and complex initiatives such as big data and smart grids.

Rodney Nelsestuen, CEB TowerGroup senior research director, said, “The financial services industry is expected to increase its spending on outsourcing of services and technology at a rate more than two times that of traditional onsite IT spending through 2015. Drivers of this growth include the need to update technology despite tight budgets and deferred investments, vendor innovations in both pricing and the delivery of more bundled IT and service options, and increases in the business value that vendors offer through expanded domain expertise. Technology and operations will become more integrated, and software will be embedded with infrastructure, bundled with managed services, and provided through both on-demand cloud services and more offerings of platform-based business process outsourcing.”

About SunGard Solutions for Managed Services
SunGard provides financial services institutions with a variety of ownership and deployment options that includes managed services. Leveraging our software and financial systems domain expertise, SunGard’s solutions for managed services involves operating or running IT systems or business processes. The offering is generally SLA-based, can be hosted by the customer at their facility or at a SunGard facility, and can be provided at the customer site, remotely or via a cloud-based model (as a service).

About SunGard
SunGard is one of the world’s leading software and technology services companies. SunGard has more than 17,000 employees and serves approximately 25,000 customers in more than 70 countries. SunGard provides software and processing solutions for financial services, education and the public sector. SunGard also provides disaster recovery services, managed IT services, information availability consulting services and business continuity management software. With annual revenue of about $4.5 billion, SunGard is the largest privately held software and services company and is ranked 480 on the Fortune 500.  For more information, please visit www.sungard.com.

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