The financial industry has gone through a period of rapid structural change following the 2007-2008 financial crisis. The bulk of this change is due to new and evolving regulatory compliances – related to data, communication and security – to which the industry is subject. Because of these compliance changes, financial institutions are spending 60% more on their compliance efforts since the crisis.
In an industry scrambling to find a way to mitigate this growing profit-loss, people are often turning to technology. When designed and deployed well, technology enables organizations to work smarter and faster to maintain regulatory compliance, reduce risk and increase productivity. As a result, many are choosing to outsource not only their compliance but also their IT. Let’s explore why.
The Nexus of IT and Compliance
How would finding a managed service provider to take over or assist your IT infrastructure solve your compliance struggles? Well, it’s pretty simple. Those IT professionals are the compliance experts. All compliance standards have strict IT requirements: data backup, cybersecurity, file handling protocols. All elements that a good managed service provider does day in and day out. They have entire systems, staff and protocols dedicated to meeting your compliance requirements, all while supporting your staff. By having a managed service provider, you check all the boxes your business needs while simplifying everything to one point of contact.
The Expense of an On-Staff Solution
The most straightforward solution in the past was to source the best talent for your in-house IT department. However, this solution is no longer optimal for two reasons: the cost of talent acquisition and the skill set required to manage IT as well as ensure your business remains compliant.
If you need IT support, cybersecurity and regulatory compliance, you will need the best of the best. Yet good talent is harder to find and retain than ever. That cybersecurity professional you want to hire? Good luck finding them. In one survey, 80% of respondents said they had trouble finding skilled cybersecurity professionals and that shortage is projected to only get worse. So, as you might expect, when you do find the right talent, it comes at a steep cost.
So what’s another option?
The Strength of Outsourcing
Just as people outsource to banks and financial institutions to handle their money and investments, those banks and financial institutions can outsource for those coveted IT professionals.
The right managed service provider will enable you to create a partnership that works best for you, whether augmenting your current team or outsourcing those needs entirely. Plus, an experienced managed service provider will have knowledge of all the financial industry’s regulatory needs and the staff and processes to manage your complex infrastructure day in and day out with the proper control, accountability and security measures in place.
With a managed service partner, you get access to many professionals with a wide range of skills for the same cost as one or two on-staff professionals. You also get far more reliability, as the best partners will offer 24/7 support with professionals suited to your industry’s needs.
Functionally, this means you can stop wasting time and resources trying to stay up-to-date with the compliance landscape and worrying about any problems that might occur with your technology. Ultimately allowing you to devote more time and money to your business priorities, such as advancing your competitive position with new services that drive revenue and growth.
(Low) Risk / (High) Reward
More than money, outsourcing your IT to a managed service provider can negate much of the risk your business faces. Even with a small on-staff IT team, you run the risk of things falling through the cracks and being too short-handed to quickly identify and quarantine problems and threats on a daily basis.
A good managed service partner will bring both operational maturity and access to dozens of highly skilled professionals to your business. Not only are the cracks for things to fall through smaller, but you’ll have both the professional knowledge and the bandwidth to identify and handle any issues quickly and efficiently — before they become major problems. Helpdesk, cybersecurity, data handling and protection, redundancies – all of this can be proactively managed and monitored so that your business won’t ever have to wonder if your IT is working as it should be.
A Reliable Process
Partnering with the right managed service provider is all about the process. The process from onboarding to the day-to-day managing of your IT – this is from where the meat of your growth and value will emerge. That’s why it’s important to consider what these processes mean for your business.
For one, your onboarding needs to be quick and seamless. In the financial industry, you can’t afford downtime – or even delays. You need a team ready to hit the ground running, which means you need a team that is experienced and ready to guide you through the initial transition.
But even more important than a seamless onboarding are the day-to-day processes upon which your business will rely. Proactive solutions, data gathering and automation, 24-7 help desk, and a custom client portal that provides access to all your real-time metrics and KPIs at the ready — processes that enable you to increase your technology ROI and grow your business.
Let’s call it the law of appreciating returns.
Getting Back to Business
You want to spend more time on your core business and less time maintaining the increasingly complex IT needs the industry requires. That’s precisely what the right managed service provider will enable you to do.
Not only that, but complicated and evolving compliance standards like SOC2 are simply a headache that your business shouldn’t have to spend time on. And that’s precisely the type of service a qualified managed service partner can take off your plate.
That’s why it’s important to set your mind to finding the perfect managed service provider for your business — because you can’t afford not to.
Words from our Financial Industry Clients
“NSC provides us with superior technical support: we rely on them to resolve everyday issues and to anticipate threats over the longer-term. We can always reach them and they respond in a professional and friendly manner, working well with all of our colleagues.”
– James M, Vice-President of Compliance, Investment firm – Greenwich, CT & London, UK
“I could not be happier with the level of service and professionalism NSC has shown my office. From my first meeting with our team through the implementation process, things have been so consistent and smooth with no interruption to our business while the changes are in process. I know that’s not an easy thing to do and this transition has truly been great, I feel we are in great hands and look forward to the long term relationship.”
– Cindy H, President & Owner, Insurance company – Trumbull, CT