Outsourcing (outsourcing; sometimes also translated into German as Funktionsauslagerung)

In relation to banks in general, the outsourcing of certain areas of activity to other, usually larger, companies in the sector or to companies specializing specifically in this area – such as tax consultants, IT companies, advertising agencies, security services, credit factories – which in turn have geared their services exclusively or predominantly to banks (the transfer of a business function undertaken in-house to an external specialized service provider). – With outsourcing, fixed costs (capacity costs) are converted into variable costs; the institution basically pays only for the services actually used. In addition, outsourcing generally streamlines the bank’s organization. – With the approval of the Federal Financial Supervisory Authority, the task of the money laundering officer may also be outsourced to a larger institution. – As a rule, outsourcing is understood more as the transfer of auxiliary banking services. If central business areas are transferred to others – and in this case then to other institutions – this is often referred to as business process outsourcing (BPO). If – additional operational functions – such as acting as an incubator – are incorporated into the bank or – outsourced areas are brought back, this is referred to as insourcing. – See outsourcing, brokerage, insourcing, credit factory, managed account, spin-off, transaction bank, trust models. – Cf. BaFin Annual Report 2003, p. 69, p. 85 f., BaFin Annual Report 2007, p. 114 ff. (new regulation), p. 149 (outsourcing of the preparation of financial analyses), BaFin Annual Report 2008, p. 47 (IOSCO report on outsourcing at stock exchanges).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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