CCG Catalyst business case for In-House processing versus Software as a Service (Outsourced) analysis four technology alternatives a bank can pursue. These are:
- (SaaS) Software-as-a-Service is a model of software deployment whereby a customer subscribes to use an application as a service on demand. Commonly called Outsourced.
- Platform-as-a-Service (PaaS) is the delivery of a computing platform and solution stack as a service. It facilitates the deployment of applications without the cost and complexity of buying and managing the underlying hardware and software layers.
- Infrastructure-as-a-Service (IaaS) is the delivery of computer infrastructure as a service. Rather than purchase servers, software, data center space, or network equipment directly, clients instead buy those resources as a fully outsourced service.
- In-house is where the Bank maintains or purchases servers, software, data center space, and network equipment directly. The Bank would maintain a staff to support infrastructure and maintain a full disaster recovery compliment
The four alternatives have a different alignment with the Bank’s current and future business objectives. In order to develop a sound business case that meets the objective of determining the In-House versus Software as a Service (Outsourced)t, CCG Catalyst will review and analyze the client business requirements. Which would include some of the following items:
- Current and long-term strategy, the bank’s mission, brand/value proposition, customer/market segment focus, products and services?
- What degree of control over processing systems from strategic, resource allocation and operating perspective is required?
- Current and future infrastructure cost as it relates to facilities, people, and technology
- What are the key risks associated with each alternative (i.e. Business/Strategic, Transaction/Operations/Security, Legal/Regulatory/Compliance, Conversion, Credit, and Reputation)
CCG Catalyst will assess the benefits, costs, feasibility, risks and issues associated with each solution. CCG Catalyst will recommend the preferred processing strategy going forward.