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Toward Services Consolidation - ATM Management Outsourcing Product Image

Toward Services Consolidation - ATM Management Outsourcing

  • Published: October 2010
  • 42 pages
  • Ovum

Introduction

ATM management outsourcing is a growing area that is now being considered by many banking executives, particularly those strugging to get capital for their investments but who still have to tackle aging technology assets, those interested in quick expansion in emerging markets, or those who have difficulty in managing recently quickly expanded larger networks.

Features and benefits

- The idea of not owning the equipment but renting it together with associated services is a pain-reliever for many.- Alternative approaches to manage costs, assess their legacy infrastructure, and consider customer engagement models.

Highlights

Implementation of ATM management sourcing is a major change project with strategic implications and multiple stakeholders and one that requires experience with the management of external suppliers with varying capabilities.

Your key questions answered

- Assess all of the potential benefits and the associated direct and indirect risks.- Any external engagement needs to align with the bank’s strategic goals and direction.- Define the types and maturity of services being delivered through the ATMs now and in the future.- With outsourcing being a major change program, engage at a pace and speed that fit.

SUMMARY
Catalyst
Ovum view
Key messages
The growth of cash in circulation and associated cash-handling costs drive the demand for efficiency
Assessment of likely risks and benefits is key
ATM management outsourcing implementation is a major change project
Maturing outsourcing capabilities drive interest within banks
ATM MANAGEMENT OUTSOURCING FUNDAMENTALS
The growth of cash in circulation and associated cash-handling costs drive demand for efficiency
Outsourcing is on the rise
Hardware as a service is already a tested idea
The drive toward raising efficiency and increasing satisfaction levels in the ATM channel may lead to outsourcing
MAKING THE OUTSOURCING DECISION
Outsourcing is a major, potentially fraught, decision
Banks need to approach ATM management outsourcing from a high-level strategic viewpoint
Outsourcing is gaining traction
Assessment of likely risks and benefits is key
ATM management outsourcing strategy will drive the vendor relationship model
Sourcing objectives and constraints need to be carefully analyzed
The financial model is the final dimension
ATM MANAGEMENT OUTSOURCING COMPOMENTS
Outsourcing implementation is a major change project
All key ATM channel stakeholders must be part of the implementation journey
Banks need to analyze the TCO of the management of their ATM fleets
Banks need to evaluate the efficiency of various outsourcing options
Banks need to look at management of the ATM channel through cost-efficient integration of the various service components
ATM MANAGEMENT VENDOR EVALUATION
Vendor selection is the foundation for further implementation
Flexible approach to vendor selection is on the rise
Comprehensive ATM management offerings evolve from various sources
RECOMMENDATIONS
Overview
Recommendations for enterprises
Assess all of the potential benefits and the associated direct and indirect risks
Any external engagement needs to align with the bank’s strategic goals and direction
Define the types and maturity of services delivered through the ATMs
Outsourcing is a major change program so engagement should be at a pace and speed that fit
Initial screening checklist for ATM management outsourcing
Recommendations for vendors
Aim to provide a complete customer-focused solution
Leverage the ATM outsourcing as a relationship expansion opportunity, not just a transaction
Embrace alternative pricing models
APPENDIX
Further reading
Methodology
Authors
Ovum Consulting
Disclaimer
FIGURES
Figure: Technology spending is forecast to resume growing in 2011
Figure: Outsourcing trends versus other sources
Figure: ATM management outsourcing drivers
Figure: Post-crisis market trends in ATM management outsourcing
Figure: Please rate the importance of the following business objectives to your IT investment strategy
Figure: The approach to ATM management sourcing strategy
Figure: Alternative relationship models for supplier management
Figure: Sourcing objectives and constraints
Figure: Stakeholders at ATM channel
Figure: ATM management cost components – global average split
Figure: Which costs are included within your ATM budget allocation?
Figure: An evolved service model
Figure: An example of a new service model
Figure: Traditonal vs flexible approach to vendor selection
Figure: Competitive landscape

Note: Product cover images may vary from those shown

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