Association Luxembourgeoise
de Risk ManagementLuxembourg Association for Risk Management

PRiM Risk Newsletter No 22 - The Risk of Outsourcing

12 Aug 2010

Outsourcing is today one of the most frequently discussed topics in financial services, particularly in Luxembourg. While the general view of outsourcing is that it is primarily motivated by cost reduction, the reality is far more complex. Outsourcing just to reduce costs is shortsighted, because inevitably the costs in the outsourcing location will increase and thus negate the motivation of cost reduction. The three experts in our keynote interview agree that cost reduction is rarely the only reason for outsourcing. All three maintain that service improvement would typically be the primary motivation with cost reduction as a secondary (or tertiary) criterion.

This bumper issue has been delayed a little by holiday absences, but our usual thanks go to editor, Paul Kleinbart, for his sterling efforts in putting together yet another high quality edition.

Last of all, we would highlight the publication of the winning essay entered for the PRiM Scholarship, worth €3,000 and which goes towards the Luxembourg School of Finance tuition fees. This is a sign of PRiM's willingness to encourage ties between the association and the LSF.

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