ABSTRACT
The choices companies have to make are complex. The financial services sector is going through a period of change, much like that of the manufacturing sector some time ago. Whilst organic growth, acquisitions and mergers are very positive and exciting, there comes a time and a need within the period of growth to consolidate and optimise structures and procedures. During this period the business will need to be focused, and in becoming focused it needs to define what the core business is. This process is complicated – the management of a company will have to decide what constitutes core activities, whether that be client-relationship management, database management, administration or product design, to name but a few. On the flip side, the management will also have to decide what the non-core activities of the company are, and what potential there is for streamlining: are these activities best handled internally or externally and if so by whom? Obviously, if an activity is core to the business, management will want to keep full control; however, there may still be a desire to optimise utilisation of resources and, if so, insourcing may play a part.
