IT outsourcing for fintech is an excellent option that allows companies in this sector to cover a wide range of positions and obtain significant advantages.
Technology applied to the optimization of financial services has a long history. However, in recent years they have had a particular boost. According to the report prepared by Finnovista, Inter-American Development Bank, and IDB Invest, at the beginning of 2023, 11 thousand fintech companies were registered globally.
This sector has technology as a pillar in its veins, so it is important to have the right talent to develop projects and drive innovation. In this article, we mention the advantages of IT outsourcing for fintech and what positions can be covered through this modality.
What is a fintech?
A fintech is a company that uses technology to improve or automate financial services and processes to achieve greater efficiency. The word “fintech” is an acronym for “finance” and “technology”.
Among the technologies used by fintech are artificial intelligence, cloud, data analytics, and mobile applications. With these, they can offer a wide range of financial services to their customers, including loans, investments, payments, money transfers, and insurance.
Fintechs are expected to take 10% to 40% of traditional banks’ revenues in the next few years.
Source: McKinsey
As we can see, these types of companies are impacting the traditional financial sector and forcing it to modernize its processes in order to remain competitive.
6 advantages of IT outsourcing for fintech
IT outsourcing for fintech is very convenient for several reasons, among them:
Saving money and time
Through an IT staff augmentation company, it is possible to get qualified talent at lower costs, while reducing project execution times.
Companies that outsource IT services can save up to 25% time compared to those that keep services in-house.
Source: Computer Economics
Outsourcing reduces the costs associated with hiring, training, and retaining in-house staff, and even avoids investment in equipment and technology.
Access to experts
An external IT provider allows your company to have experts in specialized areas, such as information security, data analysis, and software development.
This has a direct impact on the quality of IT services. At the same time, increasing the company’s ability to develop and maintain high quality IT systems and applications.
Flexibility
The fintech industry is a very dynamic sector and through IT outsourcing companies can increase or decrease their IT capacity. This is due to the provider finding the right staff in numbers and skills.
Companies that outsource IT services increase their ability to adapt to changes by 20% to 30%.
Source: Gartner
More focus on core business
By delegating IT responsibilities to an external provider, a fintech company can focus on its core business instead of devoting resources to technology management. This can enable greater innovation and improvement in the company’s products and services.
Improved efficiency
By outsourcing IT management, a fintech company can leverage the expertise and best practices of skilled talent, improving the efficiency of IT processes.
The companies that outsource IT services can increase efficiency by 20%.
Source: Deloitte
Staying in control
A big advantage of outsourcing IT services, rather than opting for Managed Services. For example, at We Have Devs we take care of getting you the right resources with the necessary technical skills and expertise, but the management remains in your hands.
As we can see, IT outsourcing can help fintech companies stay competitive in an increasingly demanding and constantly evolving market.
What positions can be filled with IT outsourcing for fintech?
The range of positions that can be covered through IT outsourcing is very wide and will depend on the specific needs of the company. Among them, we can mention:
- Software development: Developers in fintech companies enable the creation of applications and systems that allow financial transactions to be carried out. In relation to specific requirements, they can be
- Front-end developers,
- Full-stack software engineers,
- Mobile software engineers,
- Back-end engineers.
- Database administration: Fintech companies must manage large amounts of financial data, so they need database administration experts.
- Information security: Information security is critical for fintech companies, which handle sensitive financial data of their customers. Among these services, we can find vulnerability analysis, threat monitoring, and security incident management.
- Technical support: Fintech companies need technical support staff to solve hardware and software problems, both internally and for their customers.
- Data analytics: Companies use data analytics to improve their products and services and make informed business decisions.
- QA automation: Through QA automation, you can ensure the final product through process quality.
In conclusion, an IT outsourcing for fintech provider allows your projects to be more cost-effective, agile, and efficient. This is because you reduce costs, save time and have access to qualified professionals according to the quantity and quality required by the development stage.
To achieve this you can count on We Have Devs, we have more than 25 years of experience and a comprehensive service that goes from talent selection to administrative induction and retention.