GFI outsources non-core software development offshore
Inter-dealer broker and technology developer GFI has launched a pilot project to explore the opportunities of moving some of its IT development offshore. The move largely applies to non-core development work.
Lewis said that with 20 simultaneous development projects underway, GFI’s 130 development staff simply had more work than they could cope with. "There is pressure to get products out in a timely and cost-effective way," he added.
The first test is a New York-based project to develop an end-of-day, check-out service for GFI’s brokers to allow clients to view trades over the Web, upload to their back-office and confirm trade with GFI. The second project, focusing on the maintenance of middle-office, trade capture systems, is being run from London.
GFI and Syntel have worked together for two months, and both projects are still in the analysis and planning stages, which must gain approval before any move to India. The New York project is running ahead of London, which will not see development move offshore for at least three months. Lewis said GFI looked at setting up its own offshore centres, and may yet do so. But this step would not have achieved results quickly enough and requires local knowledge.
Lewis said GFI would consider moving more maintenance of mature products offshore, where it could achieve cost savings of between 25% and 35%. This could see GFI using in-house developers for its own core systems and then using offshore resources to commercialise them for sale. "By lowering the cost of support, we can spend more on development," Lewis said.
He declined to specify other systems GFI may outsource, acknowledging that customers have concerns about the quality of software developed offshore. But Lewis said he was confident there will be no degradation of quality.
GFI’s code will be backed up to a site in Charlotte at the end of every day.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Technology
FX options: rising activity puts post-trade in focus
A surge in electronic FX options trading is among the factors fuelling demand for efficiencies across the entire trade lifecycle, says OSTTRA’s commercial lead, FX and securities
Dismantling the zeal and the hype: the real GenAI use cases in risk management
Chartis explores the advantages and drawbacks of GenAI applications in risk management – firmly within the well-established and continuously evolving AI landscape
Chartis RiskTech100® 2024
The latest iteration of the Chartis RiskTech100®, a comprehensive independent study of the world’s major players in risk and compliance technology, is acknowledged as the go-to for clear, accurate analysis of the risk technology marketplace. With its…
T+1: complacency before the storm?
This paper, created by WatersTechnology in association with Gresham Technologies, outlines what the move to T+1 (next-day settlement) of broker/dealer-executed trades in the US and Canadian markets means for buy-side and sell-side firms
Empowering risk management with AI
This webinar explores how artificial intelligence (AI) can strip out the overheads and effort of rapidly modelling, monitoring and mitigating risk
Core-Payments for business leaders: why real-time access to payment data is key to long‑term business success
Business leaders require easy access to timely, reliable and complete information across post-trade processes. Aside from the usual requirements of senior managers to optimise for risk, revenues and costs, they increasingly need to demonstrate to their…
Risk applications and the cloud: driving better value and performance from key risk management architecture
Today's financial services organisations are increasingly looking to move their financial risk management applications to the cloud. But, according to a recent survey by Risk.net and SS&C Algorithmics, many risk professionals believe there is room for…
Machine learning models: the validation challenge
Machine learning models are seeing increasing demand across the capital markets spectrum. But how can firms improve their chances of gaining internal and regulatory approval for these type of models?
