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Banks outsourcing: new route to bottom line

Banks are being forced to re-evaluate their business models and make significant, creative structural changes in IT and operations

The financial crisis, the euro crisis, recessions, fiscal consolidation by governments and the biggest regulatory upheavals since the 1930s have combined to hammer profitability of the investment banking industry.

Ambitious return-on-equity targets of 20% have had to be lowered and even the new 12% to 14% targets now appear to be a stretch.

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