Evaluation of an IT outsourcing policy in a banking case study

Startups need to create a model which can easily scale up. They require advanced IT infrastructure and they need to be capable of adopting the latest available technology to improve their products. However, the costs needed to create and maintain an adequate IT department are in contrast with the budget of a startup. Companies, which require competences or infrastructure for a non-core operation, usually resort to the outsourcing of the project, operations or competences. The concept of outsourcing is well documented in the existing literature, which has defined over time the best practices to select an outsourcing partner, to write an outsourcing contract, and how to maintain a relationship with the selected partner. Accordingly to previous studies, the organizational structure of the outsourcer company is very important. This research aims to investigate if whether the adoption of an outsourcing model since the startup’s creation can help it to sustain its growth. In particular, the study focuses on the adoption of a cloud computing model, which is an evolution of the outsourcing models, in a Fintech. In this context, a Fintech is a company dealing with financial services encompassing new technology solutions. The goal of this research is to evaluate if the usage of cloud computing can help the startup in its early stages thanks to both a competitive starting price and the easiness of installation. Moreover, the usage of cloud computing requires fewer internal personnel with specific competences in technical areas, they can be substituted with personnel who can create value for the customer. The research has been conducted through a literature review on the topic of outsourcing and through interviews with Fintech employers.