Question: The financial services market has been slowly moving more toward using Web-based applications over software. What exactly are companies outsourcing through Web-based solutions, and what are the advantages of outsourcing Web-based solutions over buying software?

Rohn and Tarmy: Financial institutions are outsourcing a wide variety of application and data services across their technology platforms. This is being driven by the growing realization that Web-based applications are simpler to run (data updates can be applied by the host rather than the user), simpler to maintain (upgrades and bug fixes can be applied instantly without users applying new Software), easier to access (anywhere with public Internet access), and not prone to personal computer problems. Most importantly, because Web-based solutions are more efficient to build and maintain on a total cost basis, it is more economical.

Question: What issues are financial services firms having with making the switch from software to outsourcing Web-based applications?

Rohn and Tarmy: Among the most prominent concerns are data migration, integration, replication and storage. Migrating to a new solution means that a significant data transfer project must be productively completed first. Successfully integrating data throughout an enterprise is critical to ensuring a seamless transition that enables a firm to maximize its investment and utilize the data more efficiently. As such, it is vital to find a partner that is experienced in managing these transitions and also has a strong commitment to ongoing investment in customer support and technology enhancements.