Information systems outsourcing in Croatian banks: developments 2005–2012

Abstract

Outsourcing of banks' information systems has become well established and globally spread, but beyond benefits, it carries risks which are of importance to banks and their clients as well as to banking regulators and supervisors. This article briefly presents reasons, risks and regulatory provisions related to banks' information systems outsourcing in Croatia. Based on two surveys conducted by the Croatian National Bank (CNB), the article explores changes in the scope of information systems outsourcing, perception of risks related to outsourcing and outsourcing reasons in Croatian banks in the period 2005-2012. The article also provides an insight into locations of applications' and information technology (IT) infrastructure processing. Analysis and conclusions stated in the article should facilitate a better understanding of the subject matter.