Technology and Operations / Technology

Technology

BCG Expand benchmarks IT spend, cloud adoption, AI readiness, application footprint, and delivery productivity to guide modernisation, vendor rationalisation, and tech-enabled efficiency.

Explore the solutions

The Challenge

  • ✔Over 60% of total Technology spend remains tied to Run-the-Bank activities, limiting investment in innovation
  • ✔Excessive RTB expenditure slows automation, digital enablement, and modernisation
  • ✔Legacy infrastructure inflates costs, hinders scalability, and reduces agility
  • ✔Fragmented application estates drive orchestration inefficiencies and poor end-to-end visibility
  • ✔Read more here

How we can help

Cost Diagnostics

We perform full cost analysis by business, cost type, and driver, supported by raw data captured directly from client MIS systems for accuracy and speed.

Application Landscape

Evaluation of the application estate (on-site vs cloud hosting, average application age, utilisation patterns) to identify consolidation and modernisation opportunities. Legacy infrastructure and fragmented application stacks are benchmarked against peers to highlight rationalisation opportunities and areas for improved agility.

Infrastructure

Analysis of cost per unit across servers, storage, and end-user technology, plus assessment of server distribution and utilisation. Estate-rationalisation insights inform cloud adoption decisions and vendor optimisation to reduce infrastructure expenditure by 15–25%.

Client success stories

$1bn+ cost efficiencies identified through optimisation of Change-the-Bank versus Run-the-Bank spend
15–25% reduction in infrastructure costs via estate rationalisation and vendor consolidation.
10–20% faster delivery cycles driven by automation and cloud adoption.
EUR 1.4B IT overspend uncovered across all lines of business relative to peers, revealing significant optimization potential

Case Studies

Tier 1 Investment Bank

A Tier-1 Investment Bank rebalanced Change-the-Bank versus Run-the-Bank expenditure, identifying over $1 billion in cost-efficiency opportunities. The savings were redirected into automation and resilience initiatives, delivering measurable long-term value.

Global Markets Institution

20% reduction in infrastructure spend through estate rationalisation and vendor consolidation.

Tier 1 European Universal Bank

Identified a 43% IT overspend and revealed excessive investment in legacy applications and vendor-dependent systems, enabling the bank to redesign sourcing, streamline its application estate, and align spend with industry benchmarks

The Challenge

  • ✔Inefficient resourcing models inflate technology costs and slow delivery
  • ✔High dependency on contractors and sub-optimal location strategy reduce agility
  • ✔Complex spans and layers increase cost and limit decision-making speed

How we can help

Workforce Benchmarking

We analyse FTE mix, role structure, contract type, and location strategy to optimise team design, strengthen delivery capacity, and ensure scalability and cost efficiency.

Developer Productivity Benchmarking

We benchmark engineering practices and development methodologies to identify opportunities to improve throughput, reduce friction, and enhance overall delivery velocity.

Delivery Governance Review

We evaluate governance structures and delivery workflows to surface bottlenecks, streamline execution, and shorten deployment timelines across technology teams.

Client success stories

20% productivity uplift delivered by removing 1-5 management layers and harmonising front-to-back operating models
50+ roles realigned. Typical for large banks where resourcing strategies involve shifting delivery ownership, reducing contractor dependency, or rebalancing teams across hubs
10–20 day reduction in delivery lead times - matches the scale of improvement seen when fixing partner models, reducing handoffs, or improving resource allocation
200+ contractor positions rationalised – with work reallocated to permanent engineers, improving delivery quality and long-term capability

Case Studies

Global Markets Institution

Redesigned spans and layers to improve accountability and operational responsiveness.

Regional Investment Bank:

Slowed planned FTE-reduction initiatives after benchmarking showed the firm was already operating below peer efficiency levels, implementing targeted process improvements

International Banking Group

Adjusted location strategies for client-services functions to align with benchmark ratios, achieving multi-million-dollar savings and optimising near-shore versus offshore balance

European Bank

250 positions transitioned offshore after diagnostics highlighted imbalance in higher-than-peer onshore concentration

Exhibits

Banking on IT Outsourcing: Finding the Sweet Spot

Finding the right balance between in-house IT and outsourcing is key. Learn how financial institions can optimize costs, efficiency and risk

Read report here

Tech in Banking 2025: Transformation Starts with Smarter Tech Investment

Banks are investing more in tech than ever. With smarter spending and simplification, they can unlock innovation, resilience, and lasting competitive edge

Read report here

“Of all my projects, the CIO Dashboard gives my best ROI."

CIO Large North American Bank

"BCG Expand’s benchmarking gave us a clear view of where to invest and modernise. The data and insights delivered real, quantifiable impact.”

Head of Technology Transformation Global Investment Bank

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