The Hongkong and Shanghai Banking Corporation (HSBC) revealed that its effort to standardize technology and services led to the rise of IT and outsourcing expenses. Worldwide costs related to this rose by 17% during the first six months of the year.
HSBC said that this development was “driven by higher services contracted out and IT costs.” The moves toward standardization are expected to drive costs up temporarily. The company sees the strategy as ultimately cutting costs and improving processes over a longer period of time.
Profits, meanwhile, are still strong in HSBC, as revenue went up substantially. More than $11 billion was added in profits. The company says that One HSBC is showing success, having reached the end of the first stage in March. More positive developments are expected to happen, and IT and outsourcing seem to play a key role in the program.