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Could a SaaS provider be considered Outsourcing under EBA/ PRA/FCA ?

  • 1.  Could a SaaS provider be considered Outsourcing under EBA/ PRA/FCA ?

    This message was posted by a user wishing to remain anonymous
    Posted 03-24-2023 09:44 AM
    This message was posted by a user wishing to remain anonymous

    To those in Financial Services

    Do any of you class hosted software and support services as Outsourcing, if the software is essential to a core activity i.e. Trading or Settlement? 

    The daily use of the software is operated in house, but we are dependent on the vendors infrastructure and IT support in case of issue or incident?

    Would appreciate some example of Tech services others might include in the Outsourcing Regime ? 

    Thank you

     



  • 2.  RE: Could a SaaS provider be considered Outsourcing under EBA/ PRA/FCA ?

    Posted 04-06-2023 01:02 PM
    According to EBA/REC/2017/03, the use of cloud-based systems is outsourcing. This recommendation document by the EBA outlines requirements around the use of cloud service providers you're outsourcing services to. https://www.eba.europa.eu/sites/default/documents/files/documents/10180/2170125/e02bef01-3e00-4d81-b549-4981a8fb2f1e/Recommendations%20on%20Cloud%20Outsourcing%20%28EBA-Rec-2017-03%29_EN.pdf?retry=1
    As this is an area all financial service organizations encounter if operating under the EBA's supervision, I'm interested in hearing from others as well.