Financial services sector and technology sourcing

Developments in technology, business practice and implementation require the technology sourcing practitioner to understand characteristics of the technology deployed, how data is used and transferred and the nature of the IT solution in the context of the sector in which it will operate. To explore the scope of further aspects of technology sourcing transactions, see:

•
Technology sourcing—IT outsourcing—overview
•
Technology sourcing—Cloud and technology sourcing—overview
•
Technology sourcing—Data protection & technology sourcing—overview
•
Technology sourcing—Technology and service integration—overview
•
Technology sourcing—Public sector technology sourcing—overview

The financial services sector and technology sourcing arrangements

Historically, the meaning and nature of arrangements referred to as ‘outsourcing’ have been characterised by the transfer of an existing undertaking operated in-house to a specialist third party supplier. Typical outsourced IT services were characterised as those considered the remit of the ‘IT department’ reflecting, for example, the provision of support services in relation to desktop IT, servers, tech support, application development, network and communications, data centre management, cybersecurity and disaster recovery.

However, reflecting the significance of IT to business generally, Gartner defines IT outsourcing as ‘the use of external service providers

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest TMT News

ASA rulings—18 February 2026

Three complaints were received by the Advertising Standards Authority (ASA) about paid-for in-app ads displayed on the Vinted app, relating to depictions of domestic violence and sexual assault, and sexually explicit content. The ASA upheld the complaints, highlighting its continued focus on in-app advertising, particularly ads served within third-party platforms such as Vinted, and reinforcing its expectation that marketers ensure content is socially responsible and appropriate for a broad audience.

Transparency of AI-generated content—the EU's first draft Code of Practice

EU Law analysis: As the pace of generative AI accelerates, it seems that the risk of harm (from issues such as misinformation and deepfakes) grows too. The EU's draft Code of Practice on Transparency of AI-Generated Content (draft Code) aims to address this with specific operational measures which signpost the principal actors in the AI value chain towards compliance with the transparency requirements of the EU AI Act (Act). Key measures include: requirements for marking, detection and disclosure; specific rules on deepfakes and matters of public interest; and internal governance, monitoring and training.

Commission adopts proposal for Digital Networks Act

The European Commission has adopted a proposal for a Digital Networks Act (DNA), setting out a new framework intended to simplify and further harmonise rules governing electronic communications networks and services across the EU. The Commission states that all feedback received will be summarised and presented to the European Parliament and the European Council in order to inform the legislative debate. The adopted act is open for feedback until 15 April 2026.

DSIT announces UK participation in AI Impact Summit and AI4D programme initiatives

The Department for Science, Innovation and Technology (DSIT), alongside the Foreign, Commonwealth & Development Office and Ministry of Justice, has announced UK participation in the AI Impact Summit in India from 16 February 2026. The UK delegation, led by Deputy Prime Minister David Lammy and AI Minister Kanishka Narayan, will focus on AI applications in public services, employment creation and global development. The government has announced three new initiatives under the £58m AI for Development (AI4D) programme: an Asian AI4D Observatory supporting responsible AI innovation across South and Southeast Asia, a Masakhane African Languages Hub enabling AI functionality in 40 African languages, and an AI4D Compute Hub at the University of Cape Town providing computing infrastructure for African innovators. The announcement states that since summer 2024, the government has attracted over £100bn in private investment to the UK's AI sector. The summit builds on previous AI summits at Bletchley, Seoul and Paris, with discussions aimed at ensuring AI benefits extend beyond advanced economies to developing nations.