Big deals will get the headlines, but it’s the smaller deals that will drive the continued growth of application and infrastructure outsourcing in the financial services industry over the next few years, according to Forrester Research. The research and analysis firm predicts such outsourcing globally to grow from $20.2 billion last year to $22.2 billion this year to $36 billion by 2007, a compounded annual growth rate of about 12%. Forrester adds that financial institutions will tend to give business to outsourcers who demonstrate knowledge of financial-services specific security and privacy requirements, and who incorporate them into their infrastructures and service-delivery methodologies.

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