An Analysis Of Business Process Outsourcing Strategies Of Public And Private Sector Banks In India

This paper is a study of the recent trends of Business Process Outsourcing (BPO) strategies and practices among banking institutions in India.  The study attempts to analyze BPOs used by private and public banks using four dimensional descriptive conceptual dimensions of outsourcing:  1) shoring mod...

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Bibliographic Details
Published in:The international business & economics research journal 2011-02, Vol.10 (2), p.1-11
Main Authors: Ravi, Siva Prasad, Jain, Ravi Kumar, Sharma, Hari P
Format: Article
Language:English
Subjects:
Bank management
Bank regulation
Banking industry
Banks
Business strategies
Chi-square test
Commercial banks
Competition
Competitive advantage
Customization
Data analysis
Financial institutions
Hypotheses
India
Modelling
Outsourcing
Private sector
Profitability
Profits
Public sector
Statistical analysis
Studies
Subcontracting
Trends
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Summary:This paper is a study of the recent trends of Business Process Outsourcing (BPO) strategies and practices among banking institutions in India.  The study attempts to analyze BPOs used by private and public banks using four dimensional descriptive conceptual dimensions of outsourcing:  1) shoring model (vendor location/service creation), 2) sourcing model (vendor type), 3) engagement model (number of vendors engaged), and 4) duration of the engagement (contract period).  The comparison of results reveals similar trends of outsourcing for public and private banks. However, public banks are more regulated, and thus are restricted from outsourcing of certain processes to avoid excessive risks of privacy of data and information related to customers.  From a financial strategic point of view, in the long run, the underlying profit margins of a public bank might have adverse effects.  
ISSN:1535-0754
2157-9393
DOI:10.19030/iber.v10i2.1789