In the current business scenario, offshoring has invaded almost all fields of the industry. Banking services are no exception. Bringing down costs accumulated from IT requirements has been high on the agenda of strategy management. This has pushed banks into the arena of outsourcing. Outsourcing banking services is a cost-effective method for the smooth management of operations across all segments of this industry.
Novel schemes in the banking sector tend to support customer-facing requirements. These include call centers providing more efficient services, mobile and internet banking, claims processing, and approval of loans. All these jobs are high-tech projects that a majority of the banks would prefer to complete in-house.
Offshoring these banking services enable financial institutions to focus more on the moneymaking aspects of the business. Banks thus take advantage of the outsourcing sector to develop and improve their main business.
This has led to a large number of small contracts brokered across a wide range of suppliers since many elements of the IT management have to be inculcated. Multi-sourcing has been the norm followed in the offshoring of banking services.
In addition, for creating a process that oversees all the outsourced functions, service integration offers a solution. BPO companies provide application management that makes it easy for banks to coordinate their outsourced operations.
Public sector banks in India follow in private sector’s footsteps
In India, public sector banks have shown reluctance to jump into the offshoring scenario. However, times have changed and many of these banks have starting outsourcing banking services with the view to expand customer services and operations. Core aspects of the banking business like human resources and technology are being switched over to BPO firms.
The company Aegis BPO has been a forerunner in this field. It has utilized this growing market to its advantage. As a result, it has been able to build a valuable customer base, which in turn has spurred further additions to its ranks. State-controlled banks have relaxed their rigid stand on the issue as they have realized the huge potential that offshoring has in store.
As a rule, BPO agreements made with state-backed banks have a lifespan of three to five years. This brings in a huge amount of revenue to the banking, financial services and insurance (BFSI) sector of Aegis.
The BSFI segment is this organization’s second largest vertical. Aegis has put to effective use its very own social media platform for this purpose. This enables loan recovery, and registration and addressing of complaints from anywhere around the globe. Innovation is also in the works as multiple-language services are offered in addition to developing a single number for the registration of complaints and queries anytime, anywhere.
Offshoring prospects for the financial sector look bright as more banks are following suit and handing over a chunk of the banking services to BPO companies. Outsourcing companies need to upgrade their infrastructure and ready themselves to take on the growing demands that will keep flowing from the banking sector.