Thursday, August 18, 2005

Outsourcing helpful to banks—how?

Banks are among the main participants of the financial system all over the world. Banking offers several facilities & Opportunities. The big banks are getting bigger, smaller banks are becoming acquisition candidates. Acquisition is Obtaining control of another corporation by purchasing all or a majority of its outstanding shares, or by purchasing its assets.
Outsourcing by banks has increased rapidly in the past decade as communications and information technology has evolved and improved. Outsourcing is one way for banks to cut costs and become more competitive, says Alfred Ricci, of Union Bank of California's sourcing management office.
Ricci. Says that outsourcing ensures the bank receives higher quality, better on-time delivery, access to world class skills, fast project start-up, banking industry best practices, and even benchmarking information about similar financial institutions, while allowing it to focus resources on its core business. All this translates into lower costs and higher quality, which will make the bank more competitive.
The bank wants to do well by its stockholders and customers. A strategic reason for banks to outsource is to achieve a higher stock price by lowering cost structure. Customers benefit because the bank's cost of funding is lower with a higher stock price. "The bank gets more money for the same amount of stock, which allows us to offer more competitive rates to our customers.

The evolution of IT services outsourcing in the Indian banks has presently moved on to the level of Facilities Management. Banks now looking at business process management to increase returns on investment, improve customer relationship management and employee productivity.

To avail the best services in software outsourcing, offshore software development and software development outsourcing, contact A-1 Technology, Inc an offshore outsourcing company