Share
Explore BrainMass

Outsourcing

If a bank is to outsource some of its operations, what effect will it have on the bank in terms of benefits,risks,locations and operations relevant to the banking industry.

Solution Preview

If a bank is to outsource some of its operations, one of the major benefit would be in terms of cost savings. As we know that global financial institutions such as banks are outsourcing part of their operations to service providers such as IT outsourcing companies, Call Centers, etc. in low cost nations like India and China to obtain comparative advantage in terms of costs, outsourcing provides significant advantage to financial institutions in terms of improving their operating margins. Some of the common areas that are being outsourced include information technology/software development and maintenance, customer service in areas like credit card, etc. Banks not only obtain cost related advantages, but are also able to ...

Solution Summary

If a bank is to outsource some of its operations, what effect will it have on the bank in terms of benefits,risks,locations and operations relevant to the banking industry.

$2.19