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Back Office Outsourcing : An Essential Driver Of Growth For Banks?

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Back Office Outsourcing – An essential driver of growth for banks?

The banking sector is undergoing a major phase of change – embracing outsourcing of services more than ever before in a bid to streamline processes and maximise efficiencies. The business process outsourcing (BPO) sector is growing at an accelerating pace. More and more back office outsourcing is being applied across numerous industries. Specifically, the recession led to the start-up of many different solution providers as well as significant change in the outsourcing sector. These changes include outsourcing a plethora of services never before considered seriously for outsourcing – including areas such as customer relationship management, transparency in business
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Banks are often entrenched with managing so many different departments and find it difficult to enact systematic change at a fast pace and without facing a wall of bureaucratic red tape. Outsourcing back office services offers banks some increased agility and this helps banks keep pace with competitors and also the growing fin-tech sector which is eating into banking sector margins.
These types of outsourcing driven operational improvements are helping deliver growth for banks. Leading back office outsourcing firms provide banks with empowerment and enhanced business efficiency and improved bottom-line. Not only is this an essential driver of growth for banks but also a self-fulfilling prophecy. Those banks using these outsourcing firms can enjoy a competitive edge in some case compared to those banks applying in house back office teams. This means in order to generate growth back office outsourcing may indeed have become a foregone conclusion in delivering competitive returns to stakeholders as well as competing products and services to clients. That is not to say that there is not a resonant balance to be found somewhere between full back office outsourcing and a full in house team. There are process hurdles that banks are able to identify and outsource in an isolated fashion. By effectively identifying these hurdles and allowing a specialist back office team to handle the process banks are able to focus more
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