This chapter is concerned with analyses of the findings in chapter two above in relation to the research question which seeks to examine the outsourcing practice by the U.S. Banks and its effect on the effectiveness and competitive advantage of the banks which carries out the practice. The chapter is divided into three sections as follows:

The popularity of outsourcing can be explained in three fold: reduction of costs; reaching for expertise; and meeting unexpected situations. Most of the functions which are outsourced are usually accomplished at lower charges than if they could be at home. This is biggest motivators for banks which carry out the outsourcing of their function. This is more so when the outsourcing is done overseas by companies from developing countries.

The second reason for the popularity of the outsourcing by U.S. banks is to obtain expertise bin areas where the banks are not able to meet the requirement of some specific tasks. This outsourcing is practiced within American and also from overseas. The third reason is the meeting of unexpected high demands for instance in cases of high turn over rates. 

The outsourcing practice by the U.S. Banks has faced much criticism with so many questions being raised on the practice. Generally, the public opinion is not against the outsourcing practice as whole a whole but only some level of the practice which seems to have a conflict of interest. Public opinion lies heavily against the outsourcing of jobs by the U.S. Banks to overseas companies. There are a multiple of reasons why the public is against this: job loss, devaluation of the dollar, making U.S. Banks dependent on foreigners, and enriching foreigner through the American Tax payers (issues of bailing out companies which dominantly outsource foreign expertise). Outsourcing by Banks within U.S does not seem to garner much heat as the benefit is still within the borders of U.S. 

Outsourcing by the U.S. Banks can be viewed as better option especially in these economic hard times. It is evident that for any company to be at a competitive advantage it needs to reduce the operating costs. Outsourcing overseas fortunately makes the U.S. obtain services at lower charges than they could if they hired internal workforce. Lower wages paid out will enable the banks to invest and develop competitive packages for the local and international clients. Outsourcing of departments which require advanced skill which lack among the Bank workforce will equally make Bank effective. High quality services will be offered since it will be offered by outsourcing companies which specialize in the services and functions which have been outsourced.

Outsourcing comes in also during times of shortages of work force: which can be due to high turn over rates or when during peak season. During such times, outsourcing ensures that there is no lapse in the operations of Banks. The Banks are in a position to operate smoothly without the high turnover or the peak season affecting the smooth running of the company. By reducing costs, offering of expertise and meeting demand for workforce when there are shortages, outsourcing has ensured that the U.S. Banks operate effectively and at a competitive edge.