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This chapter is an overview of this study which attempts to clarify the achievement of the research question which is to look into outsourcing beneficial towards improved effectiveness and competitive advantage for U.S. Banks. This chapter makes recommendations and conclusion drawn from the general views of this study.
Business process outsourcing (BPO) is a current trend which has proved to be of great significance to the U.S. Banks. The Banks in U.S. should be encouraged to make use of the cheap outsourcing opportunities available. This will give them a head start as they will able reduce overhead costs and concentrate on the tasks that require their direct personal. This will enable the Banks’ operations to be effective.
Globalization has made it possible for the world to be more connected. This connection of the different regions of the world has made it possible for people from different region to exchange ideas. Outsourcing of tasks either singly or at departmental levels is a practice which many organizations have engaged in. In the Banking sector, the practice started at around the 70’s and 80’s when printing of the customer banking statement was started. This practice was popularized by the advancement in information technology in the 80’s. In the current time, the practice has become a better option as U.S. Banks which are faced with challenges which include: the challenge to provide better services, transparency, the increasing costs of services and the need to offer more services.
There are so many benefits which the U.S. Banks have enjoyed through the utilization of business process outsourcing (BPO). Through outsourcing it is possible for U.S. Banks to concentrate on the core activities and outsource the other activities which do not require the direct attention of the bankers. The U.S. Banks find outsourcing functions to be quite cheap especially when the outsourcing firms are from overseas. This is important as it reduces the overhead costs of operations. Outsourcing companies specialize in their services and thus the organizations which give out their department for outsourcing companies stand a chance of enjoying quality services. Other advantages which U.S. Banks take advantage of are staffing flexibility, continuity, risk management, and internal staff development.
There have been heated debates against outsourcing practices by the U.S. Banks especially to the companies which are located overseas. The main reason has been the loss of jobs. There are claims that the tax payers’ money is used to bail out U.S. Banks but then the same Bank deny the tax payers jobs and instead to them oversea. In the light of bank effectiveness and competitive advantage it can be said that outsourcing has made it possible for U.S. Banks to be quite effective and operate at a competitive advantage.