Implementation of the business process outsourcing strategy in standard Chartered Bank Kenya limited

Abstract

Outsourcing is a growing phenomenon driven by cost reduction, reduced time cycle and access to highly skilled professionals. Although there are good reasons to outsource, a number of potential obstacles and problems associated with outsourcing are also recognized. While outsourcing is associated with several important benefits, it also entails number of risk factors. The banking industry is currently facing stiff competition from other emerging banks and financial institutions in terms of performance and service delivery to the intended customers in the society. The purpose of the study is to identify the business operations that Standard Chartered Bank Kenya Limited outsources, identify the factors that drive Standard Chartered Bank Kenya Limited to outsource its business operations and to establish the challenges facing Standard Chartered Bank Kenya Limited in implementing the adopted BPO strategies. This research was a case study. The researcher used primary data sources. Primary data was collected by use of structured interview guides. The researcher thus used content analysis to analyze the data. From the study findings, the study concludes that the business operations that Standard Chartered Bank Kenya Limited outsources include information systems, accounting, auditing, archiving, cash sorting, product design, security personnel, transport, training, market Probe services, facilities management, card transaction monitoring, network services outsourcing and payroll. The study also concludes that the factors that drive Standard Chartered Bank Kenya Limited to outsource its business operations include a need to realize cost efficiency; for technical considerations, increase productivity/performance and the need to focus on core activities. The challenges facing Standard Chartered Bank Kenya Limited in implementing the adopted BPO strategies include lack of capable service providers, financial risk, lack of compliance with the contract, opposition from internal staff. The study recommends that for Standard Chartered Bank Kenya Limited to succeed in its outsourcing strategy good communication should be ensured, job quality should be a priority, strict rules should be implemented to guide outsourcing, an explanation should be given to the entire staff why the bank has to outsource, benefits of outsourcing should also be made clear to all the bank members, there should be a thorough follow-up (supervision) so that the work is done professionally and in good time and also costs should be considered