Experts for Outsourcing Back Office by Banks to Create Large-Scale Employment

Policymakers, bankers, and representatives in the BPO industry emphasized outsourcing the banks ' back office to create large-scale jobs, slash operational costs and increase financial sector performance.

Talking to BSS, they said if the banks outsource their back-office activities, it will boost the BPO sector in the country and help create large-scale jobs.

In fact, the banks will benefit more as their operating costs will decline, and productivity would significantly improve, they noted.

Terming BPO a prospective business, State Minister for ICT Division Zunaid Ahmed Palak said the government has provided policy help to improve the fast-growing sector in the region.

“We want to establish a paperless office and build a cashless society while the BPO companies could help us fulfill both the objectives,” he said.

The state minister said three issues — mindset understanding and trust — are very important for the BPO sector to flourish.

It is the prime responsibility of the banks to change mindset to outsource their activities, while Bangladesh Association of Call Centre Organizations (BACCO) should build trust, he added.

BACCO President Wahidur Rahman Sharif said the country’s BPO sector is now generating over US$ 400 million revenues from both local and international clients and the sector has created more than 50,000 jobs in a decade.

The banking sector holds great potential for the BPO sector, which is now more equipped and matured enough to take the opportunity to deliver the world-class outsourced service support for the country’s vibrant financial sector, he added.

Director-General of BIBM Dr. Md Akhtaruzzaman laid emphasis on providing training to create skilled manpower in the country’s BPO sector.

Meanwhile, the bankers and experts at a recent workshop on `Outsourcing in Financial Service Sector’ held at Bangladesh Bank Institute of Bank

Management (BIBM) here underscored the need for outsourcing in the financial service sector to improve operational performance, cut operational cost and increase efficiency through better consolidating and centralizing functions.

Outsourcing enables organizations to improve operational performance, reduce operational cost and increase efficiency through better consolidating and centralizing functions, they told the function.

Leveraging ICT for Growth and Employment of the IT-ITES Industry (LICT) Project, Bangladesh Association of Call Center and Outsourcing (BACCO) and Bangladesh Institute of Bank Management (BIBM) jointly arranged the workshop.

State Minister for ICT Division Zunaid Ahmed Palak, Director (Training) of BIBM Dr. Shah Md Ahsan Habib, LICT Project Director Md Rezaul Karim, LICT Policy Adviser Sami Ahmed and BACCO President Wahidur Rahman Sharif, among others, spoke at the workshop.

Chairman of Devnet Ltd AK Mahbub and Associate Professor of BIBM Md Mahbubur Rahman Alam presented two separate papers on the prospect of financial sector outsourcing.

The experts put forward a set of recommendations to eliminate obstacles to outsourcing in the financial sector.

The recommendations include a change of mindsets of banks to outsource their activities and update of outsourcing policy to widen the scope of banks for outsourcing activities.

Source: BSS