Operation Outsourcing Analysis Of A Bank Qingdao Branch

With the globalization of economy and the changes of industrial structures, the competitions in financial markets are increasing day after day so that commercial banks began to explore the reform of banks operating mode, and have started to outsource non-core businesses and processing to supplier and vendors, by which aims to implement effective cost control, processing efficiency and service level improvement, and realize the enhancement of bank competitive capacities in core-business areas.This thesis intends to present a well-known foreign banks (hereinafter referred to as "A bank Qingdao branch") in-depth study of operation outsourcing, and also for the domestic commercial banks operation outsourcing reference model. This paper will study classical theory from economics and management theory (such as division of labor and economic theory, transaction cost theory, resource based theory, core competence theory, value chain theory) from the perspective of operation outsourcing, and introduces the current situation of Banking Outsourcing Based on the latest outsourcing theory, PEST/SWOT will be used for analysis of outsourcing internal and external causes. The paper describes the operation mode under outsourcing of that branch from the perspective of practice, and analyzes the influence on the performance of the bank and the mode of operation, especially for banks operating efficiency and financial cost. At the same time, this paper also discusses the outsourcing process risks and challenges, and researches the outsourcing risk management.Through the analysis, the main reason and purpose of operation outsourcing is to increase competitive advantage, decrease and control the cost, and seek for business development under policy and governance support. After outsourcing, banks are able to realize organization effectiveness and benefit from the efficiency improvement and cost savings. The processing unit time decrease significantly due to the scale effect caused by migration and outsourcing, following the bank cost decreases. Meanwhile, commercial banks need to pay attention on risk control and management for outsourcing and take actions to minimize the potential risks. For those large scale commercial banks, having large transaction volumes, they should evaluate to establish intra-group processing center or sub-company and outsource operation processing to those intra-group institutions. For those small scale commercial banks, which do not have those conditions, should enhance vendor selection and screening mechanism, manage the vendors by contract effectively. No matter choosing what kinds of vendors, commercial banks should ensure effective vendor management through strengthening risk monitoring, dynamic assessment of vendor performance, arranging business continuity drills. This article provides valuable reference for the domestic commercial banks operation outsourcing, through the analysis of the outsourcing mode of international and global banks...