Research On Cost Control Of Commercial Bank Service Outsourcing

In recent years,with China's banking industry going global,the practice of foreign banks' outsourcing of some business has been favored or even followed suit by China's commercial banks due to increasingly closer exchange.Therefore,service outsourcing in commercial banks is become more and more popular.Outsourcing plays a positive role in such aspects as reducing commercial banks' operation costs,transferring operation risks and enhancing business development.However,as dramatic change occurs in economic environment and market condition of China's banking industry,banks are facing more pressure in making profits increasingly.At the same time,due to outsourcing items of commercial banks and relevant costs increasing rapidly,to enhance cost control in outsourcing timely should become a crucial study topic which is necessary to be conducted in banks' business transition in China inevitably.The paper,taking these issues as a study core and cost control in service outsourcing of Bank C as an example,the paper conducts study on possible problem existed in outsourcing cost control of commercial banks based on cost control theories such as norm cost control method and cost indifference point analysis through study approaches such as case analysis and descriptive statistics.Because of insufficient implement in cost accountability,inadequate management in pre-evaluation of outsourcing feasibility as well as deficiency in management provided by outsourcing service agencies and lack of awareness on cost control,some of agencies treat outsourcing as a shortcut to reduce work reload and personal pressure,resulting an inadequate accounting in outsourcing cost.All of these are reasons for problems which have negative impact on outsourcing benefit and effect,including demand surplus of outsourcing items,improperness in outsourcing contents,virtual-high purchase price for outsourcing as well as over stress on cost-effectiveness of outsourcing yet making light of risk control.The paper proposes countermeasures for better cost control in outsourcing from aspects such as exploring internal sources and upgrading business procedure,enhancing feasible analysis on outsourcing access,strengthening purchase management of outsourcing and enhancing management system construction for outsourcing business.It is expected to provide beneficial reference and example for other commercial banks to conduct outsourcing business management and relevant cost control.