Financial Outsourcing in India

Financial Outsourcing in India

By

Mrs. J. Esther Gnanapoo
MBA, M.Phil, PGDIB, (PhD)
Asst. Professor
Department of MBA
SSM College of Engineering
Komarapalayam-638 183

Introduction:

Financial outsourcing services are used by financial institutions & banks, broking houses, investors, fund managers, and individual organizations.

According to McKinsey and Nasscom , India has the potential to process 30% of US bank transactions by 2010. Currently the country's BPOs are handling 8% of US banking transactions. With growth rates of 30 to 35%, India 's revenues from banking and financial services offshoring is likely to reach $6.5 billion by FY2011.

Banks have realized that outsourcing Banking and Financial Services is a strategic activity that streamlines and simplifies operational processes, reduces cost and complexity and maximizes revenue. The shift towards global multi-sourcing recognizes the need to select the vendor best qualified to provide outsourced banking services in specific locations.

Understanding the specific needs of customers in different locations helps banks to differentiating their product offerings and stay ahead in a highly competitive global marketplace.

Outsource2india can provide real-time, online, 24x7 processing, along with reliable, accurate and cost-effective Banking and Financial Services. This enables banks to maintain core focus and achieve organizational agility and flexibility and increase responsiveness to customers.

Outsourcing Financial Services to India:

Outsourcing your financial and banking needs to Outsource2india is a wise option since most companies do not have the resources or expertise to perform these activities in house. Indian service providers provide cost effective and quality solutions.

India is today the preferred destination for FAO (Finance and Accounts Outsourcing). The success of India's outsourcing firms has ensured that more than 80 per cent of the Fortune 500 companies are off shoring or evaluating the outsourcing of their non-strategic processes now.

Banking services provided by Outsource2india:

Processing loan and credit card applications

Collection and recoveries

Data processing

Transaction processing

Verification

Records management

Payment processing

Securities processing

Mortgage processing

Application processing

Mortgage loan processing

Check imaging

Business intelligence

Analytics

These are some additional financial services that can be outsourced to outsource2india

Credit Decision

Accounts Servicing

Account Reconciliation

US GAAP Reporting

Account Setup

Credit/Debit Card services

Check Processing

Mortgage loan servicing

Collections

Customer Account Management

Treasury Operations Management

Outsourcing Financial Services to O2I

Outsourcing financial services can help you stay competitive in the global market. O2I, can give the organization a competitive edge in today's extremely competitive financial services environment. O2I is a pioneer in outsourcing and has been providing high-end financial services to a large number of global customers. Outsourcing financial services can focus more on improving organization's core business. Financial services outsourcing can free our personnel from the tasks involved in accounting and enable them to concentrate more on improving the other segments of our business.

Financial services outsourcing can help our organization save on precious time and effort. Instead of spending time and effort on routine mundane tasks, the personnel can concentrate on the businesses core functions. With experienced, skilled and well-trained team of professional accountants, some of the analysts provide proficient financial services that can increase our profits. O2I offer cost-effective financial services that cater to industries such as banking, insurance, securities, investments and financial institutions amongst others.

Benefits of outsourcing Financial Analysis Services:

Companies the world over have discovered the advantages of outsourcing financial services to India - competitive advantage through quick turnaround, flexibility in operations, maximizing profitability.

Information for action: Outsourcing financial analysis services gives management access to faster and more accurate interpretation of financial data. This enhances decision-making ability so that proactive action can be taken to improve the financial health of the organization.

Better technology: Access to improved technology means that data can be used on a regular basis to improve service levels in the company.

Business transformation: Cost savings, although substantial (30-50%) are no longer the only reason for outsourcing financial analysis, which can help a business become more competitive by providing better service and quality, continuously innovating in products and processes, thus increasing value to stakeholders.

Transparency and regulatory compliance: CFAs the world over are turning to financial services outsourcing to achieve improved financial reporting and regulatory compliance with laws such as the Sarbanes-Oxley Act.

Knowledge management in the financial services industry contributes to the bottomline of the company.

Conclusion:

Outsourcing financial services is a task often performed by financial analysts who lack sufficient knowledge of outsourcing financials and of the overall outsourcing agreement. Outsourcing Management Services will perform all of the functions necessary for sound financial management of the outsourcing agreement.

References:

1. www.outsource2india.com

2. www.patni.com

3. www.accenture.com

4. www.outsourcing.org

5. www.bposervices.itmatchonline.com

Mrs. J. Esther Gnanapoo
MBA, M.Phil, PGDIB, (PhD)
Asst. Professor
Department of MBA
SSM College of Engineering
Komarapalayam-638 183

Source: E-mail April 5, 2008