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Outsourcing Information Technology

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Outsourcing information technology (IT) services can be the best way, for an organization operating in the banking sector, to achieve quality results while keeping the administrative costs low (Goo, 2010). IT functions that the bank should outsource include development and management of databases, and development of data centers (Bucki, 2011). The IT function of developing databases should be outsourced because the bank has many departments, which deal with data capturing. For instance, in the credit and the customer service departments, the bank may require databases containing information of the legal entities and the physical persons who they deal with. In most cases, first-time customers are issued with printed forms where they fill in their details after which the forms are returned to the bank’s staffs for processing. Given the huge size of the bank, it can outsource database development and management services to outside service providers. The bank can physically send or fax the customers’ forms to the organization where the service has been outsourced. Outsourcing data centre services will assist the bank in processing customers’ plastic cards. Since the bank’s size is relatively big, it is likely that its customer base is also huge. Therefore, customers’ need for plastic cards may be high.

The impact of outsourcing the above-mentioned IT services on the bank’s employees is that, they will be able to concentrate better on the bank’s core business, which is offering banking services to customers (Bucki, 2011). However, the bank may have to layoff some of the employees: specifically clerical staffs. On the other hand, the impact of outsourcing the aforementioned IT functions on the customers is that, they will have their banking information processed quickly. For instance, while applying for a plastic card, the customer may have the card processed and ready for use in less than 24 hours. In addition, outsourcing database development and management services can enable the customers to have real-time access to their banking information.

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