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V. Rishi Kumar

Hyderabad, Aug. 5 Most of the bank managements including public sector have either contemplated or have very firm views on rapid implementation of new technologies to stay competitive.

They are always looking at viable models to transform their technology to add new services and efficiencies, according to Mr. Siddharth A. Pai, Partner and Managing Director of TPI India.

Mr Pai told Business Line that there is a difference between public sector banks and private sector ones in the way they look at outsourcing issues. The latter are more independent and nimble. With public sector undertakings, adopting outsourced model relates to staff concerns and job losses, if any.

No PSB employee who used to write passbooks manually has lost a job due to computerisation. Some may opt for competitive private jobs, he explained.

While some may argue that most of the PSB IT staff will seek jobs in private businesses, it may not be all that true. The question is when an employee is happy with a job, why will he change, he countered.

Most of the PSU banks have moved to core banking that is changing their existing technology infrastructure; that is when a new technology partner steps in. This is not long-term outsourcing, but is a long term association with a partner, he explained.

Labour issues are quite real and not a problem for India alone. Other markets too have faced such issues. However, the pace of change necessitates expert partners. India has already become one of the largest outsourcing market, and continues to offer opportunities, he said.

Already many PSBs are working with technology partners, and competition will force them to adopt new strategies to stay ahead, he said.

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