Banking promises to become the core client base for the business process outsourcing (or managing) industry just as telecom did in 2003-05. Sandip Sen, Global CEO of Aegis, an Essar Group company, sees a trend in more and more banks signing deals with business process management (BPM) companies.
Inflexion point“The telecom business had reached an inflexion point during 2003-05 and India was adding six million customers each month,” Sen told Business Line . BPM business and telecom services had boomed in tandem. Today, banking is in the limelight for three things, namely, financial inclusion, direct benefit transfer, and issue of new licences, Sen explained.
“I think, we are looking at a scenario where the Government will continue to be the majority owner,” Sen said when asked about the PJ Nayak Committee report on public sector banks. But it does not make a material difference to BPM players whether the (Government) stake (in banks) goes up or down.
“The objective for both Government and private sector is how banks become more customer-focused. They believe customer is king but do not have the expertise to deliver all that he/she wants.” Aegis had recently entered into a deal with a major mutual fund player. Every bank, mutual fund and financial institution now wants to concentrate on its core business. The company has entered into BPM deals with at least 12 public sector banks in the last two years. These include Bank of India and Punjab National Bank.
In the private sector, it manages the peripheral business of Dhanlaxmi Bank and Federal Bank, both of which are based in Kerala.
Staff fears“What they are telling us is that we want you to help us with outsourcing of business outside of the core,” Sen said. On fears of job loss in the banking sector, he said Aegis wants to work with all stakeholders, including unions.
“Automation may have cost jobs in the past. But things have changed now. What we are doing is provide alternative jobs at our centres.
“In organisations with strong unions, we’re ready to work with them and even skill them just as we did in the US and Europe.