BPO News 2012:Standard Chartered's BPO to prune vendors, save $7 mn

Standard Chartered Bank's wholly-owned subsidiary Scope International Pvt Ltd hopes to save lots of $7 million per year by pruning its IT vendor base to 3 or four by the tip of March, a senior official said.

The city-based Scope International is that the business method outsourcing ( BPO) arm of normal Chartered with around eight,500 folks lending support to the bank's numerous operations, as well as IT.

"We have taken a vital explore the IT service and therefore the vendors. we'll still handle in-house the core IT services that are IP (intellectual property) driven and demanding for banking operations whereas commodity services are parceled to few huge vendors rather than having multiple little vendors," said Jaya Vaidhyanathan, government vice chairman and head, Chennai Technology and Strategic Transformation, international Shared Service Centres (GSSC).

Nearly sixty per cent of normal Chartered's IT desires are met in-house - as well as the bank's core banking resolution (CBS) - whereas the balance is outsourced.

According to Vaidhyanathan, the technology division here staff around four,500 folks out of that nearly thirty five per cent belonged to the vendors.

"The total annual payout to vendors is around $70 million and that we hope to save lots of around ten per cent of that through our vendor consolidation initiative," she said.

She said the corporate is within the last section of the seller consolidation activity and hiring of recent service suppliers and therefore the firing of smaller players can happen by the tip of the primary quarter of the present calendar year.

A year back Scope International had around 5} vendors comprising little IT firms providing as low as five folks and rising to two hundred hands.

"After consolidation we'll have 3 or four huge vendors. we'll additionally rent on our rolls those folks whom we tend to think about are crucial however used by the vendors," Vaidhyanathan said.

Explaining the rationale for the initiative, she said: "Apart from the economies of scale leading to lower prices, we'll be ready to monitor the progress of the comes handled by the vendors. Further, the vendors will understand the sort of comes that are within the pipeline and accordingly allot sensible talent for us rather than those that are on their bench."
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