ABSTRACT
Today, banks operate in highly competitive and turbulent environment. One of the ways to reduce costs, improve operational efficiencies and extend offering of online services is considered to be through outsourcing. However, before embarking on an outsourcing journey, it is important to understand whether a high degree of outsourcing means that a bank loses its core competences in banking and therefore only acts as a manager of different external service providers. To address this challenge, this research study aims to assess suitability of value-creating activities of a direct bank to outsourcing, and the implication of outsourcing to bank’s competitive advantage.
