Vendor Selection Criteria And Performance Evaluation In Banking Outsourcing: A Case Study Of Indian Banks

Abstract

Outsourcing has become a strategic imperative for Indian banks aiming to enhance operational efficiency and focus on core competencies. However, the success of outsourcing initiatives depends significantly on the selection of suitable vendors and effective performance evaluation mechanisms. This study investigates the vendor selection criteria and performance evaluation practices employed by Indian banks in outsourcing engagements. Utilizing a case study approach, data was collected from a sample of prominent Indian banks engaged in outsourcing partnerships. Through qualitative analysis, key vendor selection criteria and performance evaluation metrics were identified, shedding light on the strategies employed by banks to ensure successful outsourcing outcomes. The findings offer valuable insights for banking institutions seeking to optimize their outsourcing processes and improve vendor management practices.