Information Technology (IT) and Business Process Outsourcing services (BPO) provider MphasiS said the decision of Santander UK to terminate its retail banking-related call centre contract will not have any significant impact on the company. “The revenue impact on MphasiS due to the contract termination will be insignificant and below 0.5 per cent,” the company said in a statement, adding the contract was to come to an end in the third quarter (July-Sept) of 2011.
Santander UK, a full-service retail and commercial bank and a wholly-owned unit of Spain’s Banco Santander SA had outsourced its call centre operations to MphasiS in 2003. The company said it would move the call-center services to the UK since its customers felt frustrated dealing with offshore call centre.
Proservartner Point of View: Given public sentiment in many geographies (including UK, US and Western Europe) against customer contact activities performed from India, and coupled with a reducing cost advantage in Bangalore (and less so Pune), it is unsurprising that Santander have pulled these services back in house to its own staff in Glasgow, Leicester and Liverpool.
This move is indicative of a reduction in India’s competitive advantage in Customer Contact services, which we have commented on previously – in many instances the risk of negatively impacting the customer experience outweighs the benefits of minimal cost reduction!
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Tags: BPO, Financial Services, Mphasis, Outsourcing
