Recommendations for Auric Bank Essay

aurous fix is a modern British bank that cares ab step up its guests. Business at Auric Bank is forever reviewed in order to go away customers with excellent advantage at agonistic sets. The objective of this business report is to scrutinize different solutions to the two issues Auric Bank is originally facing. One of them is customer service improvement and the split second one involves implementing a policy which provide cut the banks prices and at the same time forget boost its mesh and share price.As a part of the major reorganization a look has to be taken at the cost of customer service since Auric Bank generated a loss of approximately 1.5 billion in 2011 by investing in unprofitable areas of business. Since that time the bank has carried out a major review of its operations the main points of which are 1. Customers cogitate Auric Bank is charging also much for its service 2. Auric Bank no longer has the image of a caring bank that is make full to its customers and get winds their needs 3. The bank needs to reduce costs to increase dough and price per share Today Auric Bank has 2,500 employees working in three shout centers located in different cities in reciprocal ohm England. There are four solutions which the directors of the bank are considering1. The call centers could be kept in-house2. The call centers could be outsourced to a Company based in South Africa 3. The call centers could be outsourced to a Company based in Scotland 4. The call centers could be outsourced to a Company based in India job SOLUTIONS First option One of the solutions is to keep call centers in their current locations in South England and reduce costs by using more(prenominal) part-time workers, reducing working hours of business centers and enhancing productivity by increase the ratio of calls returned per hour. Estimated cost of lead the call centers for the next five historic period is 16 cardinal. Estimated savings by introducing changes are above 3 million with actual costs being equal up to 13 million. The price is really high for our cost-cutting policy. There are three positive part of this solution1. Current employees in call-centers are ready to provide the customers with own(prenominal) approach as they have been acquainted with each other for a long time 2. Current employees know the operations and transactions inwardly out and, therefore, do not need intensive training 3. South-English workers aim that Auric Bank is an English bank and, therefore, reinforce the banks closeness to its customers Second optionAnother way is to outsource serve of call-centers to a political party based in South Africa. option Plc is a telephoner based in Cape Town. Calculations show us that cost of the contract with Resource Plc to run call centers for the next five age is 8 million. This firm has an excellent reputation for its reliability and profound service, and that is a crucial aspect because one of the priorities in b anking sphere is the quality of customer service. Moreover Resource Plc has a lot of experience in running this kind of centers. We must take into consideration that Resource Plc offers good remnant of costs and quality of service. It is expected that they will manage call centers more efficiently. The staff will be trained to provide the bank with pertly products and service at much lower costs than the UK centers and will doubtless conduct business very professionally.Third optionThird realizable solution could be outsourcing the call center to a Scottish company huntsman Plc. Estimated cost of running the call centers for five days is 10 million. The positive part of this company is that it is a new firm with young, bustling managers, which can work almost restlessly. Second advantage is that they have several(prenominal) contacts with largish companies this means that these companies trust them. Also they are experienced in running call centers that will help to avoid co nfusion during work. However, there also are setbacks such as complaints of the customers about telephone lines being always busy, which does not indicate a high productivity level. Contracts with big companies can undermine the reputation and behaveance of our col crusadeation. Price of contract with Orion Plc is not relatively low, but quality of their service is not sufficient for this price.Fourth optionLast solution is to outsource the call centers to an Indian company that is based in Bangalore. X-source India is a fast growing company that has contracts with several large US companies. This means that it does not have problems with hiring employees and run with low costs. An estimated cost of the contract with X-source India over the next five years is 5,5 million. We must take into consideration that a lot of US companies perform cost-cutting policy through Indian outsourcing call centers. Indian employees have good qualification because the majority of them are universit y graduates. Indian management will provide fast and effective service and price of the contract is very low.RECOMMENDATIONS We understand that Auric Bank is the English bank, and if directors decide to relocate call centers afield they will have some problems with laying off 2,500 employees. This fact will negatively affect the reputation of Auric Bank and of course labor unions will be against this action. Quality of service might not stay put on the same level abroad, however, keeping call centers in England is too expensive. Taking all facts into consideration I would advise to relocate the call centers of Auric Bank abroad.Scottish and Indian companies have been servicing a lot of big clients. This fact, their serious commitment, can affect the quality of their services provided to other customers in a negative way. The call centers had better not be kept in-house because it is a very expensive solution that will not let AB focus on developing part of business. Therefore I s uggest moving call centers to South Africa and collaborating with Resource Plc. The offer of this company represents an appropriate price-to-quality ratio. If AB cooperates with the South African company it will achieve its goals reduce operation costs, increase quality of services and get customer loyalty.