BUSINESS RECOMMENDATIONS FOR AURIC BANK

by

OZGE GOCER

16.07.2010 - CB2
 CONTENT

Introduction 1

Description

Summary of Options

Conclusion

Recommendation
REPORT

Reducing costs and improving customer satisfaction at Auric Bank

Introduction

This report will look at:

• The conclusions of a major review

• Four location options of the call centres
• Recommended measures

The aim of this report is to summarise as a part of AB’s major reorganisation changing
outsource call centers in order to create plan for reducing costs,increasing
efficiency,improving customer satisfaction at Auric Bank.

Description

AB has three large call centres and roughly 2500 employees who work branches of AB, in
South of England. Quantity of workers shows us that how professional company is AB. The
AB’s head offices are in London.

Problems of AB:

-AB made unprofitable investment in business areas and as a result of that it lost £1.5 billion
last year

-After loss of £1.5 billion,AB has reviewed its operations again. İt has shown that; customer
believe AB is charging too much for its services

-AB has not behave as a ‘caring’ bank which is close to its customers and understands their
needs

These reasons describe The AB needs to reduce costs to increase its profits and share price so
as a result of these reasons there are four options that the directors of the bank are
considering.

Summary of options

Firstly,

Option 1:Keep the call centers in-house

-Using more part-time employees

-reducing the hours of business of the centres
-increasing the targets fort he number of calls handled per hour

The advantage is for this option;

-making changes in-house so if someone makes a complain the bank do not have to waste too
much time in order to inform head office.

The disadvantage is;

-being much more expensive

Secondly,

Option 2: Outsource the call centres to a company based in South Africa

-the firm has an excellent reputation for reliability and good service
-it has a lot of experience in running centres

The advantages are for this option;

-having an excellent reputation because a reputation is very important thing both for a
reliability of company and satisfaction of customers
-not being very expensive
-having a lot of experience

The disadvantages are;

-culture
-accent

Thirdly,

Option 3: Outsource the call centres to a company based in Scotland

-the firm is new;its managers are young

-several contracts with big companies
-experienced in running call centers
-have been complained in newspapers that the lines are always busy

the advantages are for this option;

-locating within UK
-having contracts with big companies
-data protection

the disadvantages are;

-being expensive
-unexperienced managers
-complaining about busy lines
-accent

Lastly;

Option 4: Outsource the call centres to a company based in India

-expanding fast
-having contracts with several large US companies
-having no problems hiring staff and its costs are low
the advantages are fort his option;
-very cheap
-having US customers
-costs are low
-high potential
the disadvantages are;
-accent
-culture

The options clearly show that option 4 is logical because of the low costs and the high
potential but they have not decided yet because option 2 is as logical as option 4 as part of not
losing their reputation.

Conclusion

It is clear that customer satisfaction is important and they do not want to lose money any
more.That is the reason why the Auric Bank needs to improve their call centres.

Recommendation:

I strongly recommend that Auric Bank chooses option 4 and outsources the call centres to X-
source India, a company based in Bangalore, India, because of the extremely low costs, the
qualified staff and the high potential in India. In addition to that it is needed to improve
business processes and preventing loss of money