July 2002
Standard Bank opts for in-house strategy
Standard Bank has announced that the provision of card processing services by outsourcing services provider EDS will be moved back to the bank's Card Division. This is because the bank has decided that customer contact and its associated processes are core business competencies and important contributors to its competitive advantage, and should therefore be directly managed by the bank.
The parting is amicable, and Standard Bank and EDS management teams have been jointly planning the transition of these services back to the bank for some time. Final agreement was reached between Standard Bank and EDS on 10 July. The process is expected to take a year.
Craig Bond, Director, Standard Bank Card Division, said: "Customer service is central to our business, and we believe it is crucial that it should be managed directly by the bank in order to achieve our strategic goals. Our decision to manage customer service, card processing and related IT in-house follows from that." He added that the six-year outsourcing partnership with EDS had allowed the bank to implement a card processing system that was among the best in the world.
Bond said the transition would have no impact on service levels, as the bank was simply taking over an existing stand-alone operation. He also emphasised that no jobs would be lost. All staff currently employed by EDS on the Card Division contract will be offered employment by Standard Bank on the same terms, and all agreements with contractors and employment agencies would be taken over by the bank.
Michael Minassian, EDS Vice President, said: "EDS and Standard Bank have developed a good relationship. We are obviously disappointed to lose a valued and innovative client like Standard Bank, but we accept that over time, strategic priorities can change. It goes without saying that EDS will do everything in its power to ensure a smooth and constructive transition."
Bond said: "A complex, long-term contract such as this will always have its challenges, but both parties have risen to them. The past year, in particular, has proved the power of a positive, professional partnership between EDS and Standard Bank. Our decision stems entirely from our readiness to move to the next level of customer service, and that is something we need to do internally."
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