Bank Of India To Outsource HR; Sets Up Sub-committee

Mumbai, November 28: | Updated: Nov 29 2002, 05:30am hrs
Bank of India (BoI) has decided to outsource its human resource (HR) related requirements with a view to introduce sophisticated HR practices, processes and techniques in managing its workforce. The plan is to use technology in the areas of HR process management system in order to achieve higher operational efficiency, streamlined processed and work flow automation in HR functions. BoIs board of directors has given an in-principle approval to the plan. A sub-committee has also been formed to formulate and evaluate the plan, which is in line with the banks business strategy. "We have decided to use Web-based solutions as well as best of HRM systems on outsourced basis," BoI general manager D Krishnamurthy told FE. A tender inviting applications has also been put up on the banks website.

"Banking has changed drastically over a period of time. It is extremely important that employees upgrade their skill sets to cope with the new challenges. The idea is also to take assistance to familiarise the workforce with the latest banking technologies adopted by the bank," Mr Krishnamurthy said.

BoI has plans to introduce datamining and e-learning with the assistance of the vendor, which is supposed to develop the software for this. "Our effort is to increase job satisfaction and motivation levels," he said.

The terms of reference for HR outsourcing is to bring in the best of HR systems to enhance work efficiency and also to develop an appraisal system and technique to complement the existing system.

"The vendor should assist the bank in developing an e-workplace concept by providing self service facilities to employees like browsing leave records and online submission of various applications," the tender said.

"After getting the applications, the committee will evaluate and finalise the decision," added Mr Krishnamurthy, who is expecting a good response from the market.

"The vendor should have expertise in IT as well as in HRM," he stressed.

The bank has also decided to outsource the existing information technology (IT) infrastructure and bring in new IT initiatives. BoI chairman and managing director KV Krishnamurthy had earlier said that such a plan would be implemented in a phased manner.

As per the plan, the selected vendor will assist in building an IT blueprint in line with the banks future corporate strategy. The vendor will bring in centralised core banking solution for about 700 branches and implement it. BoI, after appointing the vendor, plans to run the pilot project on core banking solution at select cities.