Outsourcing as a strategic tool in banking

: industry trends, challenges, and opportunities

Abstract

This paper examines how outsourcing is used as a strategic tool in the banking industry. To answer this question, the researcher first explores the industry's challenges, opportunities and trends. Despite its size and its central role in the world's economy, the banking industry experienced major turbulences in the recent years due to several ongoing industry trends like digitalization, technological transformation and regulatory changes, which has led to an increasingly competitive market. The study uses expert interviews to develop an understanding of the role of outsourcing in the banking industry as well as gaining valuable insights of best practices. The researcher analyzes these interview results using the Resource-Based View (RBV) theory to provide a comprehensive understanding of how outsourcing can lead to sustained competitive advantage by leveraging specialized resources. The findings show that outsourcing is not merely a cost-cutting measure but a strategic tool to access specialized expertise and drive innovation to strengthen the firms market position. This thesis contributes to research in the field of strategic management in the banking industry and provides valuable insights into the importance of outsourcing practices.

Date of Award	29 Apr 2025
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Pedro Parada (Supervisor)