The competitive working environment and the need to focus on core activities force today's financial institutions to outsource some services, critical to their business, for which they have limited expertise and/or limited funds. Outsourcing offers a cost-efficient business by preventing time loss. The Banking Law and the related legislation recently enacted comprise provisions with respect to outsourcing in light of global trends. The Banking Law provides the definition of outsourcing companies (supporting service providers) in Article 3; however it leaves the details of application to the secondary legislation. The rules regarding the procurement of outsourcing services by banks and authorisation of the service providers – the Outsourcing Regulation, enacted on November 1 2006 – regulates outsourcing companies and the specifications of outsourced services.
January 01 2008