When First Data, the leading global provider of electronic commerce and payment services, last week clinched its first bank card outsourcing agreement in China, there were two causes for celebration.
Not only did the multiyear agreement with China Everbright Bank mark another step in First Data's foray into China's fledgling but ballooning bank card market, it also made a small dent in a corporate culture not yet at ease with the idea of outsourcing that has become a global buzzword.
Under the agreement, First Data will provide consulting and transaction processing services - including transaction authorisations, account management, backroom services and merchant account processing - to the mainland flagship bank of the powerful China Everbright Group.
Although the bank would own the data and devise a risk management strategy, First Data would act as an extension of its technology team, helping translate its strategy into data parameters.
'This, to our knowledge, is the first contract of its kind in China,' said Henry Tsuei, First Data's north Asia president.
'China as a service provider is catching up with India in providing outsourcing services to other markets, such as software development and call centre services.'
