Client Background
A prominent bank in the UAE was required to increase Emiratization across its workforce in compliance with regulatory requirements from the Central Bank of the UAE (CBUAE). To meet these targets while enhancing productivity and cost efficiency, the bank decided to outsource non-core functions. Cedar was engaged to provide a comprehensive assessment of the bank’s organizational model, recommend optimal outsourcing strategies, and design a way forward based on strategic, financial, and operational considerations.
Cedar’s Approach
Organizational Assessment – Cedar began by reviewing the bank’s current organizational structure to identify potential opportunities for outsourcing non-core roles. This included evaluating the balance between full-time employees (FTEs) and outsourced staff, with a focus on how outsourcing could help the bank meet its Emiratization targets without compromising productivity. Cedar’s assessment ensured that the outsourcing model would align with the bank’s strategic goals while optimizing resource allocation.
External Market Research - Cedar conducted a thorough market assessment of the outsourcing landscape, analyzing various operational models and identifying key outsourcing players in the region. By benchmarking the bank’s practices against those of peer institutions, Cedar gathered insights into industry best practices and determined the most effective outsourcing approaches that would suit the bank’s needs. This external research provided a clear understanding of how the bank could leverage outsourcing to achieve both cost-efficiency and compliance with local regulations.
Cost-Benefit and Risk Analysis - Cedar performed a detailed cost-benefit analysis to quantify the financial gains associated with outsourcing non-core functions. This analysis demonstrated potential cost savings while considering key risks, such as loss of control over intellectual property, operational quality concerns, and dependency on third-party providers. Cedar developed mitigation strategies to address these risks, ensuring that the bank could pursue outsourcing without sacrificing control or quality.
Strategic Roadmap and Implementation Plan – Based on the internal and external assessments, Cedar developed a comprehensive set of recommendations, outlining the best-suited roles for outsourcing and proposing an optimal target operating model. This roadmap included a high-level implementation plan detailing the next steps, timelines, and key milestones. Cedar also provided guidance on maintaining compliance with Emiratization regulations while transitioning to the new outsourcing model, ensuring the bank could navigate the change smoothly.
Strategic Outcome and Way Forward
Cedar’s expert guidance enabled the bank to align its Emiratization targets with enhanced productivity and significant cost savings. Few roles were identified for outsourcing, and a three-year cost-saving plan was developed, projecting savings of between 10% to 30%. Supported by a detailed implementation roadmap and risk mitigation strategies, the bank is now well-positioned to meet regulatory requirements while boosting efficiency and controlling costs through its new outsourcing model.