Outsourcing most activities and specialising in few will not work, says Shriram Finance's Umesh Revankar

Umesh Revankar also said that companies should outsource certain things and try to learn out of that and build an internal team

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26 Aug, 2025 12:21

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Shriram Finance's Executive Vice Chairman, Umesh Revankar on September 6 said that outsourcing most activities and specialising in a few will not work, while adding that companies should outsource certain things and try to learn out of that and build an internal team.

"Many of the activities today when you become very large, you try to outsource it and try to become specialist in few activities. I don't think that will work," Revankar said at FIBAC 2024.

Shriram Finance's Revankar made the comment in the backdrop of few companies outsourcing most activities and just specialising in few things in business.

On September 2, Reserve Bank of India (RBI) Deputy Governor Swaminathan J. said that while loan sanctioning and disbursement have become increasingly digital, effective collection and recovery still require a 'feet on the street' and empathetic approach.

Many fintech platforms operate on a business model that involves extending small-value loans to customers often times with poor credit profiles. Unfortunately, this is often followed by aggressive recovery tactics, such as invading customers' privacy by accessing their contacts and personal data. These practices can seriously damage the reputation of the regulated lenders associated with these platforms, Swaminathan added.

According to RBI regulations on outsourcing, even though a regulated entity may rely on third parties to perform certain activities, it remains ultimately accountable for the actions of its outsourced agents, RBI deputy governor said.

Meanwhile, while commenting on the collections front, Revankar said that in the digital era companies do not require any specialise teams, but rather they can have some local arrangements at small scale.

"In this environment, you need specialised team, I am not very sure, you can have some local arrangements at very small scale," he added.