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IT Services outsourcing compliance advisory

A leading private commercial bank recognized the critical need to ensure rigorous governance, risk management, and compliance for its IT outsourcing arrangements. With increasing technology adoption and reliance on third-party partnerships, a structured framework was required to align with regulatory guidelines. Bank engaged with The Digital Fifth to undertake a comprehensive IT outsourcing compliance advisory program.


As a forward-looking bank,  itwanted to enhance its IT outsourcing compliance and risk management capabilities. Specific goals included:
  • Evaluating existing outsourcing policies, procedures, controls against RBI’s guidelines
  • Identifying gaps and building recommendations to address them
  • Establishing robust governance and risk management frameworks
  • Strengthening outsourcing contracts and due diligence processes
  • Enhancing monitoring mechanisms and continuity planning

Our Approach

The Digital Fifth undertook a methodical 3-phase approach focused on understanding the current state, performing a gap analysis, and redesigning the control frameworks.
The initial current state assessment provided insights into DCB Bank’s outsourcing arrangements, contracts, governance, policies, and risk management.
This was followed by a thorough gap analysis against regulatory guidelines, identifying areas of improvement across policies, procedures, contractual clauses, governance, and risk management.
Finally, The Digital Fifth team worked closely with DCB Bank to redesign and enhance the overall outsourcing compliance and control framework.


The compliance advisory engagement enabled DCB Bank to completely revamp its IT outsourcing governance, policies, procedures, and control mechanisms.
Some key outcomes included:
  • Comprehensive IT outsourcing risk management framework
  • Rigorous due diligence and vendor evaluation processes
  • Enhanced outsourcing contracts with optimal clauses to minimize risk
  • Robust governance model for outsourcing program oversight
  • Continuous monitoring mechanisms for outsourcing arrangements
  • Strengthened business continuity planning for outsourced services


By implementing The Digital Fifth’s recommendations, DCB Bank was able to achieve robust compliance with RBI guidelines related to IT outsourcing. The enhanced frameworks significantly improved DCB Bank’s risk management and oversight capabilities.
Overall, the engagement provided DCB Bank with greater confidence in managing risks with its IT outsourcing partners, enabling improved focus on its core banking priorities. The future-ready frameworks also positioned DCB Bank to effectively harness more technology innovations through third-party partnerships.