JMGT_V7_N4_RP4 Suryanarayan Mohapatra Sabyasachi Das Journal on Management 2230 – 715X 7 4 44 52 Outsourcing, Banking, Technology, Innovation, Strategic Outsourcing of business processes are thekey developmentsof the large scale technology adoption in the banking sector during 1990s. This paper attempts to analyze the motivating factorsthat have contributed to the decision of banks to go for “outsourcing” of their business processes. Based on a review of the existing literature, the questionnaire was designed with the help of a research expert for identifying the factors influencing the decision of the decision makers in the banks to go for outsourcing of their activities. The list of activities identified was subjected to panel discussions with senior bankers of various public and private sector banks and after in-depth discussions the instrument was designed for the study. The constructs used to measure these factors were validated by using factor analysis. The study found that the major factors influencing business process outsourcing in banks were technological innovation, focus on core& reduction of cost, and strategic benefits. The previous studies on outsourcing activities in banks mainly focused on developed countries where banking sector is controlled by the private sector. But the present study with its focus on banking sector of an emerging economy, such as India where banking sector is dominated by state owned bankswill be an important extension of outsourcing research and valuable addition to literature. March - May 2013 Copyright © 2013 i-manager publications. All rights reserved. i-manager Publications http://www.imanagerpublications.com/Article.aspx?ArticleId=2261