FSA cites relocation risks

The Financial Services Authority (FSA) cautions companies considering jumping into the offshoring bandwagon by making use of offshore centers. The FSA pointed out risks involving both management and business operations – and that’s before actually shifting jobs overseas.

The noticeable trend has been to ship call center and back office work to countries with low operation expenses and markedly lower labor costs. Ten Indian offshoring sites were reviewed and a pattern of high-level staff attrition discovered. This was attributed to work taking a backseat once the women marry. This shouldn’t present much of a setback however, since the firms take these into consideration when hiring and training.

In light of this, the FSA has urged the companies to focus on developing continuity plans. Some of the companies have come up with contingency plans to shift back operations to Britain or to make use of sites developed jointly with rivals.

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