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Forum Brief: Offshore outsourcing

Nationwide Building Society has announced that it has opted against closing its network of UK call centres.

This contrasts with a trend that has already seen the departure of over 10,000 financial services jobs to overseas call centres.

Forum Response: Nationwide

Philip Williamson, chief executive said: "Nationwide is a mutual with strong links to the communities in which we operate and we have no plans to desert these local communities in favour of overseas call centres.

"Customers are joining and staying with Nationwide in ever increasing numbers. This is as much to do with our people and the great service they offer, as it is due to our better rates. Our customers can do business with us however they choose - using branches, telephone, internet or the post.

"Our call centres are at the very heart of our service offering. Call centres abroad may suit some of our competitors, but they are not the right option for Nationwide and we are aware of some commentators' concerns that some countries may not have the same level of data protection for consumers that exists in the UK."

Forum Response: Chartered Institute of Purchasing and Supply

A spokeswoman for CIPS told ePolitix.com: "The financial services sector in particular has seen a growing trend of organisations outsourcing a variety of business functions overseas to provide them with more cost effective methods of operating call centres or providing IT services for example.

"Regardless of whether it is conducted offshore or not, CIPS defines outsourcing "as the process of contracting with the most suitable third party service provider" - therefore outsourcing should only be chosen if it is the best decision for the organisation and all stakeholders involved.

"CIPS understands that in today's commercial environment economic pressures will sometimes demand that it is necessary to consider an offshore outsourcing option.

"Choosing to keep and invest in their call centre operations in the UK is obviously good news for Nationwide employees and a decision which is right for the organisation at this time."

Forum Response: UNIFI

Dai Davies, director of communications at UNIFI, told ePolitix.com: "UNIFI was heartened by the announcement of the Nationwide that it is to keep its call centre operation in the UK, and on top of that to enhance and modernise its operation.

"Contrast that with the announcement hard on the heels of Nationwide by Abbey that it is to transfer 400 jobs offshore and move a significant tranche of members around the country.

"Two similar organisations, both customer focussed and both with distinct niche markets in a fiercly competitive sector. Whose strategy will prevail?

"UNIFI has campaigned hard for companies to think twice before jumping on a cost-cutting bandwagon. To think about the reputational risk of sending a prime customer interface 10,000 miles with little or no immediate control mechanism from the head office.

"To consider whether the cost-saving potential is actual or whether they are just exporting the problem of recruitment, retention and retraining, to a remote site which then exacerbates the problem.

"We believe the Nationwide approach will work, and although we believe that Abbey has adopted a bad principle, for the remianing staff we hope that the strategy is not found to weaken a company already in difficulty. The consequences would be disastrous for the remining staff and we have seen too many of our members sacrificed on the altar of consolidation in this sector."

Published: Wed, 14 Jan 2004 01:00:00 GMT+00

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