Offshoring concerns by Emily Hook

Offshoring compliance

2024-10-28 13:02:24 UTC

Potential loss of central control for compliance procedures if it gets offshored - increasing the possibility of compliance issues which may result in hefty penalties from FCA.

Only evaluated over a 3-year timeframe. Although this aligns with the exit date, may be valuable to look over a longer forecast period (e.g. 5-10 years) as this may give too much weight to large upfront cost and not enough to the longer-term positive impact.

2024-10-28 13:02:29 UTC

Offshore concerns

2024-10-28 13:02:34 UTC

KYC risks - less control / trained workers could lead to reputational damage or even closure of business

Time difference

2024-10-28 13:03:02 UTC

The support staff will work in a different time zone so the UK staff will have to adjust to this. There will be delays in responses between the two teams due to the time difference.

2024-10-28 13:03:22 UTC

There is a possibility that the capital investment required for the offshoring proposal will take away from WMP's ability to implement cost saving AI systems as well. It may be better to compare this to AI chatbot/customer service to analyse the best approach for cost savings. These two approaches could be used in tandem.

Offshoring customer service

2024-10-28 13:04:13 UTC

Being able to converse in all destination languages is a key CSF as all customers can contact the company. Will offshoring to another country mean that customer service individuals now are not multilingual?

Customer satisfaction

2024-10-28 13:04:16 UTC

Might lead to a drop in customer satisfaction which is a CSF of WMP - customers have high-power so no loyalty to stay when quality drops.

Cash flow impact

2024-10-28 13:04:22 UTC

The proposals include significant up front costs, including £4.5m in the year ending 30 September 2024. This would put pressure on WMP's cash flow position, which is already a key issue for WMP

Redundancies

2024-10-28 13:04:55 UTC

May lead to UK redundancies - create uncertainties within the current team and result in lower output/quality