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TD Canada Trust is currently caught up in a media attack started by ex-employees over outsourcing work and jobs off-shore and in this case again to India. The negative thrust is that Canadians private information is in the hands of non-employees in foreign countries. Of course, outsourcing or co-sourcing strategies have been around for decades based on efficiency and economic motives in financial services and just about every other industry in the global market place. In fact, larger countries have far out-shadowed Canada and our industry, especially the USA where there is now a President trying to revert the trend even though his business empire has been a participant in the outsourcing practice in the past. So, how much does negative media and public opinions affect corporate strategies and Board governance?

Technology has created or enabled a virtual world of sourcing along with continuous efforts by many countries for free trade agreements and open borders. This is based on sound economic principles but not necessary smart political motives with some leaders.

Can a financial institution survive and prosper in a highly competitive industry with only in-sourcing everything-perhaps if you are market dominant! Collaborations, partnerships, sourcing alternatives etc all make good strategic sense if the issue is front and centre and open to external assessment. It starts in the Boardroom where policy is set in this regards and is implemented by management as deemed appropriate. From there the problems may emerge if transitions are not handled effectively in considering all stakeholder issues and impacts. To attempt to "quiet" outsourcing initiatives is asking for leaks and waves of criticism. 

Pat Palmer | Tuesday, October 24, 2017 | Trackbacks (0) | Permalink

 


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