The report was published after a visit to 10 operations in India
and a review of questionnaires from five others. It concludes that
offshoring can contribute "a material risk to the
FSA
objectives of market confidence; reduction of financial crime; and
consumer protection."
In particular, the financial watchdog was concerned about
difficulties in overseeing and controlling the operation from a
distance.
While it was only the major players in the offshoring market
that were visited, the review did find that they had adequate
oversight frameworks and were working hard to identify operational
risks.
The report also shows that the
FSA
's concerns over
staff attrition and business continuity planning have been allayed
to some extent by the strategies that have been put in place to
deal with them.
Firms have factored attrition rates into their recruitment and
training policies, and are developing alternative options to deal
with the threat of business disruption, says the report.
With regard to security and consumer protection, the
FSA
found "a high level of security in operation and
some firms stated that security is far more controlled than in the
UK
".
Swipe entry clearance systems are common and there is usually a
ban on staff taking cameras, mobiles or bags to their workstations.
Paper used by staff for notes is usually shredded later, or
numbered, in order to check that all pieces are accounted for.
"In conclusion," says the report, "companies have implemented
systems to monitor phone conversations, protect data and monitor
staff. There is no evidence to suggest consumer data is at greater
risk in India than in the
UK
."
