Newcastle Building Society ditches offshoring; backs UK staff

Newcastle Building Society ditches offshoring; backs UK staff

The Newcastle Building Society is shutting down its back office processing unit in Mumbai, India after finding that its staff in the UK were more efficient, accurate and cheaper.

The building society set up an Indian pilot two years ago to measure how it performed in comparison with an internal team in Tyneside.

The Indian unit was set up to handle support service functions on administrative work which the building society manages for third parties.

But according to a Financial Times report the Newcastle has concluded that the Indian unit did not offer the expected flexibility or cost savings. Tyneside workers also outperformed their Indian counterparts on efficiency, accuracy and costs.

As a result the building society will increase the number of staff it employs at its operations in the north-east of England.

Earlier this week insurance firm Norwich Union was reported to be bringing 150 call centre jobs that it originally outsourced to its offshore centres in India back home to Britain.

The move to bring some call centre work back to the UK was reported to be due to communication problems between UK customers and Indian staff.

Furthermore, last year energy supplier Powergen said it was closing down its call centre operations in India and bringing the jobs back to the UK following complaints from customers.

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