Interest in more outsourced work for HSBC
Bank outsources some of its own work as it assesses value-added chain
HSBC Malta may take over the issuing of credit cards for HSBC counterparts in Central and Eastern Europe, as well as for other countries.
"There is a great demand for euro-denominated credit cards and once Malta joins the euro, we will be in a position to supply them. We have also received enquiries from the Channel Islands, for the same reason, as well as local financial institutions," CEO Shaun Wallis said.
Although this would not create more than a dozen jobs, it is yet another example of Malta's emerging role as an outsourcing location. HSBC Malta has already set up a call centre employing the equivalent of 500 full-time workers, taken on back-office insurance work from Dublin and other work from Jersey as well as captive insurance work from Guernsey. Outsourcing is increasingly becoming an important part of companies' re-engineering as they start to focus on core operations, identifying processes that could be handled more efficiently and more cost-effectively by others. This ranges from laundry services and garden maintenance at hotels to catering at hospitals and security services generally.
Of course, one man's insourcing is another man's outsourcing and just as HSBC Malta is taking on work, it has also identified various roles and processes that it can pass on to others - or eliminate completely
"It is a multipronged process. We are trying to automate processes to reduce repetitive work as well as to speed things up and avoid backlogs that result in a lot of pressure and overtime. In fact, while two and a half years ago, less than 80 per cent of transactions were automated, now over 90 per cent are.
"Our aim is also to free people up so that we can increase face-to-face contact with clients, as part of our customer-centric approach," Mr Wallis said.
The changes will affect around 50 people, all of whom are being retained by the company and who are being re-trained for their new roles where necessary. However, just as employees in the UK balk at losing work to Malta, India or the Philippines, those here were initially fearful of change, he admitted.
"I think the team is now on board with this and will be offering all their support to colleagues affected. The Malta Union of Bank Employees has also understood the importance of the challenges that lie ahead.
We have assured the employees that they will not lose out on any bonuses or benefits - and some of them have actually moved to higher grades. We will support them through their change." The bank has just announced interim profits of Lm25.6 million but Mr Wallis said that re-engineering business processes is not about saving money or increasing profits.
"Every company has to move its operations up the value chain because this is the way in which it can remain competitive and operate in a sustainable way and so give the best return to all its stakeholders, whether the shareholders, the staff or the community in which it operates. For example, outsourcing cleaning or security creates jobs for companies that can specialise in that field," he said.
Mr Wallis is aware that the staff need to see the change as a positive one.
"This is why I and other top managers are meeting people one-on-one to reassure them that we mean it when we say that we want this to be the best place to work."
"There is a great demand for euro-denominated credit cards and once Malta joins the euro, we will be in a position to supply them. We have also received enquiries from the Channel Islands, for the same reason, as well as local financial institutions," CEO Shaun Wallis said.
Although this would not create more than a dozen jobs, it is yet another example of Malta's emerging role as an outsourcing location. HSBC Malta has already set up a call centre employing the equivalent of 500 full-time workers, taken on back-office insurance work from Dublin and other work from Jersey as well as captive insurance work from Guernsey. Outsourcing is increasingly becoming an important part of companies' re-engineering as they start to focus on core operations, identifying processes that could be handled more efficiently and more cost-effectively by others. This ranges from laundry services and garden maintenance at hotels to catering at hospitals and security services generally.
Of course, one man's insourcing is another man's outsourcing and just as HSBC Malta is taking on work, it has also identified various roles and processes that it can pass on to others - or eliminate completely
"It is a multipronged process. We are trying to automate processes to reduce repetitive work as well as to speed things up and avoid backlogs that result in a lot of pressure and overtime. In fact, while two and a half years ago, less than 80 per cent of transactions were automated, now over 90 per cent are.
"Our aim is also to free people up so that we can increase face-to-face contact with clients, as part of our customer-centric approach," Mr Wallis said.
The changes will affect around 50 people, all of whom are being retained by the company and who are being re-trained for their new roles where necessary. However, just as employees in the UK balk at losing work to Malta, India or the Philippines, those here were initially fearful of change, he admitted.
"I think the team is now on board with this and will be offering all their support to colleagues affected. The Malta Union of Bank Employees has also understood the importance of the challenges that lie ahead.
We have assured the employees that they will not lose out on any bonuses or benefits - and some of them have actually moved to higher grades. We will support them through their change." The bank has just announced interim profits of Lm25.6 million but Mr Wallis said that re-engineering business processes is not about saving money or increasing profits.
"Every company has to move its operations up the value chain because this is the way in which it can remain competitive and operate in a sustainable way and so give the best return to all its stakeholders, whether the shareholders, the staff or the community in which it operates. For example, outsourcing cleaning or security creates jobs for companies that can specialise in that field," he said.
Mr Wallis is aware that the staff need to see the change as a positive one.
"This is why I and other top managers are meeting people one-on-one to reassure them that we mean it when we say that we want this to be the best place to work."