Corporations Ignore Warnings At Their Own Risk - Argues Consultant
According to Scott Watson, Director of Performance at Yorkshire based Summit Consulting & Training, companies that transfer operations overseas to cut costs are facing a potential backlash from media and consumers, due to
public perceptions of so-called ''sweatshop'' environments.
Watson''s comments follow allegations made at a recent press conference in Manhattan, arranged by the Union of Needletrades. The event was attended by
workers who claimed that leading clothing retailer GAP is exploiting employees based in Bangladesh, Africa and several other countries. The allegations centre on claims of poor pay conditions, long hours and what are
described as ''brutal working conditions''.
Watson believes that this incident will cause the retailer further embarrassment at a time when sales have slumped and profits are down. ''We continue to see some of the world''s most reputable companies being so focused on driving down costs and maximising profits that they become
oblivious to the human factors of their business,'' claims Watson.
''Here in the UK, we are witnessing a growing number of companies transferring operations overseas solely to cut costs. This short term profit chasing could potentially be the final nail in the coffin for British
industry, especially if companies lose the will to maximise the performance of their home based operations,'' he argues.
Watson has recently made his thoughts known on the issue of transferring call centres to India. ''While low wages and impressive IT systems are attractive, there is little independent evidence to prove that outsourcing
to India is more effective at meeting customer needs or developing customer loyalty,'' he states.
''In the call centre industry, overseas outsourced suppliers have definitely not proved that they are the best. In fact, the only thing that they have demonstrated is that they are cheaper. And, as we all know, that is very
different to being better,'' concludes Watson.
Paul Jagger Regional Secretary of the TUC and a member of the board of Yorkshire Forward, adds, ''It is a very shortsighted strategy to go for a quick profit via relocation to cheaper economies. It serves neither the
company, the employees nor the recipient nation. We face redundancy here and, while the company gets a positive short term hit on its bottom line, in the future there is bound to be a levelling up in the new emerging
economies. The real issue for successful British companies is a well trained well motivated and consequently a well paid work force delivering high quality services.'' The ideal training policy provides facilities to develop
successful businesses on the back of high quality and sustained training.''
Summit Consulting & Training is one of the UK''s preferred choices for human resources consulting, specialising in sales, customer service and management
training on all levels.
From offices in West Yorkshire, Summit operates an international consultancy - offering training and coaching for executives and employees in all industrial and commercial sectors.
More information is available on the Summit Consulting and Training web site at
Companies transferring overseas face potential backlash over sweatshop claims
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