After Indian tax authorities, it’s now the turn of US financial regulators’ to train their guns on Indian BPOs. Expecting audits from the US comptroller of currency early next year, the Indian BPOs and captive units of multinationals are working overtime, holding discussions with consultants and their US counterparts to understand the nuances of these audits.
The prime targets would be companies to which financial services are outsourced, especially from banks and credit card companies. Auditors from the US could come down to India to check the BPOs here or even conduct them remotely.
Reportedly, A host of top international banks including American Express, Citibank, ABN Amro Bank, Barclays, HSBC and Stanchart have outsourced their financial transactions to India.
“These audits are expected early next year. Not only are they likely to check for regulatory compliance, but also for systems and procedures and risk management and confidentiality clauses being followed. We are following up with our US office to get off the ground,” said Ram Aggarwal, partner, Ernst & Young. E&Y already conducts quality control reviews for several Indian BPOs here.
Though the Indian BPOs cannot pinpoint anything fundamentally wrong with the audits, they fear it could be used to discriminate against some BPO vendors while outsourcing financial jobs. On the other side, news of the audit has shocked a section of the Indian BPO industry more because it comes hot on the heels of the backlash against outsourcing fading after the US elections.
“These audits are expected early next year. Not only are they likely to check for regulatory compliance, but also for systems and procedures and risk management and confidentiality clauses being followed. We are following up with our US office to get off the ground,” said Ram Aggarwal, partner, Ernst & Young. E&Y already conducts quality control reviews for several Indian BPOs here.
Though the Indian BPOs cannot pinpoint anything fundamentally wrong with the audits, they fear it could be used to discriminate against some BPO vendors while outsourcing financial jobs. On the other side, news of the audit has shocked a section of the Indian BPO industry more because it comes hot on the heels of the backlash against outsourcing fading after the US elections.
Priyanka. S
