Royal Mail group general counsel Maaike de Bie outlines what in-house counsel think about firms flocking to Warsaw and Manila in The Lawyer‘s first 60-second interview on key topics from the upcoming Business Leadership Summit.
Are you surprised by this apparent sudden rush to places like Warsaw and Manila?
Not at all. In fact, so many other (law firms) and outsource providers have established themselves in these places. In my view they are late to this game – next will be Hungary and Bulgaria because of their excellent IT resources.
Is the vocabulary that firms are using i.e. ‘relocating roles’ misleading, in that the reality is these are simply job cuts?
They are euphemisms. Everyone uses them.
What do you think is the salary differential between, say, Warsaw and Manchester?
Salary will be much lower in Warsaw, but the cost of housing in Warsaw is actually quite expensive. I believe when outsourcing goes to Poland, it doesn’t actually go to Warsaw but rather to other Polish cities with universities.
Other than cost reduction, what are the biggest advantages of Warsaw over Manchester or Belfast?
Good question. Isn’t it all about talent, and how accessible that is?
What sorts of roles do you think will be affected? What job prospects do you think there are for the people who lose their roles in these cuts?
Mostly IT, admin and more junior roles. There is always room for good people, but the key is to innovate and to keep learning to stay ahead of the rate of change.
Does the fact that the numbers are so large reveal that these firms were over-staffed?
Or perhaps they were overcharging their clients for the work that was being performed… I wonder also if the refusal by millennials to do the more basic tasks has something to do with the outsourcing abroad.
What sorts of challenges does a move like this create for the lawyers working in head offices?
Less personal contact with what ultimately is still very critical work, language/cultural differences – and huge reliance on technology working well.
Do you think we’ll see more of these moves by other major firms?
Possibly. I wish they would think more about innovation rather than finding cheaper ways of delivering the same product. I’m still of the opinion that some of the alternative legal service providers will start taking work away from the more traditional law firms.
Ultimately, despite the human cost involved, is this what a properly managed large business ought to be doing?
As I said above, I personally think that a properly managed large business ought to speak to its customers on a continuous basis and innovate to provide the best possible support. Many businesses will not just look at price. The quality of service for many (certainly for me) is still the most important thing.
Royal Mail group general counsel Maaike de Bie is part of The Lawyer Business Leadership Summit 2016 advisory board and featured in this year’s Hot 100. Find out more about the event and register your place to attend here.