CC's war on costs set to see 300 back office jobs move to India
Job cuts on the agenda as magic circle giant unveils radical proposals to move IT and finance jobs abroad
October 04, 2006 at 08:03 PM
2 minute read
Clifford Chance (CC) is to open a service centre in India leading to the transfer of about 300 support jobs and a saving of up to £30m, in the largest offshore venture seen by a law firm to date.
The move was announced internally this week (2 October) and will see the firm establish an office in Delhi as part of a mammoth cost-cutting drive by managing partner David Childs.
The firm will start a 90-day consultation with support staff this week – initially in finance and IT – to identify those doing jobs that can be carried out overseas.
It is forecast that it will take four years for the transfers to take place. Although some staff will be lost by attrition, the firm conceded it is likely that redundancies will take place.
While the firm is largely looking at accounting and IT functions, the move could affect any support staff. A spokesperson for the firm said: "The criteria is: does this job need to be done in this office?"
The move follows the firm's outsourcing initiative, which began last year and sees some document production run by outsourcing company Integreon in India.
A number of firms have turned to outsourcing providers in recent years, including CC rival Allen & Overy. However, it is relatively rare for firms to set up their own venture in a country in which they have no presence.
Baker & McKenzie is one of the few firms to have a large offshore support centre which it set up in the Philippines around five years ago to cover accounting, IT and document production.
Bakers former managing partner and board member Russell Lewin told Legal Week: "We already had a thriving office in Manila which gave us the confidence to do it and expand it.
"It is good to know the way the country works, because you cannot underestimate the way hidden cultures impact upon your operation."
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