Outsourcing not a good strategy for cutting costs, says Zurich CEO
Outsourcing is not the answer to reducing operating costs, according to the CEO of global insurance firm Zurich, whose view contrasts with that of many of his peers in large finance companies. Mario Greco said outsourcing is not socially sustainable, as a firm is forced to move its operations from one location to another. He added that the practice is overall a bad idea, as it removes jobs back home, reduces the company’s level of control, and tends to involve high staff fluctuations. Greco said he is looking at increasing the dividend he pays his shareholders by increasing the company’s profit, but said he will not decrease his workforce. He said Zurich Insurance stopped outsourcing two years ago and has since brought most administrative functions back to Zurich.
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