Outsourcing
In the case of banks, capital management companies and insurance companies, the transfer of operational functions to other companies in Germany or abroad, always with the aim of converting fixed costs into variable costs. – In particular, if a central business area, such as foreign exchange trading or the processing of payment transactions, is outsourced from one bank to another, this is often referred to as business process outsourcing (BPO). – In Germany, until 2008, any type of outsourcing of business areas by banks was subject to notification and had to be reported in the prescribed form to the Federal Financial Supervisory Authority (BaFin) in accordance with Section 25a of the German Banking Act (KWG). However, the latter is now still entitled to audit the outsourced units as well. Business process outsourcing is therefore viewed with suspicion by the anti-trust authorities. – The transfer of business activities to subsidiaries in Germany or abroad – often established specifically for this purpose – with the intention of thereby evading supervision: Regulatory arbitrage. – The transfer of all or part of production to low-cost countries by companies. This leads statistically to trade flows that are very difficult to distinguish in the balance of payments from trade in finished goods. The ECB is seeking to clarify the possible implications of these flows for monetary policy. – See activity analysis, charging, supervisory avoidance, Balassa index, business process outsourcing, cash handler, BPO, brokerage, call center, contractual trust arrangement, file management, centralized, downsizing, layoff productivity, facility management, misstatement, ancillary services, bank-related, international business company, insourcing, consolidation, credit factory, managed account, managed bank, master capital management company, outsourcing, outsourcing risks, regulation, transaction bank. – See BaFin Annual Report 2002, p. 54; BaFin Annual Report 2004, p. 178 f. (outsourcing of portfolio management at capital management companies); BaFin Annual Report 2007, p. 114 f. (new outsourcing rules; however, outsourcing must not result in business managers relinquishing their responsibilities to an outsourcing company); BaFin Annual Report 2009, p. 177 (outsourcing at investment fund companies; outsourcing to a third country) and the respective BaFin Annual Report, ECB Monthly Report of January 2008, p. 86 ff. (production outsourcing to low-wage countries and its effects; overviews, references).
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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