Essay about Anz Offshoring Strategy

4554 Words Jul 26th, 2013 19 Pages
ANZ | OFFSHORING

Background

This strategic report of ANZ’s offshoring strategy examines the effectiveness and drivers of ANZ’s decision to move towards outsourcing internationally, analyses the impact of ANZ’s offshore programs on stakeholders, explores key risks and opportunities and evaluates the success of ANZ’s offshore system.

A | Strategy Analysis

February 2012 saw ANZ confirm job cuts to 492 permanent employees, 100 of these positions to be moved overseas. In early 2013, ANZ again advised 70 “back office” employees in their wealth division that their jobs were being relocated to Bangalore in India. More recently, in the June quarter of 2013 ANZ have announced that due to the low credit growth environment and the need to
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The Super Regional Strategy adopted by ANZ began with Mike Smith’s (CEO) tenure in 2007. Mike Smith has a rich history with the Asian market and was a fundamental motive for ANZ to pursue penetration of the Asia-Pacific region. ANZ’s decision to offshore jobs is a key component of the wider Super Regional Strategy and allows the Bank to gradually form a foothold in Asia by slowly becoming a ‘household’ name and trusted employer.

This range of factors has the ultimate aim to enhance the effectiveness of ANZ’s business operations and is aligned to its business objective and vision.

“ANZ’s objective is to become a super regional bank – strengthening our businesses in Australia, New Zealand and the Pacific – while establishing a significant presence in key markets in Asia”

“We aim to become a super regional bank. This involves growing our presence in the Asia pacific region and sourcing 25-30% of earnings from our Asia Pacific Europe and America division by 2017, while also being very focused on growth in our core domestic businesses in Australia and New Zealand.”

Offshore Strategy | Stakeholder Impact

ANZ define their stakeholders as governments,

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