Offshore Outsourcing - UK Regulatory Implications and an Indian Case Study

Arun Srivastava, Baker & McKenzie, London

A risk-based system of regulation revolves around processes, controls and procedures designed to mitigate risk. Outsourcing, involving the reliance on third parties to provide specified services, inherently involves a loss of control over the outsourced activity and presents a potential dilemma to firms between the commercial incentives to outsource and compliance with the firm’s regulatory obligations under a risk based model.