When Offshoring by International Organizations Doesn't Make Sense: The Case of UNICEF and Berlin

The United Nations Children's Fund coordinates its private sector fundraising from its office in Geneva, Switzerland.

Being in a city that hosts the World Economic Forum , the WBCSD – World Business Council for Sustainable Development , and the EMEA headquarters of multinationals such as Procter & Gamble , it has grown its private sector income from $1 billion to $3 billion a year.

UNICEF 's staff appreciate working in a duty station that is international in nature and where spouses can find jobs in other UN organizations or on the English-speaking local market.

However, management is now looking at offshoring this key operation to Berlin, Germany, which came 8th on a list proposed by KPMG (and a city in which the firm is active). There has been no explanation of how this will support the fundraising mandate. UNICEF merely says it will save it $1.9 million a year, or 0.06 percent based on the latest figures.

This small saving needs to be set against the likely impact.

Since the news broke, staff have been eyeing up other fundraising jobs, touting their accounts and donor relationships (let's not forget that Barcelona FC moved to UNHCR). UNICEF is also facing difficulties getting new staff to strategic positions.

UNICEF's fundraising staff are well connected and can find other jobs. But how will the organization deal with the hit to its income? How will it impact the number of children it can support on the ground and its ability to keep paying staff in the field?

This offshoring exercise will certainly make the career of a middle manager somewhere in UNICEF's administration, but it will likely come at considerable cost to the fund overall.