The 2026 Report · Part 5

Regulatory and Legal Knowledge of the Delivery Team

Reported knowledge, management understanding, institutional discussion, and training

Study overview / Part 5 / Regulatory and Legal Knowledge of the Delivery Team

Respondents’ ratings indicated limited confidence in their own regulatory understanding, their management’s understanding, and the financial institution’s discussion of obligations, while training received still less favorable assessments. Each understanding or discussion indicator had a mean below 5.0. These are perceptions of preparation and dialogue rather than tests of legal knowledge or compliance.

Regulatory training received a mean rating of 3.6 (n = 798 respondents), with 385 distressed ratings (48.25%). The pattern connects the reported manual work to a preparation concern: respondents described working within a regulatory context that they did not consistently consider themselves well equipped to understand or apply.

“To be fair the hands on agent training was useful, I use it daily. The regulatory side they could not teach us, we learn that from the client's returns” -Individual Contributor, KPO, Regulatory, audit, tax and legal

I feel bad marking everything low, it is mostly the training. They put me on contract review with two day orientation, nothing about payments regulation, nothing about what a clause actually mean, I learn from the senior girl sitting next to me. People here can do the work if somebody teach them”

INDIVIDUAL CONTRIBUTOR · KPO, Regulatory, audit, tax and legal

1 Regulatory Understanding of the Respondent and Management

Respondents gave their own and their management’s regulatory understanding mean ratings below 5.0, indicating limited confidence in both. Their own understanding was rated by 800 respondents and management’s by 516. The different answering bases do not establish a matched comparison between the two ratings or explain why other respondents did not rate management.

Higher ratings of both forms of understanding were associated with a lower cancellation rate, higher customer satisfaction among active engagements, a higher engagement indicator mean, and lower intent to leave. Each indicator remains a separate reported perception. Similar associations from the same survey do not provide independent tests of legal capability.

1.1 Respondent Understanding of the Governing Laws and Regulations

Indicator C057 · I fully understand how these laws, regulations, and similar affect the outsourcing engagement · Full statistical analysis ›

Respondents’ self-assessed regulatory understanding received 228 distressed ratings among 800 answers (28.50%). The mean rating was 4.8 and the median was 5.0. Respondents on canceled engagements reported a mean of 3.5 (n = 304). Higher ratings were associated with a higher engagement indicator mean (r = 0.76, n = 150 engagements), lower intent to leave (r = −0.65, n = 754 respondents), a lower cancellation rate (r = −0.58, n = 150 engagements), and higher active-engagement customer satisfaction (r = 0.69, n = 94 engagements). The engagement mean for this indicator was distressed on 26 of the 150 engagements.

Figure 5.19. Respondent Understanding of the Governing Laws and Regulations: associations with the study measures

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Respondent understanding of the governing laws and regulations: associations with the study measures

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ComparisonCorrelation rEstimate and analysis base

Cancellation

Correlation estimate and reported intervalShared correlation scale from −1 to +1. The row label, estimate, analysis base, and reported interval appear alongside this plot.

r = −0.58
150 engagements
p < 0.001

Customer satisfaction

Correlation estimate and reported intervalShared correlation scale from −1 to +1. The row label, estimate, analysis base, and reported interval appear alongside this plot.

r = 0.69
94 active engagements
p < 0.001

Indicator mean

Correlation estimate and reported intervalShared correlation scale from −1 to +1. The row label, estimate, analysis base, and reported interval appear alongside this plot.

r = 0.76
150 engagements
p < 0.001

Intent to leave

Correlation estimate and reported intervalShared correlation scale from −1 to +1. The row label, estimate, analysis base, and reported interval appear alongside this plot.

r = −0.65
754 respondents
p < 0.001

−10+1
Exact comparison data
Cancellation
Exact chart data
SeriesPoint indexXY
Reported association0-0.576417014899999971
Customer satisfaction
Exact chart data
SeriesPoint indexXY
Reported association00.68593531181
Indicator mean
Exact chart data
SeriesPoint indexXY
Reported association00.761766927000000041
Intent to leave
Exact chart data
SeriesPoint indexXY
Reported association0-0.653428781999999991

Note: Survey question: “I fully understand how these laws, regulations, and similar affect the outsourcing engagement”.

Distressed ratings: 228 of 800 answers (28.50%).

Group means and numeric-answer bases: Individual contributor (n = 623): 4.66. Engagement manager (n = 150): 5.21. Portfolio director (n = 27): 5.96. Build-Out (n = 164): 5.87. Transition/Cut-Over (n = 234): 5.39. Production (n = 98): 5.73. Canceled (n = 304): 3.48.

r is Pearson’s correlation coefficient, measuring signed linear association from −1 to +1. Whiskers show 95% confidence intervals where reported. Intent-to-leave intervals, where shown, use a cluster bootstrap. The bootstrap resamples engagements to preserve the grouping of respondent answers. Associations are observational.

Eight indicator-specific written answers addressed regulatory understanding, supporting only a limited description. Seven identified regulatory knowledge learned on the engagement as something the respondent valued. The eighth described a delivery team encountering requirements as the agent flagged cases. Neither these accounts nor the self-ratings independently tested knowledge.

“Sharpened my sense of what regulatory accountability actually requires” -Individual Contributor, ITO, Financial crime and client onboarding

1.2 Management Understanding of the Governing Laws and Regulations

Indicator C058 · My management team fully understands these laws, regulations, and similar, and how they affect the engagement · Full statistical analysis ›

Management’s regulatory understanding received 149 distressed ratings among 516 answers (28.88%). The mean rating was 4.9 and the median was 5.0. Respondents on canceled engagements reported a mean of 3.5 (n = 193). Higher ratings were associated with a lower cancellation rate (r = −0.53, n = 150 engagements), lower intent to leave (r = −0.63, n = 492 respondents), higher active-engagement customer satisfaction (r = 0.62, n = 94 engagements), and a higher engagement indicator mean (r = 0.71, n = 150 engagements). The engagement mean for this indicator was distressed on 31 of the 150 engagements. These findings describe the answering subset and do not establish what nonanswerers knew about management.

Figure 5.20. Management Understanding of the Governing Laws and Regulations: associations with the study measures

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Management understanding of the governing laws and regulations: associations with the study measures

Scroll horizontally to view the complete comparison.

ComparisonCorrelation rEstimate and analysis base

Cancellation

Correlation estimate and reported intervalShared correlation scale from −1 to +1. The row label, estimate, analysis base, and reported interval appear alongside this plot.

r = −0.53
150 engagements
p < 0.001

Customer satisfaction

Correlation estimate and reported intervalShared correlation scale from −1 to +1. The row label, estimate, analysis base, and reported interval appear alongside this plot.

r = 0.62
94 active engagements
p < 0.001

Indicator mean

Correlation estimate and reported intervalShared correlation scale from −1 to +1. The row label, estimate, analysis base, and reported interval appear alongside this plot.

r = 0.71
150 engagements
p < 0.001

Intent to leave

Correlation estimate and reported intervalShared correlation scale from −1 to +1. The row label, estimate, analysis base, and reported interval appear alongside this plot.

r = −0.63
492 respondents
p < 0.001

−10+1
Exact comparison data
Cancellation
Exact chart data
SeriesPoint indexXY
Reported association0-0.534696043199999971
Customer satisfaction
Exact chart data
SeriesPoint indexXY
Reported association00.624126706900000051
Indicator mean
Exact chart data
SeriesPoint indexXY
Reported association00.712394608999999961
Intent to leave
Exact chart data
SeriesPoint indexXY
Reported association0-0.632357053999999971

Note: Survey question: “My management team fully understands these laws, regulations, and similar, and how they affect the engagement”.

Distressed ratings: 149 of 516 answers (28.88%).

Group means and numeric-answer bases: Individual contributor (n = 343): 4.72. Engagement manager (n = 150): 5.19. Portfolio director (n = 23): 6.35. Build-Out (n = 112): 6.10. Transition/Cut-Over (n = 155): 5.43. Production (n = 56): 6.04. Canceled (n = 193): 3.53.

r is Pearson’s correlation coefficient, measuring signed linear association from −1 to +1. Whiskers show 95% confidence intervals where reported. Intent-to-leave intervals, where shown, use a cluster bootstrap. The bootstrap resamples engagements to preserve the grouping of respondent answers. Associations are observational.

No written answer was coded to management’s understanding of the governing obligations.

2 Financial Institution Discussion of Obligations With the Delivery Team

Respondents’ ratings indicated limited agreement that financial institution staff actively discussed regulatory and legal obligations with the delivery team. The mean was 4.8, and 231 of 801 ratings were distressed (28.84%). The answers describe perceived dialogue rather than the financial institution’s own knowledge, documentation, or compliance.

2.1 Discussion of Obligations With the Delivery Team

Indicator C059 · The customer’s team actively discusses these laws, regulations, and similar with our team · Full statistical analysis ›

Discussion of obligations received a mean rating of 4.8 and a median of 5.0 (n = 801 respondents). Respondents on canceled engagements reported a mean of 3.4 (n = 305). Higher ratings were associated with a higher engagement indicator mean (r = 0.80, n = 150 engagements), a lower cancellation rate (r = −0.62, n = 150), higher active-engagement customer satisfaction (r = 0.67, n = 94 engagements), and lower intent to leave (r = −0.65, n = 752 respondents). Ratings were distressed in 231 answers (28.84%), and the engagement mean was distressed on 26 of the 150 engagements.

Figure 5.21. Discussion of Obligations With the Delivery Team: associations with the study measures

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Discussion of obligations with the delivery team: associations with the study measures

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ComparisonCorrelation rEstimate and analysis base

Cancellation

Correlation estimate and reported intervalShared correlation scale from −1 to +1. The row label, estimate, analysis base, and reported interval appear alongside this plot.

r = −0.62
150 engagements
p < 0.001

Customer satisfaction

Correlation estimate and reported intervalShared correlation scale from −1 to +1. The row label, estimate, analysis base, and reported interval appear alongside this plot.

r = 0.67
94 active engagements
p < 0.001

Indicator mean

Correlation estimate and reported intervalShared correlation scale from −1 to +1. The row label, estimate, analysis base, and reported interval appear alongside this plot.

r = 0.80
150 engagements
p < 0.001

Intent to leave

Correlation estimate and reported intervalShared correlation scale from −1 to +1. The row label, estimate, analysis base, and reported interval appear alongside this plot.

r = −0.65
752 respondents
p < 0.001

−10+1
Exact comparison data
Cancellation
Exact chart data
SeriesPoint indexXY
Reported association0-0.618706273699999981
Customer satisfaction
Exact chart data
SeriesPoint indexXY
Reported association00.670092164599999981
Indicator mean
Exact chart data
SeriesPoint indexXY
Reported association00.804314353500000021
Intent to leave
Exact chart data
SeriesPoint indexXY
Reported association0-0.652746992600000021

Note: Survey question: “The customer’s team actively discusses these laws, regulations, and similar with our team”.

Distressed ratings: 231 of 801 answers (28.84%).

Group means and numeric-answer bases: Individual contributor (n = 621): 4.63. Engagement manager (n = 150): 5.09. Portfolio director (n = 29): 6.34. Build-Out (n = 163): 5.66. Transition/Cut-Over (n = 232): 5.59. Production (n = 101): 5.68. Canceled (n = 305): 3.40.

r is Pearson’s correlation coefficient, measuring signed linear association from −1 to +1. Whiskers show 95% confidence intervals where reported. Intent-to-leave intervals, where shown, use a cluster bootstrap. The bootstrap resamples engagements to preserve the grouping of respondent answers. Associations are observational.

No written answer was coded to the financial institution’s discussion of regulatory and legal obligations with the delivery team.

3 Regulatory Training

Regulatory training was rated less favorably than regulatory understanding or discussion of obligations. Its mean of 3.6 was the 19th-lowest among the 146 survey questions with a favorable or unfavorable direction. That comparison covers the broader set of directional survey questions, rather than only the 100 rated engagement indicators.

3.1 Adequacy of Regulatory Training

Indicator C060 · The training available to me effectively teaches me about these laws, regulations, and similar · Full statistical analysis ›

Nearly half of the regulatory-training ratings were distressed: 385 of 798 answers (48.25%). The mean rating was 3.6 and the median was 4.0. Respondents on canceled engagements reported a mean of 2.4 (n = 308). These assessments concern the perceived adequacy of available training, not an independent assessment of the instruction or respondents’ legal knowledge.

Figure 5.22. Adequacy of Regulatory Training: associations with the study measures

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Adequacy of regulatory training: associations with the study measures

Scroll horizontally to view the complete comparison.

ComparisonCorrelation rEstimate and analysis base

Cancellation

Correlation estimate and reported intervalShared correlation scale from −1 to +1. The row label, estimate, analysis base, and reported interval appear alongside this plot.

r = −0.59
150 engagements
p < 0.001

Customer satisfaction

Correlation estimate and reported intervalShared correlation scale from −1 to +1. The row label, estimate, analysis base, and reported interval appear alongside this plot.

r = 0.70
94 active engagements
p < 0.001

Indicator mean

Correlation estimate and reported intervalShared correlation scale from −1 to +1. The row label, estimate, analysis base, and reported interval appear alongside this plot.

r = 0.87
150 engagements
p < 0.001

Intent to leave

Correlation estimate and reported intervalShared correlation scale from −1 to +1. The row label, estimate, analysis base, and reported interval appear alongside this plot.

r = −0.61
750 respondents
p < 0.001

−10+1
Exact comparison data
Cancellation
Exact chart data
SeriesPoint indexXY
Reported association0-0.58637703181
Customer satisfaction
Exact chart data
SeriesPoint indexXY
Reported association00.698823493100000031
Indicator mean
Exact chart data
SeriesPoint indexXY
Reported association00.874471785699999951
Intent to leave
Exact chart data
SeriesPoint indexXY
Reported association0-0.605870153400000061

Note: Survey question: “The training available to me effectively teaches me about these laws, regulations, and similar”.

Distressed ratings: 385 of 798 answers (48.25%).

Group means and numeric-answer bases: Individual contributor (n = 620): 3.48. Engagement manager (n = 150): 3.85. Portfolio director (n = 27): 4.22. Build-Out (n = 162): 4.37. Transition/Cut-Over (n = 234): 4.23. Production (n = 94): 4.48. Canceled (n = 308): 2.39.

r is Pearson’s correlation coefficient, measuring signed linear association from −1 to +1. Whiskers show 95% confidence intervals where reported. Intent-to-leave intervals, where shown, use a cluster bootstrap. The bootstrap resamples engagements to preserve the grouping of respondent answers. Associations are observational.

Higher training ratings were associated with a higher engagement indicator mean (r = 0.87, n = 150 engagements) and higher customer satisfaction among active engagements (r = 0.70, n = 94 engagements). They were also associated with a lower cancellation rate (r = −0.59, n = 150 engagements) and lower intent to leave (r = −0.61, n = 750 respondents). The engagement mean for training was distressed on 64 of the 150 engagements.

All five indicator-specific written answers about regulatory training received the most negative sentiment score, −10. They described instruction that did not address the requirements relevant to the work. Four described learning instead from colleagues or financial institution material. The small number supports illustration of reported experience, rather than an estimate of how often these training gaps occurred.

“whoever trained us knows nothing about AML, consequently we learn the rules from the client's own manual.” -Individual Contributor, BPO, Financial crime and client onboarding

“tool training was good, nobody taught us the suitability rules” -Individual Contributor, CXM, Credit, underwriting and suitability

The reported experience indicates that manual alteration was widespread while disclosure, recording, and regulatory preparation were incomplete in important respects. Respondents described manual work that sustained delivery but was not consistently represented in engagement records or performance reports. Their accounts of limited financial institution disclosure and unfavorable training ratings make that limited visibility consequential for interpreting reported performance and the preparation of the delivery team. The study establishes neither the amount of performance overstatement nor legal noncompliance, and its cross-sectional associations do not establish that manual alteration caused cancellation.