The continuing legacy of hard-core brexiteering under BoJo has yet to show much by way of advantage to the general public. But what it has done is weaken links forged with the Continent over half a century of EU membership, especially when it comes to travel of more than a week or two. Two weeks in Torremolinos or Tenerife may go as before. But those with property, relatives or friends across Europe now run into residence difficulties.
Having left the EU, UK residents are treated as any other foreigner. This means, they must comply with Schengen rules. They state that you may visit the EU only 90 days within any 180-day period and may not return at all during the following 90 days. Those who were already resident in the EU had their residency “grandfathered in”. For anyone else wishing to spend time there, a visa has become necessary.
One company was quick to spot the business opportunity in this. Originally based in India, VFS Global, headquartered in Dubai, UAE, developed a Swiss parentage by becoming a portfolio company of EQT, a private equity firm. EQT funds have invested in portfolio companies globally. Their portfolio companies grew to generate total sales of €19 billion and employing 110,000 people. The Swiss-based Kuoni and Hugentobler Foundation had minor a stakes in VFS Global.
“While working in India for the Switzerland-based Kuoni Group we had first-hand knowledge of the challenges travellers faced while applying for visas.”
—Zubin Karkaria, Founder and CEO, VFS Global
The niche that enabled VFS Global to become the world’s largest visa outsourcing specialist for governments and diplomatic missions worldwide was managing the administrative, non-judgmental tasks related to visa, passport and consular services. This allows client governments to focus on the task of assessment itself. Established in 2001, it now operates 3,516 application centres across 149 countries on behalf of 67 client governments.
A quarter century ago, Karkaria clearly identified a huge business opportunity. The 1990s saw a huge surge in global travel which continues to this day. Most countries require a visa for entry. As few provide such visas on arrival, embassies in the originating country must first deal with applications prior to travel. Most require a complex set of validated documents before issuing a visa. Encountering this complex process for the first time, applicants typically make mistakes. By outsourcing to VFS Global, embassies save on staff, who typically enjoy job security, as well as vacation, sick leave and pension benefits.
It is unlikely that employees enjoy such benefits, the job security or the working conditions of the embassy staff who formerly did the job. Indeed, Karkaria and his board apply the “boiler room” techniques typical of Indian call centres and garment sweat shops. Judging from their offices in Edinburgh and London (both run by their GVC subsidiary), almost all staff are foreign nationals, probably on work visas themselves. Many appear to have scant training and an idiosyncratic grasp of English. They work long hours in a half-dozen cramped cubicles with room only for a desk and a chair for the applicant and a curtain for “privacy”.
They claim to run an appointment system, which must be made online and to offer a “Premium” service for £60 (on top of their £210 visa fee) for assistance in compiling the complex package of documents to be submitted to the relevant embassy of the applicant’s behalf.
At the Edinburgh office, not only is the Premium service unavailable, but the appointment time is a fallacy. On finding the building in the office block wasteland that is Leith Docklands, you are given a number at the reception desk and pile into a waiting room of 60 people sharing 45 seats to spend several hours until the sequential number is called. There are no refreshments; the water cooler does not work and a single toilet is some distance away.
Once squeezed inside a booth and the document package examined, any deficiencies are pointed out, invariably leading to another appointment needing to be made and the same day-long procedure repeated. What is not said is any indication of which other documents may lapse in validity before the next appointment, so running the risk of further visits being necessary.
Although suffering poor working conditions, staff are generally affable, but a lack of competent organisation and management makes the application process an ordeal for all concerned.
Despite this third-world level of operation, in December 20923, VFS Global was appointed to deliver UK Government Visa and Passport services across 149 countries where it operates. No doubt there are financial advantages in outsourcing. But the level of service offered is notably poor and might even be a deliberate disincentive to visit.
In October 2021, Blackstone acquired a 75% stake in VFS Global for $1.3 bn. Blackstone bills itself as “the world’s largest alternative asset manager”. It is also an astute collector of “cash cows” that pay big profits but little tax. By registering as a company in the tax haven of Mauritius, there is minimum transparency, especially regarding its finances. Senior management hide profits behind a smokescreen of vacuous management-speak.
“To lead and set the standard in the visa and consular services industry, through innovation, technology and customer service excellence.”
—VFS Global Vision
“We make people’s cross border mobility simple and convenient through highly secure, reliable, efficient, and innovative technology solutions.”
—VFS Global Mission Statement
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