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There are many compelling reasons for companies to consider financial process outsourcing, including:
• Non-core functions distract from your core focus
• You’re competing in a low-margin or low revenue-growth industry,or a declining-price marketplace.
• You seek increased agility in acquiring and absorbing new businesses
• You seek cost savings for the purpose of reinvestment in core growth opportunities
• You’ve exhausted other traditional cost-cutting measures
Independent results of a Duke University study of one hundred Fortune 500 companies*
• 31% achieved their service level goals within 5-months
• 75% achieved their goals within 12-months
• 72% said their implementations met or exceeded their expected savings
• 63% achieved greater than 30% annual savings
• 14% reported annual savings greater than 50%
*Duke Center for International Business Education and Research and Archstone Consulting surveyed 100 Fortune 500 companies in a diverse range of industries, from Oct.-Dec. 2004. Publication date: March 2005.
Outsourcing financial functions allows companies to do what they do best.
Nearly any financial function could be eligible for outsourcing, including accounts payable, financial statement preparation, billing, time and expense report review, and accounts receivable monitoring, among others.
Financial process outsourcing should be a key component of your business growth strategy if you’re seeking:
• Reduced business risk
• Broad-based cost reduction
• Improved regulatory compliance
• Automation of manual processes
• Ability to focus increased attention on your core business
• Increased flexibility and adaptability to market and industry shifts
• Improved shareholder value
Choosing a provider :
Choosing the right partner is the first crucial step in developing your outsourcing strategy.
Ask before you outsource
1. Does the provider have a track record?
2. Are they familiar with your business and your industry?
3. Is this area of servicing a core component of their business or an add-on service?
4. How are they perceived by current clients?
5. Will they commit service level agreements to writing?
6. What stake does the provider hold in the success or failure of your arrangement?
7. How will your account be managed and by whom?
8. Do they employ trained and accredited professionals?
9. What security measures does the provider have in place?
10. To what degree will you retain control of your financial processing?
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