Outsideupside:FindingfocusthroughfinanceoutsourcingOutsideupside:FindingfocusthroughfinanceoutsourcingAnAccenturereportwrittenincooperationwiththeEconomistIntelligenceUnit1Executivesummary10Introduction14Reapingthebenefitsofoutsourcing20Promotingtransformationalchange22Overcomingdoubts:Weighingtherisksofoutsourcing26Sheddingnon-corefunctions:Whatcompaniesareoutsourcing28Makingoutsourcingwork36Conclusion:Focusonfinance38SurveyresultsSpecialfocus7MOL:OutsourcinginEasternEurope8Transparencyandoutsourcing:Separatingmeasurementfromperformance13Insideorout:Theoptionsforsharedservicecenters17Fastlaneforgrowth:OutsourcinginAsia21ThomasCookUK:“Co-sourcing”fortransformationalchangeAsafalteringglobaleconomyputspressureoncorporateresults,executivesareincreasinglyturningtooutsourcingtoreducecostsandboostproductivity.Outsourcingproviderspledgetoperformback-officefunctions,includingfinanceandaccounting,morecheaplyandefficientlythancompaniescandoontheirown,thankstoeconomiesofscale,standardizedprocessesandadvancedtechnology.Formanycompanies,theequationofhigh-qualityserviceatlowerpricesisirresistible,particularlywhenoutsourcingallowsthemtofocusontheircorebusinesses.1ExecutivesummaryCostsavingsarethemainmotivationformanyexecutives.Thecostreductionsof20-50%reportedbycompaniesthathaveoutsourcedfinancearetantalizing,especiallyatatimewhencompaniesarewaryofinvestinginoperationsthatdonottouchthecustomer.“Therealadvantageofoutsourcingiscostsavings,costsavings,costsavings,”saysKennethJoyce,CFOofAmkorTechnology,theworld’slargestproviderofcontractsemiconductorassemblyandtestsolutions.Yet,asthisreportunderscores,costcuttingisnottheonlystory.Somecompaniesareambitiouslyusingoutsourcingasavehicletopromotechange,forinstanceaspartofatransformationdesignedtoshiftcorporatestructurefromamoretraditionalorganizationdividedalonggeographiclinestooneorganizedgloballyalongbusinesslines.“Somecompaniesseeoutsourcingasastrategicweaponforchange,”explainsMrClements.Whetherconfinedtoasingle,straightforwardoperationlikepayrollorappliedtoabroadrangeoffinanceandaccountingfunctions,however,outsourcingisnotwithoutitsrisks.Corporateloretellsofoutsourcingprojectsgoneawry,venturesthatwastedmoneyandsappedexecutivetimeratherthandeliveringtheexpectedbenefits.Evenoutsourcingsuccessescanposeunexpectedcomplicationsanddemandpainstakingmanagement.Thisreport,preparedbyAccentureincooperationwiththeEconomistIntelligenceUnit,aimstohelpseniorexecutivesgrasptheopportunitiesanddefusetherisksposedbyfinanceandaccountingoutsourcing.Drawingoninsightsfromexperiencedexecutivesaroundtheglobe,itsetsoutguidelinesforasuccessfulstrategytooutsourcefinanceandaccountingfunctions.2"Intheboommarketcompaniesweremuchmorefocusedonrevenuegrowth,"saysStewartClements,globalmanagingpartnerforAccentureFinanceSolutions,whichspecializesinbusinessprocessoutsourcingoffinanceandaccounting."Nowtheyaremorefocusedonthefundamentalsofvaluecreation,andwe'reseeingalotmoreinterestinoutsourcingfinanceandaccounting."Thestudydrawsontwomainresearchundertakings:TheEconomistIntelligenceUnitconductedawide-rangingsurveyofglobalcorporateleadersinJanuary-February2003.Inall,236seniorexecutivestookpart,representingallmajorgeographicregionsandawiderangeofindustries.One-thirdoftherespondentswereCEOs,chairmen,CFOsorseniorfinanceexecutives.Detailedsurveyresultsarepresentedintheappendixt...
