March2002metagroup.com••••800-945-META[6382]AMETAGroupWhitePaperHarnessingthePowerofT&EOutsourcing“Travelandexpense(T&E)outsourcingcanbeanimportantalternativetoapplicationserviceproviderandtraditionallicense-basedimplementations.Thesesolutionscanmoveback-officeexpensereportprocessingoutofthefinanceorganization,whilemovingupfrontprocessingintotheorganizationaspartofanemployeerelationshipmanagementinitiative.”©Copyright2002METAGroupAllrightsreserved.HarnessingthePowerofT&EOutsourcingContentsIncreasingDemandforT&ESolutions.............................................................1ShouldOrganizationsInvestinanInternalT&ECenterofExcellence?.......2EvaluatingtheDifferentT&ESolutionImplementationModels.....................3WhatIsT&EOutsourcing?................................................................................3OutsourcingVersusLicenseModel.................................................................4OutsourcingVersusASPModel.......................................................................5MakingaBusinessCaseforOutsourcedT&E................................................5TheOutsourcedT&EProject............................................................................6OutsourcingOpportunities...............................................................................7HowtoEvaluateaT&EVendor.........................................................................8Summary.............................................................................................................9©Copyright2002METAGroupAllrightsreserved.HarnessingthePowerofT&EOutsourcing1IncreasingDemandforT&ESolutionsGiventhecurrenteconomicenvironment,firmsareseekingenterprisesolutionsthatcanprovidearapidreturnoninvestment(ROI)andcandeliverresultscheaper,better,andfaster.ManyareturningtoWeb-basedapplicationsthatautomatetravelexpensereporting,believingthattheywillachievecostreductionthroughprocessimprovementandstrictercontroloverspending.Effectivetravelandexpense(T&E)managementcanbeanimportantinitiativetodrivecostsoutofexpensereportprocessing(whichcantypicallyrunfrom$20to$70perreportusinglegacyprocesses)andreducespendingthroughpolicy/rulesenforcement.TheupgradetoWeb-basedtechnologieshasbeenanaturalprogression,deliveringimprovedaccessandfacilitatingglobaldeployment.Companieshavereducedprocesscosts,check/bankfees,cashadvances(viaquickerreimbursement),improvedcashflow(throughdirectandregularlyscheduledpaymentstocorporatecreditcardproviders),andfocusedspendingwithkeysuppliers(byemployingstrictertravelpolicyenforcement).T&Esolutionshavealsobecomeacriticalcomponentoftheemployeerelationshipmanagement(ERM)suiteofsolutions.ERMsolutionsarefocusedonextendinginformationandprocessestotheenterpriseforbothfinanceandhumanresourcesfunctions.Fromourresearch,webelievemostcompaniesthatoperatewithlegacyspreadsheetandpaper-basedprocessescanreducetravel-relatedspendingby10%afterimplementingleadingT&Esolutions,andsomeorganizationscanreduceprocessingtimeandcosts40%-60%.Travel-relatedexpensesoftenaccountforupto40%ofindirectcommoditypurchaseswithinafirmand,aftersalaries,arethesecond-largestcontrollableexpensewithinmostenterprises.Theseexpensesincludeairfare,hotel,lodging,food,andothercostsassociatedwithbusinesstravel,aswellasreimbursementfor“one-off”businessservicesandmaterials.Projectinitiativesinth...
