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© 2010 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.com © 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.
DisclaimerThis document is the proprietary and exclusive property of Sutherland Global Services except as otherwise indicated. No part of this document, in whole or in part, may be reproduced, stored, transmitted, or used for design purposes without the prior written permission of Sutherland Global Services. The information contained in this document is subject to change without notice. The information in this document is for information purposes only. Sutherland Global Services® disclaims all warranties, express or limited, including, but not limited, to the implied warranties of merchantability and fitness for a particular purpose, except as provided for in a separate software license agreement. All confidential or proprietary information contained in Sutherland’s response shall at all times be and remain the sole and exclusive property of Sutherland Global Services, Inc.
Many Hats of the CFO:Is Outsourcing a Distraction or Solution?ICAEW FD Conference 16th May 2012
Simon Speirs, Finance Solution Architect
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.comApril 12, 2023 2
What are the myths and reality?
www.sourcingsage.com
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.comApril 12, 2023 3
How many hats are you wearing today?
Balancing the demands of:
• INSIGHT
• CONTROLS
• TEAM PERFORMANCE & COST
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.comApril 12, 2023 4
What you’ve told us is important
Establishing better processes and controls
Providing greater support to business decision makers
Reducing the costs of the finance function
Recruiting and retention within the finance function
38%
32%
23%
6%
Most important issue facing the Finance Func-
tion?
A fear of losing control
Achieving an ROI that justifies the transition risks
Finding a provider you trust
Managing the HR impacts?
52%
26%
23%
0%
Greatest challenge for outsourcing a Finance
Function
Source: ICAEW & Sutherland Webcast March 2012
39% 51%
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.comApril 12, 2023 5
Better Accessto Skills
ServiceDelivery
Cost Flexibility
Consistent & Guaranteed
Service QualityLabour Arbitrage
ReducedDependenceOn Key Staff
Avoid Investmentcosts
ImprovedControls
& Processes
Why should Finance outsourcing be a consideration?
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.comApril 12, 2023 6
A view on what is CORE to a Finance department.....
95%
AccountsPayable
AccountsReceivable
80%
Payroll
100%
Cash& Banking
50%
95%
FixedAssets
70%
FinancialAccounting
ManagementReporting
50%30%20%
F&AOutsourced
F&ARetained
70%
30%5% 5%
New Skills for the
RetainedOrganisation
Risk ManagementProcess Change Management
HR Change ManagementService Level Management
Supplier Management
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.comApril 12, 2023 7
Managing risk
www.sourcingsage.com
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.comApril 12, 2023 8
The perceived risks of BPO
Uncertainty
Loss of Control
Employee Unhappiness
Loss of Expertise
Difficulty in Reversing
Risks of Failure
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.comApril 12, 2023 9
Engage and plan to mitigate the perceived risks
Cover everything from point of contract award
to steady-state
SolutionDesign
SolutionDesign
TransitionExecutionTransitionExecution
Go Live/OperationsHand Off
Go Live/OperationsHand Off
Hiring
Training
QA Implementation
IT Deployment
Facility Readiness
BCP / DRP
HR Planning
Training Planning
QA Planning
IT Planning
Risk Planning
Facility PlanningInitiation/Discovery
Process Mapping
ProcessDiscovery
BaselineReview
FormalReadiness
Review
Go Live
OPS Review
Track/Sustain
Shadowing
Govern Engagement
Contracting
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.comApril 12, 2023 10
Building in success for the long-term
• Governance
• Performance Reporting
• Success criteria clearly defined
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.comApril 12, 2023 11
What should your objectives be?
www.sourcingsage.com
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.comApril 12, 2023 12
Benefits: Cashable and Non-Cashable
Technology
Automation
Visibility of KPI / SLA Reporting
Point Solutions for existing ERPs
Greater DR / BCP
Customisations
Processes Policies & Controls
Document
Convert certain fixed costs to variable
Consolidate foreign offices
Implement succession planning
Harmonise & implement
Create a valid audit trail
Internal controls
QA rigour
Implement governance model
• Working capital improvements• Reduced cycle time• Visibility of lifecycle costs & competition
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.comApril 12, 2023 13
Building the business case
Eliminate work steps / rework
Streamline remaining work
Organisation redesign
Assign work to right level
Standard Policies/ Procedures
Optimise labour rates (off-shoring)
Automate manual processes
Implement common systems
3 – 5%
2 – 5%
5 – 10%
2 – 5%
3 – 5%
5 – 10%
15 – 25%
5 – 10%
Typical Savings
25 – 50%
Transaction Outsourcing
Technology
Process
Organisation
40 – 75%
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.comApril 12, 2023 14
Key recommendations
“Do I want to, or have to do it myself?”
Look for benefits beyond cost Assign a owner in the business with long term ownership Create a best practice process platform – build on success Find a partner who will share the risk of the change
programme Transition of knowledge is key: do not assume it has
happened because you have completed the transition plan Recognise and obtain the new skills you need in-house for
the retained organisation
© 2010 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.com © 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.
DisclaimerThis document is the proprietary and exclusive property of Sutherland Global Services except as otherwise indicated. No part of this document, in whole or in part, may be reproduced, stored, transmitted, or used for design purposes without the prior written permission of Sutherland Global Services. The information contained in this document is subject to change without notice. The information in this document is for information purposes only. Sutherland Global Services® disclaims all warranties, express or limited, including, but not limited, to the implied warranties of merchantability and fitness for a particular purpose, except as provided for in a separate software license agreement. All confidential or proprietary information contained in Sutherland’s response shall at all times be and remain the sole and exclusive property of Sutherland Global Services, Inc.
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.comApril 12, 2023 16
`
Transaction Management
• Decision Making Authority
• Acceptance and Approval
• Risk Management• Proximity to Business• Vision• Strategy• Policy Setting
Retained Shared Services (internal / external)
Finding the Dividing Line
Typical• Routine & process
driven• Rules based• Can’t be automated• Data mining
Value Add• Research• Analytics• Knowledge driven
Business Processes
Strategy
Finding the balance of Risk and Strategic Importance
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.comApril 12, 2023 17
Reasons we hear “Not interested”
We’re not big
enough
We’re different
Processes are messy
Too many systems
Financials don’t work
Didn’t work
elsewhereNot the right time
We don’t outsource
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.comApril 12, 2023 18
How Many Hats Are You Wearing Today?
How Do I help my Company focus on core competencies?
What will the economy do and how do I prepare for it?
How can we make better decisions with our information?
C o s t s a r e r i s i n g q u i c k e r t h a n m y s e l l i n g p r i c e . H o w c a n I r e v e r s e t h i s t r e n d ?
My department needs new skills to help the business and they were needed yesterday?
What does this new regulation mean to my business?
How do I fight off my latest competitor?
How do I change my IT systems to support me?