| Avoiding Pitfalls that Hinder Return on Investment in F&A Outsourcing How to achieve real value versus pro forma cost savings There are three kinds of failures in outsourcing: -
The relationships where there is dissatisfaction with the other party's performance against the agreed-upon and anticipated behaviors and actions. -
The relationships that are unable to endure over the long term because of inevitable changes with the business environment. -
The relationships where one or both parties initially hoped the relationship would achieve value beyond the initial objectives, but failed to do so. These relationships sometimes achieve pro forma, or perfunctory, satisfaction of minimum requirements such as cost savings but never achieve real value. All three types of failures are the result of common pitfalls that occur largely because of the way in which the outsourcing arrangements are structured at the outset. The pitfalls over time become obstacles that hinder achieving the parties' anticipated return on investment (ROI) in outsourcing. Fortunately, these pitfalls are avoidable. Achieving value through an outsourcing strategy depends on eliminating or mitigating these pitfalls, by adhering to best practices and by taking preventive measures throughout the relationship. For a successful relationship, both parties must commit to taking these steps. This paper discusses those commitments and the steps that need to be undertaken up front and throughout the ongoing relationship to avoid the hindrances to achieving value. Click here to download the paper. | | | The Benefits and Challenges of Globalization An Economist Intelligence Unit executive summary in co-operation with EquaTerra and World 50 In a world with few constants, sustaining growth and outpacing competition are key concerns for just about every company, regardless of industry, geography or size. Globalization places both issues in the cross hairs, raising the potential for new ideas, new markets and new sources of competition. Little wonder then that the subject receives so much attention. As Jack Welch, former chairman and CEO of General Electric put it, "Globalization has changed us into a company that searches the world, not just to sell or to source, but to find intellectual capital-the world's best talents and greatest ideas." This report, conducted by the Economist Intelligence Unit on behalf of EquaTerra and World 50, examines corporate attitudes to the risks and opportunities presented by global competition and the challenges that come with expanding one's global footprint. The main findings of the survey are outlined below. - Executives see globalization as an inevitable but largely positive force, the pace of which is accelerating. Respondents are optimistic about the prospect of increased sales and are eager to capitalize on new branding opportunities.
- They also feel that organizations must adapt traditional ways of doing business to the new global environment by streamlining processes, expanding markets, and hiring and retaining qualified local staff.
- Executives in the developed world must respond to global competitors that can bring products to market quickly and cheaply. As they do, companies must remember that local players do not always play by the same rules as developed countries, and must understand how to respond in those situations.
Respondents believe that the opportunities created by globalization outweigh the risks and view the trend as having a long-term positive impact on their business. As they gear up, executives will focus internally on making their business processes more efficient and externally on investing in new foreign markets. Click here to download the full report. | | 
FAO Summit Last November, FAO Today brought together close to 200 finance, accounting, shared services and globalization executives from Russell 1000 organizations for its first conference on finance & procurement globalization in Atlanta. This summer, we once again will draw hundreds of the world's thought and action leaders for a high-energy, peer-to-peer meeting of the minds. The theme is the "Art of the Deal" in F&A outsourcing, and this event - co-presented with the Finance Forum, the leading association in the FAO industry - will focus on best practices in building and renewing finance, accounting, and procurement outsourcing and shared-services pacts. The agenda is packed with two-dozen expert speakers and celebrities in offshoring, outsourcing, transformation, compliance, and governance. A cocktail party and awards event will be followed by a day of top-level presentations that address timely topics and examine deals from the perspectives of practitioners, providers, and advisors. Click here for details and to register. | | Suppliers typically don't capture enough granular data in their Order-to-Cash (O2C) cycle to make headway against deductions - or they can't access the data easily and effectively. Further, they lack the requisite dedicated staff in operations and systems, have not measured the extent of the problem to size the 'profit leakage' opportunity or simply don't know what steps to take to attack the problem. As a result, companies are seeking alternative solutions that address the 'profit leakage' challenge. Click here to download the white paper. | The Top 10 Problems With Outsourcing Implementations (And How to Overcome Them)
By Shawn McCray, Partner, TPI You can choose blue-chip service providers and sign innovative, iron-clad, risk-sharing contracts - but still not achieve successful results if you underestimate the importance of Change Management and governance in outsourcing.
In multiple interviews with outsourcing providers and buyers of outsourced services (clients), we learned that poor Change Management and governance are the most systemic - and far reaching - of all the myriad mistakes that can occur. Experience tells us that some managers and project leaders tend to excel at domain knowledge, vendor and portfolio management, rather than Change Management itself. Why are Change Management and governance critical business issues? Outsourcing agreements can fail to achieve intended benefits, not because the goals were ill-conceived but because of poor planning and execution, even cultural intransigence. The benefits of outsourcing come through the successful introduction and sustainment of change - a continuous commitment rather than a one-time event.
However, making change happen successfully is one of the more difficult aspects of organizational leadership and corporate management. For this reason, we are highlighting the commonly encountered problems that impede successful outsourcing implementations and, in particular, undermine changes required to achieve expected results.
Click here to download the full white paper. | | | | IN THE NEWS
Tribune Publishing Selects HP for BPO Services
. . . . . . . . . . . . . . . . . . Hertz Selects ICG Commerce to Provide Procurement Outsourcing Services
. . . . . . . . . . . . . . . . . . HP to Acquire EDS
. . . . . . . . . . . . . . . . . . ING to Acquire CitiStreet
. . . . . . . . . . . . . . . . . . ANZ National to Outsource 500 Jobs to India
. . . . . . . . . . . . . . . . . . |  EVENTS 2 Jun - 3 Jun 2008 New York, NY . . . . . . . . . . . . . . . . . . Strategic Outsourcing 5 Jun - 6 Jun 2008 Chicago, IL . . . . . . . . . . . . . . . . . . | |
