Today's complexities in doing cross-border business require that international companies stay current with the continuously changing local market regulations and requirements in the different countries in which they have subsidiaries. This requires from organizations, not only international expertise, but local grounded knowledge, which is costly and takes time to set up.
Outsourcing some or all of the subsidiaries finance and administrative back-office functions is more cost effective and provides international companies immediate access to local knowledge maintaining at the same time the expertise required to manage their head office requirements.
A one stop shop regional provider
International Companies have seen that when outsourcing support functions one-by-one by countries and/or by functions, the cost and complexity of managing multiple providers and arbitrating the interactions among them can very often offset the benefits of Outsourcing. A bundled approach to Outsourcing is similar in principle to the supermarket concept, where shoppers can save valuable time and money while getting more consistent and predictable quality and availability from stores with a broad range of goods and services.
Benefits of adopting the bundled back-office outsourcing approach include, among others:
- Reducing costs and time by standardization and avoiding duplication of management layers and processes.
- Reducing operating risks by limiting points of failure.
- Reducing delivery risks through simplified points of contact.
- Additional leverage and synergies across regional-based solutions.
- Opportunity to achieve larger, holistic back-office change
Business process outsourcing
The decision to adopt finance and administrative outsourcing services shall provide the company with:
An optimum cost/benefit ratio within small organizational structures.
Becoming more flexible by transforming fixed into variable costs.
Continuous improvement of quality.
Prompt access to local specialized and experienced resources with a low initial investment.
Reduction of risks by sharing activities with the outsourcing supplier.
Local Management time-saving to be able to focus on the strategic areas of the business.
Access to the latest technology.
Opportunity to benefit from a process reengineering without affording the costs.
Access to information on legal, contractual and local government matters.