Practicalities of outsourcing your finance and accounting department

Transcription

1 Practicalities of outsourcing your finance and accounting department Simon Speirs, Lead Solution Architect Sutherland Global Services BUSINESS WITH CONFIDENCE icaew.com Supported by:

2 Many Hats of the CFO: Is Outsourcing a Distraction or Solution? ICAEW FD Conference 16 th May 2012 Simon Speirs, Finance Solution Architect Disclaimer This 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 Sutherland Global Services Inc., Inc., All All rights rights reserved. reserved. Privileged Privileged and confidential and confidential information information of Sutherland of Sutherland Global Services Global Inc. Services Inc.

3 What are the myths and reality? 3

4 How many hats are you wearing today? Balancing the demands of: INSIGHT CONTROLS TEAM PERFORMANCE & COST 4

5 What you ve told us is important Most important issue facing the Finance Function? Greatest challenge for outsourcing a Finance Function Recruiting and retention within the finance function 6% Managing the HR impacts? 0% Reducing the costs of the finance function 23% Finding a provider you trust 23% Providing greater support to business decision makers 32% Achieving an ROI that justifies the transition risks 26% Establishing better processes and controls A fear of losing control 38% 39% 51% 52% Source: ICAEW & Sutherland Webcast March

6 Why should Finance outsourcing be a consideration? Better Access to Skills Avoid Investment costs Labour Arbitrage Service Delivery Reduced Dependence On Key Staff Consistent & Guaranteed Service Quality Cost Flexibility Improved Controls & Processes 6

7 A view on what is CORE to a Finance department... F&A Outsourced Accounts Payable 95% Accounts Receivable 80% Cash & Banking 70% Fixed Assets 95% Financial Accounting Management Reporting 70% 50% Payroll 100% F&A Retained New Skills for the Retained Organisation 5% 20% 30% 5% 30% Risk Management Process Change Management HR Change Management Service Level Management Supplier Management 50% 7

8 Managing risk 8

9 The perceived risks of BPO Uncertainty Loss of Control Loss of Expertise Employee Unhappiness Difficulty in Reversing Risks of Failure 9

10 Engage and plan to mitigate the perceived risks Cover everything from point of contract award to steady-state Baseline Review Process Discovery Initiation/Discovery Solution Design HR Planning Training Planning QA Planning IT Planning Facility Planning Contracting Transition Execution Hiring Training QA Implementation IT Deployment Facility Readiness BCP / DRP Formal Readiness Review Go Live/ Operations Hand Off Shadowing Go Live OPS Review Track/Sustain Govern Engagement Process Mapping Risk Planning 10

11 Building in success for the long-term Governance Performance Reporting Success criteria clearly defined 11

12 What should your objectives be? 12

13 Benefits: Cashable and Non-Cashable Technology Automation Visibility of KPI / SLA Reporting Point Solutions for existing ERPs Greater DR / BCP Customisations Document Processes Convert certain fixed costs to variable Consolidate foreign offices Implement succession planning Policies & Controls Harmonise & implement Create a valid audit trail Internal control s QA rigour Implement governance model Working capital improvements Reduced cycle time Visibility of lifecycle costs & competition 13

14 Building the business case Typical Savings Process Organisation Technology Transaction Outsourcing Eliminate work steps / rework Streamline remaining work Assign work to right level Standard Policies/ Procedures Organisation redesign Automate manual processes Implement common systems Optimise labour rates (off-shoring) 3 5% 2 5% 3 5% 2 5% 5 10% 5 10% 5 10% 25 50% 15 25% 40 75% 14

15 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 15

16 Disclaimer This 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 Sutherland Global Services Inc., Inc., All All rights rights reserved. reserved. Privileged Privileged and confidential and confidential information information of Sutherland of Sutherland Global Services Global Inc. Services Inc.