Outsourcing—both onshore and off—has become a standard business practice. However, as the economy moves forward, senior finance executives are reconsidering their current strategies, including taking a closer look at costs and moving some services back in-house.
While only about 1/3 of CFOs currently outsource, and only 17% of that number is outsourced offshore, outsourcing has become a much more prominent practice than it was even ten years ago. Many companies are aware that outsourcing can lead to large cost reductions and increases in efficiency. In addition, outsourcing can provide a much larger network of people who can do the work that company employees cannot, especially within small-to-midsize businesses.
However, despite the benefits, CFOs should still be cautious when outsourcing, and should develop a strategy, clear objectives, cost accounting methods, and a defined process for the delivery of offshore services. Furthermore, firms should be aware of hidden costs and potential management issues.
But faced with political sensitivities, employee loyalty, and data security issues, outsourcing has created obstacles for some firms. In fact, many large companies, such as Johnson & Johnson and Best Buy are insourcing, rather than outsourcing their services, for reasons explained in this eBook.
The decision to outsource can be complex and conflicted. This eBook will provide information from both sides of the outsourcing debate to help you make the most informed choice.
Topics in this eBook include:
- How SMBs are using outsourcing as a tool for growth;
- The reasons why other companies are moving away from offshore shared-services centers;
- What to look out for with IT-outsourcing contracts and costs
- Why you might consider Cloud services brokers rather than internal IT;
- The CFO’s outsourcing responsibilities.