Transforming and Offshoring Finance Processes: Timing is Everything  

18 October 2007:

The “globalization” opportunity is extremely compelling for companies striving to achieve world- class performance for their finance function. But it needs to be considered in a much broader context than just taking advantage of labor arbitrage; rather, globalization represents a chance to evaluate the overall performance of the organization. Globalization should not be a substitute for strategic transformation and continuous improvement – all are needed to achieve world-class performance. However, various options do exist when it comes to execution, consisting of differences in the timing of the initiatives. Organizations with the ability and resources to execute strategic transformation programs will tend to transform more work before offshoring it, whereas resource-constrained organizations will look to move work offshore first as a means to realize a rapid payback that can be used to fund further transformation. However, because of underlying differences in finance processes, no company should follow a strict “transform first” or “globalize first” path for all processes; in practice, optimization will take place through a series of “waves” that combine transformation and globalization initiatives.

Download:

Source: The Hackett Group

« Back   View List



Our Partners

The Corporate Leaders Network

Tangible Impacts of Accounting Transformation