Outsourcing hits choppy waters
The downturn in the global economy has resulted in a slowdown in outsourcing, according to the head of the Outsourcing Research Council.
The downturn in the global economy has resulted in a slowdown in outsourcing, according to the head of the Outsourcing Research Council.
Speaking Tuesday from Danbury, Connecticut via videoconference to finance leaders at the CFO conference, Michael Corbett said the current economic climate had created a ‘choppy surface for outsourcing.’
He explained that, while some executives who were hesitant about outsourcing were pushed into it by market pressures, other companies were ‘reluctant to move forward boldly.’
‘[The downturn] is moving the market forward but creating choppy water,’ said Corbett.
But he also said that a large number of successful international companies were outsourcing many of their non-core competences. One example he gave was BP, which has outsourced finance and accounting to Accenture and PricewaterhouseCoopers respectively.
Preliminary findings from the ORC found that traditional outsourcing areas, which continue to be strong include payroll and tax. Areas that are currently growing, but were not traditionally outsourced, include internal audit, accounts payable and receiveable and travel expenses.
Corbett said in the difficult economic climate, outsourcing was seen as one of many management tools. He added that it had to be viewed as a long term relationship, and for the tool to be efficient, it had to be results-oriented.
Links
Finance directors to boost outsourcing
Consultancy – US downturn begins to bite
The numbers you crunch tell a story. Your expertis...
23yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleGlobal spend on accountancy outsourcing up by 40% in the space of five years. News comes as accountancy outsourcing specialist AdvanceTrack reports en...
View articleFollowing a profitability review, Deloitte has decided to scale back its UK deals business due to lower returns. This strategic shift could lead to jo...
View articleUK-based Dow Schofield Watts (DSW), a mid-market professional services network, announced the creation of a new division called DSW Principal Partners...
View articleEY has been undergoing significant cost-cutting measures and streamlining its operations since the abandonment of Project Everest. The firm has made t...
View articleTransitioning from an accounting firm to a consultancy model is only one part of the puzzle. The next, equally vital piece is making the market aware ...
View articleThis framework, while providing a top-line view, underscores the importance of strategic vision, operational excellence, and the spirit of continuous ...
View articleLooking ahead, the Big 4 firms face a challenging year, with ongoing cost-of-living concerns, slow economic growth, rising geopolitical tensions, and ...
View articleLast month it was reported that Deloitte would be cutting approximately 1,200 jobs in the United States, making it the latest of the Big Four accounti...
View article