Cost Savings not Only Finance and Accounting Outsourcing Driver

May 10, 2007 ( - Cost savings is no longer the only main reason European companies are outsourcing their finance and accounting operations, a recent paper sponsored by Outsource Partners International suggests.

The white paper, entitled “Finance and Accounting Outsourcing: A Proven Road to Achieve Business Results,” argues that company executives are reassessing their operating models because they are facing resource strains and are moving toward multi- and full-service finance and accounting outsourcing strategies in an effort to improve on the performance of these functions.

“Outsourcing not only brings about the necessary change, but companies can choose the degree of impact desired and either transition all at once or gradually over time, ” Clarence Schmitz, Chairman and CEO of Outsource Partners International, said in the news release. “By beginning with just several processes and progressively increasing the scope of outsourced services, companies can initiate the necessary changes without serious business disruption.”

According to a follow-up survey conducted by IDC, those who outsource these functions saw a 25% to 40% reduction in cost. In addition, o ther results of the survey also showed that companies who went the path of outsourcing:

  • saw faster time-to-process (cash application, invoices, payroll and month-end close).
  • achievemed top-quartile benchmarked process performance around quality and speed.
  • had the ability to react and easily redistribute resources based on transaction volume fluctuations.
  • had access to network of knowledgeable experts and specialists.
  • focused on continuous improvement of all processes; and
  • allowed for consistency of processes across global operations.

The survey yielded 715 responses from executives at mid-to-large size businesses across seven European countries. In addition, in-depth interviews were conducted with eleven companies across the United States and Europe.

For the full survey results go here It requires registration.