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Saturday, September 02, 2006

Outsourcing of finance and accounting (FAO)

- Outsourcing of finance and accounting (FAO) is big , its taking off and the case for it is widely recognized by leading firms.
- FAO is a key plank in transforming finance functions.
- FAO is been driven by Finance costs, labour arbitrage, process improvement and shareholder value.
- The rhetoric around business process outsourcing (BPO) failure needs to be interrogated closely. Fact and fiction as well as myths and reality need to be separated.
- Mid market and owner managed businesses BPO has been talked about for years. There are some examples but we're in the early stages.
- Others have looked at this but the model only works if you go after a particular vertical and you offshore the labour intensive aspects.

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