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    01 / 19 / 2015

    Outsourcing Entering a New Phase: More Than Lowering Costs, Adding Value

    Outsourcing Providers will have to add vale beyond costHFS Research and its blog, Horses for Sources, has become the thought leader for information about the outsourcing and off-shoring industry. In a recent article, Phil Fersht, President and CEO at HFS, shared some insightful information about the state of that industry and how outsourcing services buyers or clients feel about their service providers. You can read Fersht's post here.

    The bottom line of their survey of 58 outsourcing clients at a recent HFS Blueprint Session is that, in spite of failure to achieve value beyond cost, most of these companies would not go back to their old way of doing business. In effect, these companies have achieved the benefits of lowering costs and increasing scalability by outsourcing business processes. And though they have not yet seen the loftier benefits of increased efficiency and streamlined or automated business processes, they are still satisfied with their decision to outsource.

    So what does this mean for outsourcing providers and their current and future clients? It means that we're likely headed into a new era of outsourcing where providers will need to differentiate themselves by adding value beyond cost savings and clients will begin to expect those results.

    As-a-Service Technology and Higher Value Process Outsourcing

    Fersht points to two major factors that will contribute to this new outsourcing landscape. First off, technology and, in particular, Software-as-a-Service (SaaS) and Business-Process-as-a-Service (BPaaS) technology, will give new outsourcing providers the agility to provide their clients with value far beyond lowering costs. Cloud-based financial management software, as an example, allows companies to outsource their finance and accounting function and take advantage of quicker and cheaper implementation (than legacy systems), process automation, web-based collaboration with their service provider, and deeper insight into the data and metrics that can help determine where processes must be tweaked or re-engineered.

    The other trend that will make outsourcing more of a value-add proposition is that companies will give up more high-value work to their outsourcing service providers. In fact 43% surveyed by HFS acknowledged that they should outsource more of these high-value tasks. Finance and accounting outsourcing is a good example of such high-value work, and companies that have moved to an outsourced, SaaS-based accounting and financial management model are already reaping the rewards.

    If you have any questions about how your organization, regardless of size, can lower costs and add value by outsourcing your business processes, please contact us. We'd be happy to perform a complimentary evaluation of your finance function and business processes to help you determine if outsourcing is a good fit for you.

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    Baker Tilly curates, integrates, and optimizes the right technology stack for your organization. We layer in our own proprietary “last mile” solutions. And we offer these technologies either via a Software-as-a-Service delivery model, where your own Finance function manages the day-to-day use of the technology, or via a Finance-as-a-Service delivery model where we run your accounting operations and provide the outcomes you need. Here are some additional resources that may help you find solutions for your challenges. Or schedule a discussion to go over your needs and goals now.

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