About 50% of a large company’s functions are designed to support its internal operations rather than to directly support its customers. When the time comes to trim costs, many managers first focus on cutting fat out of customer-related activities – marketing, sales, customer service, development and manufacturing. What these efforts overlook is the fact that administrative functions offer a huge opportunity to both improve organizational workflow and diminish costs. By transforming back-office operations, companies can become more efficient and effective, which can have an overwhelming impact on the health of the entire organization.

One model of business transformation is outsourcing, which involves transferring work to a third-party specializing in delivering a specific activity, such as finance or accounting services or HR administration. By delivering similar services to several large organizations outsourcing firms tend to provide improved services based on best practices delivered at equal or lower costs, thanks to economies of scale and focused expertise. Carried out offshore or where labor arbitrage and the availability of larger pools of skilled people provide additional advantages, outsourcing can make a considerable impact on a company’s bottom line.

Firms specializing in providing advice to organizations intent on evaluating their transformation options also provide support in the selection of outsourcing services providers.  The most capable advisors support the negotiation and contracting process and also provide post-transaction governance-related support.

Contact Borderless and draw on our unique, unparalleled global network of business transformation professionals and first-rate search skills to find and attract talented executives to lead your outsourcing business or advisory firm.

Borderless is a founding member of HROA, the global association for HR Transformation at www.hroassociation.com