Page 67 - E1 Integrated Workbook STUDENT 2018
P. 67
The contemporary transformation of the finance function
Outsourcing the finance function
2.1 Introduction
For most organisations, financial services are non-core and there
are benefits from outsourcing some or all of these services.
Benefits include:
Cost reductions.
Higher quality service provision.
Can focus on core competencies that add value.
2.2 Internal outsourcing
Internal outsourcing involves the consolidation of an organisation’s
finance activities to one site or shared service centre.
Advantages Disadvantages
Headcount reductions. Fall in staff morale.
Reduction in cost of premises. Cost of redundancies.
Systems consolidation. Lack of systems integration.
Tax savings. Major set up costs.
Favourable labour rate. Full outsourcing may be a better
option.
Improvements in quality.
55