Do you need to find ways to build the long-term success of your company without sacrificing all your time to tactical issues? Read this whitepaper now to learn how Finance & Accounting Outsourcing can solve your problems! Who should read this–CEOs, CFOs and Finance & Accounting executives and managers considering improving the overall performance of their organizaitons Top 4 things you’ll learn: 1. Look at the potential needs of YOU, the customer 2. What and where you could start in your outsourcing journey 3. How to address some of the risks 4. Look at some of the potential benefits

1.
Finance
and
Accounting
Services
Finance
&
Accounting
Outsourcing:
Building
for
Long
Term
Success
Table
of
Contents
Introduction
2
Fears
and
Concerns
about
F&A
Outsourcing
3
The
Cost
and
Quality
Benefits
of
F&A
Outsourcing
4
Creating
The
Environment
for
Success
5
Success
Factors
7
About
Sutherland
Global
Services
8
Contact
Information
8
Resources
9
Author:
Simon
Speirs,
Lead
Solution
and
F&A
Architect
Europe/Middle
East/Africa
Finance
&
Accounting
Outsourcing:
Building
for
Long
Term
Success
©
2012
Sutherland
Global
Services.
Page
1

2. Introduction
Many
finance
departments
in
mid-­‐market
companies
are
in
a
quandary.
They
strive
to
provide
true
value
to
their
organisations
by
using
their
skills
and
expertise
for
strategic
insights.
But,
too
often,
finance
departments
are
simply
caught
on
a
hamster
wheel
of
transactional
functions
to
offer
their
full
potential.
In
fact,
the
American
Productivity
&
Quality
Center
(APQC)
surveyed
finance
professionals
at
119
organisations
to
discover
that
“only
5
percent
of
survey
respondents
believe
that
finance
is
currently
delivering
game-­‐changing
value
to
their
enterprises.”
Adding
to
the
dilemma,
a
survey
of
200
CFOs
and
finance
directors
in
the
UK
by
Director
of
Finance
Online
found
that
66%
of
respondents
“were
very
or
somewhat
concerned
about
losing
top
performers
to
other
job
opportunities
in
the
next
year.”
One
solution
that
addresses
both
the
need
to
provide
vital
analysis,
while
also
creating
an
environment
where
top
talent
thrives
and
is
challenged
is
Finance
&
Accounting
(F&A)
outsourcing.
Traditionally
the
main
barrier
to
Business
Process
Outsourcing
(BPO)
for
firms
in
the
mid-­‐market
has
been
cost.
However,
advances
in
technology
and
access
to
a
global
workforce
have
lowered
those
concerns.
Instead
the
main
driver
toward
adopting
outsourcing
is
the
need
for
more
effective
operations
at
a
global
level
and
access
to
new
technical
skills.
However,
there
is
a
hesitation
to
adopt
F&A
outsourcing
as
a
viable
option
amongst
finance
professionals
in
the
mid-­‐market
due
to
fears,
real
and
imagined,
and
an
outmoded
concept
of
what
the
process
entails.
This
paper
aims
to
dispel
concerns
and
help
finance
directors
be
successful
in
implementing
an
F&A
outsourcing
programme
in
their
organisation.
Finance
&
Accounting
Outsourcing:
Building
for
Long
Term
Success
©
2012
Sutherland
Global
Services.
Page
2

3. Fears
and
Concerns
about
F&A
Outsourcing
Leaders
in
finance
are
charged
with
managing
people,
overseeing
process,
and
harnessing
technology
to
its
best
application.
They
must
constantly
balance
the
demands
of
insight,
controls,
team
performance
and
cost.
It’s
no
wonder
then
that
the
three
main
areas
of
concern
about
outsourcing
are:
• Uncertainty
and
loss
of
control
• Employee
dissatisfaction
and
loss
of
expertise
• Decision
reversal
and
programme
failure
Uncertainty
and
Loss
of
Control
Major
organisational
change
brings
about
uneasiness
and
uncertainty
of
the
unknown.
If
you
are
wading
into
outsourcing
for
the
first
time,
lack
of
knowledge
and
experience
in
managing
the
process
can
be
daunting.
There
is
often
a
feeling
that
moving
certain
functions
outside
of
your
company
will
lead
to
loss
of
control.
No
longer
able
to
physically
see
the
people
performing
the
work,
there
is
a
common
perception
that
the
functions
are
no
longer
within
your
direct
and
immediate
control.
In
fact,
this
lack
of
physical
contact
takes
managers
outside
of
their
comfort
zone
and
often
gets
confused
with
the
fear
of
forfeiting
decision-­‐making
capacity.
Employee
Dissatisfaction
and
Loss
of
Expertise
At
times
of
change,
the
risk
of
employee
dissatisfaction
is
real,
though
experiences
of
malicious
intent
are
few
and
far
between.
The
uncertainty
that
finance
leaders
may
feel
is
exacerbated
in
staff
who
have
the
least
control
over
the
conditions
that
govern
their
day-­‐to-­‐day
work
lives.
Unclear
communication
from
management
about
how
their
roles
are
changing,
the
expectations
upon
them,
and
an
understanding
of
how
they
are
to
navigate
their
new
reality
can
lead
to
a
decline
in
productivity
as
employees
transition
from
one
operating
model
to
another.
If
not
managed
effectively,
employee
dissatisfaction
may
lead
to
a
loss
of
expertise
in
the
roles
that
you
are
looking
to
retain.
A
survey
of
200
CFOs
and
finance
directors
in
the
UK
conducted
by
Director
of
Finance
Online,
revealed
that
66%
of
respondents
were
“very
or
somewhat
concerned”
about
losing
their
top
performing
employees
to
other
opportunities.
Although
heightened
in
moments
of
change,
the
fear
of
losing
good
talent
is
present
in
the
minds
of
finance
professionals
at
any
time.
However,
releasing
key
individuals
to
focus
more
on
strategic,
rather
than
day-­‐to-­‐day,
issues
will
keep
some
very
happy.
With
reduced
roles
within
the
organisation,
companies
will
need
to
consider
where
to
source,
nurture
and
develop
that
talent.
Finance
&
Accounting
Outsourcing:
Building
for
Long
Term
Success
©
2012
Sutherland
Global
Services.
Page
3

4. Decision
Reversal
and
Programme
Failure
Senior
management
must
feel
that
they
have
the
ability
to
change
direction
and
reverse
their
decision
should
the
needs
of
the
organisation
compel
them.
The
fear
of
being
locked
into
an
unfavourable
service
agreement
that
is
onerous
and
costly
to
exit
can
weigh
heavily
on
executives.
Decision-­‐makers
are
ultimately
responsible
if
a
new
program
fails,
and
naturally,
there
is
a
healthy
fear
around
trying
something
new
and
having
it
come
to
nothing.
Concerns
can
be
particularly
acute
if
the
service
is
unsatisfactory
and
the
relationship
with
outsourcing
partner
degenerates.
In
a
recent
CIMA
roundtable
it
was
identified
that
any
organisation
–
whether
internal
or
external
–
will
be
“blamed
for
the
issue.”
Strong
analysis
needs
to
be
undertaken
to
understand
what
the
real
issues
are:
is
it
the
visibility
of
underlying
issues
that
have
always
existed,
a
blame
game
or
a
real
issue
of
underperformance
to
promises.
Certainly,
the
many
news
stories
in
the
public
domain
that
highlight
the
perils
of
failed
outsourcing
efforts
do
nothing
to
allay
the
fears
of
finance
executives
–
but
there
are
many
success
stories
that
remain
private.
The
Cost
and
Quality
Benefits
of
F&A
Outsourcing
Although
some
of
the
concerns
about
outsourcing
can
be
valid,
the
appeal
of
the
cost
and
quality
advantages
for
your
company
are
enough
to
motivate
most
fear-­‐struck
finance
professionals
to
give
this
option
a
serious
second-­‐take.
Human
Resources
Outsourcing
reduces
or
eliminates
costs
of
wages
and
benefits,
as
well
as
the
costs
associated
with
staff
including
buildings,
infrastructure,
IT
hardware
and
software
costs,
to
name
a
few.
Turning
fixed
assets
into
variable
costs
helps
your
company
be
more
flexible
in
times
of
business
expansion
or
contraction.
When
employees
are
released
from
performing
routine
transactional
functions,
they
are
elevated
to
conduct
higher-­‐level
and
quality
work,
giving
them
the
focus
to
drive
business
benefits
that
can
add
real
value
to
your
organisation.
Processes
and
Controls
Outsourcing
provides
an
opportunity
to
design
stricter
process
management,
governance
and
obtain
performance
guarantees
through
Service
Level
Agreements
(SLAs).
Service
improvements
from
outsourcing
may
find
tangible
benefits
that
come
from
reduced
business
process
cycles,
resulting
in
significant
performance
improvements,
while
ensuring
a
clear
audit
trail
and
rigourous
quality
assurance.
These
guarantees
result
in
more
assured
delivery
and
uniformly
applied
policies
across
critical
areas,
like
credit
management.
Accounts
Receivable
outsourcing,
with
more
stringent
controls
over
procedures,
may
result
in
the
reduction
in
Day’s
Sales
Outstanding
(DSO)
and
bad
debt
write-­‐
offs,
culminating
in
improvements
to
working
capital.
Finance
&
Accounting
Outsourcing:
Building
for
Long
Term
Success
©
2012
Sutherland
Global
Services.
Page
4

5. Technology
Improvements
Workflow
automation,
CRM,
or
payment
gateways
are
just
some
of
the
improvements
that
can
come
when
there
is
an
upgrade
in
technology
from
outsourcing.
Although
entirely
possible
to
implement
these
improvements
in-­‐house,
the
reality
is
that
Finance
IT
projects
are
often
low
in
the
priority
list
of
technology
needs
across
the
company.
Outsourcing
offers
the
ability
to
increase
productivity
through
technology
at
a
lower
investment
cost.
Improvements
to
online
reporting
technology
allow
stakeholders
from
across
the
company
to
view
metrics
and
key
performance
indicators
(KPIs),
leading
to
improved
relevancy
and
decision-­‐
making
abilities
for
a
more
nimble
organisation.
Cloud-­‐based
services
may
also
provide
increased
business
continuity
planning
(BCP)
and
disaster
recovery
(DR)
solutions.
Creating
The
Environment
for
Success
Being
successful
in
outsourcing
F&A
functions
lies
in
planning,
change
management,
and
setting
clear
expectations
in
governance
process
and
results.
The
key
is
choosing
the
right
partner
and
having
a
continuous
commitment
to
sustaining
the
change
over
the
long-­‐term.
Choosing
Your
F&A
Partner
Your
F&A
service
provider
is
your
best
asset
in
building
long-­‐term
success
for
your
outsourcing
programme.
Choosing
a
provider
who
supports
your
objectives
and
has
a
wealth
of
previous
experience
to
draw
upon
and
share
with
you
makes
the
transition
much
more
likely
to
be
successful.
Having
a
trusting
and
collaborative
relationship
will
see
you
through
initial
conception
through
to
implementation,
performance
and
success
measurement.
Strengthening
the
relationship
beyond
the
transactional
to
include
leveraging
talent,
will
ramp
up
your
strategic
success
factor.
When
choosing
your
partner,
start
by
assessing
which
transactional
functions
can
be
outsourced.
Determine
if
there
are
other
more
strategic
analytical
activities
where
a
portion
of
the
work
could
be
outsourced
for
less
heavy
lifting
within
your
organisation.
Specialised
F&A
expertise
can
add
value
to
your
internal
strategic
functions.
Discover
if
your
provider
can
offer
a
range
of
senior-­‐level
skills
to
augment
your
business
needs,
particularly
at
times
of
cyclical
activity,
expansion
or
contraction.
A
provider
with
access
to
a
wide
range
of
skill
sets
has
the
ability
to
improve
your
company’s
performance
by
providing
greater
insights,
accuracy
and
productivity.
Planning
The
start
of
the
program
will
see
a
considerable
time
investment
in
risk
management,
creating
a
transition
plan
and
establishing
long-­‐term
governance
with
clear
expectations.
These
factors
will
mitigate
issues
around
deliverability,
human
resources,
and
service
expectations.
Methodical
planning
will
involve
stakeholders
from
multiple
departments
from
within
your
organisation,
as
well
as
your
F&A
partner.
Maintaining
a
continuity
of
personnel
in
this
planning
group
is
helpful
to
provide
consistency
in
the
process
and
traceability
for
decision-­‐making.
Finance
&
Accounting
Outsourcing:
Building
for
Long
Term
Success
©
2012
Sutherland
Global
Services.
Page
5

6. The
planning
process
should
include
a
review
of
current
functions
to
provide
a
point
of
reference
and
a
baseline
against
which
to
measure
the
programme.
Detailed
discussions
of
processes
and
practices
will
guide
governance
policy
and
performance
criteria.
A
contract
and
agreement
review
will
ensure
that
the
terms
of
your
service
will
be
met,
needs
are
identified
and
the
criteria
for
success
is
established.
During
and
near
the
conclusion
of
the
knowledge
transfer
phase,
be
sure
to
conduct
a
readiness
review
on
pre-­‐agreed
success
criteria
for
all
parties
to
ensure
that
systems,
facilities,
people
and
training
are
ready
prior
to
the
programme
going
live.
Change
Management
No
amount
of
planning
will
overcome
a
lack
of
support
by
senior-­‐level
management
to
facilitate
organisational
change.
Resistance
to
the
programme
may
see
some
departments
opting
out
of
receiving
services
and
undermining
the
entire
process.
Having
top-­‐down
support
is
essential
for
the
success
of
F&A
outsourcing
and
will
help
to
prevent
areas
of
the
organisation
from
reverting
to
old
habits.
After
identifying
key
processes
and
roles,
create
an
employee
retention
plan
to
ease
the
transition.
This
may
include
how
specific
personnel
can
be
re-­‐focused
on
functions
with
more
analytical
value,
rather
than
transactional
functions.
Communicate
regularly
and
clearly
with
staff
about
changes
as
they
are
happening.
For
your
employees,
understanding
the
process,
what
the
transition
plan
will
be,
and
where
they
fit
into
it
will
help
to
minimise
a
decline
in
productivity
and
remove
focus
from
the
rumour
mill.
Long-­‐Term
Success
Good
governance
and
the
application
of
clearly
defined
success
criteria
to
performance
reporting
are
critical
to
the
programme.
Plans
may
evolve
and
measurements
may
adapt
over
time.
In
order
to
support
the
key
areas
of
Operations,
Financial
Reporting,
and
Compliance,
critical
ongoing
attention
must
be
given
to:
• Monitoring
• Information
&
Communication
• Control
Activities
• Risk
Management
• Control
Environment
Your
organisation
will
see
the
strategic
and
financial
benefits
that
come
from
outsourcing
when
your
plans
are
well
executed.
And
there’s
no
better
way
to
follow
through
with
ensuring
your
F&A
outsourcing
is
a
success
than
with
an
experienced
finance
and
accounting
service
provider
by
your
side.
Finance
&
Accounting
Outsourcing:
Building
for
Long
Term
Success
©
2012
Sutherland
Global
Services.
Page
6

7. Success
Factors
Building
your
F&A
outsourcing
programme
for
long-­‐term
success
lies
in
careful
risk
management,
adaptive
change
management
and
solid
planning.
Having
an
experienced
service
provider
has
helped
many
other
companies
navigate
the
transition
from
in-­‐house
to
outsourced
F&A
will
greatly
ease
the
process.
When
determining
how
best
to
use
an
F&A
outsourcing
provider
to
benefit
your
business:
• Determine
your
core
functions
and
how
your
organisation
would
benefit
from
outsourcing
transactional
activities
• Assess
overall
staffing
needs
and
whether
cyclical
spikes
in
business
place
a
strain
on
human
resources
• Explore
how
an
F&A
provider
could
share
selected
activities
by
performing
the
heavy
lifting
for
you
• Understand
how
an
experienced
F&A
partner
can
augment
your
internal
strategic
functions
by
providing
specialised
expertise,
beyond
transactional
services
• Leverage
the
wide
range
of
F&A
skill
sets
available
from
your
outsourcing
partner
to
gain
greater
insight,
accuracy
and
productivity.
Choosing
a
service
provider
with
access
to
a
vast
talent
pool,
from
clerks
to
finance
management,
will
give
your
company
options
to
leverage
for
maximum
impact
when
the
need
arises.
This
is
particularly
true
in
times
of
growth
or
reduction
when
the
burden
of
staffing
the
expertise
level
you
require
can
be
carried
by
your
F&A
provider,
allowing
your
company
to
adapt
to
changing
demands
more
easily.
Because
starting
a
finance
and
accounting
outsourcing
programme
can
be
fraught
with
fears
and
resistance,
organisational
change
requires
support
from
management
and
clear
transitional
planning
and
communication
to
employees.
However,
the
benefits
in
cost-­‐savings,
increased
productivity,
and
greater
strategic
insights
realised
through
F&A
outsourcing
far
outweigh
the
perceived
drawbacks,
and
will
position
your
company
for
future
growth
and
success.
Finance
&
Accounting
Outsourcing:
Building
for
Long
Term
Success
©
2012
Sutherland
Global
Services.
Page
7

8. About
Sutherland
Global
Services
Sutherland
Global
Services
is
a
multi-­‐national
technology-­‐enabled
business
process
outsourcing
(BPO)
services
company
providing
a
unique
combination
of
vast
BPO
resources
as
well
as
extensive
expertise
and
industry
knowledge
in
Finance
and
Accounting.
We
help
you
build
a
high-­‐
performance
finance
organisation
by
combining
accounting
best
practices
with
proven
BPO
processes.
Our
global
service
delivery
infrastructure
and
full
range
of
outsourcing
solutions
–
from
specific
transactional
processes
to
controller
and
compliance
functions
–help
you
reduce
costs
while
gaining
better
visibility
and
control
of
financial
processes
and
data.
We
are
agnostic
to
delivery
location
and
can
provide
solutions
to
meet
your
needs
–
whether
locally
based
or
more
distant
locations.
Our
strategy
quickly
improves
your
F&A
operations
by
adapting
a
set
of
standardised
processes
and
using
technology
and
automation
to
improve
efficiency.
We
begin
by
analysing
your
existing
accounting
workflows,
then
we
design
an
outsourcing
solution
based
on
your
business
objectives
and
available
resources.
Ongoing
processes
are
transferred
to
our
organisation.
Once
this
transition
is
complete,
we
follow
through
to
ensure
flawless
service
delivery.
The
Result:
You
gain
access
to
higher
quality,
more
complete
financial
information
to
support
effective
tactical
and
strategic
decision-­‐making
across
your
business.
Our
outsourcing
solution
not
only
reduces
the
cost
of
the
finance
function;
it
provides
CFOs
the
opportunity
to
focus
the
organisation
on
what
is
strategically
important
to
the
business.
Contact
Information
To
have
a
deeper
discussion
about
the
F&A
outsourcing
process,
please
contact:
Simon
Speirs,
Lead
Solution
and
F&A
Architect,
Europe/Middle
East/Africa
PHONE:
+44
(0)
207
138
0920
EMAIL:
simon.speirs@sutherlandglobal.com
WEB:
www.sutherlandglobal.com
Simon
Speirs
is
a
member
of
the
Association
of
Chartered
Management
Accountants
(ACMA)
with
18
years
of
experience
in
improving
business
and
finance
team
performance.
He
has
worked
in
a
number
of
blue-­‐chip
companies
including
ABB,
Accenture,
PricewaterhouseCoopers
and
Hewlett
Packard.
Simon
leads
the
design
and
implementation
of
back-­‐office
solutions
across
the
European
Region
for
Sutherland.
He
has
a
proven
track
record
of
designing
and
delivering
shared
service
solutions
and
managing
complex
global
projects.
Simon’s
experience
spans
across
continuous
improvement,
finance
&
accounting,
procurement,
sourcing
and
IT
management.
The
depth
and
breadth
of
his
experience
enables
him
to
combine
People,
Process
and
Technology
to
design
optimised
and
customised
outsourcing
solutions.
Finance
&
Accounting
Outsourcing:
Building
for
Long
Term
Success
©
2012
Sutherland
Global
Services.
Page
8

9. Resources
"A
New
CFO
Priority:
Talent
Development
With
a
Focus
on
Soft
Skills."
APQC.org,
Press
Release.
APQC
in
Partnership
with
EPM
Channel,
13
Sept.
2012.
http://www.apqc.org/new-­‐cfo-­‐priority-­‐talent-­‐development-­‐focus-­‐soft-­‐skills
Howes,
Gary.
"Finance
Directors
Stress
over
Retaining
Best
and
the
Brightest."
Director
of
Finance
Online.
n.p.,
29
Aug.
2012.
http://www.dofonline.co.uk/content/view/6465/152/
Speirs,
Simon.
"Part
4:
Outsourcing:
Distraction
or
Solution?"
Sutherland
Global,
The
Accounting
Minute
Blog,
24
Oct.
2012.
http://info.sutherlandglobal.com/blog/accounting-­‐
minute/bid/161364/Part-­‐4-­‐Outsourcing-­‐Distraction-­‐or-­‐Solution
Speirs,
Simon.
"
Part
3:
Managing
the
Perceived
Risks
of
Outsourcing”
Sutherland
Global,
The
Accounting
Minute
Blog,
17
Oct.
2012.
http://info.sutherlandglobal.com/blog/accounting-­‐
minute/bid/161003/Part-­‐3-­‐Managing-­‐the-­‐Perceived-­‐Risks-­‐of-­‐Outsourcing
Speirs,
Simon.
"Part
2:
Determining
Core
Functions”
Sutherland
Global,
The
Accounting
Minute
Blog,
10
Oct.
2012.
http://info.sutherlandglobal.com/blog/accounting-­‐minute/bid/160457/Part-­‐2-­‐
Determining-­‐Core-­‐Finance-­‐Functions
Speirs,
Simon.
"Part
1:
What
CFOs
Tell
Us”
Sutherland
Global,
The
Accounting
Minute
Blog,
3
Oct.
2012.
http://info.sutherlandglobal.com/blog/accounting-­‐minute/bid/160553/Part-­‐1-­‐What-­‐CFOs-­‐
Tell-­‐Us
Finance
&
Accounting
Outsourcing:
Building
for
Long
Term
Success
©
2012
Sutherland
Global
Services.
Page
9