Make Sure There is a Real Deal to be Done: A clear vision of the strategic outcome is essential. Put in Place a Governance Structure: The right governance structure manages relationships with a service provider at the strategic, tactical and operational levels. Be Proactive in Managing Outsourcing Arrangements: The internal outsourcing relationship manager is a very important position and must be recognized and treated as such. Be Comprehensive in the Written Contract: The success of an outsourcing arrangement cannot depend solely on the contract. Consider the Special Risks Associated with Global Sourcing: Globally sourcing business services and benefiting from cost arbitrage is a topic generating considerable interest in the CFO community, especially while the number of attractive locations in the global sourcing marketplace continues to expand. Assess the Risk of an Adverse Decision by the Regulatory Authority: Because shared service centers—whether they are insourced or outsourced—often encompass multiple jurisdictions, the CFO must examine the legal and fiscal requirements involved. Ensure Compliance with Corporate Laws: Make sure that the necessary processes, controls and documentation are in place. Consider Outsourcing to Mitigate Risk: A growing number of organizations are realizing the advantages and business benefits of outsourcing and recognizing that this approach can help mitigate risks. Next: Authors |