Outsourcing is becoming an integral part of a strategy to achieve high performance. Bundled outsourcing takes it to the next level. Savvy executives intent on guiding their companies toward high performance began by outsourcing a single process. That was the first step. Now, leading organizations are talking to Accenture about the benefits to be obtained from combining—or bundling—a comprehensive set of end-to-end processes across core business functions into a single, outsourcing arrangement—for example, outsourcing finance and accounting processes with human resources processes. Bundled outsourcing is an innovative approach to outsourcing that consolidates multiple business functions with a single service provider. It can provide more significant and immediate cost savings and greater speed to value. Over the long term, it allows an organization to continuously drive down costs, improve performance and gain global competitive advantages. Bundled outsourcing also addresses the challenge of managing multiple providers and contacts. It is easier to manage and measure because it creates standardized, repeatable processes under one integrated governance structure that ensures maximum performance at lower sustained costs. In fact, the Everest Research Institute estimates that this bundled outsourcing trend makes up an estimated US$52 billion of the total outsourcing market. (Everest Research Institute: "General and Administrative Outsourcing," Everest Summit, October 21, 2005) As Accenture helps our clients gain first-mover advantage, we primarily see executives choose either bundled BPO—standardizing processes across more than one business function, or comprehensive bundled outsourcing—including the added value resulting from rationalizing common underlying IT. With our bundled outsourcing services, Accenture works with our clients to: - Reduce operating risk: The use of multiple service providers creates significant potential for operational failures related to shared processes, systems and controls. Bundling with a single provider greatly reduces these potential points of failure.
- Simplify the governance process: Investing in a relationship with one provider, clients have only one relationship to manage, reducing administrative and contract activity.
- Reduce redundancies and costs: Operating multiple processes from a single platform reduces hardware redundancy, development, maintenance and licensing costs.
- Improve performance: Automating manual processes and activities such as error handling can result in increased productivity and reduced time to complete.
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