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Many companies are fundamentally changing how they use outsourcing. They are looking beyond cost reduction to improve cash management, improve compliance with procurement policies, gain greater agility in responding to changing market conditions, implement simpler and more effective governance and reduce the costs of managing their business relationships.
All these benefits and more can be achieved by bundling multiple back-office processes with one provider.
Accenture recently supported research by the Outsourcing Unit of the London School of Economics that examined 1,850 outsourcing contracts and interviewed 69 leading clients and outsourcing providers. The research identified five major concerns around bundled outsourcing.
The research by the London School of Economics outlined five concerns about unbundling. Here, Accenture outlines the realties behind these questions.
By evaluating opportunities based on function or silo, companies miss out on the potential benefits of being able to “connect the dots” between different business functions; share resources, applications and platforms; and integrate end-to-end processes. However, by taking the bundled approach, companies can:
Accenture also recommends that companies consider their own organizational culture carefully when deciding on the type of outsourcing—and most appropriate partner.
Contact us to find out how bundled outsourcing could help your organization achieve high performance.
For more information, read Aligning Buyer Capabilities and Outsourcing Strategies and To bundle or not to bundle? Effective decision-making for business and IT services.
April 22, 2010
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