Case Study
Client:
Global High-Tech Company with $9B in Annual Revenue and 11,000+ Employees
Scope:
Global back-office Best Shore assessment of Outsourcing and Shared Services solutions for most non-production related functions. These included CRM functions, Finance, HR, Call Center, middle-office processing, billing, customer service and Tele-sales. 3,000 employees and contractors located across Europe, North America and Asia were considered in this effort.
Objectives:
55% of in-scope staff was already located outside of the US, but in high-cost locations. Client wanted to gain access to cost-effective resources to support an aggressive growth strategy by utilizing a global cost basis. Prior use of an Irish tax entity to drive tax-efficient operating cost was a significant concern due to the potential for re-booking of earnings if the Irish Tax authorities changed their tax status based on the movement of certain operations.
Activities:
Client did not know true cost of current operations that could be used to make an effective sourcing decision. Evaluate global operations to determine best scope, location and configuration to provide the highest quality services. This involved a number of work streams to determine true total cost and a high level process map that could be used to best shore their operation and facilitate the decision by management of what functions to outsource and offshore. Alsbridge developed the sourcing strategy and provided a net business case that evaluated risk, benefit, exact timing of a straw-person migration plan and a business case expressed in the form of net cash required, NPV, IRR and months to net zero on cash.
Results:
Client is currently in process of hiring a new EVP of offshore administration and implementing the recommended plan with a mix of outsourced and captive SSC operations. Savings targets are significant and confidential due to the ongoing nature of this engagement.
 
 
Outsourcing
Shared Services
Offshoring

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