Case studies

In 2002, Philips had c. 6,000 F&A personnel and conducted a benchmark on the efficiency of its financial processes. The benchmark found that performance was good but comparatively expensive. The company then decided to develop a shared service center operating model.

However, an increasing pressure on Philips to reduce the cost for administrative tasks, together with a desire to provide career paths for SSC personnel and to invest further led to Philips considering the sell-off of its SSCs to an external F&A service provider.

This case study of 12 pages analyzes the outsourcing of banking processes by National savings & Investments (NS&I).

The case study covers the business challenges faced by NS&I, the selection of a sourcing approach and supplier, the transition and subsequent contract renewal, the move from onshore to introduction of offshore services, the impact on performance metrics, and the key lessons learned.

Supports buy-side organizations considering outsourcing indirect procurement through identification of key factors in contract negotiation.

Areas covered include:

• Understanding reasons for outsourcing
• Typical pricing mechanisms
• Intellectual property issues
• Use of SLAs
• Common areas for dispute.

A case study of the outsourcing of its sales contact center and warehousing services by FranklinCovey.

Analyzes the life policy BPO contract between TAG, now owned by Perot Systems, and Old Mutual Financial Network.