Leveraging sourcing initiatives for operational effectiveness
To be successful today, organisations need to excel at both managing complexity and leveraging growth. An approach adopted by many global organisations to manage complexity, gain efficiencies and reduce costs is through strategic sourcing initiatives such as outsourcing and shared services.
However, outsourcing is not without risks and not all organisations recognise the full benefits of the approach. Strategic outsourcing initiatives can act as catalysts for change within the organisation and stimulate fresh thinking, develop new expertise and position the organisation to thrive in the global economy.
Establishing strategic sourcing operations can be an extremely effective means to achieving operational gains and cost savings. However, to maximise the full benefits of these sourcing activities, organisations need to adopt a holistic and strategic approach for establishing the best model for their organisation and managing the ensuing change.
Meeting Your Needs
PricewaterhouseCoopers has unparalleled experience in helping clients gain the benefits they seek from establishing shared services and outsourcing arrangements. We offer advisory services at all stages of the sourcing lifecycle to help clients gain the most from their sourcing initiative.
Our multi-disciplinary team, consisting of strategic sourcing and subject matter experts in tax, transfer pricing, customs matters, regulatory, HR, IT, financial modeling, governance, controls and risk management, independently advise our clients and tailor practical solutions to suit clients’ strategic and operational goals.
- Establishing an offshore shared service centre
PwC conducted a feasibility study to establish an offshore shared service centre. We provided advice on shared service costs, location, investments, risks and an effective operating model for establishment of operations in Asia. The estimated cost savings from shared service centre implementation was projected to be in excess of $30 million over 5 years.
Large energy and mining company
- Establishing a finance shared service centre
PwC conducted a feasibility study and developed a business case to determine whether the organisation should consider a finance function shared service center to provide a less fragmented and more efficient and controlled approach towards their transactional processes. Through the use of our proprietary approach and customised migration steps, we recommended an effective phased approach for their shared service integration.
Global insurance company
- Implementing a centralised operating model
PwC was engaged to review and assess options with the possibility of centralising various areas of the client’s business for cost reduction and to improve control without sacrificing quality or efficiency. PwC developed a series of options and identified respective risks and advantages for the client, complete with a migration strategy.