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4 Common Myths
Many companies struggle to assess the business case and approach for centralization and/or
re-location, especially as some common myths are easily taken at face-value to jump to a conclusion.
The 4 common myths any organization must fundamentally challenge are:
Our operations are very special and cannot be centralized
Even when considering traditional candidate processes for outsourcing, many companies fail
to identify the fairly standard but time-consuming activities in their business. Often these
activities exist as on-the-job experience with your employees, but may not be recognized as such.
Be as vigilant to determine what can be centralized as what can not be, and then think out-of-the-box
to create the right process links and controls. Our methodology helps you do just that.
We must improve & standardize our processes first
If there are no critical showstoppers, the cost benefit of intelligently relocating the "as-is"
is often a multiple of the pure process improvement cost savings. Multiples of 4 to 1 are not uncommon.
Then consider the number of months not realizing that benefit.
We will not only help you understand and assess all cost/benefit factors, but we will also show you how
to maximize the quick wins backed-up with actual implementation experience.
We are too small; the re-location is too expensive -
There are no magic rules-of-thumb (and if somebody tells you otherwise they are probably set to charge
you too much), but for smaller operations third party service providers can still offer a cost benefit
of up to 30%.
We help you package and transfer activities to seize the opportunity!
Considering the risk and internal experience, we must outsource -
This is a company-specific decision which cannot be just assessed on the operational merits. But
consider your future outsourcing partner is ready to take more 30-50% of the total benefit. Are you
willing to share?
We help you take an informed decision and if nothing else, we help to protect you from the hidden
costs and traps likely to come up during your multi-year contract.
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