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Introduction Spacer
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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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