Non-competitive systems

During the latter part of the 1990s, the single most important reason why organizations began to consider outsourcing the finance function was the impending need to change the financial system. When the heavy cost of such an implementation is added to the disruption caused, it tends to concentrate the corporate mind. Analysis of past lack of success in financial system implementations was then sufficient reason to consider alternatives.

Knowledge that some outsourcing service providers have made substantial investments in the necessary technology and can claim extensive recent implementation experience with relevant systems is normally sufficient to spark the initial interest. Typically the client organization attempts to cost out the various options open to it under headings such as:

• do the implementation work ourselves with just the help of the successful software vendor’s people;

• as above but use additional consultants;

• just outsource the creation and implementation of the new system to either a consultancy or an outsourcing service provider, i.e. indulge in ’Transformational Outsourcing’. This assumes that the client’s staff would continue with their existing tasks, leaving the third party to develop the new system, largely to their own design. On completion, the new system is simply taken over by the existing staff. At no stage is there a transfer of employment;

• begin a full outsourcing arrangement.