Shared services / business process outsourcing

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Overview

All businesses face challenges to manage indirect costs. In a global 21st century business environment, companies have a plethora of options to choose from --so many that it may be difficult for Managers to evaluate the advantages and disadvantages of all options. Daniel P. O'Reilly & Company has experience collaborating with clients across industries to identify opportunities to maintain both front office and back office functions across geographies: from in-house centers of excellence, to near shoring and offshoring, we can help your company evaluate options to manage your business as efficiently as possible. 

CASE EXAMPLE

8-Week Project: Designed business process outsourcing and go-to-market strategy for global chemical company with expected NPV savings of (~$40 - $150M) over five years depending upon path


Situation

  • The client had five global shared services centers serving 13 towers/functions with ~3,000 resources 
  • An incumbent BPO supplier was providing ~60% of the transactional and judgment roles on a Time & Materials basis, but stakeholders were not satisfied with the incumbent due to lack of process innovation and actionable recommendations to improve efficiency and effectiveness
  • Team recommended the client move away from a Time & Materials to an outcomes based commercial model that incentivized suppliers to provide year over year efficiencies and to trigger a market event to engage with new BPO suppliers to understand supply market capabilities 

Approach

  • Interviewed 20 center and global operational leaders to understand scale and work allocation, process fragmentation, capability and organizational constraints to determine potential to move to end-to-end outcomes based model
  • Defined leading practices and trends in BPO and identified opportunities to move additional activities to shared services centers
  • Assessed 19 BPO suppliers’ fit related to client needs and identified full-service and niche players to engage in market event
  • Determined operational readiness and risks /mitigation strategies to changing service delivery models
  • Developed business case across four key dimensions: Strategic, Offer Quality, Readiness & Financial 

Impact and Results

  • Achieved internal stakeholder alignment to move to an outcomes-based delivery model across towers
  • Set tower and center leading practices to address gaps in existing and future delivery model options
  • Prioritized criteria for supplier evaluation and supplier down-selection
  • Set Go-to-market strategy to execute market events and timing for prioritized towers taking into account internal client constraints and capabilities
  • Detailed business-case with estimated NPV savings of $40 -$150M over five years
  • Created implementation and resourcing plan to support the execution of the strategy over 9 months