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Alsbridge BPO cost reduction case study


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Alsbridge delivers ground-breaking savings on end-of-term F&A Outsourcing Deal.

How did we do it? Would your current outsourcing arrangements also benefit from this approach?

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Alsbridge BPO cost reduction case study

  1. 1. Alsbridge Delivers Ground-Breaking Savings on End of Term F&A Outsourcing Deal Our client halves their Summary Alsbridge helped this global manufacturing company achieve savings of 51.5% versus its previous F&A F&A service charges with service charges. How? We used our unique market insights, supplier community network, proprietary BPO Tier 1 Service Provider benchmarking data and independent viewpoints to inform an accelerated and objective end of term strategy process. Our client was able to renew their F&A deal with a Tier 1 Supplier and introduce new geographic scope at less than The Client half of current run costs. • Global Manufacturer The Challenge • 25,000 employees Our client produces approximately 250,000 items daily in more than 50 factories located in 20 countries, and its • EUR 4bn 2009 sales sales network consists of more than 110 sales companies and 100 agents and distributors. The Results In 2005 they outsourced multi-language Pan-European • EUR 10m savings over F&A to a Tier 1 Service Provider, building a stable and now mature operation. The economic events of recent years 5 year deal-term have put cost saving firmly at the top of the organisation’s agenda, and as their deal approached end of term, we knew we could help. THE FACTS Processes How did we do it? • Accounts Payable As leading advisors on BPO, we were able to clearly see • Accounts Receivable how our client’s financial goals could be matched with the strategic interests of certain established Service • General Ledger Providers. Using this insight we devised aggressive but achievable key deal parameters and leveraged our unique service provider community knowledge and collaborative Our Services approach to find the right match options for our clients. Our upfront honest approach meant no surprises for our • Strategy client or the Service Providers shortlisted to participate in • Financial Modelling the retender process, ensuring success. • Supplier Selection and Evaluation The Results • Contracting We worked with our client to down select an alternative award winning Service Provider prepared to deliver • BPO-Benchmark savings of 50% versus their current deal with no compromise on scope or quality. At the 11th hour our client’s incumbent Service Provider presented an offer which matched these terms and pricing. On this occasion Alsbridge our client then chose to remain with their existing Tier Telling it like it is 1 Service Provider, minimising re-transition risk whilst No agenda. No cheerleading. Just Results accessing ground-breaking financial benefits.