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Value Proposition
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Our skills provide our customers the ability to maintain control over processes while drastically reducing costs. We offer the flexibility to choose the technologies used, the methodologies of single or multifunctional transaction processing and offshore service center processing.
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The following chart is ABL’s road map to reach the next summit of outsourced processes.

 


Three Components in the Changing Environment

Three things are imperative in an emerging global business environment :
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Most functions as finance and accounting will be even more standardized.
Service centers will be placed in low cost, resource abundant locations.
The process will take advantage of the Internet.

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To get there, this chart splits the journey into two parts: the process effectiveness path and the cost efficiency path. Both proceed at the same time but at different speeds depending on the complexity of the specific process. In this hypothesis, a system is assumed with 10 employees who would cost an average of $75,000 a year each in a realistic description of a typical operation today. That operation would spend $.75 million annually processing F&A transactions. A remote location would service deliver @$.375 million.


The Process Effectiveness Path

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This part of the journey to a foreign land is a virtual one. The goal is " to take advantage of 'e'." Operating on the assumption that new technology "will radically change existing processes," it can be safely assumed that a two-to-one gain from that technology is achieved over a period of time. Therefore, emerging technology will require only 5 or fewer employees to process the transactions that today require 10 thus reducing the original budget of .75 million to .375 million.

Pricewaterhouse Coopers has identified 15 specific activities that add extra cost to this business cycle. Examples include having to enter the same data into the system more than once, having to match invoices with purchase orders, and having to stop things while waiting for crucial data. Removing these and other, similar roadblocks make the process more accurate, reliable, faster and cheaper.

 

The Cost Efficiency Path

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Saving money comes from scale. If companies focus on the geography/location issue, seeing "compelling" reasons to move the work out of the United States to India. In this part of the equation, a process will still need 10 employees, but quality workers will only cost $25,000 a head, an immediate $.5 million savings
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Putting the Two Together

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The two journeys will culminate in the box on the right, where the combined benefits of creating cost efficiency, building to scale, driving standardization and optimizing location will result in more than 50 percent savings
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Plug + Play = Flexibility

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Cost and process effectiveness are two compelling reasons corporations embark on the journey to outsource. The question faced by a business is – “ What if the back office finance and accounting application operated like a standard electrical plug and could be plugged into anything?”
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If an organization could create a plug and play back office, the front office could change its applications whenever it liked. All the front office would need is a data interface into the finance and accounting plug. Instead, the solution is much simpler. In Pricewaterhouse Coopers’ view, corporations "need to produce data" that crosses the plug into the finance and accounting system. For example, the sales system might only require three of a total of say 50 pieces of information :

What is the name of the customer ?
How much did the corporation sell to the customer ?
How much has the customer paid ?

The front office could then have dozens of different systems and change them at will. They would be able to react more quickly to market changes. The real benefit of the process effectiveness path is to liberate the business staff. No longer will the finance function hold them up !!

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