The Sixth Case – Bundled Outsourcing for RGM Group

Preface

Today, most companies are looking the best way to maximize their investment on outsourcing. All business section such IT, finance and accounting and human resource must be synergy and synchronize to make the management easier take a critical decision. Bundled outsourcing is the best way for the companies to creating synergies and efficiencies, reduce cost and increasing strategic flexibility while simplifying multiple back-office functions.

Accenture as a global management consulting, technology services and outsourcing company helps clients achieve high performance through bundled outsourcing services designed specifically to meet their particular business challenges and to drive business outcomes.

CaseStudy 2

RGM Group (RGM), a diversified global resources business, with major assets in Asia Pacific, South America and Europe, is rapidly growing in geographical spread and revenue. The organization currently employs 55,000 people and achieved an average growth rate of approximately 25 percent in the last few years and has forecasted to continue its growth through both greenfield and brownfield expansions, and mergers and acquisitions. To support its growth agenda to be a high-performance global business, RGM assessed the viability of setting up a shared services center that could function as a scalable base in terms of providing IT, finance and accounting, and human resources support services to the client’s group of companies and other businesses. Accenture’s feasibility study identified areas for synergy in support functions: human resource, information technology/ information systems, and finance & administration.

Question:

Would a Shared Service Center be the best option for RGM? Would it make sense to have business process standardization, streamlining and improvement opportunities within the business units and across the organization as a whole?

Based on case study, Shared Service Center would be the best option for RGM, In my opinion the section between IT, finance and accounting also human resources is related one to each other; make a whole process become a single platform and it will enable synergies support function as whole activities.

Usually a company starts to run their businesses from employee recruitment, which is the task of the human resources, moreover human resources is also taking care of payroll, training and development to raise personnel performance, healthy and safety of their employee. By implementing an integrated IT system and providing a Shared Service Center, it will helps human resources coordinate all related matters to accounting especially for employee attendance, salaries, and another payment which is related to human resources. RGM Group can realize many times the direct cost savings from bundled outsourcing.

In terms of finance and accounting, a Shared Service Center will facilitate optimal finance processes, such as budgeting a project, month end closing, financial reporting and analysts, also all related work in account receivable and payable. IT plays an important role here to maintain the company’s cash flow to remain stable. By implementing this solution, RGM group will get efficiencies and cost savings also sharpen its focus on strategic initiatives.

Overall, Accenture provide shared service center as a business support function and focusing on operational management of service delivery and overall performance of IT, finance and accounting also human resources operations, meanwhile RGM group can focus on bringing real value to the client’s group of companies, another RGM Group businesses and innovation to the customers. Therefore, it would be make sense to have business process standardization, streamlining and improvement opportunities within the business units and across the organization as a whole

In general, the benefits of bundled outsourcing for RGM Group are :

• Reduce operating risk: Bundling with a single provider greatly reduces potential points of failure.
• Simplify the governance process: RGM group have only one relationship to manage, reducing administrative and contract activity.
• Reduce redundancies and costs: A single platform reduces hardware redundancy, development, maintenance and licensing costs.
• Improve performance: Automating manual processes and activities such as error handling can result in increased productivity and reduced time to complete.

As a conclusion

Accenture providing a Shared Service Center in terms of IT, finance and accounting, and human resources as a bundled outsourcing for RGM Group to creating synergies and efficiencies, reduce cost and increasing strategic flexibility while simplifying multiple back-office functions.
Therefore, it would be make sense to have business process standardization, streamlining and improvement opportunities within the business units and across the organization as a whole

You may also like

Leave a Reply

Your email address will not be published. Required fields are marked *