Executives Emphasize Sourcing Decisions be Made in Context of Overall
Business Strategy
Majority of Companies Surveyed Utilize Multiple Sourcing Alternatives
WASHINGTON, Nov. 27 /PRNewswire/ -- Financial Executives Research
Foundation (FERF), the research affiliate of Financial Executives
International (FEI), released today the results of a new study on the
management issues and economics of various approaches to corporate sourcing
of financial operations. The study, sponsored by The Siegfried Group, a
national CPA firm specializing in accounting resource services, revealed
multiple insights on the implementation and use of sourcing approaches,
including a strong emphasis that sourcing decisions be made in the context
of the business as a whole.
Entitled "Building an Agile Finance Function," the study assesses the
input of senior financial executives from 18 large U.S. companies,
including 11 Fortune 500 companies, on their use of four common approaches
to sourcing: shared services, co-sourcing, off shoring and outsourcing.
"Through this study, financial executives highlighted the need to adopt
a thoughtful and well-conceived approach to sourcing. They have clearly
emphasized that this approach should integrate the varied aspects of
sourcing not only into a corporation's business model, but its corporate
culture as well," said William Sinnett, Director of Research at FERF.
"External sourcing of even a single function can meet with serious
resistance in companies in which the culture is unprepared to acknowledge
sourcing's potential benefits."
A majority of the companies interviewed currently employ more than one
sourcing alternative. "This suggests that agility in financial functions
often requires a combination of approaches to financial operations,"
continued Sinnett. Of the 18 companies interviewed by FERF, eight indicated
the use of one sourcing alternative, while six use two sourcing
alternatives and four use a combination of three.
The study also revealed that co-sourcing, also known as accounting
resource services, was one of the faster growing sourcing alternatives.
Surveyed companies perceived accounting resource services as an opportunity
to use consultant-quality professionals from an outside provider to assist
internal teams with major project implementation. One executive explained
that, "These could be special projects which have a four to six month life
span, and it does not make sense to hire full-time people for these
projects." Another explained that his company's aim is to deploy accounting
resource services strategically in order to make costs more variable,
enable a focus on more strategic activities, and access external skills and
talent.
"Companies that use, or are contemplating the use of, accounting
resource services and other sourcing approaches will find that FERF's study
contains valuable insights and information," said Robert Siegfried,
President and CEO of the Siegfried Group. "In an increasingly competitive
global marketplace, these approaches have become a valuable tool to help
U.S. companies deploy accounting and finance staff more efficiently."
The Siegfried Group, LLP
Established in 1988, The Siegfried Group helps clients, who experience
periodic surges in critical accounting and finance work, to strategically
extend and enhance their internal workforce. The Siegfried Group is the
nation's only CPA firm dedicated exclusively to providing Fortune 1000
companies and other major organizations with ready access to consultant-
quality accounting and finance professionals. These full-time, career
focused Siegfried employees are highly motivated and committed to executing
our clients' initiatives.
By allowing clients to maintain complete project control, Siegfried's
Accounting Resource Services model minimizes project risk, accelerates
delivery time and results in cost efficiencies. The Siegfried Group's more
than 500 full-time professionals operate out of 20 offices nationwide with
the ability to service clients throughout the US and globally.
About Financial Executives Research Foundation, Inc.
Financial Executives Research Foundation, Inc. (FERF) is the non-profit
501c3 research affiliate of Financial Executives International (FEI). FERF
researchers identify key financial issues and develop impartial, timely
research reports for FEI members and nonmembers alike, in a variety of
publication formats. The Foundation relies primarily on voluntary tax-
deductible contributions from corporations and individuals.
SOURCE Financial Executives International
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Related links:
http://www.financialexecutives.org
CONTACT:
Kate Barrette, of Ben-Abraham Associates for
The Siegfried Group, +1-212-867-0134, kate@benabe.com; Chris
Allen of FEI & FERF, +1-973-765-1058,
callen@financialexecutives.org
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