ISG assists in an end-to-end provider selection, enabling savings for a global automotive distributor’s finance and accounting (F&A) outsourcing.
The company wanted to create a scalable operating model with harmonised and automated processes, driving business insights and cost efficiencies while delivering stand-out customer experiences. It requested ISG’s assistance to ensure a smooth transition to global business services (GBS) model for accounts payable (AP), accounts receivable (AR), general ledger (GL) and financial reporting (FinRep) in all countries except for the Africa markets for a period of 5 years.
Imagining IT Differently
From there, we designed an agenda and facilitated provider discussion, designed the contract along with the statement of work (SOW) to be used with the provider, assisted in the provider negotiations process and final selection, and led in all executive-level communications over a period of six months.
Future Made Possible
- The company was able to successfully execute an outsourcing contract with Cognizant with ISG’s assistance. The contract was for GBS services from their India hub in Hyderabad, supported by 4 regional spokes in Malaysia, Poland, Russia and Mexico. The contract would deliver c.49% productivity improvements in headcount reduction through service optimization (11%), application optimization (13%), bringing in intelligent automation (19%) and continuous improvement (6%).
- The company achieved cumulative savings of up to £15 million, 10-year net present value (NPV) of £43 million and a payback up to 3.5 years.