Optimizing an insourcing and outsourcing model design

A French auto manufacturer gets a comprehensive approach to insourcing and outsourcing.


Our French auto manufacturing client needed to determine opportunities and risks of consolidating shared

services within Brazil and compared an outsourcing scenario for human resources, purchasing, finance and accounting, legal, marketing, facilities management and post-sales work. They looked to ISG for a detailed strategy, including the associated tax impact and potential savings of transitioning functions to third parties or to a new captive shared service center in Brazil.

Imagining IT Differently
Imagining IT Differently

ISG outlined the optimal mix of insourced vs. outsourced functions. By creating a financial base case and indicative business case specific to each sourcing decision, ISG identified the maximum value the client could extract from captive operations, and identified potential third-party service providers and the best locations in Brazil for the shared services center.

Future Made Possible

  • Identified potential savings of between Brazilian $R50 and 78 million
  • Return on investment of between 83 and 122 percent
  • Identified a legal and low-risk offshoring arrangement in Brazil