Debunking The Myth That Shared Services Offshoring is Dead: New Deloitte Debate and Report

Debunking The Myth That Shared Services Offshoring is Dead: New Deloitte
Debate and Report

NEW YORK, Oct. 8 /PRNewswire/ --

What: "Deloitte Debate: Has the Window Already Closed on Offshoring
Shared Services?" and "Reports of the Death of Shared Services
Offshoring Have Been Greatly Exaggerated"

Who: Mark Klender, principal, Deloitte Consulting LLP

When: Available immediately

Where: www.deloitte.com/us/debates/outsourcingsharedservices
www.deloitte.com/us/deathofoffshoring

Details: For many companies, offshoring shared services is not only vital to
their business, but has become necessary to stay globally competitive.
However, growing concerns about over-tapped labor markets, declining labor
quality, escalating labor costs and increased terrorism risk have led many to
question the viability and future of offshoring. A new administration in
Washington, D.C. that is considering new federal policies regulating trade and
offshoring is adding fuel to these concerns.

So has the window already closed? Or can companies still expand offshore
shared services operations and reap the benefits?

"In nearly every case I've encountered, the benefits of offshoring shared
services today remain too big to be ignored," explains Klender. "It just takes
the proper care in determining what should be offshored and where, with some
careful planning and the right resources behind implementation. Plus, in their
company's global operations they probably already have the building blocks
that are required for a complex offshoring initiative. Shared services is no
different, really. It's a vital consideration for nearly any international
growth strategy. And it can present the opportunity for enormous cost savings
for years to come."

Within a new Deloitte report, "Reports of the Death of Shared Services
Offshoring Have Been Greatly Exaggerated," Klender and Spencer Schobert, a
senior manager in Deloitte Consulting LLP, shatter nine of the common myths
associated with shared services outsourcing, including:

1. Offshoring shared services has not proven to be successful.
2. Offshore labor pools have been exhausted -- the talent has already been
taken. If you can find it, you'll just lose it to someone else.
3. The risks in offshore locations are too high -- and the cost savings in
less risky locations do not justify the effort.

4. Offshoring shared services is bad for the U.S. economy.

So what should companies consider in their efforts to get past the myths and
make the right decision? Here are a few Deloitte suggestions as you evaluate a
move to offshore shared services:

-- Kick the tires. There's no substitute for comprehensive, in-person due
diligence -- Check in with other local employers, government officials
and facilities. Don't make any decisions before making the rounds in
person.
-- Avoid surprises -- especially up the chain of command. Functional,
business and corporate leadership should be involved from the start
and
throughout the process. It's just as important for them as it is for
you.
-- Be an employer of choice. Tailor your HR and operations strategy to
local customs and workforce needs to become the top employer in your
chosen location.

-- Think beyond cost. While cost can be an important factor motivating
the
decision to offshore shared services, it's not the only one. Know how
this fits as part of your organization's long-term business strategy.

For a full copy of the report by Klender and Schobert, please visit
www.deloitte.com/us/deathofoffshoring

To view Klender's Debate, including points and counterpoints on renegotiating
outsourcing contracts, as well as additional insight related to the CFO, CHRO
and CIO, please visit www.deloitte.com/us/debates/outsourcingsharedservices.

This topic is one in a series of Deloitte Debates that examine today's
pressing business issues from multiple perspectives. New debate topics are
added weekly at www.deloitte.com/us/debates.

Please contact Britton Josey at +1 404 220 1334 or bjosey@deloitte.com to
schedule an interview with Mark Klender or another Deloitte leader.

As used in this document, "Deloitte" means Deloitte Consulting LLP and
Deloitte Services LP, separate subsidiaries of Deloitte LLP. Please see
www.deloitte.com/us/about for a detailed description of the legal structure of
Deloitte LLP and its subsidiaries.

Contact: Britton Josey
Public Relations
Deloitte
+1 404 220 1334
bjosey@deloitte.com

SOURCE Deloitte

Britton Josey, Public Relations, Deloitte, +1-404-220-1334,
bjosey@deloitte.com