Summary of Outsourcing and Offshoring Finance Activities

Siri Terjesen

IGI Global, 2006

Outsourcing and Offshoring Finance Activities summary

Do you want to “trim the fat” in your organization? You don’t need a big knife. Restructuring your finance activities may be the answer.

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Recommendation

Companies are facing spiraling operating costs. Siri Terjesen, an assistant professor of strategic management, offers a host of potential solutions to this problem. She outlines what finance activities firms could modify to drive sustainable value. Though Terjesen’s work merely scratches the surface, getAbstract recommends her research to chief financial officers, chief operating officers and employees of global businesses who are looking for ways to reduce finance costs.

In this summary, you will learn

What finance activities companies should look to outsource and offshore;
What “drivers, costs and benefits” motivate firms to restructure finance activities; and
What pros and cons accompany reorganization.

Summary

Outsourcing finance activities can be a viable option to reduce costs. Typically, companies outsource repetitive tasks that rank low on the value spectrum, such as payroll. Strategic finance tasks, such as budgeting, usually remain in-house due to their high value. Outsourcing has “five key drivers”: “...

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About the Author

Siri Terjesen is an assistant professor of strategic management and international business at Kelley School of Business at Indiana University–Bloomington.