11 June 2025 - The first article in the Multinational Enterprises (MNE) insights series mentioned the need for MNEs to focus, amongst other considerations, on continuous improvement and implementation of processes that support a business expansive culture.
It is a fact that best practices are nestled in key processes that act as the foundation to creating efficiencies and allowing MNEs to remain aligned with international standards without jeopardizing their compliance with global regulations. Most successful MNE businesses have enhanced their operations by outsourcing, in one way or another, key functions to ensure client and market focus can remain their main priority. Outsourcing key functions can have the effect of reducing a business’ overall expenditure while securing their stakeholders’ trust and increasing its revenue.
It is no secret that outsourcing becomes a strategic agenda point for Boards when looking into efficiency and cost control options. However, having to consider relying on third parties for what has always been an in-house job can feel overwhelming, and too often analysis becomes paralysis, potentially creating even more operational hurdles. Everyone knows that changes are needed to create business efficiencies but the reality of implementing those without guarantees is already enough to make a firm reconsider whether outsourcing is worth the try.
MNEs that may be considering outsourcing certain functions within their business – such as accounting, invoice and payment processes, and corporate secretarial services – could benefit from taking certain steps that can lead them to success. Let’s explore some:
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1. Evaluating your current processes+ + -
Are they efficient? Have you identified bottle necks? Are those within your areas of control? Are your workflows outdated? Has your organization grown too much, too fast and the existing mechanisms make it heavier than needed when managing functions that should be much more agile? Understanding which tasks are the most time consuming for your teams, those that are prone to more errors or leave talent unexplored and knowledge unused will help determine the needs.
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2. Set goals+ + -
Once you have come further in the process, it is fundamental to define which challenges are those in need of being improved, and therefore which functions/tasks can be isolated and considered to be outsourced. The goals can differ, some will look into efficiency, others cost reduction, compliance, specialized knowledge, etc. Whichever those are, once these gray areas are defined, it will be easier to profile the ideal business partner you are looking to engage with to achieve what success looks like for you.
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3. Conduct a broader cost benefit analysis+ + -
This should not just be limited to the savings the Finance team will be looking at. The question to ask is, what will be the overall benefit for the organization in terms of employee and customer satisfaction, niche expertise prioritized, efficiencies achieved, and risks mitigated?
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4. Engage with your stakeholders+ + -
At an early stage, MNEs should be engaging with each of their stakeholders. Socialize the idea of outsourcing to alleviate time-consuming operational functions so that there is buy-in, understanding, and support.
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5. Conduct your market research+ + -
Understanding your competitors is one thing, but you also need to know what options are available to you when it comes to service providers. Take the time to get a better insight into the providers that could be the right fit for you. Ensure you have access to their proven track records; clarify their understanding and alignment with your brand, values, reputation and ethics; and ascertain whether they could be a good cultural fit and whether they are willing to work hard to guarantee a smooth working relationship. Remember, the chosen provider will become your true partner so dedicating the necessary time during the market research stage will be time well spent and an investment for the future.
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6. Develop a plan+ + -
Work towards developing a detailed plan of your business needs, goals, milestones and timelines. Think about what that would look like for your stakeholders. Manage those communications, including responsibilities and overall strategy, as well as how key elements will be measured. Also, consider what you will need internally and from your teams to make it a successful endeavor.
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7. Data security and proper compliance+ + -
Your chosen partner should be one that adheres to the most stringent security standards and regulatory requirements, since they will most certainly be handling sensitive information that belongs to you, your clients, and/or your employees.
Once the initial “analysis-paralysis” peak has been conquered and the company is ready to take the next step, considering the benefits of a pilot program can be a great starting point.
By testing outsourcing on a smaller scale first, businesses can immediately reduce the fear of making a full commitment. A pilot phase can allow them to test the waters to ensure full partner and process compatibility, ensure stakeholders can still decide on the benefits, and while this happens, allow time for the identification of potential challenges early on in the process. It is important to appreciate that some challenges will be part of the discovery process and can come from both ends, and sometimes from unexpected business angles, in addition to the traditional blind spots.
Through a pilot phase, companies can mitigate the risks associated with third parties handling what traditionally in-house teams dealt with. This can go from operational disruptions all the way to data breaches. Therefore, with clear and detailed plans in place, it becomes easier for a business to understand where those disruptions could arise, making this a more transparent way of operating.
Pilots are incredibly powerful for performance measurement, as they provide transparent and self-contained frameworks to map success by having key performance indicators that will demonstrate how effective the provider is and allow for a better grasp of what a full-scale rollout would look like once the pilot ends.
While certain functions may be challenged by the traditional way of doing things, and might initially resist changes, pilots are usually very useful at highlighting the benefits of focus, allowing readjustment of behavior which can lead to further empowerment. Creating and fostering an environment of regular and open feedback allows for an easier implementation of any change management process, alongside any transition of operation models. Once the initial fears are resolved, receptive teams can leverage these adjustments to produce smarter results for the business.
Communicating changes and ensuring proper training and support to staff helps maximize the benefits of outsourcing, one step at a time.