Outsourcing in 2009 faces new challenges, but also new opportunities.
 
by Peggy Cope
 
Last year certainly ended with a bang. The global economy appeared to be circling a drain, and companies paused to take a very big breath before deciding what to do next about containing their costs, improving their processes, and boosting productivity. With a new, avowedly anti-outsourcing president elected but not yet sworn in, and daily updates on the bizarre and deepening Bernard Madoff scandal washing over us, many in the outsourcing industry wondered what else could possibly come along to rock the boat any further.

Then Satyam’s co-founder and CEO announced that he had been cooking the books. For years. And a company that on paper had looked to be worth many billions and was setting its sights on the stars came down to earth with a sickening and impoverished thud.

Welcome to 2009, folks. But don’t panic, because there’s a lot of good news in the outsourcing industry, and a lot of companies ready to make forays into some mix of shared services, outsourcing, nearshoring, and yes, even offshoring. In this issue you’ll find information and advice in all those areas.

A feature story called “Caveat Emptor” will guide buyers who are worried in the wake of the Satyam scandal and nervous about dipping their toes back into the waters of outsourcing. Fear not. As Satyam scrambles to try to right itself and keep those clients that haven’t already lowered the lifeboats, other providers stand ready to take your business and give you excellent, honest service. You just need to be more rigorous in your due diligence to ensure you don’t get set adrift in the event of a similar crisis. The experts in this story will help you ask the right questions.

A new study just released by The Hackett Group tracks the evolution of shared services into a brave new model that mixes various solutions for a blended strategy that addresses all your needs in more savvy, sophisticated ways than in the past. This is not your father’s shared services. And outsourcing procurement has advantages that many buyers have yet to consider. We address both these topics in this issue.

Similarly, the old standbys of Accounts Payable and Accounts Receivable are worth another look, as AR in particular can generate immediate cash-flow advantages if you outsource it now. There are many rewards you can reap in 2009 if you know where to look.

And last but by no means least, we have rounded up our 2008 class of top enterprise FAO providers in our Baker’s Dozen ranking, starting on p. 18. We had more respondents than ever this time around, and some interesting new twists are coming to light. For instance, even before the Satyam scandal broke, buyers were becoming increasingly interested in outsourcing their compliance functions. Clearly, more and more functions are now grist for outsourcing’s mill.

As we go into 2009, it’s a brave new world for outsourcing. And it might require some additional homework on buyers’ part to understand all their options and learn to chart these unexplored waters. But FAO Today will be with you all the way, tapping the wisdom of some of the best minds in the industry and sharing their tips with you. Let your new sourcing strategy start here.