Does finance outsourcing support sustainable globalisation?
Summary
While globalisation has many benefits, opening up many opportunities and advantages for global advancement, the current methods being used also have a negative impact on the environment and disadvantaged communities.
Companies must leverage every process for higher value addition and efficient resource allocation so they can not only reduce their negative impact, but contribute to the community in a positive way.
The value of outsourcing: Finance process outsourcing is one method that can support more sustainable globalisation.
When you choose to outsource your financial operations (including reporting, analytics, and business cases) you build stronger alliances with external specialists and expand your network. This leads to mutually beneficial globalisation that prioritises the wellbeing of local communities. It also creates room for internal value addition by outsourcing lower value-added tasks.
The link between higher value addition and sustainable globalisation: To survive and thrive in the contemporary environment, a company must still operate within the economic limits that have been laid out. Creating room for higher value addition is the only way to ensure that resources are allocated efficiently to embrace sustainability and that strategies are made to follow through on these responsibilities.
Sustainability may be the word of the hour, but it is also ironically what many eco-friendly initiatives lack.
One thing that has become abundantly clear in recent months and weeks is that one-off CSR initiatives do not have the impact most companies believe they do.
While it may be better than nothing, in order to mitigate the climate crisis and the many ways corporations contribute to it, more drastic measures are long overdue.
One recent factor that shoulders the blame for the environmental damage it leaves in its wake is rapid globalisation.
While globalisation has led to a more competitive and diverse market and economic growth for the countries that are part of it, it has also led to rampant environmental degradation and economic inequality.
Because globalisation is fairly new to the way business is conducted all over the world, it often feels like there is one set path for any business to follow. The state of the global community, however, has led to a valid concern that the current process is to blame for social and environmental instability.
If globalisation, as it is, is not sustainable, then it cannot be the future of companies, industries, and individuals. Just as globalisation requires an effort from all those who engage in it, the same energy and resources must be funnelled towards more sustainable processes for more collective benefits.
Every financial process has a role to play in building a more sustainable future for the finance function. Finance outsourcing is one such process.
What is a BPO in finance?
Business process outsourcing in finance enhances your internal operations by expanding your networks to include external specialists and finance professionals.
This model of finance outsourcing is a popular method of expanding your operations and diversifying your offerings as globalisation picks up the pace.
Can you outsource finance functions without impacting your success?
The concern with outsourcing critical operations like financial processes include a drop in quality, a security breach, and even a drop in morale internally.
All these factors have an effect on your bottom line if they are not addressed in your path to outsourcing.
When properly executed, however, outsourcing can not only be beneficial to your organisation but could also play a key role in your success.
Which types of financial services are outsourced?
The types of finance processes that are typically outsourced are lower value-added services that are a drain on the resources and time of your team of professionals.
This includes financial services like reporting, analytics, business cases, and transaction management.
What is the benefit of outsourcing?
There are numerous integrated benefits to finance outsourcing that can be enjoyed across your business processes.
Because outsourcing takes lower value-added tasks off your operations and the workload of your team, you free up more room for higher value-added activities.
This means your resources can be reallocated more efficiently and your company can set its sights on loftier targets.
Outsourcing routine, lower value-added tasks can also improve internal company morale as your teams have greater opportunities to grow and expand their skill sets.
It also means your foundational operations will be completed by external professionals and you will benefit from the expertise they provide.
The link between higher value addition and sustainable globalisation
The reason why our discussion on creating a sustainable globalisation framework must begin with a discussion of how a business can make room for higher value addition is because sustainable strategies must be future-focused.
While positive change on an accelerated timeline is required in order to fend off the worst of the climate crisis and environmental damage, a company must also ensure that it can survive in the current, volatile economic climate.
This is no easy feat in the wake of a chain of global crises.
What calamities such as COVID-19 prove, however, is that all industries and companies are much more connected than we realise. That is why forming more supportive collaborations with these networks lead to better, mutually beneficial outcomes.
How a company chooses to invest and the operations it chooses to optimise in the near future is of the utmost importance.
Leverage finance outsourcing for sustainable globalisation
Finance outsourcing not only creates room for your internal operations to shift gears towards higher value-added goals such as more sustainable, eco-friendly, community-driven operations, but it also creates more supportive networks within the industry.
This supports globalisation that is rooted in specialisation, higher skills, and respect. As opposed to purely economically driven and environmentally taxing operations that cannot be sustained in the long term, without lasting damage to communities and the environment.
No contemporary financial transformation is complete without extra attention being paid to sustainable and socially responsible globalisation.
