In order to address constraints on the budget and increasingly limited resources, the companies are continuously looking at the outsourcing non core functions. With the recent current events including the unrest in the Middle East and now the earthquake and tsunami in Japan. Affecting the Global Economy including the oil prices and the energy market. Some of the companies such as the telecommunications companies may now choose to outsource functions such as the finance and accounting outsourcing of accounts payables and the accounts receivable collections in order to ease financial burdens. The Australian telecommunications company Telstra featured in various news agencies when the Australian Financial Review ran a story that the company is looking to outsource 1200 jobs. The Telstra has supposedly begun talking with the different firms including the IBM, HP, Tech Mahindra and Infosys for back office outsourcing related to finance and accounting as part of the restructuring initiative called Project New that will move the jobs overseas. The company has denied the report but did confirm that it is in the market for the back office outsourcing services. The reports of the other outsourcing companies, the Salmat and Vertex have announced lay off when Telstra scrapped its contracts with the providers. In the 7th of March announced that Telstra has pulled out of its call center services contract with the company. This which could lead to 742 lay offs unless the company manages to land a new contract
From its call center, the same goes for the Vertex who announced the next day that it may lay off 250 people. With the Telstra recent interest in offshore outsourcing and given its own foray into federal outsourcing, the move may likely not be paying off yet for the company which is leading it to move some of its non-core process offshore to the outsourcing companies offering lower prices for the services. The reports of the other outsourcing companies. The same goes for Vertex that announced the next day that it may lay off 250 people from the call center The move may likely not be paying off for the company which is leading it moves some of its non-core process offshore to the outsourcing companies offering lower prices for the services. This includes the finance and accounting and call center services. The release by Intelenet on the 8th of March, the five year contract heralds Intelenet as the first Indian player to foray into the F&A Business Process Outsourcing market within the telecommunications vertical. The Tata Teleservices cites further expansions the reasons for its outsourcing partnership even though the Tata Teleservices will be looking more into expanding its telecommunications offering rather than expanding into a new vertical like Telstra.
As a function to outsource, in light of the recent developments, telecommunications companies will likely follow in Telstra’s and Tata Teleservices footsteps and address finance and accounting first as a function to outsource. It is likely that with the growing global unrest and economic conditions unlikely to stabilize as soon as many would like outsourcing will be increasingly adopted by more companies, this is not just telecommunications firms and this is not just in the finance and accounting vertical.
REFERENCE:
http://www.blog.infinit-o.com/emerging-trend-telecom-companies-opting-outsource-finance-accounting/
