Letting a stranger do the books

OUTSOURCING may be the answer for the finance department at all stages of a company's development, especially for firms that are looking to cut costs.

OUTSOURCING may be the answer for the finance department at all stages of a company's development, especially for firms that are looking to cut costs.

"Opportunities in outsourcing are not limited by the size of a company. However, the truth is that larger companies, mainly international ones, have a larger potential," said Tomáš Kuča, director of performance improvement advisory at PricewaterhouseCoopers in Slovakia.

Companies that decide to outsource part of their finance activities can save costs and increase the quality of their processes, Kuča added. "Outsourcing also allows a company to improve strategic planning, such as 'growing by acquisition', and its market position."

On the other hand, outsourcing firms that do financial work for their clients have access to a company's most sensitive data, and the threat of data theft in outsourcing is often discussed. "Data theft can involve internal employees just as much as external ones. It's always a question of the control environment," Kuča pointed out.

Paradoxically, he said, a company stands a greater chance of reimbursement for data theft if it the outsourcer was the problem, as long as this eventuality is legally addressed in advance.

How to choose a financial outsourcing company? "It's analogous to marriage. Each of us approaches the search for a partner differently and looks for different qualities. However, a well-prepared contract and a 'service level agreement' for providing individual services is always a basic rule," Kuča said.

Kuča said the establishment of "shared service centres" was the newest trend in financial outsourcing in Slovakia and neighbouring countries. According to him, finding the right outsourcing partner and structuring legal agreements properly is the key to success in outsourcing. "This has always been the alpha and omega for deriving the benefits from outsourcing," he said.


- Marta Ďurianová

Top stories

Trenčín covered in Christmas lights on November 29, 2021.

Weekend: Ježiško's Christmas Post Office is open, expecting letters from around the world

Make yourself comfortable and explore what has been going on in Slovakia in the past days.


3. dec

News Digest: Climate in Slovakia could be similar to Italy's in a few decades

Suburban transport in Bratislava Region to improve, registration for regulated parking in Bratislava launched, utility regulator announces price caps for 2022.


3. dec
Waydanovský House, today Martineum, after reconstruction.

Historical house near Bratislava cathedral no longer needs to hide behind Van Gogh

The Waydanovský House, now Martineum, will serve as the background facility for St Martin's Cathedral. Take a look at how it looked in the past and now.


1. dec

Culture Ministry looks to create ‘21st century environment’ for Slovak media

Transparency of ownership and financing among proposed overhaul of decades-old laws.


2. dec
Skryť Close ad