Keeping Tabs on Outsourcing Arrangements

Doug Parker, principal, serves as the sole industry resource in this article about carefully planning for billing arrangements in outsourcing engagements. Sample excerpt: “According to Reuters, Infosys, one of the biggest Indian outsourcing companies, was overcharging Apple for back-office services. The incident came to light last month after Infosys reported it had fired the CFO of its business process outsourcing unit, while the unit's CEO had resigned. The problem, which apparently surfaced during an internal audit at Infosys, is expected to result in the company firing additional employees…The key to avoiding such problems is carefully crafting the agreement between the company and its outsourcing provider so it clearly sets out the process for billing, according to Douglas Parker, a principal at Pace Harmon, an outsourcing advisory firm…Parker advocates taking a detailed approach in such agreements, since "many billing problems stem from ambiguity.’”

FierceCFO