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21st Century Organization

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Submitted By sunilgudala
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In the “olden” days what you do was considered strategic. Today, how you do it is equally strategic. Managers of all flavors are allocating increasingly more of their strategic bank to sourcing.

Why? The answer’s simple: leverage—taking full advantage of a distinct combination of capabilities. It’s not unlike the perfect storm, with an unlikely combination of variables arising concurrently. In business, key operational factors are converging to provide managers with a unique ability to drive competitive advantage through sourcing strategies. Significant shifts in labor, process, and technology are delivering standardization and scale that are dramatically improving transaction time, quality, and cost. In addition, many of the political and social factors that have stood in the way of re-engineering have been uprooted. There are too many successful sourcing stories to give credence to anti-outsourcing skepticism around making it work. Can somebody else deal with my customer and maintain my sense of urgency? Can we develop the right working relationship and economic model? Can we create fair and measurable targets? Yes, yes, and yes.

While the strategic consideration of outsourcing is a must for everyone, outsourcing may not be. As you plan your sourcing strategy within the Accounts Receivable (AR) domain, there are a number of questions you should be prepared to explore.

What to Outsource?

A wide span of AR outsourcing services is available. Most of these fall into two categories: sub-processes (order management including credit risk and analysis, billing, invoice collection, cash application, exception management, bad debt collection, reconciliation, and reporting) and customer segments (Tier 1 versus Tier 2 customers). There is also a wide span of outsourcers. Some focus on a single process; others, the entire function. Some have industry expertise;

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