Coral Gables, Fl (July 28, 2010) ' Businesses looking to reduce costs, but not performance, in today's challenging economy may find an answer in the results of a new study. Auxis, Inc., a leading South Florida management consulting and outsourcing firm , today announced that a recent business process outsourcing (BPO) study determined major cost savings opportunities exist for Florida-based companies that transition Finance and Accounting (F&A) functions to a near-shore, outsourced operating model.
'The results of our study validate that the competitive advantages we have helped deliver over the last few years for many of our large, multi-national clients also exist for Florida based mid-market companies,' said Raul Vega, chief executive officer of Auxis. 'Our study confirms what we suspected: significant cost savings opportunities exist for Florida based companies by adopting a near-shore business process model within their finance and accounting organizations. Due to advancements in information technology and telecommunications, mid-market and smaller companies can now implement an operating model that allows them to be more competitive with leading Fortune 500 companies.'
The F&A outsourcing market was estimated by Everest Research to be a $20 billion market as of 2008 with a projected annual growth rate of eight percent through 2013. Since 2006, the highest growth segment of the outsourcing industry has been finance and accounting.
The Auxis study results are consistent with recent national studies of companies that have outsourced F & A functions and have shown savings of 25 to 60 percent.
To understand the potential savings opportunities for companies in Florida, Auxis benchmarked 334 positions across 14 South Florida-based businesses. Industries represented included consumer products, distribution transportation, real estate and professional services. The study participants' annual revenues ranged from $50 million to over $2 billion with 50 percent of the participants reporting revenues between $100 million and $1 billion. Functions analyzed included Accounting, Accounts Payable, Accounts Receivable, Credit, Payroll, Finance, Tax and Treasury.' After studying the results, Auxis found that F & A positions that involve highly repetitive transaction processing activities offered the largest savings opportunities, ranging from 43 to 61 percent.
Auxis has extensive experience in helping clients transition to F & A service centers in Latin America. The study utilized Costa Rica as the benchmark location for the near shore operations. Costa Rica is attractive as a near-shoring location because of its proximity to Florida; its educated and English speaking population; and the political long-term stability of the country. Additionally, the country has a robust broadband infrastructure to support telecommunications requirements.
'To compete in today's global environment, companies need to execute routine, back office transaction processing in the most cost effective and efficient manner possible,' said Vega. 'Savings achieved through implementation of a BPO model are often re-invested into other areas of the business which can create more value and growth for the organization.'
For more information or to inquire about having a similar analysis run for your organization, please visit www.auxis.com or call 954.236.4000.
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