Here’s a multiple-choice question for you: Is outsourcing the CFO position likely to be (a) innocuous, (b) momentous, or (c) hazardous? Before you deem the question as ridiculous, consider this “Outsourcing the CFO” article in The Moscow Times.
Although the article discusses the outsourcing strategy within the context of encountering difficulty in attracting/hiring an experienced CFO, the strategy could also work in situations where the buyer of outsourced finance and accounting processes also folds the CFO position into the scope of services delivered by the outsourcing provider – and the CFO is on the outsourcer’s payroll.
What benefits would the buyer gain? And what could go wrong?
Actually, it seems to me that there would be a lot of “gotcha” moments as far as conflict of interest is concerned. Yet, it could enable the buyer and provider to tap into the advantages of a deeper, collaborative, more transparent relationship.
I’d tend to weigh in on the side of judging this strategy as something that presents more risks than advantages – except that I know this strategy has been successful with the CIO position for several years. I’ve spoken with the buyers in several outsourcing relationships where the outsourced process is the total IT infrastructure and applications and the buyer’s CIO is the service provider’s employee. One stands out to me as particularly significant in the way this strategy helped the buyer, El Camino Hospital.
Benefits and risks. Obviously some of both come into play as far as outsourcing the CFO position. But judging by the success of several relationships that have CIO services in the outsourcing scope, it’s worth considering this strategy for CFOs.
What do you think about it? What obstacles would companies have to overcome to make this strategy achieve the desired outcome? Please take a minute to click on “add a comment” and share your thoughts.
Since 1998, freelance writer Kathleen Goolsby has studied outsourcing relationships’ successes, failures, trends, and best practices. She has interviewed more than 860 executives at buyer and service provider companies and is the author of “Critical Requirements for Building and Sustaining a Successful Outsourcing Relationship,” a chapter in Global Outsourcing Strategies: An International Reference on Effective Outsourcing Relationships (December 2006, Gower Publishing). As a freelancer, she also currently serves as the Senior Writer for Outsourcing Center (whose parent company is sourcing advisory firm, Alsbridge) and has authored dozens of articles as well as white papers. In a past role, she was editor of Outsourcing Venture (a former print publication). You can contact Kathleen at ksgoolsby@gmail.com.
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