ANALYSIS
Finance and Accounting
Outsourcing
Author: Srdjan Randjelovic, Director, KPMG Macedonia
Since the global financial crisis, we have
been witnessing that many local and international companies are under a sustained
pressure to reduce costs as a way to
improve profitability. One way to do this
is by outsourcing some of the back office
processes, such as finance and accounting,
in order to lower costs and simultaneously
deliver higher value to the business.
In its publication “Strategic Visions on the
Sourcing Market”, KPMG’s Shared Services and Outsourcing Institute argues that
while cost reduction is the main reason
for outsourcing, it unquestionably is not
the only one. Other reasons include the
benefit of access to more qualified talent
and expertise by outsourcing certain back
office processes. The availability of experienced professionals brings more efficient
and effective results and improves the general performance of the company itself. The
publication further elaborates that although
the cost cutting goals through outsourcing have been achieved, the next generation of outsourcing contracts will need to
focus on global process standardization and
optimization.
Historically, in Macedonia outsourcing of the
accounting function has generally been used
by smaller and/or individually owned companies which have not been able to afford
an in-house accounting function. As regards
larger multinationals with a local presence,
there has been a recent trend for regrouping
and establishing regional centers for support
of the back office functions of the companies within the group, mainly driven by the
pressure for cost cuttings. This regionalization may lead to the need for local accounting and compliance expertise in a number of
jurisdictions, which may not be available to a
regional center but may be obtained by outsourcing to local experts.
16 Fall 2015
Issue 47
6 Members Win
National CSR Awards
• Vitaminka won an award in the Employee Relations category
• Makstil & EVN Makedonija won awards in the Ethical Management
category
• Komercijalna banka Skopje won an award in the Customer
Relations category AND the award for Most Inventive Practice
• Cementarnica USJE won an award in the Environmental Protection
category
• NOVA International Schools won an award in the Investing in the
Community category