Outsourcing

Steven M. Bragg, CPA, CMA, CIA, CCP (Certified Computing Professional), CPM (Certified Purchasing Manager), and CPIM (Certified Production and Inventory Manager). He is the Controller of Teague Equipment, a multilocation company that assembles trucks for the utility and construction industries (revenues of $16 million). He is responsible for all accounting, finance, internal audit, and IT functions.Prior to joining Teague Equipment, he was the CFO of Isolation Technologies, a company that manufactures customized isolation chambers used to produce drugs in a cleanroom environment. Before that, Bragg was the Controller of Carts of Colorado, a subsidiary of the Pepsi Cola Company. His responsibilities included accounting, purchasing, production control, IT, and warehousing functions. Other positions that Bragg has held include Manager at Ernst & Young, Senior Cost Accountant at Jolly Rancher Corp., Assistant Controllers at Spinnaker Software Corp., and Staff Auditor at Deloitte & Touche.

• Preface. About the Author.1 Strategy of Outsourcing.Overview of Outsourcing.Outsourcing Risks.Initiating Outsourcing.Companies That Take Over Outsourced Functions.Summary.2 Outsourcing a Function.How to Find an Outsourcing Supplier.Evaluating Potential Outsourcing Suppliers.Cost of the Outsourcing Relationship.Personnel Issues.Transition Issues.Relations with the Outsourcing Partner.Measuring the Service Level of Each Outsourced Function.Summary.3 Contractual Issues.Constructing the Contract.Contract Clauses.Function-Specific Contractual Issues.Summary.4 Managing the Supplier.Functional Coordinator.Legal Management.Outsourcing Advisory Committee.Outsourcing Sponsor.Management of Specific Functional Areas.Management of International Suppliers.Summary.5 Terminating the Outsourcing Arrangement.Termination Scenarios.Termination Avoidance.General Termination Issues.Function-Specific Termination Issues.Summary.6 Accounting for the Outsourced Company.Impact on Data Collection.Impact on Financial Reporting.Impact on Controls.Impact on Performance Measurement.Impact on Transactions.Summary.7 Outsourcing the Accounting Function.Advantages and Disadvantages.Transition Issues.Creating Control Points.Measuring the Outsourced Function.Potential Customer Service Issues.Summary.8 Outsourcing Computer Services.Advantages and Disadvantages.Transition Issues.Creating Control Points.Measuring the Outsourced Function.Potential Customer Service Issues.Summary.9 Outsourcing the Customer Service Function.Advantages and Disadvantages.Contract-Specific Issues.Transition Issues.Creating Control Points.Measuring the Outsourced Function.Potential Customer Service Issues.Summary.10 Outsourcing the Engineering Function.Advantages and Disadvantages.Transition Issues.Creating Control Points.Measuring the Outsourced Function.Potential Customer Service Issues.Summary.11 Outsourcing the Human Resources Function.Advantages and Disadvantages.Transition Issues.Creating Control Points.Measuring the Outsourced Function.Potential Customer Service Issues.Summary.12 Outsourcing the Logistics Function.Advantages and Disadvantages.Transition Issues.Creating Control Points.Measuring the Outsourced Function.Potential Customer Service Issues.Summary.13 Outsourcing the Maintenance and Janitorial Functions.Advantages and Disadvantages.Transition Issues.Creating Control Points.Measuring the Outsourced Function.Summary.14 Outsourcing the Manufacturing Function.Advantages and Disadvantages.Transition Issues.Creating Control Points.Measuring the Outsourced Function.Potential Customer Service Issues.Summary.15 Outsourcing the Sales and Marketing Functions.Advantages and Disadvantages.Transition Issues.Creating Control Points.Measuring the Outsourced Function.Potential Customer Service Issues.Summary.16 Outsourcing the Administration Function.Advantages and Disadvantages.Transition Issues.Creating Control Points.Measuring the Outsourced Function.Potential Customer Service Issues.Summary.Appendix Summary of Performance Measurements.Accounting.Computer Services.Customer Service.Engineering.Human Resources.Logistics.Maintenance and Janitorial.Manufacturing.Sales and Marketing.Administration.Index.