Implementing a scalable finance function to support dramatic sales growth was the problem faced by a major provider of diagnostic services to the Health Sector.
It sought the help of Novo Altum to optimise its finance function – so that it would be well prepared for future expansion while keeping costs under control.
Novo Altum helped the client achieve a 30% cost reduction while at the same time creating its goal of a truly scalable finance division.
The company’s Asia Pacific business had been delivering dramatic sales growth, however their Finance and Accounting function was decentralised. As their business structure was not scalable, it was clear that the cost of Finance would increase at a disproportionate rate as sales in the region grew.
It turned to Novo Altum for advice and insight into the different options which would enable it to meet its twin aims of creating a scalable “fit for future” finance team which would be able to support business as it expanded, while at the same time ensuring the optimisation of its finance costs.
Having conducted a baseline study on the client’s various options – from outsourcing to utilising shared service centres we advised the client of the pros and cons, and provided them with a set of recommendations based on our wealth of experience and expertise.
Following the decision to outsource, we worked closely with the organisation over an 18 month period to support them through the outsourcing process, from vendor selection and due diligence through to contracting and service definition and management.
The approach devised by Novo Altum resulted in the successful transfer of all transactional finance activities from the region to an outsourced shared service provider based in China.
This delivered a 30% reduction in cost for the client and – most importantly – the scalable finance solution it needed to help it capitalise on growth opportunities.