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Descriptions in brief
GE Capital, a subsidiary of General Electric, has outsourced services to two centers in India. These centers, in addition to running call centers, also perform a variety of back-office processing tasks for other GE companies worldwide. GE has almost quadrupled the size of its operations now.


British Airways's subsidiary in India employs 1200 workers to handle an array of back office operations for its parent and other airlines, such as maintaining frequent flyer programs, managing ticket processing and handling revenue accounting. The subsidiary is saving the company as much as $25 million a year—and it had increased it services to include ticketing work for nine other airlines.


Standard Chartered has moved its US and European back office functions to a global processing hub in Chennai, India. The hub is scheduled to expand to 1400 persons.


Case studies in brief.
  • Kale
Kale manages Qatar Airways' revenue accounting and revenue recovery processes, enabling the company's productivity and efficiency levels to move skyward.

Qatar Airways, which "'landed" in the market in 1994, currently caters to 36 international destinations, flying over 2.5 million passengers annually. The national airline of Qatar, the organization is headquartered in Doha

Need to outsource: Qatar Airways decided to outsource its non-core activity, revenue accounting, in order to focus on its core function, flying! The company felt the outsourcing solution would enable it to concentrate on building the brand image of the airline, positioning it as the best in the Middle East region. The organization was driven to outsource for the following reasons:
the need to make quick, informed decision on business matters control costs
improve the efficiency of the airline
gain access to specific skill sets and expertise for its revenue accounting activity which were time consuming and costly to maintain in-house
avoid the costs associated with creating a separate revenue accounting department for procuring and managing the right solution, hiring, training and reskilling accountants gain access to industry-standard, best practices and service levels in the area of revenue accounting
Reasons for outsourcing processes to India: Qatar Airways was seeking a services provider that understood the finer nuances and complexities in the revenue accounting and processing function. The airline wanted to partner with a vendor that would be a single supplier of both the revenue accounting software as well as the processing service. Kale fitted the bill on each of these issues. The company, a reputed name within the industry has the relevant expertise to take care of specialized revenue accounting needs of Qatar Airways Benefits gained by Qatar Airways: Outsourcing its revenue accounting function has enabled Qatar Airways to improve its bottom line and overall efficiency levels owing to the following benefits:
Clear, well defined and detailed SLAs
High quality processing software and vendor commitment in keeping the processing service state-of-the-art Detailed, documented business processes Regular steering group meetings and processes to resolve queries on both sides Access to detailed data for analysis Well drawn up transition plan
  • Dairy Farm
Dairy Farm partnered with Capgemini (Capgemini) to build
OneResource Group (ORG). ORG now provides accounting,
finance, and procurement services to companies in the region.
The firm's COO is the only Capgemini employee in this
venture.
During the first 18 months of operation, ORG radically
reshaped the finance function for Dairy Farm. Dairy Farm Hong
Kong now employs only one finance person outside of ORG.
Notable accomplishments for Dairy Farm during this 18-month
period include:
• Supporting growth of more than 125 retail outlets and several new businesses.
• Consolidating to a single financial system across business units.
• Achieving nearly 50% overall reduction in finance and accounting staff, and 30% reduction in costs.
• Negotiating more than $3 million savings in the procurement of operating supplies.
• Implementing on-line tools for budgeting, management reporting, procure-to-pay, and T&E processing.
• The joint venture construct has allowed Dairy Farm to build "world-class" capabilities in finance and procurement while avoiding the associated capital outlays. In its annual audit report, PriceWaterhouseCoopers summarizes the qualitative success of ORG:
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