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Value: How to Project & Measure ROI in an Outsourcing Engagement

 
  Arthur F. Rothberg, Managing Director, CFO Edge, LLC  
   
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  Article Summary  
Prior to entering into an outsourcing engagement, Los Angeles and Southern California executives should perform actions that will help them project return on investment (ROI) from a provider and the outsourced services.

This article describes the required steps beginning with receipt of a price quote from a provider.

Recommendations include conducting a cost-benefit analysis that will quantify projected gains in areas like efficiencies, cost control, overhead, and staffing.

Taking proactive steps to identify measurements and projected ROI delivers clarity around anticipated value from moving forward with an engagement - or, equally valuable, clarity that the engagement may be unwise due to costs outweighing benefits

Executives weighing the pros and cons of outsourcing can benefit greatly from working with a CFO services provider experienced in conducting cost-benefit and ROI analyses to define ultimate value and recommend "go" or "no go" action.

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