In this episode, the speakers discuss what tasks PE is outsourcing across business functions such as finance, IT, HR and customer service to create value.
According to Deloitte’s 2021 Global Shared Services and Outsourcing Survey, four key outsourcing trends include:
- Prioritization of cost reduction
- Cloud and robotic process automation (RPA) becoming “table stakes”
- A need for clients to invest in building supplier management capabilities
- Increased need for service providers to be agile
The path to successful value creation in private equity (PE) today goes beyond levers such as G&A cost-cutting, sales force effectiveness and strategic sourcing. It’s about an approach that leverages tools including automation, strategic outsourcing and advanced analytics.
Going forward, PE-owned companies of all sizes can consider outsourcing as a way to access technologies and capabilities that can lead to revenue growth opportunities, in addition to reducing costs.
Companies of all sizes may need to consider outsourcing areas that are not core value-creating activities and those where the company lags in technology or cost efficiency.
For your convenience, full text transcript of this podcast is also available. Read the transcript.
Podcast
Episode 46
Duration 20m 33s
In this series
series overviewWhat PE is outsourcing to create value
Episode 46
Presenters
How PE can use the ‘See, Solve, Scale’ process to screen investments
Episode 45
Presenters
Executive Director of the Nelson Center for Entrepreneurship at Brown University
Why mentoring matters for women in PE
Episode 44
Presenters
CEO of Level20
How PE firms can win tech deals
Episode 43
Presenters
EY-Parthenon Americas Software Strategy Group Leader
Managing Director, Crosspoint Capital
PE Pulse: Five takeaways from 4Q 2021
Episode 42
Presenters
EY Global Private Equity Lead Analyst
What AI has done for Hg
Episode 41
Presenters
Senior Partner and Executive Chairman of Hg
What PE sees in professional sports
Episode 39
Presenters
PE Pulse: Five takeaways from 3Q 2021
Episode 37
Presenters
EY Global Private Equity Lead Analyst