Outsourcing: more than just a cost issue.

A few years back, the choice between outsourcing or hosting & supporting the application yourself was mainly a cost issue. Now, however, we increasingly see multiple factors playing a role in the decision about outsourcing the hosting and support of your EPM applications.


1. Continuity

Continuous assurance of the accuracy of the figures, the quality of the planning process and the timeliness of financial statements is an important factor for many organizations. Herein, both the changes within the organization as well as changes in laws & regulations and risk models have to be included.

2. Supporting change

The value of the performance management applications depends on the ability to adopt changes rapidly and correctly. These changes can result from both internal and external developments, and need to be incorporated in the system as sson as possible. This provides the organization with the information needed to focus on the new development.

3. Hidden costs

It’s not just about the cost of personnel and hardware. ‘Hidden costs’ are often discovered in recruiting and training staff, guaranteeing a continuous presence and keeping abreast of the latest developments, both technologically and financially.

Cost-benefit analysis

These factors lean more towards quality issues than cost savings. ‘Soft’ factors, such as financial knowledge of the process, thorough knowledge of the application and technical expertise, are essential for a proper support of performance management applications. These important quality factors are scarce and often forgotten in a cost-benefit analysis. Outsourcing is definitely more than just a cost issue.

Text: Patrick Lingeman

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