Outsourcing at Ferro Corporation : The impact of accounting outsourcing on the purchasing department

Abstract

power the twenty-first century global economy (Corbett, 2004) As many of USA companies, Ferro has joined the trend of Outsourcing in 2013. In May 2013, Ferro and Capgemini signed an approximately $35 million outsourcing services contract to help Ferro Corporation develop a global shared services model. Through this, Capgemini is expected to deliver a broad range of Business Process Outsourcing (BPO) and Information Technology Outsourcing (ITO) services. The agreement advances Ferro´s value creation strategy and is a key element in Ferro´s efforts to significantly improve business process efficiencies and reach cumulative operational cost savings of $70 million through 2014. (Capgemini, 2013) Since I work in the purchasing department at Ferro Spain, the goal of this Master´s Thesis is to reflect the impact of this outsourcing in this department. The thesis is divided into four parts. In the first part, I will make a brief introduction of companies involved. In the second part, I will describe gradually the outsourcing process. In the third part, I will describe the impact on the purchasing department and finally in the fourth part, I will propose the improvement of this process. As a result of this outsourcing, Ferro has doubled its stock value in less than a year. However, it has many troubles in the operational level.