CLA Global Member Firms’ advice on restructuring and rationalising arrangements leads to efficiencies

Background

A well-established financial services group providing direct services to customers with UK headquarters.

The client comprises of two FCA regulated consumer lending businesses and a business-to-business technology and analytics company. The shared purpose across all three companies is solving the challenge of simplifying and personalising borrowing. Providing customers with fairer access to credit based on their individual circumstances by leveraging cutting edge technology, data, and analytics, rather than making decisions based solely on averages and outdated backwards looking models.

Challenge

For this financial services group, rising costs were identified as being prohibitive to its future growth. Initiating a review of its procurement strategy, the group was seeking effective strategies to reduce its overall expenditure and tax incurred on outsourcing arrangements. Management considered that the current costs were inhibiting their expansion strategy.

With substantial growth on the horizon, this well-established financial services group  approached Evelyn Partners to see if the founding member of CLA Global could help optimize the amount that the Group was spending on outsourced services from India. The team at Evelyn Partners collaborated with CLA Indus Value Consulting, India-based advisory firm and network member of CLA Global to identify a cross jurisdictional plan to meet the overall cost reduction strategy of the client. 

Current trends

Data gathered by Grand View Research indicates that the market size for Business Process Outsourcing (BPO)  solutions will reach USD405.6 billion by 2027.

Although outsourcing to India and other territories can offer many groups significant cost savings, higher group revenues can also lead to a higher cost exposure on outsourced services.

Solution

Cross border review of outsourced costs by Evelyn Partners and CLA Global Indus Value Consulting. Both firms worked together to develop a plan which provided a workable solution across both territories that met the client’s overall strategic objectives of reducing expenditure and tax borne on outsourced services going forward.

Value

Collaboratively, CLA Global member firms helped the client to identify more favorable outsourcing terms, conditions and significant ‘look forward’ cost savings. Totaling around USD 300,000/£250,000.

For further information

Bijal Doshi, Partner – Corporate Finance and Deals
CLA Global Indus Value Consulting, India
https://claivc.com/directory/bijal/

Jinal Jatakia, Senior Partner – Forensic Investigations & Dispute Advisory Services
CLA Global Indus Value Consulting, India
https://claivc.com/directory/jinal/

Sunil Parmar, Partner
Evelyn Partners, UK
https://www.linkedin.com/in/sunil-parmar84/

The information contained herein is for general informational purposes only and is not intended, and should not be construed, as legal, auditing, accounting, investment, or tax advice or opinion provided by CLA Global or any of its individual member firms to the reader. No client, advisory, fiduciary, or other professional relationship is established or implied between the reader and CLA Global or any of its member firms through the presentation of the information contained herein. The reader is cautioned that this material may not be applicable to, or suitable for, the reader’s specific circumstances or needs, and may require consideration of a number of other factors if any action is to be contemplated. Accordingly, the information presented herein should not be considered a substitute for the reader’s independent investigation and sound technical business judgment, and the reader is advised to contact his or her CLA Global member firm or other tax or professional advisor prior to taking any action based upon said information. Neither CLA Global nor any of its member firms assume any obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.