Solutions
Private Equity Solutions
In today’s global economy, convergence of globalization, media, & cross-innovation is creating a new service delivery environment. Significant IT and web-enablement of organizational shared services such as IT Infrastructure & Applications Management, Finance & Accounting Processes, Payroll, HR processes etc. has rendered national borders irrelevant in the quest of consistent, high quality & cost effective service delivery. Newer service delivery models are cropping up at a fast pace for shared services that consistently lower costs and open newer, more innovative ways of improving service delivery.
The Private Equity (PE) firms have a unique opportunity to leverage these IT-enabled trends into a higher return and a faster turn-around for their investments. The large PE firms with billions of dollars under investment have a variety of options to lower the shared services costs of their portfolio companies quickly via a number of options:
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Consolidation of shared services across portfolio firms |
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Leveraging outsourcing service providers and remote/offshore service delivery which has been widely accepted as the means to labor arbitrage, thus immediately reducing shared services costs. |
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Opening captives domestically or offshore for shared service delivery optimization. |
This opportunity gets even bigger if the firms they invest in are targeting the traditional offshore destinations (China, India, CEE, Africa, Russia) as they today also offer the fastest growing markets.
However, these options need a new set of operational paradigms to manage the risk of change and managing by performance.
Avasant provides customized services to PE firms to help them evaluate shared services optimization opportunities in their portfolio companies. Our model focuses on assisting with upfront risk mitigation through technology due diligence, improving EBITDA via shared services optimization & globalization and managing cost & delivery risk during services transition & execution.
Our services help PE firms ascertain technology risk in the investments they make as well as help lower the risk in existing portfolio companies. Our services help restructure shared services delivery so cost savings can be achieved in a very short time frame thus freeing additional cash flow for business and financial requirements.
