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Beth Yale Manager, Treasury Operations

Do any of your companies outsource to a third party core daily US treasury operations such as cash mgt, st investments, wire transfer, cash position, FX cash JE's , access to bank systems?

Asked on May 9, 2013

If no, have you considered outsourcing and what was the main reason functions were kept in house.

Answers

Linda Wright Consultant • August 16, 2012

Repeatedly, we looked at outsourcing cash and investment accounting. The best priced provider was Bony Mellon, but they could not do all of the detailed SOX compliance and did not want to take on the ERP interface. We did have them handle ST investments among other duties.

david waltz Assistant Treasurer • August 16, 2012

The explanation I have heard most over the years is the sense of trust and control when things are "in-house", for something as sensitive and valuable as cash, makes this "sticky" when a firm looks at outsourcing possibilities.

Linda raises a great point too - there are SOX and tech issues involved in outsourcing that really are different from one firm to the next...and if everyone is an exception, then the economies of scale that outsourcing provides dissappear.

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