Treasury Outsourcing in Practice
SGS decided to outsource many of its treasury activities to a third party provider, which proved to be a highly successful move.
SGS’s Group Treasurer outlines the various parameters involved in choosing an outsourcer and the risks and rewards – useful advice for companies contemplating a similar step.
- After a management change in 2002, SGS decided to outsource many of its treasury activities to a third party provider
- An outsourcer in Dublin was chosen to undertake some treasury activities, while SGS maintained control over bank relationship management, treasury policies, capital market transactions and position taking
- This move was highly successful and only ended when the Dublin outsourcer wound up its treasury business; SGS then chose an outsourcing provider based in Switzerland
- The author outlines the various parameters involved in choosing an outsourcer, the risks and rewards, and provides useful advice to companies contemplating a similar step