Transfer of shared services offshore | My Assignment Tutor

Agenda item 2.2: Transfer of shared servicesoffshoreFor resolutionAs all directors know, we currently outsource a number of services toElderlyCare. This has allowed us to reduce our costs, and gain access to arange and level of services other organisations of our type cannot normallyafford. The current list of services being provided by ElderlyCare includes:• Financial management systems• Accounts payable processing• Accounts receivable processing• Residential management systems• Resident care and management systems (including clinical care andmedication management)• Human resource management systems• Payroll processing• Staff scheduling• Reporting and analysis.The level of service provided to date by ElderlyCare has been excellent, andwith the exception of the initial transfer period, they have always met theoperating parameters contained in the service level agreement (SLA).The current agreement with Elderly Care is due to expire on 31 March 2021.Further, Elderly Care have advised us of their intention to shift these servicesto an offshore subsidiary, located in Hong Kong.Based on my discussions with the CEO of Elderly Care, we need to decidewhether we will recommit to Elderly Care and their shift to Hong Kong,which is likely to reduce the cost of these services by 10%, or decide tobring these services back in-house. Elderly Care has requested a minimumfive-year term, enabling them to recoup their costs of establishingGR8Kare’s services in Hong Kong.RecommendationThe board authorise me to negotiate an extension of the existing agreementfor the provision of the above services. This new agreement will be basedupon a minimum five-year term.Graeme ButlerManaging Director


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