As the Pace of Change Increases, So Will Outsourcing.

• Position: Brief Article

Saying an efficient back office isn't a competitive advantage may seem an oxymoron. David Narrow says it isn't.

Narrow, partner-in-charge of the global finance and accounting practice at PricewaterhouseCoopers, explains, "It comes down to focus. A company says, 'I'm an oil company' or 'I'm a telecommunications company, and it's hard enough to be a leader in my area. I don't want to be a leader in the back-office area, too.' It's okay for companies to do a passable back-office job, but why do a passable job if you can go to experts?" Thus, Narrow thinks outsourcing back-office operations "will be more important as the pace of change ramps up.

Once a company decides to outsource (based on the goals of its business plan), Narrow says it should find "an orderly way through." And that means communicating all the people issues through as many channels as possible. "On large projects, name someone immediately to head communications," he advises.

Why? "If communication isn't done correctly, the transition will have more problems, especially outside the U.S.," Narrow thinks. "Say, 'Here's the process, here's when we will be giving answers.' People can deal with change but can't deal with uncertainty." And, he adds, communication vehicles should be geography-specific: "In the U.S., you can use technology more -- broadcast notes, broadcast voice-mail, the Internet. In Asia, more personal contact is required. In South America, we hold town hall meetings that stress...