While the potential for companies to reduce costs by offshoring back office operations is dramatic, companies can potentially increase these savings by over 50 percent by selectively integrating transformation and process improvement efforts into their globalization initiatives, according to new research from The Hackett Group, an advisory firm and an Answerthink company.

According to Hackett's research, the Fortune 500 could generate over $91 billion annually, or about $182 million on average per company, by strategically combining "lift & shift" efforts, which move back office processes overseas without first improving them, with "transform & shift" initiatives, where processes are optimized and then taken offshore. Hackett's research finds that the key to generating these savings is careful planning and analysis to determine which processes to offshore and whether or not to integrate transformation, and a staged approach to offshoring over a five to ten year period. In some cases, Hackett's research shows that the potential exists for companies to capture the majority of the available cost reduction through process optimization alone.

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