Organizations, on their quest to improve their competitive position in the market, access new market and improve the operational efficiency are using M&A as a way to achieve these goals. The size and frequency of the deals have increased and so has the complexity of the integration process.
People, process and technology integrations make up the core aspects of the merger and acquisition process. Organizations should look at leveraging offshoring as a strategy to accelerate the integration process and reduce the costs involved. The integration of complex business processes, technology implementation and IT projects can be outsourced to large vendors. When these activities are measured through a series of stringent service levels and penalty/bonus clauses, it will enable the offshoring vendors to execute better on the integration when compared to the internal teams. These vendors can also drive cost savings significantly due to offshoring labor cost arbitrage apart from reengineering and economy of scale.
The Offshoring vendor who would offer M&A integration as a service and is willing to take up the risks along with it can make great strides in competing with some of the large outsourcing vendors in the world. When executed effectively, offshoring can be used as a tool even by mid-sized organizations without the financial muscle to execute effectively on their M&A strategy.