Holiday cover outsourced treasury

When staff take unexpected leave or holidays it can create a stress point for treasury teams.  Smart thinking at T&G Global led the company to look to an outsourced treasury service to bridge a key team member’s extended period of leave.  Treasurer Doug Bygrave later found that there was significant added-value to be gained from the arrangement.  Ten years on, T&G fully outsource their middle and back-office operations to ETOS.

“The holiday cover was very useful, and it became the first step in our move to outsource our middle and back office function, which helped to optimise and streamline our processes.  After our initial engagement with the ETOS team, they were ready to step in at very short notice, seamlessly,” said Doug Bygrave.

The briefing process for short-term cover starts with an initial meeting where ETOS treasury specialists sit down with company staff to go through the specific tasks and processes requiring support.  This detail is documented and ETOS then sends it over for review and approval.  When the cover period is over, ETOS go through a detailed handover with the returning member of staff.

“Our team are all experts who are used to working across a wide range of treasury management systems,” said ETOS Chief Operating Officer, Bruce Edhouse.  “Our expertise often means we’re able to add further value by identifying potential process improvements to the client’s ongoing operations.”

Holiday cover offers proof of concept

In fact, as T&G found out, outsourcing for a short-term engagement or for limited functions can be a cost-effective way of undertaking a ‘proof of concept’.  This helps to determine the potential value that outsourcing on a longer-term basis might offer.

“We wanted to reduce our reliance on key people internally,” explained Doug Bygrave. “As a result, we decided to take our relationship with ETOS a step further and outsource all of our treasury back office operations.  This helped T&G create a stable treasury platform supportive for growth.  ETOS offered a cost-efficient solution that delivered a better, more robust outcome.”

Additional benefits of outsourcing

According to Bruce Edhouse, outsourcing often delivers additional benefits:  scalability to support growth, lower transaction costs and greater cost-efficiency among them.  Risk management is another area where outsourcing can add real value with improved segregation of duties, the removal of key man risk and improvement of controls.

“ETOS is a good watchdog for us internally,” confirmed Doug Bygrave.  “They add an additional layer of review, flagging any potential issues immediately.  The improved segregation of duties delivered by outsourcing has been a major gain on its own.  Our audit process is also a lot easier because ETOS is externally audited.”

When it comes to keeping pace with the latest in efficiencies, processes and compliance, gains have also been made at T&G Global.  “ETOS act as an independent touchstone, bringing in the latest best practice” said Doug Bygrave.  As an external agency, they have been very strong in ensuring compliance to our internal processes around deals and authorisations.  It’s taken a massive chunk of our day-to-day work away, giving T&G more time to focus on strategic matters.”

 

To find out more about holiday cover or treasury outsourcing, call us at ETOS on +64 9 917 3476.

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