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Treasury Outsourcing in Practice

by Heinz Bahni, Group Treasurer, SGS

A new treasury organisation

When I joined SGS’ treasury department in 2002, the group treasury function was still in the early stages of its development, with FX, cash and treasury management activities managed autonomously by individual business units. Following a management change, however, the decision was made to centralise cash, treasury and risk management activities to achieve greater visibility and control over cash and risk, and enhance operational and financial efficiency. As part of this initiative, we made the decision to outsource many of our treasury activities to a third party provider. This article explores some of the factors that contributed to our decision to outsource treasury management at SGS, and our experience of doing so.

The decision to outsource

The decision to outsource many of our treasury activities at SGS was not a difficult one at the time, for a variety of reasons:

Firstly, both the CEO and I already had experience of treasury outsourcing in previous roles, and recognised the benefits.