Taiwanese companies need to outsource their financial transaction processing work so that chief finance officers (CFOs) can be more deeply involved in decision-making, a business consultant said yesterday.
"The [outsourcing] move could help companies cut costs while having their CFOs more focused on the business decision-making and strategy support," said Vincent Li (
Outsourcing or centralizing a company's transaction processing and speciality services -- such as tax and internal audit -- could provide a more viable cost structure and is a business model that IBM is promoting to its customers.
"Some local enterprises, including one financial holding company and a high-tech manufacturing group, have been engaged in the work of outsourcing their transaction processing," Li said, without naming the companies.
This business model is a new concept in Taiwan as only large companies can make it worthwhile.
Family-run companies that take the finance section as the core of their organization would not easily release their control to third parties, Suhas Bhide, partner of business consulting services in IBM China/Hong Kong Ltd, said yesterday at a press conference.
However, Bhide said, to deal with the increasing complexity of business and establish business models for future development, the role of CFOs should evolve to "chief focus officer," focusing on developing core competences as well as building unique strength.
According to a survey that IBM conducted last September -- which polled 450 CFOs in companies with annual revenues of US$8.4 billion located in 35 countries -- 68 percent of CFOs regarded shareholder value as the highest priority, with managing the balance sheet the last in their ranking of the top five priorities.
The survey also showed that decision support and performance management activities were expected take up most of CFOs' workload over the next three years, at 37 percent, while transactional activities would shrink to 34 percent from the current 50 percent.
"The Enron scandal is indeed a strong stimulation to enhance the significance of the CFO's role, especially after the passing of the Sarbanes-Oxley Act in 2002, which demands the disclosure of control and processing," Bhide said.
A local scholar agreed, adding that the passage of the Sarbanes-Oxley Act places a great deal of responsibility on CFOs in terms of corporate governance.
"Though external governance -- such as endorsement by accountants or supervision by credit rating companies -- still functions, the most significant element lies in the companies' internal controls," said Shiue Fu-jiing (
Companies should invest more in ensuring information is authentic and transparent and disclosed on a timely basis, which requires the CFO's deep involvement," Shiue added.
purpose: Tesla’s CEO sought to meet senior Chinese officials to discuss the rollout of its ‘full self-driving’ software in China and approval to transfer data they had collected Tesla Inc CEO Elon Musk arrived in Beijing yesterday on an unannounced visit, where he is expected to meet senior officials to discuss the rollout of "full self-driving" (FSD) software and permission to transfer data overseas, according to a person with knowledge of the matter. Chinese state media reported that he met Premier Li Qiang (李強) in Beijing, during which Li told Musk that Tesla's development in China could be regarded as a successful example of US-China economic and trade cooperation. Musk confirmed his meeting with the premier yesterday with a post on social media platform X. "Honored to meet with Premier Li
Dutch brewing company Heineken NV on Friday announced an investment of NT$13.5 billion (US$414.62 million) over the next five years in Taiwan. The first multinational brewing company to operate in Taiwan, Heineken made the statement at a ceremony held at its brewery in Pingtung County. It also outlined its efforts to make the brewery “net zero” by 2030. Heineken has been in the Taiwanese market for 20 years, Heineken Taiwan managing director Jeff Wu (吳建甫) said. With strong support from local consumers, the Dutch brewery decided to transition from sales to manufacturing in the country, Wu said. Heineken assumed majority ownership and management rights
coverage expansion: The industrial PC maker has proposed to acquire 3.938 million Aures shares to strengthen its global smart retail presence Leading industrial PC maker Advantech Co (研華) plans to acquire Aures Technologies SA, a French company known for its point-of-sale (POS) and kiosk equipment, to expand its global coverage in smart retail products and services. Advantech proposed to acquire 3.938 million Aures shares from the French firm’s major shareholder and through a public tender offer at up to 6.7 euros per share, the PC maker said in a statement after announcing the deal at the Taiwan Stock Exchange late on Friday. The company aims to acquire up to 100 percent equity of Aures, a well-known brand in the western market with a
Microsoft Corp yesterday said that it would create Thailand’s first data center region to boost cloud and artificial intelligence (AI) infrastructure, promising AI training to more than 100,000 people to develop tech. Bangkok is a key economic player in Southeast Asia, but it has lagged behind Indonesia and Singapore when it comes to the tech industry. Thailand has an “incredible opportunity to build a digital-first, AI-powered future,” Microsoft chairman and chief executive officer Satya Nadella said at an event in Bangkok. Data center regions are physical locations that store computing infrastructure, allowing secure and reliable access to cloud platforms. The global embrace of AI