Backsourcing Accounts Payable : A Backsourcing Plan

Abstract

The objective of this thesis is to create a plan for backsourcing outsourced accounts payable (A/P) services for the case company based in Finland, as part ofunifying operating methods across the group of the case company. The thesis explores the current A/P process of the case company, investigates how other units manage their in-house A/P, and gathers best practices. Based on these insights, the thesis develops a backsourcing plan with key development ideas.

This study utilizes qualitative research methods, focusing primarily on semi-structured interviews and workshops. The research was conducted through interviews with key personnel to understand the current A/P processes and experiences with both outsourced (the case company) and in-house A/P (other units) services. The research followed an inductive approach, using applied action research to explore and improve current practices.

The study revealed that while the outsourced A/P process has provided certain advantages, it also faced challenges. Through benchmarking with other units that manage A/P in-house, the study indicated that backsourcing A/P would require operational improvements. The study provided a detailed plan for how the case company can begin planning the backsourcing process while improving the current A/P process based on the findings.

The meaning of this study for the case company lies in its potential to enhance operational efficiency, improve A/P process, and align with the larger goal of standardizing operations across the group. While not yet implemented, the backsourcing plan supports the decision-making, provides a ready-to-use plan for future backsourcing efforts, ensuring that the case company is prepared to act when the time comes.