Mining houses have traditionally boasted impressive head office buildings housing significant HR, IT, Procurement and Finance functions funded as a major overhead to the operations. But as everyone is aware, the business environment has changed dramatically in the last few years and new generation mining companies are now demanding far more agile and efficient support processes, with a need to focus corporate activity on the core business processes.
A large number of support processes in IT, Finance, Procurement and HR (including payroll) are repetitive and not unique to the individual business but rather add value through operational excellence, delivering zero defect at the lowest cost. Other processes are more ad-hoc and knowledge involved, adding value through maximum benefits at appropriate cost only when necessary.
Both transactional and knowledge involved processes can take advantage of benefi ts through a Mining Shared Services outsource or co-source model.
Due to continuing volatility in commodity prices, the mining companies of the future are much more sensitive to adding fixed costs into the business model and thus the business case for co-sourced and outsourced back office processes linked to performance metrics have become ever more pressing.
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Filed under: Executive Leadership, Finance, Information Technology, Mining, Energy & Resources, Talent & Human Capital, agile business processes, co-source, Deloitte, efficient business processes, mining, outsource, shared services
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