1. Balancing the Outsourcing and Insourcing Models for Optimum Efficiency
Presented by:
Theresa Wecker, Asset Strategies Group, LLC Heather Lacy, Nike, Inc.

2. Course Outline:
 A major retailer as well as an outsourcing service provider will discuss topics related to making the decision to outsource lease administration versus performing the function in-house. 

3. Factors to Consider: Technology Staff availability and capabilities
Leadership and processes
Budget and training
Internal expertise

4. Find the Right Model:
Fully outsourced
Hybrid
Tactical vs. strategic

5. Identifying your Provider:
Get their client list
Understand their core business and clientele?
Where do they operate? Do they have experience in all the countries you operate?
Services?

6. Measuring Results: Resources, results and technology spend
(Costs of service less recoveries) vs (technology implementation [including re-abstracting], ongoing licensing of technology, IT services, staff and manager salaries, clerical support, benefits and burden less recoveries) evaluated for the contract term

7. Mitigating Risk: Resources, results and technology spend
Error & omissions clause/insurance
Establish KPIs and SLAs with remedies
Implement in phases – be involved
Regular feedback

8. Technology Considerations:
Understand and document workflow
Abstraction tools
Reporting platform
Document management

9. Establishing KPIs: Identify what is important to your business
Measurable and reportable
Don’t go overboard
Monthly, quarterly or annual business reviews

10. Accounting:
Enforcing your lease rights:
ASC 842 ready
Technology

11. Lessons Learned: Who controls the process?
Be crisp on KPIs and remedies
You know your data the best
Be prepared to work with your provider to train them about your business
Don’t underestimate the transition time

12. Who Should Consider Outsourcing:
Retailers without a desktop audit program should strongly consider outsourcing or develop a process for consistent review
Retailers without established processes and who struggle to keep up
Retailers who struggle to hire qualified and reliable staff
Retailers who do not have technology in place to handle ASC842/IFRS16

13. Who Should Consider Insourcing:
Retailers who have technology and expertise to handle ASC 842
Retailers with a strong and consistent desktop audit process
Retailers with reliable and consistent staff
Retailers who want to control every aspect of lease administration and desktop audit.
Those with larger portfolios

14. Questions?

15. THANK YOU Theresa Wecker CFO, Asset Strategies Group, LLC
Heather Lacy Global Lease Administration, Nike Inc.