International service providers – these criteria are crucial for a successful collaboration

International service providers – these criteria are crucial

If the selection process is defined and potential providers are pre-identified (read our related article here), the key question to ask is: Which provider really matches the company? The criteria to be considered in the decision phase are varied and should go beyond simply comparing the prices.

The choice of an international partner has a noticeable impact on processes, compliance, risk management and the long-term ability to transform.

Professional expertise and international presence

A suitable service provider must master the legal and tax conditions in the relevant countries, both locally and internationally. Only when the complex demands of a multinational company are understood and can be implemented does a reliable operating model emerge. Industry expertise also plays a role. Those familiar with the specifics of an industry understand its challenges better and can develop targeted solutions.

An experienced service provider can not only minimise risks and meet requirements but also design processes to remain efficient in the long-term. Without this expertise, time-consuming audits and potential back payments may follow, significantly disrupting global operations and leading to reputational risks.

Technological skills

It is no longer possible to imagine global compliance without technology. Depending on the company’s requirements, the service provider should meet the following criteria:

• Integration into existing (ERP-)systems
• (Partial) automation of processes
• Interface expertise
• Powerful tools and the provision of a platform solution, ideally with AI functionalities
• Data security

Service providers must demonstrate both innovation and adaptability and, if necessary, be able to manage transformation projects.

Governance and communication

Having a clear structure in the collaboration is a key factor for success. During the selection process, companies should examine early on:

• How communication is set up
• How responsibilities are distributed
• Whether there is a central contact person
• How management takes place across regions

Centralised governance prevents friction and improves the quality of service.

In addition, internal prerequisites should be clarified in advance and considered during the selection process:

• Capacity for migration and management, including identification of responsibilities within the company
• Expected level of support from the service provider

Migration and the ability to transform

Migrating financial processes to a new service provider is a critical step that requires careful planning. Key aspects include:

• Structured handover process, including knowledge transfer
• Clear timelines and deadlines
• Coordinated test phases
• Realistic resource planning.
• Transparent effort estimation, including pricing

The provider’s proposal should convincingly demonstrate its migration capability and experience. 

Equally important is the transformation capability. A suitable partner will not only provide support for the status quo but can assist with future change and strategic developments. Early clarification is needed regarding: 

• Planned transformation processes
• The Target Operating Model (TOM)

The TOM defines the future strategic structure of processes, systems, and responsibilities, specifying which tasks will be centralized, regionalized, or outsourced. The choice of a partner largely depends on whether they can support this model.

Conclusion

The selection of an international service provider is not based on one single criterion but on a combination of professional expertise, technological ability and strategic competence. Whoever evaluates these factors comprehensively will lay the foundation for a long-term successful collaboration.

Also read Part 1: Selecting international service providers – how to conduct a successful selection process.