Search
 

Centralize This

Global treasury functions are being brought home. But as treasurers are learning, there is an art to doing it right

By Staff Writer | Updated on February 01, 2002

When David O’Brien came to EDS Corp. headquarters in texas as assistant treasurer three years ago, his mandate was to consolidate the far-flung computer company’s treasury operations. “We shut down treasury offices in four places across the globe–Sao Paolo, Hong Kong, Mexico City and London–and we totally centralized, 100%,” he says. Today, O’Brien and his colleagues run a global treasury from the $19 billion company’s Plano offices. “There is no treasury outside of corporate headquarters,” he explains. “We do everything here with regard to global liquidity management–all cash, all foreign exchange, all debt, all investment. All subject matter expertise for treasury services is here.”

The benefits of this sweeping transformation, undertaken between July 1999 and February 2000, have been “huge.” O’Brien says: “We reduced the amount of cash by something like 75%–and I’m talking hundreds of millions of dollars. We reduced foreign exchange trading costs by something like 60%. We reduced staff and associated costs by 44%.”

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.