Carmel, Indiana-based KAR Auction Services, an operator of digital marketplaces for wholesale used vehicles, has announced a cost-cutting initiative as the company outsources some functions overseas.
The outsourcing will impact over 300 positions.
According to KAR CFO, Eric Loughmiller, "The company has reached agreements with two offshore firms to handle back-office functions that KAR currently handles in-house. This will impact over 300 positions in the U.S. and Canada. We expect to begin the migration of those roles over the next three quarters. The company already has some positions offshore in the areas of IT, customer service, finance, and logistics."
"The shared-services offshoring as part of the company’s larger transition towards becoming an 'asset-light' operation, selling wholesale used vehicles online rather than at physical auto auctions. The fact that our marketplaces are digital and generally not tied to a specific location allows us to move a number of support functions offshore without impacting the customer experience."
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