Finance and Accounting Outsourcing - Moving to Higher Value Services (Strategic Focus)

This report will analyze how F&A BPO can move up the value chain, from providing simple transactional processes to managing complex strategic functions.

Report Highlights
F&A BPO customers are increasingly looking for their outsourcing relationship to deliver more than simple cost arbitrage: for example, a growing number of clients now expect their chosen vendor to drive process improvements and provide them with access to the latest technology;

As the F&A BPO market becomes more mature, clients are more willing to outsource end-to-end accounting processes, such as order-to-cash and procure-to-pay;

The F&A BPO market is dominated by Accenture and IBM, two of the world's largest outsourcing vendors. Behind them, however, are a number of vendors, of differing size and focus, jostling for position.
[Studien Infos ausblenden]

Overview 1
Catalyst 1
Summary 1
Key Messages 2
The F&A BPO market is growing rapidly 2
Cost arbitrage is no longer the only driver behind F&A BPO 2
F&A BPO deals are becoming broader in scope 2
The market remains dominated by the major global outsourcing vendors 2
Varying levels of maturity between vertical markets present new growth opportunities 2
Table of Contents 3
Table of figures 4
Table of tables 4
Market opportunity 5
The F&A BPO market is growing rapidly 5
Market size 6
Cost remains the key driver behind the adoption of F&A BPO 7
Offshore delivery models enable vendors to deliver significant cost savings 7
A growing number of vendors are adopting multi-shore delivery models 8
Clients are increasingly aware of the benefits of F&A BPO beyond cost arbitrage 8
F&A BPO services vary in difficulty and complexity 9
Demand for performance improvements can help vendors move up the value chain 10
Service Evolution 12
Clients are increasingly willing to outsource end-to-end processes 12
Order-to-Cash 12
Procure-to-Pay 12
Broadening the scope of F&A BPO can enable key process improvements 13
Technology is a vital part of broad-scope F&A BPO deals 13
Process automation 14
Platform BPO 14
Wrapper Technology 14
Changes in the F&A BPO market have led to shifts in pricing models 14
Customer Impact 16
Clients are growing in maturity 16
Client concerns over F&A BPO still remain 17
The influence of advisory firms on clients is becoming more pronounced 18
Competitive Landscape 19
The F&A BPO market remains fragmented 19
The major global outsourcing players lead the way in the F&A BPO market 20
Accenture 20
IBM 21
Capgemini 21
ACS 22
HP 23
Broad-scope F&A BPO providers are gaining market share 23
Genpact 23
WNS Global Services 24
Steria/Xansa 24
The leading Indian outsourcing providers are gaining traction in F&A BPO 25
Niche specialists continue to be viable in the fragmented market 25
Go to Market 26
Levels of F&A BPO maturity differ across vertical markets 26
Opportunities for growth exist in the banking industry and the public sector 27
Banking 27
Public Sector 28
Vendors need to earn the trust of clients 29
Recommendations 30
Recognise that vertical markets operate at differing levels of maturity 30
Establish a strong relationship with your client 30
Offer clients more than just cost arbitrage 30
Develop a multi-shore delivery model 30
APPENDIX 32
Methodology 32
Further reading 32
Ask the analyst 32
Datamonitor consulting 32
Disclaimer 32
[Inhaltsverzeichnis ausblenden]

Table 1: F&A BPO Functions by Service Category 9
Table 2: India's Top 15 BPO Providers, 2007-2008 24
Figure 1: F&A BPO Total Contract Value, 2006 - 2007 ($m) 5
Figure 2: Size and Forecast Annual Growth Rate of Global F&A BPO Market, 2008-2013 6
Figure 3: Geographic Breakdown of F&A BPO Market, 2008 7
Figure 4: Rate the importance of the following factors in your decision to enter into a BPO contract (1 - Least Important; 4 - Most Important) 9
Figure 5: Moving Up The F&A BPO Value Chain 10
Figure 6: Rate the importance of the following factors on your choice of BPO vendor (1 - Low Importance; 4 - High Importance) 16
Figure 7: Did you use an advisory firm to assist with your choice of outsourcing partner? 18
Figure 8: F&A BPO Vendor Market Share by Total Contract Value and Number of Contracts Signed 19
Figure 9: Share of F&A BPO Contract Signings by Vertical Market (%) 26
[Tabellenverzeichnis ausblenden]