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Finance and Accounting BPO
Finance and Accounting BPO
Phil Fersht
Founder & CEO
phil.fersht@hfsresearch.com
Brian Dubiel
Principal Analyst
brian.dubiel@hfsresearch.com
Table of Contents
Topic
Page
Executive Summary
Research Methodology
13
16
18
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Executive Summary
The F&A BPO HfS Blueprint Report is the first of its kind in the global services industry.
Unlike other quadrants and matrices, the HfS Blueprint identifies relevant differentials
between service providers across a number of facets under two main categories:
innovation and execution.
HfS Blueprint Report ratings are dependent on a broad range of stakeholders with specific
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years of downturn. Contract size for multi-scope engagements has stabilized at $25M (ACV).
The F&A Big Four dominate the Winners Circle. Accenture consolidates its command of market share.
IBM, Genpact, and Capgemini round out the Winners Circle members.
Intense competition among the High Performers. Wipro, WNS, EXL, Xerox and Infosys pushing aggressively
BPO space, but the market still remains more focused on execution and delivery, assigning 70% of the
importance weighting to execution, 30% to innovation.
Market size grows. Total F&A BPO is expected to surpass $25B in 2013, at a growth rate of 8%, with multi-
process F&A BPO expected to reach $5B. 4 out of 10 enterprises ($5B+) intend to expand their F&A BPO
operations this year.
Industries experiencing secular shifts show highest growth. These include Telecom, Software/High Tech,
Manufacturing still dominate a third of the market, but growth has slowed.
Market still nascent. All F&A functions are still predominately managed in-house by enterprises.
2013 HfS Research Ltd.
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Research Methodology
Research Methodology
Data Summary
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Criteria Weighting
Evaluation Criteria
Two major factors that impact service delivery:
Execution represents service providers
ability to deliver services. It includes:
Real world delivery of solutions
Quality of Customer Relationships
Market Share
Innovation represents service providers
ability to improve services. It includes:
Vision for End-to-End Process
Lifecycle
Integration of BPO and IT
Vision, Plans and Investments to Tailor
Solutions for Specific Industries
Leveraging External Drivers
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Provider A
vs.
Provider B
Provider B
vs.
Provider G
Provider G
vs.
Provider J
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23.74%
10.49%
5.62%
7.63%
20.94%
9.63%
4.23%
1.71%
2.83%
0.85%
3.60%
7.71%
3.48%
4.23%
10.80%
16.28%
INNOVATION
TOTAL
71.77%
4.63%
3.31%
3.47%
3.55%
3.80%
11.41%
28.23%
9.46%
7.35%
100.00%
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Controllership
Activities
Transactional
Accounts
Strategic Importance
Transformational
Responsibility
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Accounts Payable
Travel and Expense
Billing/Invoicing
Cash and Accounts Receivable
Credit
Internal Auditing
Financial Planning and
Analysis
Business Intelligence
Other
Collections
Revenue Accounting
Fixed Asset Accounting
Tax Filing
Payroll
Procure to Pay
Accounts Payable
Travel & Expense
Credit
Order to Cash
Cash App/Accounts
Receivable
Billing/Invoicing
Collections
Revenue Reporting
Record to Report
Fixed Asset
Accounting
Tax Filing
Payroll
Controllership
Activities
Inter-Company
Accounting
Regulatory/Statutory
Reporting
Management
Reporting
Risk Management/
Treasury
Internal Auditing
Business Intelligence
Financial Planning &
Analysis
Transformational
Financial Process
Consulting
Supporting
Innovation Roadmap
Change Management
& Communications
Support
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Winners Circle
Accenture
IBM
INNOVATION
High Performers
Capgemini
TCS
Wipro
Xerox
HP
EXL
Infosys
Cognizant
Steria
Serco
Sutherland
EXECUTION
2013 HfS Research Ltd.
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WNS
Genpact
scope of F&A services as being of prime importance. HfS expects this trend to accelerate in the
future, where service providers will become F&A experts within given industries, with the capability
to offer insights and analytics. Notable industries where clients prefer providers with specific
vertical capability include Pharma, CPG, Retail and Insurance.
Blur between Procurement and F&A. The line between procurement and the finance back office is
starting to blur as companies look to reduce overhead and find synergies between the lines of
corporate groups. It will be imperative for service providers to keep abreast of the changing
landscape and address Finance and Procurement needs together.
Creating Relationships that Foster Innovation. As it gets harder to differentiate between the main
body providers in table stakes areas of price flexibility and global operational delivery, those
providers that are able to provide clear and measurable innovative improvements for clients will
dominate market share. The key is providers being able to demonstrate how they created
environments with their clients to work together to define business goals and outcomes. Its not
going to be about selling innovation, but more about creating environments to foster innovations.
Development of Client Communities. The need for more interaction between a providers client
base is abundantly clear. Clients have called for more cross collaboration, to gain a better
understanding of how other companies are leveraging their F&A BPO, and where best practices can
be identified. HfS anticipates smart providers to increase their involvement of driving more focus
groups within their F&A BPO client portfolios.
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Genpact
Winners Circle
Market Share:
10.2%
Industry Leading: Execution
Developing Customer
Communities
Flexibility to Deliver End-to-End
and Point Solutions
Strengths
Challenges
Distinctive client culture. Genpacts clients talk more fondly about their
provider than many of its competitors. This is due to the notable humility of
Genpacts delivery staff and a bloody-minded determination to succeed.
Genpact has worked hard to get its clients on the right track and enjoys
many long-term established relationships as a result..
Financial Services
Insurance,
Retail and CPG
Pharma
Manufacturing
Services Industry
Travel
Key Clients
GE
Kimberly-Clark
Walgreens
AstraZeneca
UCB
Hyatt
GlaxoSmithKline
United Biscuits
Telefonica O2
Cigna
Penske
Ashland
India: (12,300+)
China (600+)
Philippines
Brazil, Columbia, Mexico, Guatemala
Czech Republic, Hungary, Poland, Romania
Kenya, South Africa, Morocco
Netherlands
U.S.
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Akritiv
E-Invoicing
ProFlow
NICE
CMS
Duplicate Payment Audit Tool
E-Billing platform
Callisto
Manual Journal Entry
Close Tracker
Questor
Smartstream
SmartView
Phil Fersht
Founder and CEO, HfS Research
Overview
Over 17 years business experience in the global outsourcing and shared
services industry across US, Europe and Asia
An acknowledged industry advisor, strategist, author, speaker, practitioner
and blogger
Advised on 100s of global IT & BPO engagements
phil.fersht@hfsresearch.com
Previous Experience
Practice Head for IT Services & BPO Practice, AMR Research (Gartner Inc.)
BPO Marketplace Leader at Deloitte Consulting
Vice President for Everest Group, leading research and consulting teams
based in the US and India.
Prior Career
Regional Director, IDC Asia/Pacific
Program Manager, European IT Markets Services, IDC Europe
Education
BS with Honors in European Business & Technology from Coventry
University, United Kingdom
Diplme Universitaire de Technologie in Business & Technology from the
University of Grenoble, France
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Brian Dubiel
Principal Analyst, HfS Research
Overview
Covers the Finance and Accounting and Procurement Outsourcing
industries for HfS Research
An acknowledged industry expert in BPO operations, having worked on
multiple sourcing engagements including in areas such as KPO, FAO, PO
and LPO domains
brian.dubiel@hfsresearch.com
Previous Experience
Served as the outsourcing category manager for State Street Corporation,
acting as an internal advisor for both procurement operations and
corporate outsourcing projects
Initiated and developed State Streets Outsourcing Center of Excellence,
creating corporate outsourcing tools and methodology, and standardizing
knowledge for internal business lines to better govern their outsourcing
providers and sourcing events
Education
Dual BA in Economics and Philosophy from Trinity College
MBA with an Operations and Supply Chain concentration from
Northeastern University
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