Executive Summary

Finance and Accounting Outsourcing (FAO) is well into the rapid-growth phase with established models and demonstrated supplier capabilities. Thus far, the value proposition focused on providing direct-cost advantage by outsourcing transactional processes like accounts receivable (AR) and accounts payable (AP). However, buyers now express willingness to explore expansion of outsourcing scope to include end-to-end processes like Order-to-Cash (O2C) and Procure-to-Pay (P2P). Such processes impact metrics related to business outcomes like reduced DSOs, reduced working capital, better procurement compliance, efficient closing of account books, fixing of bad debts, and improved SOX compliance.

This white paper provides a “first look” at findings from Everest Research Institute’s exploration of the current state and future direction of the O2C and P2P segment of the FAO market. This paper presents viewpoints on the value proposition driving interest in outsourced O2C and P2P offerings and outlines both benefits and challenges to embarking on this next step in the FAO market. The paper also includes Everest’s assessment of implications for stakeholders and the future direction of these developments.