Introduction

Finance and Accounting Outsourcing (FAO) is well into the rapid growth phase with established models and demonstrated supplier capabilities. Thus far, the value proposition has been focused on providing direct cost advantage by outsourcing transactional processes like Accounts Receivable (AR) and Accounts Payable (AP). However, buyers are now willing to explore expansion of outsourcing scope to include end-to-end processes like Order-to-Cash (O2C) and Procure-to-Pay (P2P) that 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 compliance.

In this research study, we investigate the business value and the market state of outsourcing O2C and P2P processes. The objective of the study was to identify the opportunity and the constituents of the business case for outsourcing, and analyze the solution components required to offer end-to-end O2C and P2P outsourcing offerings.

Scope

• An executive level web-based survey of FAO buyers and suppliers
• Proprietary Everest database with 240+ multi-process FAO contracts with each contract having a minimum of two F&A processes, over US$1 million in Annual Contract Value (ACV), and a minimum contract term of three years
• Focused interviews with FAO suppliers including Accenture, Genpact, IBM, Infosys BPO, IQBackOffice, VWA, and Wipro

Contents

The study provides 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. It focuses on investigating and analyzing the following themes:

• Business impact of outsourcing end-to-end processes like O2C and P2P
• Solution components required to offer end-to-end O2C and P2P outsourcing
• O2C and P2P supplier landscape
• Implications for buyers and suppliers of FAO services