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P. 16-22 (Top Enterprise) 629-2.qxd 6/29/07 1:45 PM Page 2 TOP ENTERPRISE PROVIDERS The Lucky By FAO Today Staff 13 Aided by a healthy market, the list of enterprise FAO service providers continues to grow. We look at a baker’s dozen of the leading global providers helping to make outsourcing a positive experience. Their numbers are growing, thanks to a FAO riches. And because so many of these ing a big bucket of services, from transac- very robust FAO market that some analysts BPO providers have a rich, established IT tion-heavy processes such as accounts say is expanding by 30 percent a year. heritage, they come well-backed by their payable and accounts receivable to more That’s why many providers are attracted to parent companies. strategic functions such as consolidation the segment—all hoping to sell their expert- In the end, we settled on some familiar and general ledger work. Another edge: ise to hungry buyers. names that almost always appear at the top strong leadership helping to guide their way So when we set out to choose this list of of buyers’ RFP list, as well as upstarts who in this still-maturing market. If they can top enterprise providers, it was apparent are showing they can close on deals. Most further elevate customer satisfaction, these that it would be a difficult task. After all, the likely, if you have been around the industry, companies will continue to stay on our list. market is still divided into traditional you’ll recognize the names on our baker’s In compiling our list, we’d like to thank Western Hemisphere-based providers such dozen of enterprise FAO providers. three highly knowledgeable consultants in as Accenture, Capgemini, and IBM in solid What’s their secret to success? In every the industry—Bob Cecil of EquaTerra, Lisa market leadership positions. On the other instance, being able to deliver on a global Ross of FAO Research, and Katrina hand, an entire new generation of offshore basis with service centers in key markets Menzigian of Everest Research—for their vendors such as Genpact, OPI, and WNS has given these providers an important cost valuable insights and help with our final appear ready to jostle for their share of the advantage. Furthermore, they are deliver- selection. Company URL Accenture www.accenture.com A global brand, Accenture is one of the top end-to-end FAO providers in the market. According to Everest Research, the provider has about 11 per- cent of the North American supplier market share and a 20-percent global share. Also a provider of outsourced HR services, Accenture’s business in FAO is divided into two lines: enterprise services delivered by Accenture Finance Solutions and mid-market services delivered by Accenture BPO Services (formerly Savista). While its enterprise FAO business has delivered standalone deals, BPO Services engages most of its client in bundled solu- tions that encompass both HR and F&A. Servicing clients around the world, the company has delivery centers located in most major markets, includ- ing China, Czech Republic, Italy, India, Poland, the Philippines, Romania, Slovakia, the U.K., and Houston, TX. Last year, it named Mike Salvino the head of its finance BPO business. Recent Deals: Crestline Hotels & Resorts (Accenture BPO Services); Microsoft Europe; and National Australia BankQuality Client(s): BP North America, Delta Air Lines, Exel PLC, Rhodia, Talisman Energy U.K., Thomas Cook U.K., Microsoft, National Australia Bank, and Wyeth among enterprise clients Services: Procure-to-pay; order-to-cash; assets acquire-to-retire; cash and banking; document management; finance application management; profit recovery and analytics; income statement; cash flow and balance sheet optimization; business analytics; performance management; finance strat- egy and organization design; finance skills and competency; and finance change management 16 :: FAO Today :: May/June 2007 www.faotoday.com P. 16-22 (Top Enterprise) 629-2.qxd 6/29/07 1:45 PM Page 3 TOP ENTERPRISE PROVIDERS Company URL ACS, Inc. www.acs-inc.com Another multi-domain global outsourcing provider, Dallas-based ACS is also considered a Tier 1 service provider offering a range of end-to-end serv- ices. With 2006 sales of more than $5 billion and more than 4,000 employees engaged in FAO, the company can provide a host of services spanning F&A, HR, and IT. Offering proprietary technology and employing strategic business units dedicated for each client, ACS recently has more aggres- sively sought after business through point-solution engagements that it hopes will lead to a broadening of their contracts. In the large-buy global mar- ket, Everest Research estimates that the company has about an eight-percent market share. Delivery centers are located in Brazil, the U.K., Guatemala, India, Jamaica, Mexico, the Philippines, Poland, and Spain. The company is currently considering a nearly $6 billion offer by its chair- man and Cerberus to take ACS private. This follows unsuccessful discussion of a takeover of ACS last year by a consortium that included the Blackstone Group. Recent Deals: American Standard, United Technologies Client(s): General Electric, General Motors, MetLife, Metromedia Restaurant Group (MRG), Motorola, Office Depot, and United Technologies Services: Accounts payable, accounts receivable, billing, general accounting, tax management, treasury and risk management, credit and debit card processing, check processing, clearinghouse services, loan origination, loan servicing, and other finance tasks Capgemini www.capgemini.com Paris, France-based Capgemini is in the same class of top-tier providers as Accenture, IBM, and ACS. With about 3,500 employees serving the FAO market, it evenly divides its revenues in this segment among the three major geographic regions: 35 percent each in North America and Asia and 30 percent in EMEA. With a majority of its business in the manufacturing and retail sector, the company also has a number of clients in the energy and utilities sector and financial services. To differentiate its services, the company promotes a RightShore service delivery strategies, offering clients a choice from where their services will come. Facilities are located in Australia, Canada, Hong Kong, India, Poland, and the U.S. Last year, the com- pany acquired a majority stake in Unilever’s F&A business, Indigo, which added about 6,000 employees to its operations in India. Also in 2006, the company opened a third service center in Kolkata, India. Recent Deals: Tetra Pak, SKF, Hindustan Lever Limited (Unilever), and Zurich Financial Services Client(s): Blue Scope Steel,Dairy Farm, Danfoss, Hydro One, International Paper, Syngenta, TXU, Zurich Financial Services, SKF, and Tetra Pak Services: General ledger, accounts payable, accounts receivable, cash and asset management, planning and budgeting, management reporting, finan- cial analysis, payroll, order management, tax, and compliance services EXL Service www.exlservice.com This Indian pure-play BPO provider is a surging new competitor to the BPO space. Like other offshore firms, the company’s strongest offering is the labor arbitrage from its seven service centers in India. With more than five years of experience in FAO, the NASDAQ-traded company has extensive experience with various F&A processes and supporting versatile imaging and document management requirements for clients. Last year, the com- pany acquired Inductis, a strategy and analytics company serving the financial services and insurance industries, for an undisclosed amount. Now a wholly owned and independent subsidiary of EXL, the analytics services provider caters to clients in India, the U.S., and Singapore. Recent Deals: N/A Client(s): Norwich Union, Prudential Financial Services: Procure-to-pay, bill-to-cash, payroll, general accounting, financial closing, research and reconciliation, cash management and treasury, compliance support MIS and decision, Sarbanes-Oxley compliance, internal audit, technology risk solutions, and risk services. www.faotoday.com May/June 2007 :: FAO Today :: 17 P. 16-22 (Top Enterprise) 629-2.qxd 6/29/07 1:45 PM Page 4 TOP ENTERPRISE PROVIDERS Company URL Genpact www.genpact.com In the midst of issuing its IPO, this former shared-services unit of GE could be looking at a huge market cap when shares finally roll out (it filed its registration on May 11). Of all the India-based FAO service providers, Genpact may be the most polished thanks to its GE heritage. Since 2006, the company has signed on a number of brand-name clients and sharpened its image since changing its name from GECIS, a holdover from its spin- off from GE. Owned by GE (a minority stake) and General Atlantic and Oak Hill Capital Partners, Genpact recently announced that it was acquir- ing Axis Risk Consulting Services Pvt. Ltd, an independent India-based risk consulting firm that provides a wide range of risk assurance services, including internal audit, business performance improvement, Sarbanes-Oxley documentation and compliance testing, and enterprise risk man- agement. In 2005, the company entered into a unique outsourcing arrangement with Wachovia in which the scope of service was not determined until after the deal was signed. Recent Deals: Hercules, Kimberly-Clark, and GlaxoSmithKline Client(s): Wachovia, Linde Group, Hercules, Kimberly-Clark, and GlaxoSmithKline Services: Accounts payable, T&E, accounts receivable including order management and invoice-to-cash, general accounting, fixed assets, payroll, management reporting and analysis, budgeting/forecasting, and internal audit. In addition, the company has a knowledge process outsourcing unit that supports its clients. HP www.hp.com With plans to aggressively grow headcount at its BPO unit from 6,500 to 7,800, HP is hoping to increase its share of the global enterprise FAO market (Everest estimates that it has just four percent). As is the case with many FAO providers, HP has strong IT roots supporting its BPO operations.