Introduction

Offshoring has been a key factor in the growth of the multi-process Finance & Accounting Outsourcing (FAO) market. With multiple drivers having led to the high offshore adoption in FAO, the offshoring value proposition in FAO is now well established, and adequate supplier options exist in the market today. The report covers the offshore trends and value proposition of offshoring in F&A and discusses the solution design for F&A offshore solution. This report will assist companies considering outsourcing F&A to a third-party or FAO suppliers to understand in detail the established value proposition of offshoring F&A. 

Scope

• Third-party FAO contracts and does not include shared services or captives
• Multi-process FAO contracts with a minimum of two F&A processes, over US$1 million in Annual Contract Value (ACV), and a minimum contract term of three years
• All multi-process FAO contracts across all industries signed as of April 2006
• Leading suppliers including Accenture, ACS, EDS, Genpact, IBM, etc.
• Geographies covered include North America, Europe, and Asia Pacific
  

Contents

This report summarizes key market trends and insights to assist management in making more informed business decisions. Key insights are discussed in detail (and illustrated with supporting data and analysis) to provide the reader information in easy-to-apply, bite-size pieces. The report provides implications for buyers and suppliers of FAO and discusses the following themes:

• Offshore adoption across functions: Offshoring is a fundamental part of almost every sourcing decision. F&A is emerging as a leader amongst offshored business processes, lagging only to call centers
• Offshore trends in F&A: The maturing offshore supplier landscape resulted in an increased acceptance of offshoring in third-party FAO contracts
• Value proposition of offshoring in F&A: Offshoring is driven primarily by direct cost savings; however, other drivers are strengthening, making the proposition even more attractive
• F&A offshore solution design: Design of an offshore solution is an iterative process