The Rise of Industry-Specific F&A Outsourcing (FAO) Solutions - Focus on FAO in Retail and Airlines

24 Jul 2013

Introduction

Finance & Accounting Outsourcing (FAO) has traditionally been a horizontal service offering with a value proposition driven by cost savings and efficiency gains. However, as the market requirements intensify, FAO solutions are increasingly becoming more industry-specific. The nature of these changes ranges from the adoption of industry-specific terminology to more asset-intensive approach in the form of dedicated industry-specific platforms.

As the demarcation between horizontal and industry-specific offerings blurs, the FAO value proposition is expanding beyond the bottom line to more directly target the clients’ top line performance. This report lays out a comprehensive framework for the FAO market’s move toward industry-specificity, and then applies this framework by taking an in-depth look at two key industry segments: retail and airlines.

The report discusses:

  • Drivers for rising industry-specificity in FAO
  • Three levels of industry-specificity in FAO solutions
  • Application of industry-specific FAO concepts in retail and airlines (illustrated with case studies)
  • Challenges and emerging best practices
 

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