Whether it’s service scope, deal size, or customer satisfaction, these players in the FAO space all turned in outstanding performances for 2007.

by FAOT Staff

Each year, FAO Today tallies up the 13 top providers in the realm of enterprise F&A outsourcing. This year, however, we’ve added a couple of new twists: expanding the definition of “enterprise” to include deal scope (see more on this in Baking the Dozen, p. 10), and ranking the players according to the services they provide and their customers’ feedback. Those rankings appear in charts on pp. 10–11.

Several trends have emerged over the past year or so, as FAO continues to mature. Going global is the mantra on every company’s lips, and FAO providers appear to be jumping to comply with that demand. But the feedback for our Baker’s Dozen shows that although delivery is indeed achieving global scale, the global concept has yet to arrive on the buy side. So while an FAO customer might work through service centers in Brooklyn, Bangalore, and Beijing, the company’s home office is still in Boise.

Another trend we noted was that although the big dogs of FAO are still ACS, Accenture, Convergys and HP when it comes to breadth of service, such smaller breeds as Wipro, Capgemini, and a handful of others are nipping at their heels in a major way.

In addition, although we hear frequently that FAO providers are moving from the purely transactional functions into more strategic roles, there is still considerable room for expansion in these areas. You will notice from our Resource Guide listings starting on p. 29 that AP still makes up the lion’s share of most providers’ functions, while trustee services continues to lag, being offered by a mere handful of suppliers. We recognize that there could very well be a multitude of suppliers out there who are providing much more than the high-volume, repetitive transactions for their customers, but it has yet to be reflected in our survey responses. We will be looking eagerly to see shifts in our findings next year around this time.

What follows is the listing of the Baker’s Dozen, arranged alphabetically with each company’s name, web address, major clients and most recent deals (if they were willing to share those details) and the services they provide. — Peggy Cope

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Accenture www.accenture.com

A global brand, Accenture is one of the top end-to-end FAO providers in the FAO market. According to Everest Research, the provider has about 11 percent of the North American supplier market share and a 20-percent global share. Also a provider of outsourced HR and procurement services, Accenture’s business in FAO is divided into two lines: enterprise services delivered by Accenture Finance and Accounting BPO Services and mid-market services delivered by Accenture BPO Services – Solutions for the Middle Market. Servicing clients around the world, the company has delivery centers located in most major markets, including Argentina, China, Czech Republic, Italy, India, Mauritius, Norway, Poland, the Philippines, Romania, Slovakia, the U.K., and North America. Mike Salvino is the Global Managing Director, Business Process Outsourcing at Accenture.

Recent Deals: BT; Microsoft, Washington Gas and Thomas Cook (contract extension)

Client(s): BP North Sea and North America, Delta Air Lines, DHL Exel PLC, Rhodia, Talisman Energy U.K., Thomas Cook Group, Microsoft, National Australia Bank, and Wyeth among others

Services: Procure-to-pay; order-to-cash; record to report; treasury and cash management; document management; finance application management; profit recovery and analytics; income statement; cash flow and balance sheet optimization; performance management; finance strategy and organization design; finance skills and competency; and finance change management

ACS, Inc. www.acs-inc.com

ACS is a $6 billion outsourcing enterprise and still one of the biggest players in the field. With 62,000 employees spanning the globe, ACS delivers comprehensive outsourcing solutions for finance & accounting, administration, human resources, customer care and information technology. This multi-domain global outsourcing provider is considered a Tier 1 service provider offering a range of end-to-end services. With more than 4,500 employees engaged in FAO services, the company provides services spanning F&A, HR, and IT. Delivery centers are located in Brazil, Guatemala, India, Jamaica, Mexico, The Philippines, Poland, and Spain.

Recent Deals: American Standard, Georgia-Pacific

Client(s): GE, GM, MetLife, Metromedia Restaurant Group, Georgia-Pacific, Office Depot, American Standard, and United Technologies

Services: Accounts Payable, accounts receivable, credit & collections, payroll, travel, general accounting, fixed assets, cost accounting, financial reporting & risk management, investor relations, treasury & investment management, management, customer services & call center management, recordkeeping, accounting & tax administration, statement processing, indirect procurement

Capgemini www.capgemini.com

Capgemini, one of the world’s foremost providers of Consulting, Technology and Outsourcing services, enables its clients to transform and perform through technologies. Capgemini provides its clients with insights and capabilities that boost their freedom to achieve superior results through a unique way of working, which it calls the Collaborative Business Experience. Capgemini reported 2006 global revenues of €7.7 billion (approx. US$10 billion) and employs 82,000 people worldwide. More information is available at www.capgemini.com . Providing services to clients worldwide in 33 languages, Capgemini’s expertise is recognized in Business Process Outsourcing with a solution portfolio that spans Finance & Accounting, Customer Care & Intelligence, Procurement, Assurance Management and Knowledge Process Outsourcing services. As part of Capgemini’s Rightshore® delivery network, more than 6,000 BPO professionals provide the best service in the best place 365/24/7, according to each customer’s needs, from onshore, nearshore and offshore centers located in Australia, Canada, China, India, Poland, and the U.S. Capgemini has added FAO facilities in Argentina, China and Guatemala.

Recent Deals: SKF USA, International Paper, NXP

Client(s): Blue Scope Steel, Dairy Farm, Danfoss, Hydro One, International Paper, Syngenta, TXU, Zurich Financial Services, SKF USA, and Tetra Pak

Services: General ledger, accounts payable, accounts receivable, cash and asset management, planning and budgeting, management reporting, financial analysis, payroll, order management, tax, and compliance services

Convergys www.convergys.com

Convergys Corporation is a global leader in relationship management—the enterprise-wide practice of optimizing how an organization interacts with its customers and employees to drive more value from those relationships. Through core offerings of customer and HR solutions, Convergys has become a trusted partner to clients around the globe in more than 70 countries providing services in 35 languages. Convergys operates 84 customer contact centers, three data centers and other facilities in the U.S., Canada, Latin America, Europe, the Middle East and Asia.

Recent Deals: Starbucks, Johnson & Johnson, Bouygues Telecom, Cablemas, Midcontinent Cable, Telecom Egypt, Fifth Third Bancorp, U.S. Postal Services, Alltel, Circuit City

Client(s): N/A

Services: Accounts payable, accounts receivable, payroll, financial reporting & risk management, treasury & investment management, tax management, compliance management, customer services & call center management, recordkeeping, accounting & tax administration, trustee services & trust administration

EXL Service www.exlservice.com

EXL, a relatively young player, is becoming a leading end-to-end BPO solution provider. As a pure-play BPO company, EXL has carved a niche for itself with a seasoned management and operations team, who have vast experience in the banking, financial services and insurance segments and provide an unmatched insight and understanding. EXL manages complex transaction processing operations and delivers a broad suite of offerings by combining deep BPO expertise with research and analytics, risk advisory services, and process consulting services. Services span the insurance, banking and financial services, utilities, healthcare and media sectors.

Recent Deals: N/A

Client(s): Norwich Union, Prudential Financial

Services: Finance & accounting, collections, customer service, customer acquisition & retention analytics, credit risk analytics, data mining & integration, collection analytics, SOX compliance assistance, business process mapping, internal audit assistance, technology risk advisory, operational risk advisory, business process re-engineering, business process automation, process quality monitoring, Six Sigma black belt services

Genpact www.genpact.com

Genpact saw 30 to 32 percent revenue growth over 2006—testimony to continued stability for FAO services it supplies to GE, as well as a half-dozen major new clients won during the year. A successful IPO on the New York Stock Exchange (Genpact debuted with the ticker symbol “G” on Aug. 2) increased visibility of the company, which boasts 7,700 Six Sigma-trained green belts and black belts plus 6,000 associates specifically trained in Lean, a process that takes waste out of FAO processes. Genpact splits its services between the BFSI (banking and financial services) industry at 43 percent and manufacturing, also at 43 percent. The remaining 14 percent of clients are in healthcare and businesses services. While India is Genpact’s primary offshore location, delivery centers in China, the Philippines, Eastern Europe, Latin America and the U.S. account for 25 percent of revenues. In December, Genpact consummated its acquisition of 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 management. Known for its progressive people practices, Genpact enjoys one of the highest employee retention rates in the industry.

Recent Deals: Kimberly-Clark, GlaxoSmithKline (U.S.), a major specialty materials company, major automotive components manufacturer, UK industrial automation & controls company, two pharmaceutical majors, a premier hotel brand, an insurance & financial services firm, and global IT commerce company.

Client(s): Wachovia, Linde Group, Kimberly-Clark, and GlaxoSmithKline

Services: Accounts payable, T&E, accounts receivable including order management and invoice-to-cash, general accounting, fixed assets, payroll, financial planning and analysis, budgeting/forecasting, treasury & tax, and internal audit. In addition, the company has a re-engineering practice comprised of Six Sigma black belts that it makes available to FAO 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 4 percent). As is the case with many FAO providers, HP has strong IT roots supporting its BPO operations. As the biggest technology company in the world, HP’s FAO unit is just a small part of the overall business. Nevertheless, the company has plans to quickly grow the business. In addition, it recently expanded its F&A contract with Nestle into the HRO domain by taking on payroll and other services. As a global provider, HP has delivery centers in China, Costa Rica, India, Mexico, Poland, Romania, Singapore, and Spain.

Recent Deals: Nestle

Client(s): Procter & Gamble, Nestle, the Gillette Company, Syngenta

Services: Accounts payable, accounts receivable, payroll, general accounting & indirect procurement, financial reporting & risk management, treasury & investment management, tax management, compliance management, customer services & call center management, recordkeeping, accounting & tax administration, procurement

IBM www.ibm.com

Big Blue commands a 23 percent share of global enterprise deals, according to Everest Research Institute (in terms of ACV, according to Everest Group’s Global FAO supplier landscape chart from June 2007—the most recent it has issued). In North America, its lead is commanding, with a 35 percent share. However, in both segments, IBM has seen its share eroded by new entrants to the market, as well as greater competition from existing suppliers. One of the strengths of IBM as an FAO provider is a large global footprint that boasts more delivery centers than anyone else in this market segment. Facilities are located in Argentina, Canada, China, Hungary, India, Ireland, Malaysia, the Netherlands, the Philippines, Poland, Portugal, Slovakia, and the U.S. It employs some 6,000 in its FAO practice. IBM offers innovative, technology-enabled solutions that provide clients a continuous path of innovation over the life of their contract. This year, IBM announced plans to acquire Cognos, a Canadian-based business software company focused on business intelligence and performance management. This acquisition builds on IBM’s already extensive BI and planning offerings to F&A clients. The acquisition is expected to close in Q1 08. Other key past acquisitions include a 2005 purchase of Equitant, an order-to-cash service provider.

Recent Deals: Unilever, Colgate Palmolive

Client(s): Omron Corp., Eastman Kodak, Unilever, Coats, BP, Marathon Oil, Williams, Lam Research, Dun & Bradstreet

Services: Transactional processes (accounts payable and T&E, accounts receivable, general accounting, fixed assets, payroll, and tax) and value-added processes (management reporting and analysis and internal audit).

Infosys BPO www.infosys.com/bpo

Infosys BPO Ltd., the business process outsourcing subsidiary of Infosys Technologies, was set up in April 2002. Today, it is recognized as amongst the leading BPO firms in the world by NASSCOM, Dataquest, the International Association of Outsourcing Professionals, Red Herring, FAO Today, NelsonHall and others. Infosys BPO focuses on integrated end-to-end outsourcing and delivers transformational benefits to its clients through reduced costs, ongoing productivity improvements, and process reengineering. Infosys BPO operates in India, Czech Republic (Brno), China (Hangzou), Philippines (Manilla), Polland (Lodz), Thailand (Bangkok), Mexico (Monterry) (three of which were purchased late last year as part of its landmark deal with Philips Electronics) and employs approximately 15,000 people. Its client roster includes a U.S. media conglomerate, an oil and gas company, a software reseller, and others. Additional outsourced services provided by Infosys BPO include procurement, knowledge process outsourcing, procurement, and order management.

Recent Deals: Phillips Electronics

Client(s): N/A

Services: Accounts payable, accounts receivable, collections and credit management, billing and invoicing, fixed assets, intercompany accounting, general ledger, finance planning and analysis

Outsource Partners International (OPI) www.opiglobal.com

An up-and-coming provider with a strong offshore component, OPI has the advantage of being a low-cost FAO service provider that comes from a big accounting firm lineage. The company was born out of KPMG LLP’s Business Process Outsourcing (BPO) division and itAccounts, a finance and accounting business process outsourcing company. Even though OPI was formed in 2002 when the two companies merged, KPMG’s BPO group began in the outsourcing space in 1997. The merger with itAccounts then added an established offshore F&A outsourcing facility in Bangalore, India. Although it services multibillion-dollar clients, OPI has mostly a mid-market bent, catering to businesses as small as $100 million in revenues. It also straddles many verticals, including service, manufacturing, financial services, technology/telecommunications, energy, logistics/transportation, hotel/restaurant, retail, and non-profit. Privately held, OPI’s investors include Cargill Ventures, Trident Capital, and Winston LP. OPI has more than 2,000 professionals operating in its offices throughout the United States, Europe and India.

Recent Deals: In 2007, OPI added nearly 30 new clients across more than 10 industries.

Client(s): Service Corp. International, Trinity Industries, and Mirant Corporation. OPI’s representative clients range in size from $100 million to multibillion-dollar organizations and operate in a broad range of industries including financial services, manufacturing, services, logistics/transportation, real estate, retail, technology/telecommunications, energy, hotel/restaurant and not-for-profit.

Services: Accounts payable, accounts receivable, payroll, general accounting & indirect procurement, financial reporting & risk management, treasury & investment management, tax management, sourcing & legal, compliance management, customer services & call center management, recordkeeping, accounting & tax administration, trustee services & trust administration, procurement

SourceNet Solutions www.sourcenetsolutions.com

SourceNet, a division of The Bank of New York Mellon’s Treasury Services Group, was founded in 1996 in recognition of a growing demand for outsourcing services. SourceNet's core business focus has been centered on providing best-in-class process and technology solutions within long-term BPO relationships. Early on, this strategy concentrated on the accounts payable process as a basis for establishing a viable business model, attaining a solid client base, and establishing SourceNet as a niche provider of specialized services. It has evolved in parallel with its growth to incorporate a broad range of accounting and payroll BPO services. SourceNet’s broader vision and strategy include continuous evaluation of opportunities to augment its capabilities through existing customer relationships, alliance partnerships, internal product and process development, or acquisition. Its objectives for pursuing this strategy continue to be driven by a desire to provide best-in-class services and solutions that drive real, strategic value to its customers. SourceNet’s proven track record of success and growth is directly related to the depth of knowledge and experience its management and staff bring to its clients’ businesses. Its leadership team comprises highly qualified individuals with a vast array of skill sets and experience in the BPO industry. The company was ranked the No. 1 AP outsourcing vendor on the 2007 Top 50 Best Managed Global Outsourcing Vendors list compiled by the Brown-Wilson Group, authors of The Black Book of Outsourcing.

Recent Deals: N/A

Client(s): Conseco Insurance

Services: Accounts payable management, payroll management, utility bill management, other process management services.

Wipro BPO www.wipro.com

A highly recognized offshored provider of IT services, the company’s BPO services business benefits from its parent company’s technological strength. Key to the BPO offering are three components: business process re-engineering, technology integration, and knowledge services. With 19,500 employees in 11 locations throughout India, China, the Philippines, and Eastern Europe, the company serves the banking and capital markets, insurance, travel and hospitality, technology manufacturing, retail, telecom, and healthcare sectors. Its offerings include F&A, procurement, HR services, legal services, loyalty services, and knowledge services. Wipro has quickly gained momentum in the BPO space considering it entered the market in 2002 with the acquisition of Spectramind.

Recent Deals: Wipro BPO has recently won large deals in the HR, Procurement and F&A lines of business, in addition to significant wins in the travel and healthcare space.

Client(s): Delta Airlines

Services: Order-to-cash (credit management, order management, invoicing, collections, helpdesk, dispute resolution, and banking and cash application); procure-to-pay (purchase order validation, invoice verification, accounts payable, vendor payments, employee T&E, vendor management, reconciliation); plan-to-result (fixed asset accounting, project accounting, general ledger, ledger and balance sheet reconciliations, and cash flow forecasts); compliance reporting (SOX, GAAP, and VAT requirements); and financial analysis and management (analysis, expense monitoring against budget, tax compliance and planning, internal audit, and risk management).

WNS www.wnsgs.com

The offspring of British Airways, WNS, which was initially set up as a captive, is now traded on the New York Stock Exchange as a provider of FAO services to a customer list that has expanded from a base of mostly airline clients to a diversified group spanning numerous industries. During the past five years, the company has grown to a client base of 125 and an employee base of 18,000. Despite this growth, the company had a rather rough year in 2007, with year-end financials showing a 23.1 percent drop from the same time a year ago. The company attributed the decline to appreciation of the Indian Rupee against the U.S. dollar. Since its early days as a one-vertical-trick pony, the company has now captured clients in other industries such as manufacturing and retail, financial services, and others. It signed a notable contract with Church’s Chicken to provide all of its finance and accounting processes for restaurants it owns throughout its worldwide network, including locations in 16 countries and Puerto Rico. (See details of that transaction in the cover story of the November/December 2007 issue of FAO Today.) With the scale represented by 18,000 employees in 14 centers worldwide, and a partnership approach, WNS delivers business value to some of the leading companies in the world. The firm is passionate about building a market leading company valued by its clients, employees, business partners, investors and communities.

Recent Deals: N/A

Client(s): Aviva, British Airways, Centrica, Church’s Chicken, Travelocity

Services: Purchase-to-pay cycle, order-to-cash cycle, account-to-report, banking and treasury cycle, fixed assets cycle, general accounting cycle, and management reporting cycle.