1. Topic: Order-to-Cash (O2C) Outsourcing – Creating a
Top-line Impact
Finance and Accounting Outsourcing
Market Report – January 2013 – Preview Deck
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3. Background and scope of the research
Background of the research
 The Finance & Accounting (F&A) function comprises three end-to-end processes – Procure-to-Pay
(P2P), Order-to-Cash (O2C), and Record-to-Report (R2R). This report focuses on the third-party
outsourcing of O2C activities
 Traditionally, organizations outsourced transactional O2C processes such as Accounts Receivable (AR), as
they provide direct cost reduction. However, with increased maturity of the FAO market, the value
proposition is now expanding beyond cost reduction to creation of favorable business outcomes such as
enhanced customer experience, reduced DSO, optimized working capital, effective cash management, and
reduced revenue leakage. Therefore, buyers are increasingly looking to outsource activities beyond AR and
taking an end-to-end process-driven approach. In this study, we investigate the business value and the
market state of outsourcing end-to-end O2C process
In this study, we investigate the state of the O2C outsourcing market. We focus on:
 Definition, value proposition, and challenges of O2C outsourcing
 O2C outsourcing market size and growth
 Emerging and current solution trends
 O2C service provider landscape and capability assessment
Scope of study and sources of information
 The scope of this report is non-voice based third-party O2C outsourcing
 The scope excludes internal shared services
 The report is based on Everest Group’s proprietary database of over 1,500 FAO contracts signed till
mid-2012 and operational capability of more than 25 FAO service providers that offer O2C services
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4. Table of contents (page 1 of 2)
Topic Page no.
Background and scope 5
Summary of key messages 6
Section I: O2C market overview 11
 Summary 12
 Definition and process map 13
 Typical operational cost breakdown for F&A 16
 Value proposition of O2C outsourcing 17
 Unique O2C challenges and best practices 20
 Industry specific O2C 21
Section II: O2C outsourcing market size and solution trends 23
 Summary 24
 Size and growth of O2C outsourcing 26
 Adoption trends by industry, geography, and size 27
 Inclusion of O2C activities in FAO contracts 29
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5. Table of contents (page 2 of 2)
Topic Page no.
Section II: O2C outsourcing market size and solution trends (continued)
 O2C solution trends 30
– Process scope 30
– Global sourcing 32
– Technology 35
– Pricing 37
– Performance indicators 39
Section III: O2C outsourcing service provider landscape 40
 Summary 41
 O2C service provider landscape 42
 Delivery strength and footprint for O2C providers 43
 Investments in O2C services 48
 Emerging trends in O2C 50
Appendix 51
 Glossary of terms 52
 FAO research calendar 54
 References 55
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6. Overview and abbreviated summary of key messages
This report provides a comprehensive coverage of the O2C outsourcing market and analyzes it across various
dimensions such as market overview, value proposition and key challenges, buyer adoption trends, solution
characteristics, and service provider landscape.
Some of the findings in this report, among others, are:
Market  O2C outsourcing has a strong cost+ value proposition. It enables enterprises to
overview, value address several business pain-points such as inefficient cash flow
proposition and key management, revenue leakages (bad debt), and receivable management
challenges  O2C outsourcing has some specific underlying issues arising from inter-functional
dependencies, industry-specific requirements, disparate technological landscape, and
direct exposure to end customer
Buyer adoption  O2C inclusion across all customer segments (by geography, industry, and size) is high,
trends though end-to-end coverage is low
Solution  While most O2C outsourcing contracts continue to be AR-focused, an end-to-end O2C
characteristics scope is an emerging trend
 Technology augmentation is a more prevalent approach in O2C vis-à-vis platform-
based approach
Service provider  The service provider landscape for O2C outsourcing is diverse, spanning global
landscape majors, BPO pure-plays, IT-BPO providers, and O2C specialists
 There are three key themes of recent service provider investments in O2C capabilities:
1) technology & analytics; 2) onshore/offshore delivery expansion; and 3) overall
capability enhancement
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7. This study offers four distinct chapters providing a deep dive
into key aspects of the O2C outsourcing market; below are
four charts to illustrate the depth of the report
End-to-end O2C scope O2C market size and growth
Quote-to-order Production Order fulfillment Billing/Invoicing to AR
(Sales function) (Manufacturing) (Supply chain (Finance & accounting function) FAO market size by process
function) Annual Contract Value (ACV) in US$ billion Projected CAGR
Inquiry Scheduling
Quotation Manufacturing Logistics
3 Dispute
1 2
Order resolution &
Billing
management deduction
Order-to-cash
management
R2R
Invoice-to-cash
Order-to-invoice
5 4 O2C
Accounts Aging &
receivable collections
P2P
6
Analytics & reporting
2011 2015 (Expected)
Delivery footprint of O2C outsourcing O2C service provider delivery strength
Relative maturity of O2C delivery centers O2C delivery strength and focus
Percentage of service providers providing O2C services from the delivery location
Focus on O2C (as % of FAO FTEs)
Number of
India
O2C FTEs >80% 60-80% 40-60% 20-40% <20%
Offshore South East Asia
 Company A  Company H  Company J
locations
China Over 1,500  Company B  Company I  Company K
 Company C  Company L
Middle East / Africa
 Company D  Company N
Nearshore LATAM 500-1,500  Company O
locations
Eastern Europe
 Company E  Company M  Company P  Company S
North America Less than  Company F  Company Q  Company T
Onshore
locations 500  Company G  Company R  Company U
Western Europe
Market average =
Source: Everest Group (2013)
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8. 2012 FAO research agenda
Published Current
Topic Release date
FAO Service Provider Compendium July-2012
The Paradox of FAO adoption in SMBs July-2012
Record-to-Report (R2R) Outsourcing – Moving Beyond General Accounting October-2012
Order-to-Cash (O2C) Outsourcing – Unlocking the Revenue Potential January-2013
Unlocking Value From End-to-End Process Outsourcing: Focus on Procure-to-Pay (P2P) Q1-2013
FAO Annual Report Q1-2013
FAO Service Provider Landscape – Survival and Growth in the Crowded FAO Market Q2-2013
FAO Service Provider Compendium Q2-2013
Is there value in analytics as a stand-alone BPO segment? Q3-2013
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9. Additional FAO research references
The following documents are recommended for additional insight on the topic covered in this report. The recommended documents either
provide additional details on the topic or complementary content that may be of interest
1. Finance and Accounting Outsourcing (FAO) Annual Report 2012: The FAO Market – Signaling Towards Maturity (EGR-2012-1-R-0680a); 2012.
In this research, we review the global multi-process FAO market in 2011 and provide guidance on the market’s direction in 2012. We focus on market
size and buyer adoption trends, FAO value proposition, contract characteristics across process scope, technology, global sourcing, pricing
structures, and FAO service providers landscape covering service providers’ market shares and areas of investments
2. FAO Service Provider Landscape – Survival and Growth in the Crowded FAO Market (EGR-2012-1-R-0699a); 2012. In this study, we analyze the
global FAO service provider landscape in 2012. We focus on the position of 20+ service providers on the Everest Group PEAK Matrix for FAO, the Star
Performers, and how service providers are innovating to differentiate themselves in an increasingly globalized FAO market
3. Record-to-Report (R2R) Outsourcing – Moving Beyond General Accounting (EGR-2012-1-R-0754); 2012. This report analyzes the key trends in
R2R outsourcing within the FAO market and provides an understanding of the business value, adoption characteristics, and service provider capability
in R2R outsourcing
4. Leveraging BPO to Drive Success in Utilities and Retail Energy Providers (EGR-2012-1-R-0658); 2011. Outsourcing (Meter-to-Cash) M2C
processes is one of the options available to utilities and retail energy providers who are facing myriad and rapidly evolving challenges in the market
place. This report examines the benefits of outsourcing M2C, and the considerations necessary to develop a long-term and constructive client-service
provider partnership
5. Industry-specific FAO and Deep Dive into the U.S. Healthcare Providers (EGR-2012-1-R-0650); 2012. This report provides an understanding of
the need for industry-specific FAO, service provider investment themes in industry-specific FAO, and a deep dive into the U.S. healthcare providers
market
For more information on this and other research published by Everest Group, please contact us:
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Vishnu Khandelwal, Senior Analyst: vishnu.khandelwal@everestgrp.com
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