This document provides an overview and preview of a report on Procure-to-Pay (P2P) outsourcing trends. It finds that P2P typically accounts for nearly a third of F&A and procurement costs. An end-to-end P2P outsourcing approach can provide 70-75% additional savings over accounts payable outsourcing alone. The report will analyze the P2P outsourcing market size and growth, adoption trends, emerging solutions, and key service provider capabilities. It uses Everest Group's proprietary data on over 1,000 FAO and 300 PO contracts to examine P2P outsourcing market characteristics and direction.

1. Topic: Procure-to-Pay (P2P) Outsourcing –
Unlocking Value from End-to-End Process Outsourcing
Finance & Accounting Outsourcing (FAO) and
Procurement Outsourcing (PO)
Report: February 2013 – Preview Deck
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EGR-2013-1-PD-0819a

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3. Background and sources of information
Background of the research
 The Finance & Accounting (F&A) and Procurement functions comprise three end-to-end processes –
Record-to-Report (R2R), Order-to-Cash (O2C), and Source-to-Pay (S2P). This report focuses on third-party
outsourcing of P2P activities – the downstream process within S2P
 With increasing maturity of the FAO and PO markets, FAO contracts are expanding upstream beyond
Accounts Payable (AP), while PO contracts are expanding downstream beyond S2C to include broader
scope of P2P activities. This is resulting in increased convergence between the FAO and PO markets. Such
an end-to-end process-driven approach to outsourcing as opposed to the existing piecemeal and functional
approach is unlocking more value creation opportunities
In this study, we investigate the market state of P2P outsourcing. We focus on:
 Definition, value proposition, and challenges of P2P outsourcing
 P2P outsourcing market size and growth
 Emerging and current solution trends
 P2P service provider landscape
Scope of the study and sources of information
 The scope of this study is third-party outsourcing and does not include internal shared services
 The study provides global and cross-industry coverage of P2P outsourcing
 The study is based on Everest Group’s proprietary database of over 1,000 FAO contracts and over 300 PO
contracts signed till the end of 2011, and operational capability of 25 service providers who offer P2P
services
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4. Table of contents (page 1 of 2)
Topic Page no.
Background and sources of information 5
Summary of key messages 6
Value proposition of P2P outsourcing 9
 Summary 10
 Definition 11
 Value proposition 14
 Typical challenges 17
P2P outsourcing market size and solution trends 18
 Summary 19
 Size and growth 20
 Adoption trends by industry, geography, and size 22
 P2P inclusion 23
 Degree of offshoring 26
 P2P delivery locations 27
 Role of technology 28
 Service levels and performance metrics 30
 Pricing models 31
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5. Table of contents (page 2 of 2)
Topic Page no.
P2P outsourcing service provider landscape 32
 Summary 33
 Service providers classification 34
 Scale as per FTEs 35
 Delivery footprint 38
 P2P investment themes 39
Appendix 43
 Glossary of key terms used in the report 44
 FAO research agenda 46
 PO research agenda 47
 Additional FAO and PO research references 48
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6. Overview and abbreviated summary of key messages
This report analyzes the key trends in P2P outsourcing within the FAO and PO market. It provides an
understanding of the business value, adoption trends, solution characteristics, and service provider capability
in P2P outsourcing.
Some of the findings in this report, among others, are:
Value proposition  The P2P process typically accounts for nearly a third of the overall F&A and
and key challenges procurement operational costs
 An end-to-end P2P outsourcing approach also poses some unique challenges
such as multiple stakeholders, technology fragmentation, and a more complex
scope definition beyond common BPO challenges, given the overlap with both
procurement and finance functions
P2P outsourcing  Technology is playing an increasingly important role in P2P outsourcing. Beyond
solution trends add-on tools, several platform-based / BPaaS solutions are emerging
 India has emerged as the main offshore hub for P2P delivery. However, an
onshore-nearshore-offshore blend is emerging
P2P outsourcing There are three emerging themes of service provider investments related to P2P
service provider outsourcing:
capability  BPaaS- / Platform-based solutions
 Analytics
 Expansion from P2P to broader S2P capabilities
Copyright © 2013, Everest Global, Inc.
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7. This study offers three distinct chapters providing a deep dive
into key aspects of the P2P outsourcing market; below are
four charts to illustrate the depth of the report
Expected savings from the end-to-end P2P outsourcing P2P market size
70-75% additional savings over AP outsourcing by leveraging an end-to-end FAO & PO market size by process Projected CAGR
process driven approach for P2P ACV in US$ billion
AP outsourcing savings from cost
arbitrage and process efficiency
Savings by outsourcing other P2P
activities including greater
compliance S2C
R2R
Additional business impact due to
an end-to-end approach
O2C
Total savings from integrated P2P P2P
100%
approach
2011 2015
P2P outsourcing service provider landscape P2P outsourcing global footprint
1. End-to-end P2P providers P2P outsourcing delivery locations
with credible F&A and
procurement offerings Central and Eastern Europe
 Primarily leveraged as nearshore
locations for Western Europe
2. FAO 3. PO providers North America and Western Europe  Leveraged for sourcing support and
 Onshore locations for client facing roles
providers focused  Leveraged local market knowledge for
day-to-day purchasing
China
 Sourcing support and upstream P2P
focused primarily on upstream P2P activities
and S2C activities
Western Europe
primarily on upstream P2P Central & Eastern Europe  Also supporting Japanese and
Nottingham Korean markets
AP services services Glasgow Wroclaw
Preston Lodz
London Krakow China &
North America Troy Southeast Asia
Prague Budapest
Detroit
India Dalian
San Jose Richmond
Atlanta Shanghai Hangzhou
Gurgaon Noida
Guangzhou
Mexico city Mumbai Pune
Central & South America Bangalore Chennai Manila
Central and South America
 Primarily leveraged as nearshore Belo Horizonte India
locations for U.S. Sao Paulo  Offshore hub and the most mature
 Domestic LATAM market also delivery region for P2P
emerging  Leveraged for providing end-to-end P2P
 Leveraged for sourcing support and services
day-to-day purchasing
Source: Everest Group (2013)
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8. 2013 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 – Creating a Top-line Impact January-2013
Procure-to-Pay (P2P) Outsourcing – Unlocking Value from End-to-End Process Outsourcing February-2013
FAO Annual Report Q1-2013
FAO Service Provider Landscape Q2-2013
FAO Service Provider Compendium Q2-2013
Role of Analytics in FAO Q3-2013
Growth of Horizontal BPO in LATAM Q3-2013
Implications of IFRS Conversion in the United States on FAO Q4-2013
Evaluation of BPaaS Solutions for FAO/PO Q4-2013
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9. 2013 PO research agenda
Published Current
Topic Release date
PO Service Provider Landscape – Investing in Building Expertise July-2012
PO Service Provider Profile Compendium August-2012
Procure-to-Pay (P2P) Outsourcing – Unlocking Value from End-to-End Process Outsourcing February-2013
Expansion of PO Into Broader Supply Chain Q1-2013
From Strategic Sourcing to Contracting – Source-to-Contract (S2C) a High Value Driver in PO Q1-2013
PO Annual Report Q1-2013
Sourcing Contingent Workforce – Rise of MSP model Q2-2013
PO Service Provider Landscape Q2-2013
PO Service Provider Profile Compendium Q2-2013
The Rise of Procurement and HR Collaboration – Effectively Managing HR-spend Q3-2013
Growth of Horizontal BPO in LATAM Q3-2013
Evaluation of BPaaS Solutions for FAO/PO/HRO Q4-2013
Tail-end Spend Management Q4-2013
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10. Additional FAO and PO research references
The following documents are recommended for additional insight into the topic covered in this report. These 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). 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. Procurement Outsourcing (PO) Annual Report 2012: The PO Market – Steadily Marching Forward (EGR-2012-1-R-0683a). This
report provides an overview of the overall PO market in 2011, including the size and growth of the market, adoption trends, contract
characteristics, value proposition, service provider landscape, and market outlook for 2012
3. Record-to-Report (R2R) Outsourcing – Moving Beyond General Accounting (EGR-2012-1-R-07054); 2012. This report looks at
outsourcing of the judgment intensive F&A processes, Financial Planning & Analysis, regulatory reporting and compliance. Record-to-
Report, Order-to-Cash, and Procure-to-Pay cover the entire F&A function as three end-to-end processes
4. Order-to-Cash (O2C) – Unlocking the Revenue Potential (EGR-2013-1-R-0816); 2013. Similar to the R2R report, this report looks at
outsourcing a separate end-to-end F&A process called Order-to-Cash, covering mostly the transactional activities within the function on
the customer side
For more information on this and other research published by Everest Group, please
contact us:
Saurabh Gupta, Vice President: saurabh.gupta@everestgrp.com
Abhishek Menon, Practice Director: abhishek.menon@everestgrp.com
Vikas Menghwani, Analyst: vikas.menghwani@everestgrp.com
PO Team: POresearch@everestgrp.com
Everest Group
Two Galleria Tower Phone: +1-214-451-3110
13455 Noel Road, Suite 2100 Email: info@everestgrp.com
Dallas, TX 75240
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