HfS Network

Monthly Archives: Apr 2016

Accenture, Genpact, IBM, EXL, TCS, Capgemini and WNS lead the first As-a-Service lens of Finance and Accounting

April 24, 2016 | Phil Fersht

Growth in offshore-dominated services may be slowing for traditional IT support services, but for multi-process Finance and Accounting (F&A) services engagements, 2015 saw the market continue to grow at  a 10% clip.

Why? Because F&A outsourcing is about 10 years behind IT outsourcing - in terms of adoption - and is a market that can quickly take advantage of more experienced governance executives, capable service providers that have ironed out many of their past mistakes, and notable advances in analytics, robotic process automation (RPA) and digital technologies.

In short, the shift from enterprise clients approaching F&A engagements largely as a labor-obsessed cost-driven solutions towards outcomes-centric value-obsessed solutions, is now really happening. Yes, we're finally starting to talk about F&A being delivered "As-a-Service".  To this end, for 2016's F&A Blueprint, which covers over 1500 multi-process F&A relationships, we've reoriented the performance innovation and execution scores to reflect each service provider's alignment with the HfS As-a-Service Ideals:

Click to Enlarge

Click to Enlarge

So, what's new about this year's F&A Blueprint?

We've gone deeper than ever before in really getting to the essence of buyer/provider F&A relationships.  In the past, we were as guilty as the rest of the industry of focusing too much on engagements being operationally effective, when we should have placed even greater emphasis on

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Posted in: Business Process Outsourcing (BPO)Finance & Accounting BPOHfS Blueprint Results

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Rescuing BPO from its trough of directionless boredom: Make jobs challenging and creative

April 17, 2016 | Phil Fersht

Bored BPO CatWhen your enterprise is increasingly dependent on hiring "Millennials" with digital skills and lower wage needs, you'd better figure out a plan for creating exciting, challenging career paths, or you're pretty much already doomed.

Sadly, our Talent in BPO study from last year tells a very depressing tale when you ask BPO delivery executives what they think of their BPO career:

Click to Enlarge

Click to Enlarge

What's alarming is the failure of enterprises to create and communicate a viable BPO career path for seven-out-of-eight professionals with under two years' experience.  And - while 63% of newbies strongly agree their job is vital to business performance, a depressing one-in-eight are actually excited by their career choice.  When people get past the first couple of years, their experience clearly improves, but the concern here is how can we attract top (or even middling) talent into BPO careers, when there is such a negative perception of the potential of the job.  If we can't attract the talent, the industry will never progress beyond a cost/efficiency play.

What can we do to attract the "Digital Generation" into the BPO business?

Start new hires on activities that require creativity and critical thinking. Working in BPO has to be about delivering capabilities beyond rote, operational processes.  Today's college graduates are simply not coming out of school willing to perform mundane routine work.  Just look at the new WEF jobs report to see how skills requirements are quickly shifting, as business needs evolve - especially the need for creative skills, going from number ten to number three in merely five years:

Click to Enlarge

Click to Enlarge

In the past, for example, an accountant would often earn his/her chops processing accounts and doing routine GL work, before progressing to controllership activities, such as budgeting, quality audits, FP&A, forecasting and risk assessment work.  With much better technology and offshoring

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Posted in: 2015 Talent in BPO StudyAnalytics and Big DataBusiness Process Outsourcing (BPO)

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Let's get lean digital with Shantanu

April 15, 2016 | Phil Fersht
Shantanu Ghosh, SVP CFO Services and Consulting, Genpact

Shantanu Ghosh, SVP CFO Services and Consulting, Genpact (Click for bio)

Digital, digital everywhere, but what about the finance function? It took a decade for accountants to make the seismic shift from Lotus 1-2-3 to MS Excel... so how much focus is our favorite business function putting on today's advances in analytics tools, interactive and collaborative solutions, mobility and automation?

Can finance executives really embrace digital to break away from some of the legacy mindsets, processes and technologies that have plagued the function for decades?

Not too many people have been driving the digital agenda as aggressively with the CFO's office than Genpact's Shantanu Ghosh, with his firm's own methodology "lean digital," so we thought it high-time we caught up with him to get his viewpoint on the impact of digital o the finance function.

Phil Fersht, CEO and Industry Analyst, HfS: Shantanu, it's been a couple of years since we've had you on here. Can you tell us a bit about what you're up to in Genpact today?

Shantanu Ghosh, Senior VP & Business Leader - CFO Services and Consulting, Genpact:  Actually, my remit remains pretty similar to what it was two years back. I lead the financial accounting, sourcing and procurement service lines, globally. I also lead consulting across Genpact.

But I'll tell you, the complexities, the scale and the type of solutions involved in all three have changed pretty dramatically in the last two to three years. So it feels like I’m doing a new job every day, even though broadly the remit remains the same.

Phil: I've seen Genpact has been on a real tear, particularly over the last 12 to 18 months. I’ve seen a real uptick, especially in Europe, where you're winning a lot of deals. What's going on? What are you doing differently?

Shantanu: I think there are four things at play, Phil. One, I think it's a result of there or four years of sustained investment in our domain capability and our front-end capability. Obviously, in this business it takes a little bit of time for that to result in winnings in the marketplace, because you have to start engaging with clients at a different level. Then you get into a virtuous cycle, because

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Posted in: Business Process Outsourcing (BPO)Digital TransformationFinance & Accounting BPO

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Twelve ways to survive the race to irrelevance - download your life jacket now!

April 12, 2016 | Phil Fersht

If you weren't able to make our excellent buyers summit at our research partner Cambridge University, we managed to crack the code (finally) on surviving in these disruptive times - in twelve simple steps.  Just download our report and all will become crystal clear:

cambridge-report-promo

Posted in: Business Process Outsourcing (BPO)Digital TransformationHfSResearch.com Homepage

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How digital is transforming finance - Exclusive insights from our latest study

April 08, 2016 | Phil Fersht

75% of finance executives agree that the new wave of digital technologies is fundamentally changing the way that the finance function operates. So what will the finance function of the future really look like?

Join us on April 21st to be part of this exclusive webinar and find out!

Digital Finance Webinar Blog

Join these experts from HfS Research, Genpact, Mondelez and KPMG as they discuss the findings from recent research that shows how digital technologies are delivering competitive advantage. They will share their insight on the future of F&A and explore:

  • What are the key drivers for F&A leaders to embed digital technologies, such as SaaS platforms, analytics, mobility tools, RPA, and machine learning, into their operations?
  • Where are most F&A organizations in their digital journeys and what lessons have they learnt?
  • What are the talent requirements and skill sets that finance leaders need in their functions to take advantage of digital technologies?
  • Where are digital pioneers investing and what challenges are they experiencing?

REGISTER NOW!

Posted in: Analytics and Big DataCognitive ComputingDesign Thinking

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Accenture, Cognizant, EXL, Genpact, IBM, Infosys and TCS Top the Winners Circle for BFS Analytics

April 04, 2016 | Phil Fersht

The BFS industry is completely dependant on data and analytics and the services to provide these analytics are critical. These services enable analytics data preparation and management, routine business intelligence reporting and dashboarding, advanced analytics modeling and ongoing decision-making for industry-specific use cases, including customer and marketing analytics, fraud, risk and compliance, and portfolio analytics.

To this end, we're excited to announce the release of our latest Blueprint Report--this one on BFS Analytics Services, authored by HfS Research Director Reetika Joshi's exhaustive research to arrive at this comprehensive view of the market. So let's get an up-close view from Reetika on the Blueprint Report:

Click to Enlarge

Click to Enlarge

Reetika, why have we undertaken an HfS Blueprint on analytics services specifically in banking and financial services?

The BFS industry is heavily reliant on the use of data, and yet the potential for embedding analytics-driven insights into operations is still far greater than adoption. The last few years have seen their focus on risk analytics intensify as regulatory changes and government scrutiny continue to mount. Along with balancing this growing compliance work, banks have also found a renewed interest in customer analytics to orient their growth initiatives. Most banks are not set up to meet digital consumer needs and are now embarking on digital transformation, powered by customer and marketing analytics.

Major banks and financial institutions are once again focusing on the next generation of analytics models, tools, and skillsets. We see demand from BFS clients across fraud, risk and compliance, AML/KYC, and customer and marketing analytics. Enterprise buyers in this industry are either unable to find the talent they need, for areas like specialized fraud, risk and compliance, or technology platform expertise, or are unable to afford it at the level of scale needed today—leading us to undertake this Blueprint to understand market direction. We see BFS clients trying to balance and complement their internal analytics teams with the global talent access that some service providers can bring them.

Report author Reetika Joshi, HfS Research Director (click for bio).

Report author Reetika Joshi, HfS Research Director (click for bio).

So how would you describe the current state of BFS analytics services?

For most service providers, big data and analytics services are the fastest-growing businesses in their portfolios, with significant revenues coming from BFS clients. This is due to the growing adoption of data-driven decision making within different parts of the enterprise for BFS buyers, and the need for more analytical support than internal staff can support.

Service providers have doubled down on BFS verticalization in their analytics portfolios, turning initial work with clients for analytics modeling and reporting into portfolios of pre-packaged industry-specific use cases and catalogues. As service buyers consistently stress the need for domain expertise from service providers, we see service providers strengthening industry training programs and hiring professionals from BFS industry backgrounds to increase contextual understanding and allowing for more meaningful analysis. We see the types of BFS analytics solutions changing today, with the next level of analytics use case development. BFS analytics services buyers seek the following:

  • The application of cross-vertical learnings to banking, especially from other consumer-facing industries that have progressed in customer experience analytics (e.g., from telecom to retail banking)
  • The incorporation of newer sources of data into existing analytical models to gain new insights into fraud, risk, and marketing (e.g., sensors, geolocation mobile data, and web and social data)
  • The exploration of modern business intelligence and reporting applications and tools, big data infrastructure, and advanced analytics platforms (e.g., cloud-based data warehousing, the mobile delivery of reports, and insights)

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Posted in: Analytics and Big DataBusiness Process Outsourcing (BPO)Buyers' Sourcing Best Practices

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HfS launches new unDigital magazine

March 31, 2016 | Phil Fersht

First Issue Available on Newsstands Now!

Initial Printing of Groundbreaking New Magazine to be Mailed to 200,000 Subscribers

The firm that coined the As-a-Service Economy is now disrupting the analyst industry even further. HfS Research, The Services Research Company, today announced it has launched its most disruptive research offering so far: HfS unDigital Magazine.

This revolutionary publication will challenge the rhetoric and hype currently being stirred up in the IT and BPO services industry, building on the success of the radical blog "Horses for Sources," which will soon be replaced by this cutting-edge print publication. HfS is now taking disruption to an entirely new level...by revitalizing the hallowed glossy magazine. The firm believes people are so tired of relentless social media that bringing back printed words and pictures will change the research game once more.

In announcing the latest development, Phil Fersht, HfS Founder and Industry Analyst, noted that this is not the first time the firm has shaken up the marketplace.

"In 2007, when I created the Horses for Sources blog, people thought I was crazy," said Fersht. "Who would read that? Then, when I started HfS Research a few years later, people became truly concerned for my sanity. Soon after, we created the industry's best summits. Now, with well over a million hits on our sites every year, we have decided to shake things up once again. How can people still doubt us now?"

HfS unDigital Magazine will be available on newsstands around the globe and via subscription to 200,000 existing clients and community members:

unDigital

The first issue of the magazine is printed by Heidelberger Druckmaschinen AG, in Heidelberg (Baden-Württemberg), Germany, on 80lb glossy paper stock, features the following stories:

  • Phil Fersht tells all with his Undisrupted Undigital Experience
  • Dumb and Bummer: Why Artificial Intelligence is all hype
  • Hot News from December 2015Outcome-based pricing is worth the paper it is written on
  • A Labor Arbitrage love-fest with Agony Uncle Charles
  • Design Stinking: HfS sifts through the cheese to get to the real deal
  • De-automating your Back Office the Reuner way

"This is a huge undertaking," Fersht added. "But we know that a lot of our community has grown tired of staring at pixels and yearn for the feel of the printed page once again. Disruption has moved full circle and now we're disrupting back in print. Our clients tell us they miss being able to sit on the loo and flick through pages of their favorite analysts waxing lyrical. Those days are now back... so take your seat and enjoy!"

And of course... this was an:

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Posted in: Absolutely Meaningless Comedy

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