White paper - F&A Transformation with Wrapper Technologies

809 views
688 views

Published on

Datamatics, a global IT and KPO organization focused on delivering smart, next-generation business solutions that help enterprises across the world overcome their business challenges. These solutions leverage innovations in technology, knowledge of business processes, and domain expertise to provide clients a competitive edge.

Published in: Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
809
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
6
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

White paper - F&A Transformation with Wrapper Technologies

  1. 1. WHITEPAPER F&A TRANSFORMATION WITH WRAPPER TECHNOLOGIES A White Paper by: Ajay Khattar & Sushil Nimkar December, 2012www.datamatics.com Copyrights © 2012 Datamatics Global Services Ltd. All rights reserved. 1
  2. 2. Table of Contents Executive Summary ............................................................................... 3 Wrap-Around Approach ........................................................................4 Wrap-Around Success .......................................................................... 5 Conclusion ................................................................................................ 7 About the Authors .................................................................................. 8 About Datamatics Global Services ................................................... 8www.datamatics.com Copyrights © 2012 Datamatics Global Services Ltd. All rights reserved. 2
  3. 3. Executive Summary Finance & Accounting Outsourcing (FAO), historically, has never really been a technology intensive service. Typically, the formula for success has been executing repetitive tasks manually by developing efficient processes. Outsourcing has evolved a lot over the last decade with service providers looking to go beyond delivering cost savings to delivering value to customers. In this journey of transformation, infusion of technology has enabledFAO service providers innovation and continuous improvement. A growing number ofare adopting either a suppliers are leveraging IT enablement for FAO engagements.technology Areas such as data security, ERP architecture & integrationaugmentation continue to be on the radar for decision makers, particularly forapproach or platform- mid-market companies where preference is inclined towardsbased outsourcing standard solutions.model Through our several platform based FAO engagements, we have seen that strategic technology investment enables both process optimization and long term value. In the last few years the role of technology has moved on from a typical “tie-and-run” model to an “augmentation” model. A 2011 report from Everest Group suggested that technology augmentation was the new “normal”. Reports show that nearly 45 percent of the new contracts included add-on technology solutions such as workflows, interfaces, document digitization, business intelligence tools, user portals / dashboards and project management modules. FAO service providers are adopting either a technology augmentation approach or platform-based outsourcing model. Year 2011 saw a significant increase in adoption of platform- based FAO solutions among customers, primarily in the mid- market and SMB segment (revenue < US$5B). By augmenting capabilities to provide technology enabled solutions and consulting in addition to transactional business processes, FAO service providers are addressing value addition to business in a big way.www.datamatics.com Copyrights © 2012 Datamatics Global Services Ltd. All rights reserved. 3
  4. 4. Wrap-Around Approach Replacing legacy systems is a time consuming and expensive exercise for organizations and this often becomes a roadblock for service providers. When replacement of the legacy system is not feasible, a wrapper of new technology is developed around legacy system, to enable integration with existing infrastructure. This ensures integration of technology solutions with customers’ existing F&A systems is additive and not disruptive. MostTo ensure that enterprises opting for incremental transition towards FAO areintegration of considering suppliers who have the capability to manage data andtechnology solutions workflow across disparate legacy systems.with customers’existing F&A systems With the widespread use of embedded web services technologyis additive and not and the onset of the Service-Oriented Architecture (SOA), indisruptive, a wrapper of particular the BPEL (Business Process Execution Language)new technology is workflow engine, organizations are now effectively managingdeveloped around their F&A business processes across customers, suppliers, andlegacy system third-party applications. Many organizations are choosing to break down their business processes into manageable web services (such as “customer setup,” “deduction calculation,” and “invoice creation” in the order-to-cash cycle) rather than overhaul the entire F&A function. The wrap-around approach is gaining popularity, particularly with large FAO buyers seeking an incremental transition towards their ideal FAO end-state. With this approach, suppliers are able to provide value-added functionalities such as integrated view of company data and working capital reduction with reduced process complexity. Adoption of wrap–around solutions that dovetail with buyers’ existing systems are fast proving to be the most desirable route for F&A transformation.www.datamatics.com Copyrights © 2012 Datamatics Global Services Ltd. All rights reserved. 4
  5. 5. Wrap-Around Success Introduction of standardized automation that complement existing ERP systems, in a shared services or an outsourced environment help deliver business outcomes that are measurable and tangible. Data from an HfS report illustrates that a majority of F&A BPO engagements require some form of IT-enablement, especiallyWrapper technologies smaller scale engagements with middle-market clients. In suchwith intelligent engagements, the buyers leverage the outsourcing initiative tofeatures are helping upgrade their platform or have the service provider introduce theirorganizations migrate own “wrap-around” application layer with pre-developedsuccessfully to a optimized workflows. Wrapper technologies with intelligentshared services features are helping organizations migrate successfully to aenvironment with an shared services environment with an OPEX based business model.OPEX based businessmodel IT-enablement increasingly dominating mid-sized BPO engagements Financial System Strategy with existing F&A BPO engagements 120% New System 22% 21% Implemented 24% 100% Existing Sytem 23% 34% 46% Upgraded/Enhanced 80% No Change to F&A 60% 52% System 44% Enterprises are taking 34% 40% advantage of technology “wrap-around” layers to 20% enable better integration of data in an outsourced environment. 0% Large F&A BPO Mid sized F&A Small F&A BPO Engagements: BPO Engagements: 75+ FETs Engagements: <30 FETs 30-75 FETs Source: HfS Resource, 2011www.datamatics.com Copyrights © 2012 Datamatics Global Services Ltd. All rights reserved. 5
  6. 6. How These Wrapper Technologies Work? Pre-Automation Post-Automation REALTIME VISIBILITY STATIC VISIBILITY TOMATION AUFor organizations INPUT ERP OUTPUT INPUT ERP OUTPUTlooking to outsourceF&A, technologywrappers are not just DOWNSTREAM MANUAL ANALYSIS READYgood-to-have ANALYTICAL REPORTSanymore; they aremust-haves HfS has predicted that there will be a surge in hybrid IT-BPO engagements where service providers will offer wrapper technology applications to enhance process standardization for buyers. Report further suggests that more than 50% of buyers will either enhance or replace their existing F&A IT systems in conjunction with their BPO engagement. For organizations looking to outsource F&A, technology wrappers are not just good- to-have anymore; they are must-haves.www.datamatics.com Copyrights © 2012 Datamatics Global Services Ltd. All rights reserved. 6
  7. 7. Conclusion This white paper establishes that the industry is positioned for a major technology transformation, one that is poised to deliverTo derive value beyond high value in FAO engagements. To derive value beyond traditionaltraditional drivers drivers such as cost reduction in the FAO marketplace, supplierssuppliers will use will use technology to enable better integration and quicken thetechnology to enable transition from buyer to supplier.better integration andquicken the transition The future of wrapper technology lies in development of holisticfrom buyer to supplier technology in the form of virtual or real multi-client platforms that can open up a new dimension of value provision for the supplier by leveraging scale and best practices.www.datamatics.com Copyrights © 2012 Datamatics Global Services Ltd. All rights reserved. 7
  8. 8. About the Authors Ajay Khattar Global Head-F&A Solutions Ajay drives our FAS practice and lead the function globally across all locations in India, U.S, UK & Europe. Ajay holds a Bachelor’s degree in Computer Science from the University of Delhi as well as a Master’s degree in Computer Applications from Institute of Management Technology (Ghaziabad) and an Executive MBA from Indian Institute of Management, Bangalore. Sushil Nimkar Sales Head-F&A Solutions (India) Sushil is focusing on F&A engagements in India enabling organizations to extract value out of outsourcing. Sushil holds Masters in Marketing Management from Mumbai University and Post Graduation in Advance Computing from CDAC.About Datamatics Global Services Global Information Technology (IT) & Knowledge Process Outsourcing (KPO) organization Delivers smart, next-generation business solutions Trusted partner to several Fortune 500 companies Capabilities built around technology, domain expertise & knowledge of business processes Featured amongst the Global Services 100 List in 2010 & 2011 Decades of global experience having executed projects across 60 countries 2 Alliances with global technology leaders such as Microsoft, IBM & EMC Certified for SEI CMMI Level 3 V1.3, ISO 27001:2005 ISO 9001:2008 SSAE 16 compliant processes Global presence: U.S, UK, Germany, Switzerland, Bosnia, Australia, Singapore & IndiaTo know more, connect with us on business@datamatics.comwww.datamatics.com Copyrights © 2012 Datamatics Global Services Ltd. All rights reserved. 8

×