FandA outsourcing matures to meet European needs
Finance and accounting outsourcing (FAO) has matured, and is moving beyond just labor arbitrage. But will a focus on strategic benefits and process improvements be enough to tempt European companies – whose employment and language issues have deterred them in the past – into widespread adoption of FAO?
SUMMARY
Impact
Ovum view
Key messages
EUROPE RIVALS THE US AS AN OUTSOURCING MARKET
Europe gained ground in a slow market in 2009
Global FAO signings hiatus?
THE EVOLUTION OF FAO
Moving on from “lift and shift”
Customers are savvier
Becoming a strategic partner
Moving to outcome-based pricing
Standardization
Decoupling language skills from processes
Employee regulations
THE EUROPEAN FAO MARKET
Overview
Germany
France
The Nordics
The Netherlands
Case study – Infosys and Philips
RECOMMENDATIONS
Recommendations for enterprises
Track current costs
Factor in cost of employee lay-offs
Choose vendor for long-term relationship
Recommendations for suppliers
Support clients through lay-off process
Push process and technological capabilities not just labor arbitrage
Target vendors with shared service centers in nearshore locations
Target vertical areas
Alternative views
APPENDIX
Further reading
Methodology
Impact
Ovum view
Key messages
EUROPE RIVALS THE US AS AN OUTSOURCING MARKET
Europe gained ground in a slow market in 2009
Global FAO signings hiatus?
THE EVOLUTION OF FAO
Moving on from “lift and shift”
Customers are savvier
Becoming a strategic partner
Moving to outcome-based pricing
Standardization
Decoupling language skills from processes
Employee regulations
THE EUROPEAN FAO MARKET
Overview
Germany
France
The Nordics
The Netherlands
Case study – Infosys and Philips
RECOMMENDATIONS
Recommendations for enterprises
Track current costs
Factor in cost of employee lay-offs
Choose vendor for long-term relationship
Recommendations for suppliers
Support clients through lay-off process
Push process and technological capabilities not just labor arbitrage
Target vendors with shared service centers in nearshore locations
Target vertical areas
Alternative views
APPENDIX
Further reading
Methodology
LIST OF TABLES
Table 1: FAO market evolution
Table 1: FAO market evolution
LIST OF FIGURES
Figure 1: Volume of publically announced FAO contracts by signing region, 2005-2009
Figure 2: FAO market by geography in 2009
Figure 1: Volume of publically announced FAO contracts by signing region, 2005-2009
Figure 2: FAO market by geography in 2009
