Introduction

The global multi-process FAO market witnessed a healthy growth of 10% in 2012, showing signs of a mature and stable market. Beyond cost reduction, process improvement, standardization, and scalability/flexibility also drove FAO adoption, emphasizing a cost+ value proposition. Moreover, adoption moved beyond the traditional geographies to cover under-penetrated markets as well. With the market maturing, the competitive intensity is at an all-time high. As a result, it is becoming difficult to differentiate service providers purely based on delivery capability. Service providers are, thus, making investments across various areas to create innovative FAO solutions and offer differentiated value proposition, in order to stand out in the crowded FAO market.

In this research, we analyze the global FAO service provider landscape in 2012. We focus on:

• Position of 20+ service providers on the Everest Group PEAK Matrix^TM for FAO
• 2013 Star Performers
• Key insights on PEAK dimensions
• Emerging service provider trends
• Implication for buyers and service providers

Scope and methodology

• Third-party multi-process FAO deals with a minimum of two F&A processes, over US$1 million in ACV, and a minimum contract term of three years
• Over 800 multi-process FAO deals signed as of 2012
• Coverage across 20+ FAO service providers with multi-process capability including Accenture, Aditya Birla Minacs, Aegis, Capgemini, Cognizant, Datamatics, EXL, Genpact, HCL, HP, IBM, iGATE, Infosys, IQ BackOffice, NCO, Quatrro, Serco, Steria, Sutherland Global Services, TCS, Tech Mahindra, Wipro, WNS, Xchanging, and Xerox

Content

This report examines the dynamics of the global FAO service provider landscape and its impact on the FAO market. In this report, based on comprehensive Everest Group PEAK Matrix, each of the 20+ FAO service providers are categorized into Leaders, Major Contenders and Emerging Players. In addition, 2013 FAO Star Performers are selected based on their top-quartile performance in market success and delivery capability enhancement. This report also provides detailed analysis on market success and FAO delivery capability (across scale, scope, technology, delivery footprint, and buyer satisfaction dimensions) for service provider categories. Additionally, it provides details of the various areas in which service providers are investing to stand out in the crowded FAO market.

Some of the key findings of this report are:

• Based on Everest Group’s comprehensive evaluation framework, PEAK Matrix, the 20+ established FAO service providers evaluated are segmented into three categories – Leaders, Major Contenders, and Emerging Players
• The competitive intensity in FAO is all-time high – there are now six service providers in the Leaders category and several Major Contenders are further closing the gap with Leaders
• Everest Group identified five service providers as the “2013 FAO Market Star Performers” based on the relative year-on-year movement of each service provider on the PEAK Matrix
• We assessed the overall FAO capability of service providers by evaluating them along six dimensions – 2012 market success and wins, scale, scope, technology, delivery footprint, and buyer satisfaction levels
• While the gap between the Leaders and Major Contenders is diminishing across each of the above dimensions, Emerging Players continue to lag behind across most parameters
• The competition in the FAO service provider landscape is intensifying. As a result, in 2011-2012, FAO service providers made significant strategic investments across various dimensions to differentiate themselves in the crowded FAO market