The global FAO market witnessed strong growth of 8-10% in 2016, driven primarily by an increase in first-generation outsourcers, inclusion of technology solutions, and scope expansion. Many F&A buyers that have achieved the traditional cost saving benefits of outsourcing are now expecting service providers to be their strategic partner, to provide digital-led transformative solutions. To meet buyers’ demands, service providers are investing heavily in next-generation F&A technology levers, such as Robotic Process Automation (RPA), analytics, artificial intelligence, cloud, and blockchain. While some service providers continue to adopt an organic approach of building capabilities in-house, some providers took the inorganic approach to reduce time-to-market and to survive evolutionary trends. In this study, we analyze the global multi-process FAO market in 2016. We focus on: The FAO market overview Buyer adoption trends Value proposition and solution dynamics Service provider landscape The scope of the analysis includes: Third-party FAO deals Over 1,150+ multi-process FAO deals signed as of 2016, with a minimum of two F&A processes, and over US$1 million in ACV Coverage across 25+ FAO service providers with multi-process capability including Accenture, Aegis, Arvato, Capgemini, Cognizant, Concentrix, Conduent, Datamatics, DXC Technology, EXL, Genpact, HCL, Hexaware, IBM, Infosys, Intelenet, IQ BackOffice, NTT Data, Quatrro, Sutherland Global Services, TCS, TMF Group, Toutatis, Wipro, and WNS Global surveys and one-on-one executive-level buyer interviews to understand how organizations perceive their FAO engagements Content This report is meant to provide FAO buyers, service providers, and third-party enablers (technology vendors, investment firms, etc.) a detailed view of the current state of the market. As part of this, the current report provides insights into market growth, contractual activity trends, buyer adoption trends, insights from buyer satisfaction surveys. This report focuses on next-generation technology levers that service providers are investing in, to provide digital-led transformation solutions. It also addresses the changing service provider landscape in terms of mergers and acquisitions, spin-offs, and change in ownerships as the industry is going through a shift in era. Some of the findings are: Emerging geographies of Asia Pacific (APAC), Latin America (LATAM), and Middle East & Africa (MEA) witnessed increased adoption and will continue to drive further growth Expectation of immediate outcomes, unwillingness to commit for a longer term, and lower switching costs resulted in shorter engagements and increased service provider switching Digital disruption, service providers’ robust capabilities, and visible success of peers encouraged buyers to outsource end-to-end and more judgment-intensive processes right at the outset Degree of offshoring witnessed a decline; onshore contracts saw an increase primarily due to demand for closer oversight, as more complex processes are being outsourced With increased expectation for transformative solutions, service providers are offering consulting-led solutions intended to create more strategic partnership with clients, not just being an outsourcing provider Membership(s) Finance & Accounting Outsourcing (FAO)

The Finance and Accounting Outsourcing market is gradually shifting from arbitrage-first to the digital-first model. Service providers are developing best practices and digital capabilities to meet evolving requirements of enterprises and to facilitate transformation through digital enablement. Everest Group engaged in multiple conversations with enterprises to understand and analyze the shift on FAO buyer-service provider relationships. This report examines multiple-facets of FAO-engagements and answers the following questions: How are enterprises’ expectations from their service providers changing over time? How are service providers placed based on buyers’ perception of their performance on different KPIs? Which parameters are perceived to be the most differentiated by buyers? What is the way forward for buyers and providers to succeed in this transformation journey? Scope of analysis Structured questionnaires and interviews with enterprises capturing qualitative and quantitative insights of their engagements with over 25 FAO service providers including Accenture, Aegis, Arvato, Capgemini, Cognizant, Concentrix, Conduent, Datamatics, DXC Technology, EXL, Genpact, HCL, Hexaware, IBM, Infosys, Intelenet, IQ BackOffice, NTT Data, Quatrro, Sutherland Global Services, TCS, TMF Group, Toutatis, Wipro, and WNS Sample size includes 90+ buyer interactions across online surveys and interviews across multiple industries and geographies in 2015-2017 Membership(s) Finance & Accounting Outsourcing

As the FAO industry shifts from arbitrage-first to digital-first model, buyers are increasingly seeking to understand the digital capabilities of service providers to eliminate/reduce human effort, improve efficiency, and drive better outcomes. While individual digital components (such as Robotic Process Automation (RPA) and analytics) are important, the impact is much higher when they are integrated and implemented collectively as a suite. Such solutions are referred to as Digital Augmentation Suite (DAS). The purpose of this research is to understand and assess service providers based on DAS solutions offered by them in the FAO market. In this research, we focus on Everest Group Solutions PEAK Matrix™ evaluation, a comparative assessment of DAS solutions of 19 FAO service providers, based on which the providers are segmented into three categories Leaders: Accenture, Capgemini, Genpact, IBM, and TCS Major Contenders: Cognizant, Exela Technologies, EXL, HCL, Infosys, NTT Data, Sutherland Global Services, Wipro, and WNS Aspirants: Conduent, Datamatics, Hexaware, Intelenet, and IQ BackOffice Service provider digital capability assessment Remarks on key strengths and areas of improvement for each FAO service provider The scope and methodology of this report includes: Services: FAO Geography: Global Service providers: 19 leading FAO service providers Membership(s) Finance & Accounting Outsourcing

The Accounts Payable (AP) process is one of the most important transactional F&A processes, as it directly affects cash outflow and vendor and employee satisfaction. However, the AP process is mired in challenges including payment delays, high processing costs, and cash leakage due to erroneous or fraudulent transactions. Given AP’s high maturity and the multiple next-generation technologies in play, it is also the best suited for digital transformation. This paper will help CFOs, controllers, and enterprise F&A executives, who are looking to validate current challenges with the AP process, build a business case for a transformation initiative, and understand the role of next-generation digital levers & traditional process levers to achieve AP transformation. In this paper, Everest Group discusses the following topics: The leading challenges in the AP process from the perspective of vendors, employees, and the F&A operations team The need and business case for AP transformation The means to achieve AP transformation and the key technology levers that play a major role in this journey The operating models through which transformation can be achieved Membership(s) Finance & Accounting Outsourcing

The roles of both Finance & Accounting (F&A) operations and the CFO have changed significantly over the past few years. Given the significance and criticality of finance function, there are multiple next-generation digital levers in development that can transform the finance function and potentially impact business outcomes in an organization. Enterprises should look at these digital levers as an ecosystem of possibilities that can deliver superior results when orchestrated together. They should also focus on adopting best practices for process improvement, organizational acceptance, and resource planning to enable successful transformation. This paper will help CFOs, F&A executives, service providers, and other CXOs, who are looking to transform the F&A processes and understand the impact of next-generation digital levers on the transformation journey. The paper also describes the importance of orchestrating multiple digital levers, to achieve the full benefits of transformation. In this paper, we discuss: The rising and changing expectations of CFOs in recent years and the evolution of the F&A function from cost center to strategic function The impact of various next-generation digital levers in F&A processes and the benefits it can deliver when they are orchestrated The role of third-party providers in driving transformation through orchestration Membership(s) Finance & Accounting Outsourcing

The global multi-process FAO market witnessed a robust Year-on-Year (YOY) growth of 9-10% in 2018. The demand for FAO services remained strong from the United Kingdom, both the traditional markets of North America and Europe, as well as from the emerging Asia Pacific (APAC) and Latin American (LATAM) geographies. An increasing number of first-time outsourcers (especially in the SMB and mid-market segment) and an increasing demand for high-end F&A work from the second- and third-generation outsourcers are the key drivers for market growth. Mature buyers’ increasing willingness to adopt next-generation technology is also fueling growth. Some of the key means by which providers are differentiating themselves are by offering end-to-end transformative solutions, combined with domain and industry expertise; design thinking approach; transformation frameworks; process reengineering; and next-generation innovative offerings around advanced analytics and AI. The purpose of this research is to understand and assess FAO service providers based on their capabilities and impact in the FAO market. In this research, we focus on: Everest Group’s Services PEAK Matrix™ evaluation, a comprehensive assessment of 24 FAO service providers 2019 FAO PEAK Matrix and Star Performers Service provider delivery capability assessment Remarks on key strengths and areas of improvement for each FAO service provider Service provider landscape The scope and methodology of this report includes: 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 1,000 multi-process FAO deals signed as of 2018 Coverage across 24 FAO service providers with multi-process capability including Accenture, Aegis, Arvato, Capgemini, Cognizant, Concentrix, Conduent, Datamatics , DXC Technology, Exela Technologies, EXL, Genpact, HCL, Hexaware, IBM, Infosys, IQ BackOffice, NTT Data, Quatrro, Sutherland Global Services, TCS, TMF Group, Wipro, and WNS Membership(s) Finance & Accounting Outsourcing

The Finance and Accounting Outsourcing (FAO) Service Provider Profile Compendium 2019 provides accurate, comprehensive, and fact-based snapshots of service providers in the multi-process FAO market. The study provides a detailed profile of each FAO service provider assessed, with a comprehensive picture of their service suite, scale of operations, recent developments & investments, technology solutions, and delivery locations. In addition, each profile captures the positioning of the service provider on the Everest Group PEAK Matrix with an insightful analysis of its capabilities. This compendium of profiles tracks 24 FAO service providers Accenture, Aegis, Arvato, Capgemini, Cognizant, Concentrix, Conduent, Datamatics, DXC Technology, Exela Technologies, EXL, Genpact, HCL, Hexaware, IBM, Infosys, IQ BackOffice, NTT Data, Quatrro, Sutherland Global Services, TCS, TMF Group, Wipro, and WNS. Contents Each service provider profile provides the following FAO-specific details: FAO service suite and scale of operations: Includes key leaders, service suite, FTEs, and recent developments FAO client portfolio: Includes major clients and recently announced contracts, revenue split by geography, industry, and buyer size Global FAO delivery locations: Includes detail of key FAO delivery locations across the world FAO technology solutions: Includes prevalence of different technology approaches and the profiles of key technology solutions Detailed assessment of FAO capabilities: Includes market impact and vision and capability assessment as well as remarks on service provider’s key strengths and areas of improvement Membership(s) Finance & Accounting Outsourcing

The global multi-process FAO market witnessed strong growth of 8-10% in 2018 to reach US$8.6 billiion, driven by increasing first-generation outsourcers, large-scale transformation deals, and scope expansion in existing contracts. The changing business landscape is forcing enterprises to rethink their traditional business models and take an end-to-end transformational approach. Service providers are building capabilities in process, digital, and talent and are increasingly using and a platform-led approach, where all the digital levers are integrated, implemented, and orchestrated with the right mix of process and talent, to deliver the best outcomes from F&A transformation. Service providers are also expected to handhold enterprises through their transformation journey, leveraging frameworks and domain-related assets and assist enterprises in effective change and transition management. This report gives service providers, enterprises, and third-party enablers (technology vendors, investment firms, etc.) a detailed view of the current state of the market. In this study, we analyze the global multi-process FAO market in 2018. We focus on: Why F&A transformation is needed What capabilities it takes to transform F&A operations How F&A can be transformed in an efficient manner FAO market overview Service provider landscape   The scope of the analysis includes:   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 1,000 multi-process FAO deals signed as of 2018 Coverage across 24 FAO service providers with multi-process capability including Accenture, Aegis, Arvato, Capgemini, Cognizant, Concentrix, Conduent, Datamatics , DXC Technology, Exela Technologies, EXL, Genpact, HCL, Hexaware, IBM, Infosys, IQ BackOffice, NTT Data, Quatrro, Sutherland Global Services, TCS, TMF Group, Wipro, and WNS Global surveys and one-on-one executive-level buyer interviews to understand how organizations perceive their FAO engagements Membership(s) Finance & Accounting Outsourcing

The rise of digital technologies is fundamentally altering business operations, disrupting organizations’ business models, and transforming the underlying competitive landscape. Business leaders navigating this dynamic environment expect real-time, data-driven decision-making support from their Finance & Accounting (F&A) functions to make effective strategic decisions. Blockchain is one of the breakthrough technologies that promises to dramatically change the way F&A functions define, track, share, own, and manage transactions. However, while blockchain’s considerable potential is widely acknowledged, the ways in which it can deliver on its promise are still not clearly understood. In this paper, Everest Group demystifies blockchain, examines different ways in which F&A processes can be reimagined in the light this technology, considers current challenges hindering adoption, and suggests the future course and implications of blockchain-driven F&A transformation. Our paper will assist CFOs, controllers, and enterprise F&A executives in understanding the following themes in detail: Overview and advantages of blockchain in F&A Blockchain adoptability in F&A, leveraging Everest Group’s prioritization framework Interplay of different technologies with blockchain and how blockchain can amplify the value of other digital levers Challenges to blockchain adoption in F&A Considerations to expedite blockchain adoption in the F&A industry Implications for entities involved in F&A blockchain adoption Membership(s) Finance & Accounting Outsourcing

As the Finance & Accounting Outsourcing (FAO) industry shifts from an arbitrage-first to a digital-first model, buyers are increasingly trying to understand the digital ecosystem of service providers to minimize human effort, improve efficiencies, and drive better outcomes. Everest Group has developed the Digital Capability Platform (DCP) – a framework that helps understand the digital ecosystem with multiple levers, each addressing different buyer needs. While individual digital components such as RPA and analytics are important, the impact is much higher when they are integrated and implemented collectively as a suite. The purpose of this research is to understand and assess service providers based on their FAO solutions. In this research, we focus on: Everest Group Solutions PEAK Matrix™ evaluation, a comparative assessment of 19 FAO service providers’ DCP solutions, based on which the providers are segmented into three categories: Leaders: Accenture, Capgemini, Genpact, IBM, Infosys, and TCS Major Contenders:Cognizant, DXC Technology, Exela Technologies, EXL, HCL, NTT DATA, Sutherland Global Services, Wipro, and WNS Aspirants: Conduent, Datamatics, Hexaware, and IQ BackOffice Service provider digital capability assessment Key strengths and areas of improvement for each FAO service provider Scope Services: FAO Geography: global Service providers: 19 leading FAO service providers Membership(s) Finance & Accounting Outsourcing