Note: this report is from 2012. See our most recent R2R research report.
The Finance & Accounting (F&A) function comprises three end-to-end processes – Procure-to-Pay (P2P), Order-to-Cash (O2C), and Record-to-Report (R2R). This report focuses on the third-party outsourcing of R2R activities.
General accounting and reconciliations are the most frequently outsourced R2R activities given their transaction-intensive nature. However, with increasing maturity of the Finance & Accounting Outsourcing (FAO) market, organizations are increasingly looking at outsourcing more judgment-intensive R2R activities, such as Financial Planning & Analysis (FP&A), regulatory reporting, and compliance. Further, an end-to-end, process-driven approach towards outsourcing is emerging as opposed to a piecemeal, functional approach. The role of technology and automation in R2R outsourcing is also increasing. Consequently, the value proposition is expanding beyond direct cost reduction to creating creation of favorable business outcomes around close cycle, bad debts, and regulatory compliance.
In this report, we investigate the market state of R2R outsourcing. We focus on:
With growing maturity witnessed in the FAO market, buyers are now willing to expand the scope to include end-to-end processes such as R2R that impact metrics related to business outcomes. Also, service providers continue to make significant investments to meet buyer demands and create a differentiated offering. This report analyzes the key trends in R2R outsourcing within the FAO market. It provides an understanding of the business value, adoption characteristics, and service provider capability in R2R outsourcing. Some of the findings in this report, among others, are: