Introduction

Record-to-Report (R2R) is the least penetrated service area within Finance & Accounting Outsourcing (FAO). In the past, the scope of services within R2R was limited to General Ledger (GL) entry and reconciliation processes. However, the combined effect of increasing regulatory pressure and expectations of end-to-end R2R process transformation from the buyers is leading to service offerings in judgment-oriented processes as well.

The developments in the market are being mirrored by service provider investments. A number of providers are setting up Centers of Excellence (CoE) in order to develop R2R process expertise. The service providers are also forging technology partnerships in order to get access to tools for processes beyond GL and reconciliation, e.g., asset management solutions and reporting solutions.

In this perspective, this report focuses on the service provider capability assessment along with industry-wide trends and solution characteristics.

In this research, we analyze the global R2R BPO service provider landscape in 2013. We focus on:

• Market overview and service provider landscape
• Position of 20 service providers on the Everest Group PEAK Matrix for R2R BPO
• Key insights on PEAK Matrix dimensions
• R2R BPO solution characteristics

The scope and methodology of this report include:

• Nearly 650 R2R BPO active contracts in 2013</li?
• Coverage across 20 R2R BPO service providers: Accenture, Capgemini, Cognizant, EXL, Genpact, HCL, HP, IBM, IGATE, Infosys, Minacs, Serco, Steria, Sutherland Global Services, TCS, Tech Mahindra, Wipro, WNS, Xchanging, and Xerox

Content

This report examines multiple aspects of the R2R BPO market. It focuses on each service providers’ position on the Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix while assessing their capabilities on the dimensions of market success, scale, scope, delivery capability, technology solution, and buyer satisfaction. The report also encompasses analysis of R2R BPO landscape and key solution characteristics.

A preview of the report follows:

• Market overview and service provider landscape
• We look at key industry trends such as overall growth, market segmentation, buyer size, and buyer industries. Market is dominated by large buyers and non-traditional industries
• We also look at the market share of different providers along with the leadership landscape by geography and industry. The top 6 providers have a combined share of over 60%
• 2014 R2R PEAK Matrix
• Everest Group classifies 20 R2R service providers on Everest Group’s proprietary PEAK Matrix framework into:
• Leaders – Accenture, Genpact, IBM, TCS, and Wipro
• Major Contenders – Cognizant, EXL, HCL, HP, Infosys, Serco, Sutherland Global Services, Tech Mahindra, WNS, and Xerox
• Emerging Players – IGATE, Minacs, Steria, Tech Mahindra, and Xchanging
• Service provider delivery capability assessment
• We assess the overall R2R capability of the service providers by evaluating them on six dimensions – market success, scale, scope, technology, delivery footprint, and buyer satisfaction levels
• Leaders outperform other players across nearly all the metrics assessed
• Solution characteristics
• We look at the trends in process scope of R2R BPO contracts
• We also analyze the sourcing trends in terms of key delivery locations and leveraging of global sourcing
• We analyze the developments in technology specific to R2R and observe a rising prevalence
• Evolution of contract pricing is also observed with the market moving towards non-traditional models

Everest Group has a complimentary four-page PEAK Matrix preview document for this service provider landscape report.