The Hackett Group

New FAO Service Provider Research Finds Wealth of Mature, Well-Established Solutions - Seite 2

The recent study by The Hackett Group also found that more than 70% of respondents expect their FAO service provider to help their company drive greater value through implementation of the latest technology (e.g., advanced analytics (AA), robotic process automation (RPA), machine learning (ML) and artificial intelligence (AI). However careful crafting of contract terms was found to be critical for clients getting more of what they wanted from these long-term partnerships (e.g., cost savings, business value creation or innovation).

Digital World Class FAO service providers were found to enable companies to achieve dramatically higher value creation than typical companies, including:

• 99% greater ability to collect receivables within terms
• 41% faster financial reporting and improved closing cycle
• 47% lower overall cost, translating into a $48-million annual cost advantage (for a typical $10-billion enterprise)

Seven service providers achieved “Digital World Class” status in the Hackett Value Matrix: Accenture, Capgemini, Genpact, IBM, Infosys, TATA Consultancy Services (TCS) and Wipro. Five others were classified as “Challengers”: Cognizant, Conduent, ExlService, HCL Technologies and WNS. Three service providers were classified as “Emerging”: Datamatics Global Services, Exela Technologies and Sutherland Global Services.

“Our research found that nearly all companies that contract with an FAO solution provider see cost savings. But the landscape has shifted in the past few years, and today most companies also want these relationships to drive greater value and innovation through the implementation of technology. FAO solution providers have the capability to deliver this, but it requires a very different contract,” said The Hackett Group Associate Principal John Sheridan.

“This market is also dominated by mature, well-established providers,” Sheridan continued. “The future leaders will be those that invest to take advantage of the latest digital possibilities. To drive maximum value, companies are advised to focus on defining and cementing a strong partnership with mutually beneficial terms of engagement. They should select a solution provider that has capabilities and technology partnerships most relevant to their specific operating environments and needs. This is also a market where you will only get what you have contracted for, so it is critical to clearly reflect the desires for both cost savings and innovation contractually.”