John is CEO of NelsonHall, the leading business process services (BPS) and IT services (ITS) research and analysis firm, and is widely regarded as one of the world's leading authorities on achieving business transformation through the application of BPS.
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Rachael Stormonth, Senior Vice President at BPS analyst house NelsonHall, discusses the latest business trends in F&A BPS with Professional Outsourcing magazine, and describes how some companies are using it as a platform for business transformation.
published on Aug 22, 2012
NelsonHall's mulit-process F&A O2C market analysis consists of 80 report/presentation slides and analyzes the global software testing market.
Multi-process Order-to-Cash (O2C) outsourcing constitutes the transfer of operational responsibility of two or more order-to-cash processes to a third party provider. These processes may include order entry, invoicing, or any of the following receivables functions such as credit review, payment processing, collections and reporting
NelsonHall's "Multi-process O2C Outsourcing" report is a comprehensive market analysis designed for:
The report analyzes the global market for multi-process O2C outsourcing services and addresses the following questions:
Additional topics include: contract lengths; pricing models; partnerships; acquisitions; delivery capabilities and the use of offshoring; vendor targeting by client size and geography.
NelsonHall's study of the multi-process O2C market, confirms that buy-side demand for O2C services remains robust with growth of 9.7% forecast for 2012. The manufacturing sector will account for 26% of the total O2C service market in 2012.
Driving this demand is a combination of a weak global economy that continues to push cost cutting to the top of the CFO agenda, and a growing sell-side landscape that offers organizations a broader portfolio of transactional and value add O2C services at a significantly competitive price.
The report identifies four key customer segments, each with distinct service requirements and drivers. These segments are; Platform Consolidation, Process Optimization, Focus on Core and Business Transformation. The largest of these with a market size of ~$660m is Process Optimization. Customers in this segment are faced with costly process inefficiencies in their quote to bill and bill to cash cycles, a lack of process automation and consistency in service delivery leading to poor customer satisfaction. Providers serving this segment successfully are deploying tried and tested process methodologies as well as specialist third party and proprietary O2C tools to consolidate and standardize processes in near-shore and off-shore delivery centers.
Demand for multi-process O2C services remains greatest with large organizations with >$5bn in revenues and >10k employees. Contracts typically are a minimum of 3 years and despite the growing emergence of gain share and outcomes based pricing models, FTE based pricing models remain dominant, accounting for approximately 90% of multi-process O2C contract value.
