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TRANSCRIPT
F&A Outsourcing and Offshoring Forum
26th November 2010 Powered by Acelerar
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Results oriented Financial executive with background in
financial information & analysis industry with focus on
accounting, fixed income securities and corporate
financial planning & analysis. Extensive financial
operations management experience handling a team of
seasoned financial professionals working around the full
spectrum of senior level financial management
responsibilities.
Prabal Pratap Singh
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A Marketing & Sales professional with over 5+ years of
rich cross functional experience in a wide range of
industries encompassing IT, ITES, Accounting &
Education services for International and domestic
market.
He helps companies increase sales, brand visibility, build
corporate image online & offline and help develop
better relationships with customers.
Anupam Rajey
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1. Emerging Trends in FAO across EMEA Region
2. Threats & Opportunities
3. Trade Policies
4. Market Analysis
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5. Marketing Scope6. Competitive Review7. Opportunities in Lucknow8. Question & Answer
1. Emerging Trends
2. Threats & opportunities
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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Nasscom projects EMEA as the fastest growing market for F&A services.
• Worldwide F&A outsourcing market has reached $47.6 billion in 2008.
• EMEA is expected to be the fastest growing region.
1. Emerging Trends
2. Threats & opportunities
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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• Shift from “mess for less” towards long-term strategic value.
1. Emerging Trends
2. Threats & opportunities
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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•Increased government regulations in US and European market are prompting companies to outsource F&A to external providers.
• SAAS- Software-as-a-Service and cloud-based solutions are gaining influence in the industry.
• Large scale Mergers and acquisitions among FA BPO vendors will continue to accelerate as providers aim at gaining market share.
• Untapped fields like retail and investment banks and SMEs have yet to be included in the targeted market segments of outsourcing providers
• More and more companies choose to establish an entire F&A team offshore.
1. Emerging Trends
2. Threats & opportunities
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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The growth drivers
1. Emerging Trends
2. Opportunities & Threats
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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• Robust & aggressive policy infrastructure.
• Labour arbitrage incentive of up to 500%.
• Delivery excellence.
• Cultural compatibility.
• Scalable talent pool .
• Existing F&A process capabilities.
• Compliance environment.
1. Emerging Trends
2. Opportunities & Threats
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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Source: RocResearch
1. Emerging Trends
2. Opportunities & Threats
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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1. Emerging Trends
2. Opportunities & Threats
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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1. Emerging Trends
2. Opportunities & Threats
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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1. Emerging Trends
2. Opportunities & Threats
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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Source: Value Notes
Expected rate of growth of F&A services in the next 5 years
1. Emerging Trends
2. Opportunities & Threats
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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• Global competition and pressure on Margins.
• Slowdown in the global economy.
• Nationalization of financial institutions in US and Europe.
• High Attrition Rate.
• Volatility in the exchange rate.
• End of Tax benefits at STPI in 2010.
• Emergence of China.
1. Emerging Trends
2. Opportunities & Threats
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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1. Emerging Trends
2. Opportunities & Threats
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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Source : IDC
1. Emerging Trends
2. Threats & opportunities
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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• No Export Taxes.
• Fully Functional ISO 9001 certified Incubation Centers & Software Technology Parks across major cities in India.
• Investment in development of talent pool.
• Ministry of Information & Communication technology plays an active role.
•NASSCOM® is the premier trade body and the chamber of commerce of the IT-BPO industries in India
1. Emerging Trends
2. Threats & opportunities
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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• MoUs with UGC and AICTE.
• University Grants Commission (UGC).
• National Assessment of Competence.
•National Skills Registry.
•Certification Program for Frontline Management.
•Industry–Academia partnership.
Government Initiatives
1. Emerging Trends
2. Threats & opportunities
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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•According to Gartner research in 2008, there were 162 deals signed in EMEA and 158 deals signed in the Americas.
•The 2Q EMEA TPI Index, which measures commercial outsourcing contracts valued at €20 million or more, showed that total contract value (TCV) of €13.3B was awarded in the EMEA region in the first six months of 2009, down 6 percent from the first half of 2009.
•Nordic region markets accounted for almost 17 percent of global TCV, making it the second-largest outsourcing market in the world behind the United States.
1. Emerging Trends
2. Threats & opportunities
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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Source: business insights
1. Emerging Trends
2. Threats & opportunities
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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Steady Growth in EMEA outsourcing mega deals
1. Emerging Trends
2. Threats & opportunities
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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EMEA is the leader in outsourcing mega deals
1. Emerging Trends
2. Threats & opportunities
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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• Delivery excellence.
•Evolving buyer needs.
•Emerging EMEA market.
•Increasing importance of technology.
•Become more international in nature.
1. Emerging Trends
2. Threats & opportunities
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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Source: EquaTerra
1. Emerging Trends
2. Threats & opportunities
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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• The most frequently cited challenge, selected by 55 percent of total organizations, is managing down and cutting costs. This is not surprising given today’s economic conditions.
•The most important challenge cited is growing the business, scoring a 1.57 on a one to three scale, where one is the most important challenge identified. To highlight, 44 percent of total organizations cite growing the business as one of their top three challenges.
1. Emerging Trends
2. Threats & opportunities
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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• Smaller organizations ($3 – $10B annual revenue) more often cite competing against new or emerging competition as a major challenge.
•Larger organizations ($20B+ revenue) are more likely to identify growing the business as a key imperative.
•UK respondents, more often than those from the US, indicate that finding, training and retaining F&A staff globally is a major issue.
1. Emerging Trends
2. Threats & opportunities
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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1. Emerging Trends
2. Threats & opportunities
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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•Forty-two percent of Organization plan to expand FAO use into new business units, geographies or divisions.
•Thirty-nine percent plan to expand the use of global or offshore delivery locations and services.
•Twenty-three percent of organizations plan to maintain current FAO scope.
•Most importantly, just three percent are planning to curtail or eliminate FAO.
•The most common course of action cited by 49 percent of organizations is that their they will expand FAO scope by outsourcing additional F&A processes.
1. Emerging Trends
2. Threats & opportunities
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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•Larger organizations ($20 billion+ revenue) are the most likely to expand outsourcing into other process areas (51 percent) or add additional geographies or business units (46 percent).
•A higher percent of U.K. versus. U.S. respondents cite FAO expansion plans (58 to 39 percent in new process areas, 44 to 37 percent in new geographies and business units and 42 to 34 percent more global and offshore).
1. Emerging Trends
2. Threats & opportunities
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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•By the end of 2008 the Central & Eastern European markets F&A markets exceeded $3.5 billion , with Russia also exporting over $ 3.6 billion of business services.
•Ukraine, Poland & Romania are fast becoming attractive markets for BPO & KPO services.
• Manila has emerged as a preferred destination for shared- service centers of companies like P&G, Chevron Texaco, Citibank and HP.
• Colombo, the highest number of certified accountants (U.K. certified) after the U.K. itself, is becoming a hot spot for FAO.
• The U.K., primarily because of the available talent pool, is still a preferred destination for FAO, even though the costs are high.
1. Emerging Trends
2. Threats & opportunities
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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1. Emerging Trends
2. Threats & opportunities
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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•Manchester has emerged as an important FAO center with good transport and business infrastructure, a wide and deep pool of talent, and compliance with regulatory and customer expectations.
• Western oriented government policies encourage partnerships and closer business ties with US & EU companies.
•Growth in Continental Europe, the fastest growing segment by geography with a 58 percent increase in annual contract value between 2003-2007 and corresponding growth of European delivery centres.
1. Emerging Trends
2. Threats & opportunities
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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1. Emerging Trends
2. Threats & opportunities
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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• Presence of Software technology Park of India with state of the art infrastructure.
• Lucknow, awarded a ‘challenger’ status, the best category after the top 7 existing IT destinations, in the ‘Location Roadmap for IT-BPO Growth: Assessment of 50 Leading Cities’ report.
• Skills availability & stability.
• High Quality of Educational Institutions.
1. Emerging Trends
2. Threats & opportunities
3. Trade Policies
4. Market Analysis
5. Marketing Scope
6. Competitive Review
7. Opportunities in Lucknow
8. Question & Answer
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Thank You!!