1. The Knowledge Community for Global Business & IT ServicesHfS Blueprint ReportFinance & Accounting BPOMarch 2013Phil FershtFounder & CEOphil.fersht@hfsresearch.comBrian DubielPrincipal Analystbrian.dubiel@hfsresearch.com

2. 2013 HfS Research Ltd. Proprietary Page 2Table of ContentsTopic PageExecutive Summary 3Service Provider Capabilities 6Service Provider Profiles 13About the Authors 34 3. Executive Summary 4. 2013 HfS Research Ltd. Proprietary Page 4Introduction to the HfS Blueprint Report:The F&A BPO HfS Blueprint Report is the first of its kind in the global services industry.Unlike other quadrants and matrices, the HfS Blueprint identifies relevant differentialsbetween service providers across a number of facets under two main categories:innovation and execution.HfS Blueprint Report ratings are dependent on a broad range of stakeholders with specificweightings based on 1,355 crowdsourced responses. Stakeholders include:F&A BPO Enterprise BuyersF&A BPO Service ProvidersF&A BPO Industry Influencers (sourcing advisors)HfS AnalystsFinance and Accounting BPO Services 5. 2013 HfS Research Ltd. Proprietary Page 5Key Highlights: Finance & Accounting BPO in 2013Deal activity rebounds. F&A BPO market has shown growth of 13% increase in deals 2012 after severalyears of downturn. Contract size for multi-scope engagements has stabilized at $25M (ACV).The F&A Big Four dominate the Winners Circle. Accenture consolidates its command of market share.IBM, Genpact, and Capgemini round out the Winners Circle members.Intense competition among the High Performers. Wipro, WNS, EXL, Xerox and Infosys pushing aggressivelyfor their share of new deals.Execution trumps Innovation. The service providers are attempting to become more innovative in the F&ABPO space, but the market still remains more focused on execution and delivery, assigning 70% of theimportance weighting to execution, 30% to innovation.Market size grows. Total F&A BPO is expected to surpass $25B in 2013, at a growth rate of 8%, with multi-process F&A BPO expected to reach $5B. 4 out of 10 enterprises ($5B+) intend to expand their F&A BPOoperations this year.Industries experiencing secular shifts show highest growth. These include Telecom, Software/High Tech,Media/Publishing and Retail/Hospitality.Early adopter industries show slowed growth. Banking, Financial Services and Insurance andManufacturing still dominate a third of the market, but growth has slowed.Market still nascent. All F&A functions are still predominately managed in-house by enterprises. 6. Research Methodology 7. 2013 HfS Research Ltd. Proprietary Page 7Data Summary58 data points were collected from 745 live multi-process F&A Business BPO engagements. Eachcontract had a minimum of two core F&A processesbundled and a minimum on $1M in TCV.Data was collected in Q4 of 2012, covering 1355buyers, providers and advisors/influencers ofoutsourcing services. Included in this sample were127 buyers of F&A BPO services.This Report is Based On:Tales from the Trenches: Interviews with F&A BPObuyers who have evaluated service providers andexperienced their services. Some references aresupplied by service providers, but many areinterviewed in meetings conducted with HfS SourcingExecutive Council members and participants in ourextensive qualitative researching process.Sell-side Executive Briefings: Structured discussionswith service providers based on collected datanecessary to evaluate their innovation and executioncapabilities, market share and deal counts.HfS State of Outsourcing Survey: The industryslargest quantitative survey on outsourcing, conductedwith the support of KPMG, covering the views,intentions and dynamics of 1355 buyers, providersand influencers of F&A and business services.Publically-available information: Financial data,website information and presentations given bysenior executives, and other marketing materials.Participating Service ProvidersResearch Methodology 8. 2013 HfS Research Ltd. Proprietary Page 8Evaluation CriteriaTwo major factors that impact service delivery: Execution represents service providersability to deliver services. It includes: Real world delivery of solutions Quality of Customer Relationships Market Share Innovation represents service providersability to improve services. It includes: Vision for End-to-End ProcessLifecycle Integration of BPO and IT Vision, Plans and Investments to TailorSolutions for Specific Industries Leveraging External DriversCriteria WeightingCriteria are weighed by crowdsourcingweightings from the four groups that mattermost: Enterprise Buyers (40%) Service Providers (30%) HfS Research Analysts Team (20%) Advisors, Consultants, and IndustryStakeholders (10%)Weightings from this report come from HfS2013 State of Outsourcing Study, conductedwith the support of KPMG.Key Factors Driving the HfS Blueprint 9. 2013 HfS Research Ltd. Proprietary Page 9Provider G Provider JProvider B Provider GProvider A Provider Bvs.vs.vs.After providers respond to HfS Blueprint RFI, and uponcompletion of client references and fact-checking, HfSanalysts conduct a paired-comparisons survey of serviceproviders in each category of evaluation. This involvedmore than 700 unique provider comparisons.Using ExpertChoice, an advanced statistical analyticspackage, the data/rankings are compiled and comparedacross all provider comparisons to identifyinconsistencies within the scores.After a further data-refinement, the criteria weightingsare used to give each service providers a score in each ofthe evaluation criteria components.Once aggregation and scoring is complete, the serviceproviders scores are plotted, producing the HfS Blueprint.How the HfS Blueprint Scores are Compiled 10. 2013 HfS Research Ltd. Proprietary Page 10EXECUTION 71.77%Quality of Customer Relationships 23.74%Quality of Account Management Team 10.49%How Service Providers Engage Customers and Develop Communities 5.62%How Service Providers Incorporate Customer Feedback 7.63%Real World Delivery Solutions 20.94%Actual Delivery of Services for Each Sub-process 9.63%O2C 4.23%R2R 1.71%P2P 2.83%Other 0.85%Geographic Footprint and Scale 3.60%Usefulness of Services to Specific Client Needs of All Sizes 7.71%Flexibility to Delivery Both End-to-End Solutions and Point Solutions 3.48%Experience Delivering Industry-Specific Solutions 4.23%Market Share 10.80%Flexible Pricing Models to Meet Customer Needs 16.28%INNOVATION 28.23%Vision for End-to-End Process Lifecycle 11.41%Concrete Plans to Deliver Value Beyond Cost and Investment Into Future Capabilities 4.63%Integration of Technology Into Business Process 3.31%Continuous Improvement Methodology and Capability 3.47%Vision for Industry-Specific Solutions 9.46%Ability to Leverage External Value Drivers 7.35%Leverage New Technology, Security, Social Media, Mobility and Cloud Capabilities 3.55%Incorporate Regulatory Requirements Quickly and Proactively 3.80%TOTAL 100.00%HfS Blueprint Scoring: Percentage Breakdown of ImportanceWeightings 11. 2013 HfS Research Ltd. Proprietary Page 11StrategicImportance Accounts Payable Travel and Expense Billing/Invoicing Cash and Accounts Receivable Credit Collections Revenue Accounting Fixed Asset Accounting Tax Filing Payroll Inter Company Accounting Regulatory/StatutoryReporting Management Reporting Risk Management/Treasury Internal Auditing Financial Planning andAnalysis Business Intelligence Other Financial Process Consulting Change Management and Communications Support Supporting Innovation RoadmapTransactionalAccountsControllershipActivitiesTransformationalResponsibilityLow level andprocess basedactivities in theF&A sphere.Higher level andmore analyticalfocused F&Aactivities andprocess.Consultancy likeproducts andservices. Identifyingthe long termstrategy of F&A.Activities include and/or not limited to:HfS Bases its Research on an Assessment Framework ofServices that F&A BPO Service Providers Offer the Market 12. 2013 HfS Research Ltd. Proprietary Page 12Procure to Pay Accounts Payable Travel & Expense CreditOrder to Cash Cash App/AccountsReceivable Billing/Invoicing Collections Revenue ReportingRecord to Report Fixed AssetAccounting Tax Filing PayrollControllershipActivities Inter-CompanyAccounting Regulatory/StatutoryReporting ManagementReporting Risk Management/Treasury Internal Auditing Business Intelligence Financial Planning &AnalysisTransformational Financial ProcessConsulting SupportingInnovation Roadmap Change Management& CommunicationsSupportHfS Value Chain Definition:Value chain refers to the series of departments which carry out value-creating activities todesign, produce, market, deliver, and support a companys product or service. In this usage, werefer to the range of primary processes and support services that providers offer to their clients.In the case of the F&A BPO Services assessed in this Blueprint, only those engagements whichinvolve a minimum of two of these core F&A process bundled and a TCV more than $1M.Definition of Finance and Accounting Business ProcessOutsourcing ServicesFinance and Accounting Value Chain 13. Service Provider Capabilities 14. 2013 HfS Research Ltd. Proprietary Page 14INNOVATIONEXECUTIONHigh PerformersWinners CircleAccentureIBMGenpactCapgeminiEXLWiproWNSInfosysXeroxHPTCSSercoSutherlandCognizantSteriaHfS Blueprint Axis: Finance & Accounting BPO, 2013 15. 2013 HfS Research Ltd. Proprietary Page 15EXECUTION Genpact Shines Client big or small Genpact can do it all should be theirnew corporate motto. Genpacts experience in the middlemarket as well as holding some larger deals have pushedthem to be the execution. Genpact has exceled in the ability in developing nicheverticals in F&A. This speaks specifically to their experiencein the Pharma industry (servicing 8 out of 10 major Pharmacompanies in the world). Capgemini Looks to Be a Rising Star Capgemini has pushed itself from High Performer to Winnerover the course of a few years. Caps ability to executeleveraging its global process model, coupled with itsexcellent client management have been the real catalystsfor its entrance into the Winners Circle. Greater depth in industry verticals, as well as a non-EUbased clientele will help Cap to challenge the leaders in theWinners Circle. EXL Greatly Improved Execution Capabilities With the dust now settled on the OPI acquisition, things aretaking a turn for the better at EXL. Legacy OPI customers aresatisfied with a seamless and have been pleased with theincreased breadth OPI has brought to EXLs operations alladding to the providers ability to execute.INNOVATION Accenture Leads All Service Providers in the Category Over the course of Accentures reign at the pinnacle of theF&A market, the firm has consistently been on the forefrontof providing services with a genuine vision for the futuredirection of BPO. Its success winning and extending majormarquee enterprise clients as a result of many yearscultivating deep relationships has been the cornerstone ofits success. Its next challenge will be addressing the needsof the upper-middle-market, which is primed for the nextway of F&A adoption. IBM is a Strong Performer in Analytics All the leading service providers are looking to incorporateanalytics as a core ability in the fight for differentiation, andIBM sets itself apart with a strong integrated approachacross its analytics and BPO practices especially F&A. Buyers no longer seek simple labor arbitrage in F&A deals they want better processes. Analytics can potentially unlockthe keys to those productivity gains and providers mustincrease their capabilities in this area. Wipro Increased Capabilities in Innovation Wipro has sought to increase its innovation capabilitiesthrough developing and focusing its client relationships. Theadditional emphasis on developing vertical capabilities, hasalso helped it become one of the more innovative firms anda real dark horse to watch in the coming months.Major Service Provider Dynamics Highlights 16. 2013 HfS Research Ltd. Proprietary Page 16Vertical Focus driving F&A value. Clients have repeatedly referenced the industry-focused verticalscope of F&A services as being of prime importance. HfS expects this trend to accelerate in thefuture, where service providers will become F&A experts within given industries, with the capabilityto offer insights and analytics. Notable industries where clients prefer providers with specificvertical capability include Pharma, CPG, Retail and Insurance.Blur between Procurement and F&A. The line between procurement and the finance back office isstarting to blur as companies look to reduce overhead and find synergies between the lines ofcorporate groups. It will be imperative for service providers to keep abreast of the changinglandscape and address Finance and Procurement needs together.Creating Relationships that Foster Innovation. As it gets harder to differentiate between the mainbody providers in table stakes areas of price flexibility and global operational delivery, thoseproviders that are able to provide clear and measurable innovative improvements for clients willdominate market share. The key is providers being able to demonstrate how they createdenvironments with their clients to work together to define business goals and outcomes. Its notgoing to be about selling innovation, but more about creating environments to foster innovations.Development of Client Communities. The need for more interaction between a providers clientbase is abundantly clear. Clients have called for more cross collaboration, to gain a betterunderstanding of how other companies are leveraging their F&A BPO, and where best practices canbe identified. HfS anticipates smart providers to increase their involvement of driving more focusgroups within their F&A BPO client portfolios.Future of the Finance and Accounting Outsourcing Market 17. Service Provider Profiles 18. 2013 HfS Research Ltd. Proprietary Page 18AccentureClient Industry Verticals Key Clients Global Operations Centers Business Platforms Offered Resources and Products Communications, Media and Technology Financial Services Healthcare and Pharma Public Services Products and Resources Travel BP The Hartford Intertek CEVA Logistics Microsoft Delta Oi DHL Delta Deutsche Bank Cisco Headcount: 14,000+ FTEs Argentina: Buenos Aires UK, Ireland, Spain Central & Eastern Europe: Prague,Bratislava, Bucharest, Warsaw, Romania India: Bangalore, Chennai, Delhi Mauritius China: Shanghai, Chengdu, Dalian Philippines: Manila and Cebu South Africa: Johannesburg BPO Navigator 2.0 F&A Performance DashboardStrengths Challenges Depth and breath of global industry, finance and technology acumen isfirst-class. Utilizing its depth in consulting skills, Accenture has developedsolutions focused on business results, as opposed to predominantly laborarbitrage, like some providers. BPO is treated as a Tier 1 service line, as opposed to being buriedunderneath IT services, like its major competitors. Superlative business performance in recent years has culminated thelargest global F&A delivery capability. Leadership of Michael Salvino has been instrumental in driving the mostimpressive BPO growth in the industry and positioning the BPO business sostrongly, both within Accenture and externally. Its BPO Generations philosophy (see link) has helped define the stagesand evolutions of F&A BPO engagements for the whole industry. Frequently surveys and gathers data on its clients regarding their challengesand how they are adapting to changes in the market. Provides insights inanticipating clients needs and addressing their concerns by developingnew innovative processes and products. Vertical focus has been bolstered by recent acquisitions and client wins inpharma (Octagon), financial services (Zenta) and healthcare administration. Ability to communicate customer success experiences across other clients.Clients commented that they would like to see Accenture speak to thepositive outcomes from other clients better bringing in successful ideas toother clients etc. Some clients have stated Accenture being somewhat inflexible duringtransition periods citing the Accenture solution. Arrogance perceived by some clients. In part, this is due to the firmsaggressive deal qualification process where several opportunities areshunned. Some potential and current clients will often feel that Accentureavoids them if it has to compete in an environment where its relationshipsare not as strong, especially against an incumbent provider. Strong focus on Business Outcomes can alienate some clients. WhileAccentures sophisticated approach to BPO fits with the needs anddemands of many of todays ambitious global enterprises, the firm is notalways as well suited to serve organizations whose goals are primarilyfocused on cost-reduction and standard operational performance.Industry Leading: Innovation Vision for Industry SpecificSolutions Integration of Technology intoBusiness ProcessIndustry Leading: Execution Quality of AccountManagement Teams Experience Delivering IndustrySpecific SolutionsMarket Share:29.6%Winners Circle 19. 2013 HfS Research Ltd. Proprietary Page 19GenpactClient Industry Verticals Key Clients Global Operations Centers Business Platforms Offered Financial Services Insurance, Retail and CPG Pharma Manufacturing Services Industry Travel GE Kimberly-Clark Walgreens AstraZeneca UCB Hyatt GlaxoSmithKline United Biscuits Telefonica O2 Cigna Penske Ashland Headcount: 16,000+ FTEs India: (12,300+) China (600+) Philippines Brazil, Columbia, Mexico, Guatemala Czech Republic, Hungary, Poland, Romania Kenya, South Africa, Morocco Netherlands U.S. Akritiv E-Invoicing ProFlow NICE CMS Duplicate Payment Audit Tool E-Billing platform Callisto Manual Journal Entry Close Tracker Questor Smartstream SmartViewStrengths Challenges Distinctive client culture. Genpacts clients talk more fondly about theirprovider than many of its competitors. This is due to the notable humility ofGenpacts delivery staff and a bloody-minded determination to succeed.Genpact has worked hard to get its clients on the right track and enjoysmany long-term established relationships as a result.. Ability to be flexible in offering services to customers in a customized,tailor-made approach or providing the best-fit solution. Genpact offersboth a plug and play solution as part of service offerings and an end-to-endsolution for a multitude of services. Proven performer in both the high--end and mid--market client base.Genpact has does an excellent job in servicing a wide range of clientele.Account management teams have generally risen above most othercompetitors in terms of quality. The Smart Enterprise Processes (SEPSM) methodology is a game-changer inthe BPO market; a scientific methodology enabling a comprehensiveanalysis of business activity across the entire enterprise. Ability and openness to support both existing customer based technologysolutions or propose own business tools in order to address the unmetfunctionalities of the systems and processes. IT development and IT innovation remains a weak focal point. IT businessstill remains quite small in comparison to other service providers in themarket. As customers look towards all inclusive deals and solutions, thiscould ultimately hinder its ability to attract new deals. Clients have citedthe lack of new applications developed to boost innovation, however,recent acquisitions of Headstrong and JAWOOD have significantly enhancedGenpacts capabilities in capital markets and healthcare insurance, whichshould improve F&A capabilities in these industries. Over-reliance of F&A headcount in India. A more globally-diversified staffspread would be more attractive for more regional buyers looking for agreater degree of local support and business continuity planning in the F&Aspace. Apparent lack of depth and vision in some industry verticals. Althoughstrong in pharma and CPG, and showing potential with recent acquisitionsin others, the lack of a top tier IT business that could lead to new industryfocused relationships could hold the firm back.Industry Leading: Innovation Vision for End-to-End Process Continuous ImprovementMethodology and CapabilityIndustry Leading: Execution Developing CustomerCommunities Flexibility to Deliver End-to-Endand Point SolutionsMarket Share:10.2%Winners Circle 20. 2013 HfS Research Ltd. Proprietary Page 20IBMClient Industry Verticals Key Clients Global Operations Centers Business Platforms Offered Manufacturing Energy and Utilities Banking Electronics and Telecom Healthcare Government Insurance Hillshire Brands (formerly Sara Lee) Sharp Electronic Europe Lam Research Corporation Unilever Cemex Headcount: ~13,000 FTEs India: Bangalore, Chennai, Delhi China: Dalian, Foshan E. Europe: Krakow, Sofia Portugal: Braga Philippines: Manila Argentina: Buenos Aries Brazil: Hortolandia Emptoris Suite Coupa ARCollect Suite Sterling OpenSpan Cast Iron Maximo GERS ServiceFlow Percolator FSR ACLStrengths Challenges Commitment to BPO reinforced by new CEO, Ginny Rometty. Winning themassive Cemex F&A engagement reinforces determination to gain aleadership foothold in the market. Superlative portfolio of technology and analytics provides genuinedifferentiation. Integration of managed analytics with F&A and SCM capabilities proving amajor plus for defining higher-value solutions for clients. Robust strengths across all F&A process value chains: O2C, S2P, R2R andFP&A areas. Recent investments in transformation-capable personnel. Strong brand marketing and thought leadership capability helping toarticulate its differentiation and vision as an F&A services leader. Very robust transition capabilities. IT services strengths further bolstering F&A solution delivery . Corestrengths in the procurement, payroll and supply chain play strongly formulti-tower relationships. Is demonstrating a determination to compete effectively with aggressivelow-cost Indian providers. Has faired well over the last couple of years toemerge as a clear front runner with the second-largest market share. Recent loss of marquee British Petroleum F&A contract has hurt thepractice, but has also helped refocus its F&A business with some impressiverecent wins, such as Cemex and Unilever BPO is still not a high profile a service line for IBM compared to ITservices/BPO rivals Capgemini and Accenture. While commitment is clearlystrong under Rometty, it would be beneficial to see the status of BPOelevated to a similar profile enjoyed by analytics/Big Data and Cloud. Sandy Khanna has just been announced as IBMs new GPS Global PracticeLeader for F&A/SCM, an internal promotion, replacing the departingDonniel Schulman, who had performed a stellar job positioning the practicein recent years. Time will tell whether IBM should have looked externallyfor some fresh blood to lead the practice; Khanna will need to prove he is astrong market-facing practice leader who can rival the likes of Accenturesand Genpacts popular stalwarts.Industry Leading: Innovation Integration of Technology intoBusiness Process Ability to Leverage ExternalValue Drivers, such as Cloud,New Tech, Regulatory ChangesIndustry Leading: Execution Geographic Footprint and Scale Actual Delivery of Services foreach Sub-processMarket Share:14.7%Winners Circle 21. 2013 HfS Research Ltd. Proprietary Page 21CapgeminiClient Industry Verticals Key Clients Global Operations Centers Business Platforms Offered Global Manufacturing Consumer Products Business Services Telecom and Media Agriculture and Mining Retail Financial Services Agrana Group Coca Cola Enterprises International Paper Danfoss Unilever Zuruch Insurance Office Depot Unilever SKF Syngenta Headcount: 8,940 FTEs India: Bangalore, Chennai, Kolkata, Mumbai Poland: Krakow, Katowice China: Nanhai Brazil: Campinas, Blumenau Chile: Santiago Guatemala: Guatemala City Australia: Adelaide US: Sarasota Canada: Toronto BPOpen WebCollect IBX Procure-to-Pay IBX e-InvoicingStrengths Challenges Capgemini frequently viewed as a genuine alternative to IBM andAccenture. Overall outstanding relationship management, including creative clientmanagement techniques. Strong finance and accounting pedigree that goes beyond administrativeprocesses and transformation capability. Its global delivery model (rightshore) based on regional commandcenters, is very effective for global multinationals across all continents. Thismodel also enables clients to scale up quickly as required. Its Latin Americadelivery capability is a strong plus Its global process model is very effective with large clients supportinggovernance and risk management capability for clients Has performedexcellently over last two years picking up new clients and gaining marketshare. Strong focus on F&A analytics and management reporting capabilitiesappreciated by key customers The WebCollect platform acquired from Vengroff Williams adds significantcapability in providing process and cost efficient O2C services to its clients. India/offshore support model not as strong as key competitors. Pricing has been historically uncompetitive (although this has not been thecase in some recent engagements). US brand and executive presence has been historically weak. Client focusand general demand has remained very France and Europe-centric. Giventhe current economic crisis in the continent, deep concentration of clientsin this geography may be risky. Lacking vertical focus in F&A across a multitude of industries and areas hastraditionally been a weakness. However, the firm is now showing efforts tofocus on insurance sector and other verticals, such as energy, consumerproducts and retail.Industry Leading: Innovation Continuous ImprovementMethodology and Capability Integration of Technology intoBusiness ProcessIndustry Leading: Execution Developing CustomerCommunities Incorporating CustomerFeedbackMarket Share:10.6%Winners Circle 22. 2013 HfS Research Ltd. Proprietary Page 22WiproBlueprint High-Performer Flexible Pricing Models to MeetCustomer Needs Incorporate RegulatoryRequirements Quickly andProactively Integration of Technology intoBusiness ProcessClient Industry Verticals Key Clients Global Operations Centers Business Platforms Offered Telecom BFSI Technology Manufacturing Retail Healthcare and Life Sciences Media and Publishing Transportation and Freight Alcatel-Lucent AmBev Sears Holding Corporation Headcount: ~8,600 FTEs India (7 centers) APAC: China, Australia, Philippines E. Europe: Poland, Romania LatAm: Mexico, Brazil NA: USA, Canada Base ))) Colossus Epiplex Ariba iAsta Concur SAP Oracle Peoplesoft Business ObjectivesStrengths Challenges Well-respected process competency and holds a long-standing reputationfor delivery. BPO competency, particularly F&A, sits well with Wipros DNAand culture. Has been competing aggressively on a host of European and US deals, beingviewed and a genuine top tier proposition. Arguably the biggest threat tothe Winners Circle providers on competitive bids. Price competitiveness and solution flexibility has helped Wipro developmarket share in the middle of the pack of competing providers. Hasexperience providing end to end support for F&A services, in addition topoint solutions, which is attractive to many enterprises. Expanded global presence across all major continents a strong plus. Has been focused on BPO for many years and its leadership determined togrow its foothold with clients. Its CEO, TK Kurien, has a strong BPObackground and understands the importance of strong hybrid BPO/ITcapabilities as the industry matures. Recent appointment of theexperienced Manoj Punja will give the BPO group added focus, disciplineand resources to bolster its market presence and capabilities. Strong passion and capabilities in developing technology platforms tosupport its BPO prowess, notably its impressive Base ))) offering, a suite ofprocess management tools to enhance process effectiveness and improvedgovernance. Most often is stereotyped as more if an ITO than BPO provider, andsometimes the perceived separation between BPO offerings and ITO isblurred. Total back office capabilities still are heavily reliant on voice 69% arevoice-based activities. Outside of India, Wipros delivery presence in Europe is not as strong asother competitors. Focus sometimes is too driven on a rigid process-centric approach. This canrestrict the ability to show flexibility when responding to client requests, akey asset when delivering value add services and acting as along-termpartner; and may impede a culture to nurture innovation. Changes in its corporate leadership structure has held the company backfor the last couple of years. Wipro has lost ground to the Winners Circleproviders over the last year and needs to bounce back under Manoj Punja. Marketing investments has been traditionally weak. Needs to invest indeveloping its awareness and thought-leadership competencies. Brand is closely identified with Wipro being a hard-working, operational ITfirm, which is often misguided. Wipro needs to invest in altering its imageamong many enterprises to be more consultative and higher-end.Market Share:2.5%High Performer 23. 2013 HfS Research Ltd. Proprietary Page 23WNSBlueprint High-Performer Flexibility to Deliver End-to-Endand Point Solutions Incorporate RegulatoryRequirements Continuous ImprovementMethodology and CapabilityClient Industry Verticals Key Clients Global Operations Centers Business Platforms Offered Financial Services Insurance Media and Entertainment Retail CPG Manufacturing Travel and Leisure British Airways Country Wide Residential Letting Chiquita Brands International Inc. Churchs Chicken AAA Headcount: ~7,500+ FTEs India: Pune, Mumbai, Nashik, Gurgaon,Bangalore, Chennai Sri Lanka: Colombo Costa Rica: San Jose Romania: Bucharest Philippines: Manila Poland: Gdynia Trintech Concur CoAction Ariba Newgen Dynamic Discount Manager Duplicate Payment Manager Vendor Portal Vendor Master Workbench OB10Strengths Challenges A real BPO firm. WNS has been a passionate BPO pure-play in themarket for exactly a decade, frequently punching above its weight tocompete for major engagements. Expected to fight hard for new deals in2013 in an increasingly-competitive market. Ability to take on a range of clients. Highly flexible and nimble - big enoughto deliver and small enough to respond. Has received positive accoladesfrom many of its mid--market clients, with a strong reputation for its hard-work client focus. Has successfully been able to compete among the larger, enterpriseengagements in the last few years and has firmly established itself as astrong pure play alternative to some of its larger competitors. Determined KPO and analytics capabilities to augment their F&Arelationships, which many clients have cited. The client-centric approach isa real feature of WNS appeal it gains many plaudits as a result. Introduction of the Value Innovation Program. This assists clients inimproving their processes, quick adaptation with greater flexibility andreadiness for ever changing business condition. Strong reputation for F&A in the travel vertical, based on British Airwaysheritage and its JADE accounting platform. Recent management changes have added focus and experience. Mostnotably, Yogendra Goyal has been installed to lead sales - a major plus forthe firms US business with his relationships and experience. Outside of the travel, WNS needs to bolster further its F&A-specificofferings within some verticals. Encouragingly, WNS has developed someindustry-specific process offerings in utilities, healthcare and logisticssectors, which could further enhance its F&A capabilities in theseindustries. Client base is still primary driven by the US and UK markets, which couldlimit opportunities in the growth Latin American and APAC growth markets. WNS has yet to prove that it can think and act as a global provider; evenwith a strong footprint in place, it is overly-reliant on India. This isevidenced by the fact that 85% of work is being performed out of India. 50% of its revenues are tied up in travel and insurance. While these havebeen instrumental in the companys growth, it needs to expandaggressively into other growth markets, such as healthcare payor, retail andhi-tech if it wants to expand its F&A footprint. EMEA and LATAM delivery and capabilities are quite limited for clientslooking for delivery in those locations. Management turnover has caused concern, but seems to have beenstabilized in recent months.Market Share:3.4%High Performer 24. 2013 HfS Research Ltd. Proprietary Page 24Blueprint High-Performer Vision for Industry SpecificSolutions Flexibility to Deliver Both End-to-End and Point Solutions Engage Customers and DevelopCommunitiesEXL ServiceClient Industry Verticals Key Clients Global Operations Centers Business Platforms Offered Healthcare Insurance Retail Business Services Manufacturing Travellers Insurance American Express Centrica PLC (British Gas) Headcount: 6,950 FTEs India: Noida, Gurgaon, Pune, Kochi,Bangalore Philippines: Manila Bulgaria: Sofia Romania: Cluj-Napoca US: Dallas OPInvoice eTrack BlackLine Microsoft Dynamics B-ProMPTStrengths Challenges With company approaching $500Min annual revenues and enjoying stellargrowth in recent years, EXL is now considered a serious contender for majorF&A engagements. Many clients cite EXLs flexibility and appetite to partner with clients, interms of risk, culture, nature of work and the contract terms. Strong client relationship management, performing a stellar job integratingthe key employees and clients from the OPI acquisition. Impressive community focus among clients and prospects provides EXL withfrequent client events and seminars to drive the business pipeline and theEXL value proposition. Real depth and proven expertise in banking and insurance sectors. HfSviews these industries as posing strong investment opportunities for BPOexpansion and EXLs position ensures success for the future. Ability to provide North America, near shore or onsite delivery solutions.This further enhances EXLs value for customers, offering multiple deliveryoptions per clients needs. Recent aggressive investments in sales and marketing capabilityinstrumental in growing the business and increasing communication,awareness and perception of EXLs capabilities. Analytics offerings gaining traction, especially with flexibility to take onsmaller engagements. Global footprint of F&A services is falls short in comparison to the leadingproviders in the market. To rival to the Winners Circle competitors, EXL willneed to develop greater scale and depth in delivery to service larger clientsand deals. Almost 75% of delivery is still centered in India. Limited industry vertical experience outside of financial services andenergy. This has harmed the attractiveness of EXL as a potential shortlistcandidate during several client down-selections. As a result, EXL hasstruggled to compete effectively with top tier outside of its insurance niche. Experience with only a single group of Microsoft based packages, raisingconcerns about ability to work with clients non-Microsoft ERP basedpackages. With mid-market F&A opportunities opening up, partnershipswith the likes of NetSuite would help open new F&A avenues for the firm. Continental Europe and UK presence is still weak comparative to US,inhibits their ability to land clients in these regions. Brand is still little-known outside of niche markets. Has an opportunity toincrease market presence with recent marketing investments. Over-reliance of sourcing advisors to win new business unlikely to findmuch success selling through this channel with most advisors inviting up to12 providers to big on every deal.Market Share:2.1%High Performer 25. 2013 HfS Research Ltd. Proprietary Page 25XeroxBlueprint High Performer Incorporate RegulatoryRequirements Quickly andProactively Integration of Technology intoBusiness Process Experience Delivering IndustrySpecific SolutionsClient Industry Verticals Key Clients (Illustrative) Global Operations Centers Business Platforms Offered Automotive Manufacturing and Energy Retail and Hospitality Healthcare Financial Services Transportation Telecom and High Tech Healthcare Atos Origin Avis Budget Group Cardinal Healthcare General Motors Georgia-Pacific Ingersoll Rand Michelin Headcount ~7,200 FTEs (85% offshore) India: Bangalore, Kochi, 3rdcity (2013) Poland: Krakow, Lodz Philippines: Manila US: Tempe, Fort Myers, Atlanta Brazil: So Paulo Jamaica: Montego Bay Mexico: Juarez, Hermosillo Spain: Barcelona Performance Tracking & Reporting Record to Report Order to Cash ProfitSightTMSpend Analytics Procure to Pay Travel & Expense Reimbursement Freight Audit and Payment Other Automation Technology: Safe CourierTM LiveKeyTM AutobotTM Transition - Knowledge CaptureStrengths Challenges Strong support and focus from Xerox corporate since its 2009 acquisition ofACS, gives its F&A business a real platform for growth. Millions have alreadybeen invested in advertising and branding its F&A capabilities. Xerox isdetermined to be a multi-faceted BPO provider with strong IT servicescapability. Established presence in difficult to crack industry verticals such as thepublic sector, healthcare provider, aerospace and defense industries. Provide a high degree of industry specific F&A services for FinancialServices, Healthcare and Transportation industries Well-organized Xerox sales channels across US and Europe in documentmanagement and IT should help boost direct sales, especially fortransactional accounting and invoice processing services. Strong onshore presence in North America and Western Europe positionsthe firm well for future offerings which are less reliant on offshore delivery. Ability to incorporate regulatory requirements quickly and proactively isone of the best in the industry. Strong P2P acumen from combined Xerox/ACS services. Ability to leverage ITO into FAO process is limited. ITO environment today istoo commoditized and Xerox has yet to develop any real differentiableabilities. No stand alone analytics. Continues to offer these services as part of BPOcontracts, but will not offer services on a stand-alone basis until 2014. Needs to reassure clients and industry influencers the new-look Xerox F&Abusiness has moved on from the old lift and shift model upon which ACSbuilt its reputation. Xeroxs brand is still synonymous with document management, not finance.It took IBM several years to alter brand perception beyond merely IT toareas such as HR and finance. Xerox is still struggling to alter thatperception. ACS business alone is unlikely to be enough to reach the Winners Circle.Additional acquisitions to bolster BPO technology platforms andconsultative acumen are likely to be necessary in the near future.Market Share:5.4%High Performer 26. 2013 HfS Research Ltd. Proprietary Page 26InfosysBlueprint High-Performer Engage Customers and DevelopCommunities Leveraging New Technologies,Security, Social Media, etc. Continuous ImprovementMethodology and CapabilityClient Industry Verticals Key Clients Global Operations Centers Business Platforms Offered Agriculture and Mining Telecom Retail and consumer products Financial Services Insurance Capital Markets Media & Entertainment Manufacturing Philips Alcoa Royal Philips Electronics Headcount: 8,400 FTEs India: Pune, Chennai, Jaipur, Gurgaon,Bangalore Poland : Lodz Netherlands Eindhoven Czech Republic: Prague & Brno China: Dalian, Hangzhou Philippines: Manila Mexico: Monterrey Brazil: Belo Horizonte USA: Atlanta BillingEdge ProcureEdge AssetEdge SocialEdge CommerceEdge Bottomline Brianware AP OB10 OpenScan LockBox Documentum OpenText SkeltaStrengths Challenges Track record of high growth since inception has proved it is a lastingprovider in the F&A space. Over the past few years, Infosys has closed thegap in competitiveness with a variety of horizontal and verticalengagements. Strong horizontal BPO breadth. Compelling procurement and sourcingcapability to augment a strong horizontal BPO portfolio. With some majorclient wins, such as Verizon and BP, InfosysBPO has a strong horizontalportfolio across F&A, procurement, HR and customer managementservices. Most of the firms India-centric services competitors have failed todevelop much of a business footprint beyond a handful of F&A and somecustomer management clients. Growing acumen in insurance showing real potential. Recent acquisition ofMcCamish insurance platform and US delivery center, coupled with Marsh& McLennans BPO unit further bolsters the firms insurance BPO muscle,which should enhance its ability to grow F&A business in this sector. Finance Centers of Excellence across India, Poland, China, responsible forensuring that best practices for F&A processes are captured and sharedwith the operating managers, are showing signs of helping Infosys close thegap on the Big 4. F&A business still relatively small and undifferentiated, and has not keptpace with the growth of Genpact since its entry in the F&A market. Experience in development of true transaction-based pricing models is lessclear, especially with client experience. As deal data suggests, most clientsare based on an FTE basis. Quality of account management teams is generally lacking in comparisonwith other competitors in this space. Over-reliance on IT innovation rather than process innovation. Like itsIndian-heritage rivals Cognizant and TCS, has struggled to place BPO at theforefront of the companys growth agenda. Lack of a smart sales pursuit approach to winning new business. Frequentlyperforms well enough to reach a short list, but is often overlooked at thebusiness end of deals. A more focused approach to attract new businesswould benefit, including a lesser reliance on sourcing advisors. Leadership too India-centric. InfosysBPO has suffered from having most keydecision makers and leadership based in India. However, the recentappointment of Gautam Thakkar as its new BPO CEO, who has led F&A BPOfrom Dallas TX, should help with developing a more client-focused salesstrategy to grow the business. Thakkar takes the reigns on 1st April 2013.Market Share:2.3%High Performer 27. 2013 HfS Research Ltd. Proprietary Page 27TCSBlueprint High-Performer Vision for Industry SpecificSolutions Integration of Technology intoBusiness Process Concrete Plans to Deliver Valuebeyond Cost and Investmentinto Future CapabilitiesClient Industry Verticals Key Clients Global Operations Centers Business Platforms Offered Financial Services Manufacturing Retail Telecom and Media Energy Business Services Other Citi Group The Nielsen Company Phoenix Insurance Group Friends Life Insurance Headcount: ~11,000 FTEs India: Chennai, Mumbai, Kolkata, Bangaloreand Gandhi Nagar China: Hangzhou, Tianjin, Dalian UK: Peterborough Latin America: Uruguay, Chile, Brazil,Argentina Continental Europe: Budapest Philippines US: Midland TCS F&A Platform TCS Collections Platform Trapeze Concur iExpense Onbase Documentum Get Paid Bill Trust Auto BankStrengths Challenges Broad global presence on both the client and delivery side. Major centersaround the globe allow for flexibility in terms of a customers need for scaleand regional delivery. Very strong innovator at the organization level. Clients frequently laud TCSinnovative and aggressive approach to BPO. Growth and expansion in vertical domains. TCS has broadened its scopeand depth in many verticals, most notable banking and insurance. Investments in Platform-based BPO have helped propel the firm as athought-leader and pioneer in more industrialized BPO models. Forexample, its Bancs platform is proving highly successful in wining severalnew client engagements worldwide. Frequently demonstrates a strong appetite to invest in new clients to growits business (as opposed to acquisitions). Clearly willing to take risks toimprove its acumen and foothold in specific industries. Half of TCS revenues in F&A are from the Financial Services vertical.Diversifying into new verticals for F&A is proving a struggle as TCS persistwith this vertical-silo approach. Prefers to work with customers that are willing to leverage technology andprocess improvements across and end-to-end process value chain andmisses some client opportunities where they are interesting in point-solutions. Lacks enterprise-level clients in F&A and a tier 1 Pan-European deliverycenter. India centric business authority and management restricts growth.TCS continues to have even low-level decision making authority residingwith management in India. Needs to grow its horizontal F&A capability beyond its vertical silos as TCSstruggles to compete on these large scale horizontal deals. Leadership focusis overly-centric on verticals, as opposed to horizontal capability. Sales, marketing and influencer relations needs improving. While this is acommon issue with some Indian providers, TCS BPO front end needs tobe vastly improved.Market Share:1.3%High Performer 28. 2013 HfS Research Ltd. Proprietary Page 28HPBlueprint High-Performer Leveraging New Technologies,Security, Social Media, etc. Integration of Technology intoBusiness Process Incorporate RegulatoryRequirements Quickly andProactivelyClient Industry Verticals Key Clients Global Operations Centers Business Platforms Offered Communications & Media Consumer Packaged Goods Transportation Financial Services Manufacturing Smith & Nephew Proctor & Gamble Molson Coors AOL Tribune Group Headcount: 11,900 FTEs India: Bangalore, Chennai Poland: Worclaw, Lodz Costa Rica: San Jose China: Dalian AutoFlow HPs Invoice Automation Newgen SunGard Webcollect AssureNET ReconNET eClose Emagia HP CARTStrengths Challenges Has developed an impressive portfolio of F&A BPO clients over the years inUS and Europe, stemming from its flagship Proctor & Gamble relationship. SAP strengths put HP in strong position to win deals with heavy SAP-basedBPO transformations in F&A and payroll. Still a formidable competitor forBPO deals that require hybrid SAP/BPO services. Established brand name in public sector services could bolster businesswith anticipated adoption of F&A from cash-strapped public sector bodies.The company serves 389 government clients in 31 countries. Six Sigma personnel and ISO certification investments remain impressivelystrong. Overall responses reflect strong quality management. Philosophicalfocus on quality remains strong. Historically strong with CPG clients. Holds an impressive portfolio of thesetypes of clients and have served them well over in the past. Recent investments in AutoFlow show commitment to process automationfor F&A BPO clients. Strengths in F&A have been gleaned from its own shared service center has helped develop a balance between the transaction and higher endservices. Can be inflexible. Not openly aggressive with offering gain share typemodels. The same goes for point solution flexibility with clients - HP seeksto provide and end-to-end solutions. HPs corporate brand deterioration in recent years is hurting sales efforts.Poor leverage gained from EDS acquisition, workforce reductions andgenerally diluted industry focus have combined to weaken HPs position inthe BPO service market. Lagging vertical specific platform offerings. A greater abundance of morevertical-specific solutions would be ideal (as compared to its peers in theFAO space). The leadership turmoil with Hurd and Apotheker stunted the developmentof F&A BPO (and other BPO areas). However, current CEO meg Whitmanhas made announcements of late that signal a renewed focus on HPs BPObusiness. Client management still remains a core weakness in terms of execution ofdelivery.Market Share:3.7%High Performer 29. 2013 HfS Research Ltd. Proprietary Page 29CognizantBlueprint High-Performer Flexible Pricing Models to MeetCustomers Needs Delivering Industry SpecificSolutions Integration of Technology intoBusiness ProcessClient Industry Verticals Key Clients Global Operations Centers Business Platforms Offered Manufacturing CPG Restaurants Retail Communications Pharma Healthcare Financial Services Norway Post Jewson Headcount: ~3,000 FTEs India: Chennai, Hyderabad, Pune, Mumbai PhilippinesStrengths Challenges The biggest success story in the outsourcing business in recent years,growing from $1bn-$6bn in the last three years. Generally popular withclients for being innovative, energetic and ambitious. Deep vertical strategy is creating opportunities for discreet engagements inindustries where Cognizant is strong, such as life sciences, banking and hi-tech. For example, it has been able to develop specialized tools and processfor its vertical clients in the finance services and life sciences industries. Strong focus in analytics and KPO where it can evolve its deep ITrelationships. Footprint (within India only) and service capabilities have increasedsignificantly as a result of the purchase of UBS captive center in India withsome knowledge of servicing capital markets. In addition, its 2011 purchaseof CoreLogic has bolstered its capabilities in mortgage services and bankingBPO. Very aggressive IT sales approach helps open doors for having BPOconversations with clients Openly understands F&A space has been a weakness and claims it wants toexpand these capabilities through organic and inorganic growth. Recenthire of Jose Rodriguez from Accenture should add some experience andrigor to its F&A focus. Core focus still remains in the IT domain, in comparison to other providersin the F&A BPO space. Cognizants leadership DNA still very much steepedin IT and a desire to be an innovative global IT services provider to rival thelikes of Accenture, IBM and TCS. Very limited geographic and near-shore presence of F&A services. Lack of focus on horizontal BPO has prevented Cognizants development inwinning significant F&A BPO presence. Transitions are still a major concern for several clients. Transition planningand management seem to be a real hurdle for the service provider. Limited consultative experience and breadth greatly hinders the ability todrive innovation and continue to work with its customers on thedevelopment and discovery of innovation. Hard to differentiate its F&A BPO competency against likes of Infosys, TCSand Wipro which are vying for the same position in the market. Should seriously look at a major acquisition or two to propel its horizontalBPO capability. This should ideally be an established service provider whicha strong book of business. In addition, adding a business transformationconsultancy competency would be significantly valuable for the firm. It hasthe money, perhaps 2013 is the year is makes some significant acquisitivemoves.Market Share:0.4% 30. 2013 HfS Research Ltd. Proprietary Page 30SutherlandBlueprint High-Performer Flexible Pricing Models to MeetCustomer NeedsClient Industry Verticals Key Clients Global Operations Centers Business Platforms Offered Travel Banking and Financial Services Insurance Communications Retail Dell Qatar Airways ICICI Akin Gump Strauss Hauer & Feld Amlak Finance Popeyes AFC Oman Air Headcount: ~2,000 FTEs India: Chennai, Thane US: Tulsa Bulgaria: Sofia Database Doc Repository/Management BPM engine Portal ETL tools setStrengths Challenges Ambitious privately-held ITO/BPO services firm with $800m in revenues(HfS estimate) eager to gain a foothold in the F&A market. While its market share is small, the company has had some limited successengaging large clients on end to end O2C processes. Has been pushing some compelling engagements in areas such as financialplanning and analysis with some success. Has hired some energetic F&A executives attempting to break new groundby attacking the mid-market with a platform-based approach. Has cash on hand to hire and acquire - and to potentially IPO in the nearfuture. Solid business in voice-based BPO services that can be scaled into F&Aservices. 2013 acquisition of Apollo Health Street gives Sutherland real teethhealthcare BPO processes. Shows the intent and appetite of the firm. Still operating in pilot mode as an F&A provider. Has some good qualityexecutives on board to build a business, but needs significant investment tostart getting serious about competing with the High Performers Circle. Needs to hire some experienced C-level leaders to add maturity andiscipline to the business as it nears IPO. Marketing has been virtually non-existent. Brand is practically anonymous. Apollo Heath acquisition may indicate that Sutherland is opting for verticalsolutions in BPO, as opposed to horizontal capability. Needs a major acquisition in F&A to get itself on the map. One of theChallengers Circle providers may be a good target if it can raise thecapital.Market Share:0.0% 31. 2013 HfS Research Ltd. Proprietary Page 31SercoBlueprint High-Performer Flexibility Pricing Models toMeet Customer NeedsClient Industry Verticals Key Clients Global Operations Centers Business Platforms Offered BFSI and Healthcare Travel & Logistics Retail Manufacturing & Utilities Telecom & IT Real Estate & Services Media Government Entertainment Countyrwide Residential Lettings Ebookers Gulliver Travels TATA Teleservices Headcount: 4,400 FTEs India: Mumbai, Gurgaon, Chennai UK: Plymouth, Peterborough USA: Fargo E-Invoicing I Flow Savvion Talisma TDS express IBPM Nsite Omn NavisionStrengths Challenges Powerhouse UK-based services contractor with over $7B in revenues, ofwhich it claims $1B are in BPO-related services. Excellent near-shore oronshore option for UK based business for a multitude of back-office BPOservices. Intelenet acquisition provided some solid offshore competency to supportUK and US businesses, in addition to the local Indian BPO market. Very strong footprints in public sector organizations, which could createsome large F&A potential in the future. The Intelenet acquisition bring Barclays Bank as its major client, in additionto a host of smaller engagements in travel and retail. Strong UK-based CRM BPO business which could provide a platform toupsell F&A services. Most its BPO business today comes from contact center services, with onlythe inherited Intelenet business offering a handful of small-scale F&Aclients, with the exception of Barclays Bank. UK concentrated supplier still a large portion of annual revenue stemsfrom the UK (~80%) and overall scale or ability to handle large customers isgreatly handicapped by total size and geographic limitations. Still relatively new on the scene in managing a multitude of value chainactivities across a single client. General lack of transparency and visibility to clients and prospects tendsto hide behind doors. Client management teams have been cited as old school outsourcing andneed to change their approach. Serco has to acquire if it is to gain any real traction in the F&A business.Intelenet alone only provides some limited competency and scale.Market Share:0.2% 32. 2013 HfS Research Ltd. Proprietary Page 32SteriaBlueprint High-Performer Incorporating CustomerFeedbackClient Industry Verticals Key Clients Global Operations Centers Business Platforms Offered Healthcare Retail Government Banking Telecom and Media Public Sector UK Government National Healthcare British Telecom Lloyds Bank NHS Trusts MyTravel Authority BBC Headcount: ~3,000 FTEs India: Noidia, Pune, Chennai Poland: Katowice Connect Finance (platform) Expenses2010 Nimbus Digital Fuel MarkViewStrengths Challenges Strong experience with servicing the government sectors within the UK. With the acquisition of Xansa in 2007, Serco acquired the ability to providea full service F&A BPO offering The Xansa acquisition has added several notable clients in verticalsincluding the lucrative UK National Health Service Trusts, the BBC, BritishTelecom retail and Lloyds Bank. Strong local IT services capability to bolster BPO capabilities. All of Sterias F&A BPO client base is within the UK. Has limited multilingual capabilities and pan--European presence. Total scope and scale is quite lacking in comparison to other competitors inthis space. 2008 crash seems to have limited Steria to bidding on public sector deals,with the company showing very little appetite to diversify beyond the UK. With aggressive competition now present in the UK from most of theleading BPOs, the future is cloudy for Sterias F&A business. It seemscontent to keep the current business ticking over without makingaggressive moves to diversify.Market Share:4.4% 33. 2013 HfS Research Ltd. Proprietary Page 33XchangingBlueprint High-Performer Flexibility to Deliver Both End-to-End and Point SolutionsClient Industry Verticals Key Clients Global Operations Centers Business Platforms Offered Banking Insurance Real Estate Healthcare Energy Education Logistics Consumer Goods, Retail Defense, Public Sector CBRE MSC Group, Inc. Sedgwick CMS Aon Mercuria C&W Boots NAGe Aptech United Biscuits BAE Systems Headcount: 570 procurement FTEs & 750F&A FTEs UK: London, Preston, Glasgow, Manchester; APCA: Adelaide, Gurgaon, Bangalore,Shimoga, Singapore, Sydney; Europe: Paris, Frankfurt, Berlin, Barcelona; US: Chicago, Detroit, New York X-Flow (AP) X-Act VAULT PayScan KOFAX ASPECTStrengths Challenges Very strong in the source-to- pay functions as a result of their focus onprocurement outsourcing services and in general, strategic sourcing andprocurement. Has successfully partnered with F&A customers to deliver sustainablebusiness and process improvements. Movement and development into unique and value chain specific servicesin analytics. Some of the most interesting developments surround thespend management and P2P functions. Recent investments in sales and marketing could reap dividends. Continued core focus in F&A revolves around the procurement lifecycle inthe source to pay value chain of services. F&A BPO activities continue to belimited in scope, size and client base. Has failed to develop a real US presence in terms of clients and experience. Acquisition of Cambridge Solutions in 2009 has failed to reap dividends interms of new F&A clients More of a lift and shift operation strategy with clients rather than a realinnovator in terms of operations. Strongly believes in firstly leveraging onthe existing systems that are already implemented with clients buildingupon existing framework as the base to start off with the processes. Hasstayed true to this philosophy for over a decade many believe it is time tomove to a more solution-oriented approach. Continues to emphasize their execution on the S2P functions. Future is unclear after recent financial difficulties and change of leadership.Potentially attractive acquisition target if stock price fails to improve.Market Share:0.4% 34. About the Authors 35. 2013 HfS Research Ltd. Proprietary Page 35Founder and CEO, HfS Researchphil.fersht@hfsresearch.comOverview Over 17 years business experience in the global outsourcing and sharedservices industry across US, Europe and Asia An acknowledged industry advisor, strategist, author, speaker, practitionerand blogger Advised on 100s of global IT & BPO engagementsPrevious Experience Practice Head for IT Services & BPO Practice, AMR Research (Gartner Inc.) BPO Marketplace Leader at Deloitte Consulting Vice President for Everest Group, leading research and consulting teamsbased in the US and India.Prior Career Regional Director, IDC Asia/Pacific Program Manager, European IT Markets Services, IDC EuropeEducation BS with Honors in European Business & Technology from CoventryUniversity, United Kingdom Diplme Universitaire de Technologie in Business & Technology from theUniversity of Grenoble, FrancePhil Fersht 36. 2013 HfS Research Ltd. Proprietary Page 36Principal Analyst, HfS Researchbrian.dubiel@hfsresearch.comOverview Covers the Finance and Accounting and Procurement Outsourcingindustries for HfS Research An acknowledged industry expert in BPO operations, having worked onmultiple sourcing engagements including in areas such as KPO, FAO, POand LPO domainsPrevious Experience Served as the outsourcing category manager for State Street Corporation,acting as an internal advisor for both procurement operations andcorporate outsourcing projects Initiated and developed State Streets Outsourcing Center of Excellence,creating corporate outsourcing tools and methodology, and standardizingknowledge for internal business lines to better govern their outsourcingproviders and sourcing eventsEducation Dual BA in Economics and Philosophy from Trinity College MBA with an Operations and Supply Chain concentration fromNortheastern UniversityBrian Dubiel 37. 2013 HfS Research Ltd. Proprietary Page 37HfS Research (www.HfSResearch.com) is a leading independent global analyst authority and knowledge community forthe business and IT services industry.HfS is unique in the fact that it serves the research and strategy needs of business operations leaders across finance,supply chain, human resources, marketing, customer management, IT and core industry functions. In addition toresearching business operations strategies, HfS educates and facilitates discussion among the worlds largest knowledgecommunity of enterprise services professionals, currently comprising 120,000 subscribers. HfS Research also facilitatesthe HfS Sourcing Executive Council, the acclaimed elite group of sourcing practitioners from leading organizations, whichmeets on a bi-annual basis to share the future direction of the global services industry and discuss the future enterpriseoperations framework.Led by recognized industry expert Phil Fersht, HfS Research differentiates itself with its global team of expert servicesanalysts with real industry experience, provocative and opinionated research, unrivalled market analytics, and a view oftechnology as an enabler for business process improvement. Its on-demand expertise relationship model helps clientsleverage HfS knowledge and strategic insight in a rapid, responsive and engaging manner.In 2010 & 2011, HfS was awarded Analyst of the Year by the International Institute of Analyst Relations (IIAR), the premierbody of analyst-facing professionals, and achieved the distinctive award of being voted the research analyst industrysmost Innovative Analyst Firm in 2012.Now in its sixth year of publication, HfS Researchs acclaimed blog Horses for Sources is widely recognized as theleading destination for unfettered collective insight, research and open debate of sourcing industry issues anddevelopments.To learn more about HfS Research, please email research@HfSResearch.com.About HfS Research