Which are Better for Finance and Accounting Outsourcing: Multinationals or Indian Providers?
Rick Bertheaud, Finance and Accounting Managing Director, North America
Stan Lepeak, Managing Director, Global Research
Inquiring minds want to know – is there a quantifiable difference in the service quality between the multinational finance and accounting outsourcing (FAO) providers (e.g. Accenture, IBM, HP, Capgemini and Steria) and the rising class of India-based FAO suppliers (e.g. Genpact, Wipro, Infosys, WNS and TCS)?
The legacy multinational and India-based FAO providers are becoming more homogenous in their delivery capabilities and operating models. The multinationals may have stronger industry domain knowledge and deeper client experience, history and footprint…advantages that have allowed them to build market share. The Indian providers have leveled the playing field, taking share by competing on more than just price. The large multinationals continue to hold the lead in sole-source, relationship-selling situations. And when it comes to capabilities, the best are getting better and the top-tier providers of both types are converging.
EquaTerra’s recently released global FAO service provider performance and satisfaction (SPPS) study revealed some noticeable differences among the top-tier providers when it comes to the details. For example, some scored better at transition, and others were cited as being more flexible on commercial terms. While the top-tier is improving and converging, differences remain which are worth exploring at the solutioning stage of an engagement to ensure the client: (a) receives what is most important to them; and (b) knows how to mitigate areas of concern through contracting and governance.
For the latest from EquaTerra on FAO, visit www.equaterra.com/f&a.
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