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ABE2020_White

Offshoring Accounting & Business Processes:
What benefits your Business and how to engage?

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Innovature BPO at Accounting Business Expo 2023, Australia

Seb 3

Sebastien Thillaye, our Director of Growth presenting at the Expo

Business Process Outsourcing (BPO) refers to hiring an outside company to perform in-house tasks. This includes everything from Customer Service to Accounting to Marketing. Outsourced services are often cheaper and faster than doing things yourself, making them attractive for businesses looking to save money and improve efficiency.

BPO has become more common in recent years because outsourcing allows businesses to focus on what they do best while letting others handle the details. This frees employees to work on higher-value tasks, such as developing new products or improving existing ones.

Characteristics of BPO

The key features of BPO are flexibility, cost-effectiveness, speed, and availability of the BPO workforce.

Accenture, IBM, Infosys, Mphasis are among the top BPO companies providing their services to innumerable global organizations.

BPO

Vietnam as a destination for Finance and Accounting Outsourcing

Vietnam

This is a map of BPO or SSC from an American perspective. Obviously, nearshore outsourcing is still very popular, in Central and South America. The cost might be on the high end but they are in the same time zone and the culture has a lot of similarities.

In Australia, it is mainly outsourced to India or the Philippines, but Vietnam is booming in that sector and represents now 5% of the Finance and Accounting Outsourcing being outsourced from the US.

Demographics

Finance and Accounting tasks that can be outsourced

Asset 6

General Accounting 

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Accounts Payable 

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Accounts Receivable 

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Bookkeeping

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Financial Planning and Analysis 

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Accounting Closing & Reporting 

Asset 12

Payroll Processing 

Asset 13

Audit Services 

Asset 14

Treasury/Cash Management

Asset 15

Tax Services

Asset 16

Asset Management 

Business Process Outsourcing (BPO): Strategies for decisive advantages

Risks of outsourcing

BPO-Risks
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Lack of control

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Negative impact on existing onshore staff

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Data protection and confidentiality risks

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Turnover 

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Financial and reputation risks.

Asset 22

Less flexibility

Benefits of outsourcing

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Outsourcing process

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Performance management

Asset 25

More resources

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Reporting

Asset 27

BI

Asset 28

Automation

Asset 29

Cost savings

Asset 30

Accounting system integration

Asset 31

Identifying errors

Asset 32

Ticketing management

Asset 33

Training and backup solutions

[Newsletter] Business Process Outsourcing (BPO): Strategies for decisive advantages Part 2
Section 3

Defining what to retain, outsource or automate

Benchmarking helps to narrow down your outsourcing needs

Benchmarking is indeed important to create added value for your business. Most of the SMEs we talk to don’t have any benchmark or very little information to provide. One of the most popular reasons for this is the belief that they are their own organization, and hence, do not need to emulate any other organization.

Hence, when they are willing to make the transformation to their business because they want to scale up, because of a bear market, or with what happened with COVID-19, they are having a hard time assessing what they should outsource, retain, or automate. They have a rough idea but it’s still very blurry.

Key items to be benchmarked

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Level of efficiency

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Level of effectiveness

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Standardized process

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Level of management required

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Level of automation in place

Here is an example for the efficiency. You can see the suggested number of full-time employees in the accounting department in accordance to the company’s annual revenue.

Basically, it comes down to the volume of transactions. Although, a $20M company may have more transactions than a $100M firm. It depends on the complexity of the underlying business. So take those figures as an
example as they might not exactly apply to your company. 

E.g Level of efficiency benchmark

AP Benchmarking 1
AP Benchmarking 2

Sources: https://www.iqbackoffice.com/ The 2021 McKinsey Global Payments Report

Section 4

The right questions to ask BPO companies when considering Finance & Accounting Outsourcing

Top 5 questions to consider

Once you know what you need, you are now looking for a BPO provider and start listing and assessing some of them. Here we have picked 5 questions that we believe you should be asking
the BPO provider in order to make your selection.

If they can answer and provide the properinformation quickly it’s probably a good one.

  • Do you have the expertise in the field? 
  • Could you explain your onboarding process ?
  • What kind of KPI reporting do you provide?
  • How quickly can you ramp up a team?
  • How do you manage underperforming agents?
Section 5

Key lessons for a successful outsourcing migration

The key items

You have now selected your BPO provider and you want to refine your choice here are the 3 main aspects to consider when working with a BPO provider as per our clients. This is part of the onboarding phase but also as the projects are already running.

The selection of the resources
Need to have all the resources selected by the clients upon CV at least and/or interviews

The training
The BPO should have a TL who can gather the knowledge and train your resources in case of ramp-up.

The Communication
Frequent communication, availability and transparency. Partnership on not just executing tasks. Building trust.

BPO

Service Model

Our Service Model

Why Innovature BPO?

  • Provide Outsourcing solutions using consulting approach
  • For Clients with already implemented RPA templates or BI tools, Innovature provides talented and well-train resources to execute the process
  • For Clients without RPA experience, Innovature provides full service cycle:
    • Review and optimize current processes applying RPA
    • Document processes
    • Set up benchmark and reporting
    • Provide resources to execute

Example

Automation in Accounts Payable
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1. Technology-Driven Organization

In addition to the tech savvy talents servicing your company, Innovature is ready to deploy new technologies and tools that help enhance, standardize processes, set benchmarks and optimize productivity.

2. Technology-Enabled Process Optimization

  • Leverage OCR technology to read and parse data from invoices in PDF format.
  • Use Power Automate to consolidate data from different locations, then perform reconciliation in Excel automatically.
  • Deploy Database to manage master data and field mappings

3. Automated Report Measuring Real Time Performance

  • Deploy ETL on Azure Data Factory to extract, Transform, Load from sources used for reporting.
  • Deploy Power BI dashboard with real time reports measuring all aspects within Accounts Payable
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