Main | Exclusive: F&A BPO deals continue to rocket…but they’re getting smaller »

May 18, 2007

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Payal,

1) Get an alliances pro to push your services onto the sourcing advisors and consultants. They are always being pulled into discussions with their clients - and these are often SMBs, or larger firms lookingfor smaller deals.

2) Look to partner with other firms who focus on SMBs (accouting software providers / resellers; IT services firms). I see you have made a good start already here...

3) Sponsor some of the accounting forums and events where SMB firms will be represented.

4) Upgrade your website and put some compeling thought-leadership on it that is authored by your firm (i.e. a white paper / case studies etc)

Easier said that done. Good luck!

PF


We started our company FAOnDemand in JAN 07. We are doing pretty well as a startup but find it tough to market our services. Any suggestions?
We outsource F&A services to India.

Hi Gaurav - great to "hear" from you.

Completely agree with yout point about having a third party accouting services firm adding credibility, especially when there are specific SLAs that are set and a consistent track record of being met. Moreover, am speaking with more and more companies who simply can't get quality staff to do basic accouting jobs. More and more CFOs actually want to offload AP to a third party if they can do it better (and cheaper). I believe AP is fast becoming similar to payroll, where it makes more sense to use an ADP/Ceridian than try to do it yourself. And to add to your point, am also seeing procurement activities more frequently included in the FAO discussion. The key component moving forwards is how the suppliers integrate offshore resources into smaller deals - I have some really interesting new data to show offshoring kicking in a much smaller deals levels than anyone anticipated (more to follow shortly).

Cheers,
PF

Phil,

Great article. I really like and agree your point around the availability of bundled solutions within F&A process. I am certainly seeing the bundling trend continue within and beyond F&A to adjacent processes like Source-to-Procure being bundled with AP and F&A to effectively manage spend and ensure relaized savings to the P&L.
I was also thinking that the trend towards public companies going private via the private equity route interplays well with F&A outsourcing. Certainly easier for the Client to focus on growing the core business when going private, while leaving the hassles of accounting and compliance to a third-party. I would think that having a third party F&A outsourcer manage acounting would give the compay's financials more credibility, when going public again in the future (upon which many of these private equity buy-outs are predicated)? thoughts?

Gaurav Malhotra
Ariba Inc.

Phil
Your comments are right on point. What the providers fail to realize is that margins from labor arbitrage will continue to be compressed and unless the providers can offer more services and applications to meet the needs of the clients their will have a difficult time keeping up with the competition and overall profitability.

Peter! Thanks for your comment. Wait for my next post very shortly for some data noone has yet seen,

Phil

100% on target as always. What more can be said?! :) Great resource for the industry given your unique perspective and experience.

Phil;

We need more healthy sharing of facts. Nice commentary!

Peter

Great post Phil - about time someone started an outsourcing blog,

Rob

Phil, you are thought leading again with this blog, and I have booked marked it!!

Phil, great points - especially your next-to-last one about the benefit of globalizing now, before the inevitable downturns occur.

I’ll look forward to future postings as well. Great start Phil.
Vince

You’re off and running. Naomi

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