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Feb 07, 2009


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It all makes a lot of sense, particularly with the increased government and regulatory hassle of employing someone yourself - it's just way easier to browse over to one of the many internet freelance services sites and have candidates bid on your job. Finds the best candidate for the job with no long term committments, no withholding taxes, etc. And if regional skills (like language) are important, you can easily focus on specific areas. Best bang for the buck I think.

I knew WNS when they were less than $100MM, but am not surprised by their growth or success--they were clearly a well run, ambitious operation then. I am happy for that team, even though I have lost track of them for the last few years.

I see retail induystry deals picking up. though (I confess I have no data, just a hunch) as margin pressure intensifies and survival rather than profit becomes the focus, arbitrage and other cost savings will become very attractive and deal activity will accelerate. Also, with the credit markets as they are, retailers and other highly leveraged businesses for the first time may find themselves with a higer cost of capital than their providers.

In our experience at BancTec over the past 6 months, F&A deals that have low (or zero) client-required capital during launch are moving forward at an accelerating rate. AP Outsourcing or 0ptimization deals (reducing unit costs) seem to be very desirable to clients in the present economic environment. Also, revenue cycle deals that show linkage to reduced DSO, and therefore reduced working capital, are also of great interest.

I discuss day-to-day experiences and topics in the AP Optimization market in more detail over at http://ap-optimizaton.blogspot.com

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