Finance and Accounting Outsourcing (FAO) Services
Key Business Challenges
Burgeoning cost pressures and the increasing need for risk and compliance management, efficient processes, and a closer alignment with business objectives are driving finance organizations toward operating models that focus on both agility and control. In this challenging global marketplace, companies are looking to their finance function for insights that will help them achieve improved business performance.
HCL’s transformation-led Finance and Accounting Outsourcing (FAO) services help organizations adopt those models, through deep domain expertise, shared-service models, global best practices, and established controls.
HCL’s Finance and Accounting business process outsourcing services enable organizations to achieve agility in operations. Our FAO services aid in balancing expense and growth, cash-cycle reduction, DSO improvement and ROI maximization.
HCL brings to its clients its expertise in Enterprise Application Services (SAP, Oracle, MS Dynamics etc.) across implementation, maintenance and running finance functions on these applications. HCL helps its clients realize the full potential of the existing functionality of their ERP systems. HCL is very well positioned to help maximize client value through global process templates, improved productivity, better compliance, etc.
In an endeavor to optimize the existing processes and reports, HCL utilizes its proprietary Toscana© Business Process Management Tool (BPM). Toscana© BPM is an end to end software solution to design, deploy, manage, optimize and improve business processes. Toscana© optimizes the process through auto Work Distribution, Prioritization, Exception & Approval Management, Audit Trails, Compliance, SLAs Management, enabling quality controls and managing hand offs, providing real time performance reports and work status reports. Toscana© can also integrate with Customer’s ERPs’.
HCL believes that disruptive technologies such as Robotic software automation & analytics will become an integral part of all the F&A solution offerings. HCL has therefore invested in a Robotic Automation CoE(ToscanaBotCoE) in partnership with a leading technology provider in the Robotics space.
HCL’s FAO Services
We provide finance and accounting services to Global F500/G2000 customers across financial functions. Our Finance and Accounting Outsourcing services (given below) are exhaustive enough to satisfy any organization which is looking forward to outsourcing finance and accounting operations. They include:
Procure to Pay(P2P)
- Invoice Processing
- Spend Analytics
- Inventory Management
- Travel & Entertainment
- Purchase to Pay Helpdesk
Order to Cash(O2C)
- Order Management
- Billing & Rating
- Cash Applications
- Credit Control
- Customer Master Maintenance
- Customer Help-desk
Record to Report(R2R)
- Month Close
- General Ledger
- Audit Support
- Intercompany Accounting
- Treasury Accounting Processes
- Fixed Assets
- Fund Accounting
- Analysis & Reporting
Performance Management & Regulatory Reporting
- Financial Planning & Analysis
- Management Reporting
- Statutory/ Regulatory Reporting
- Tax Reporting
Our Differentiated Value Offerings
End-to-end shared services for finance function transformation:
HCL’s transformation-led Finance & Accounting Outsourcing Services (FAO) are sketched to support our clients by establishing compliance and controls, balancing expense vs. growth, reducing the cash cycle and maximizing return on investment (ROI). With 90+ clients in the FAO space, HCL has vast experience in handling end to end transaction oriented, judgment and strategy intensive processes across the FAO value chain.
HCL covers the entire range of Procure-to-Pay and other Transactional process functions like Wing to wing procurement services - Supply Chain Planning, Demand Management, PO Processing, Full buyer desk, spend analytics, Trade & Duty Compliance(imports and exports), Supplier contract management, Master Production, Scheduling Configuration Analytics, Invoice management, Payment Management, e-Sourcing, RFX development, Price & Field analytics, Invoice Tax Handling, Logistics etc. HCL is recognized as an expert in delivering catalogue based P2P solutions based on SAP SRM.
In the Order-to-Cash domain, HCL serves global clients across multiple industries. HCL has strategic partnerships with leading platform vendors to provide bolt-on solutions for billing, order-management/revenue analysis, collections and cash applications.
In the Record-to-Report domain, HCL provides month close, general ledger, reconciliations, audit support, intercompany accounting, treasury accounting processes, fixed assets, fund accounting, and more. In addition, HCL has strategic partnerships with leading platform vendors to provide bolt-on solutions for reconciliation and month end/quarterly close functions.
Business transformation and upfront savings through HCL’s proprietary Enterprise Function as a Service (EFaaS™) model:
HCL launched EFaaS™ to help organizations reduce their operational costs through the creation of specialized utilities. HCL’s EFaaS™ delivers business function services as utilities, thereby providing flexibility and scalability in business operations. By re-engineering the finance processes, standardizing the underlying application platforms, and creating Shared Service Centers (SSCs), EFaaS™ provides an integrated approach to transforming the finance function of its clients.
EFaaS™ is a true FAO differentiator for HCL, and is the transformational roadmap that we take our clients through. Most models will typically start only with one layer, e.g. the service layer or the Apps layer or the Infra layer. HCL’s model helps clients through the entire EFaaS™ journey which delivers significantly higher value than traditional BPO models.
Disruptive technologies such as Robotic software automation and analytics are integral to F&A solution offerings:
HCL has invested in a Robotic Automation CoE (ToscanaBotCoE) in partnership with a leading technology provider in the Robotics space, through which HCL is enabling automation for multiple customers.
Creating solutions that address industry-specific challenges as more and more complex processes are outsourced:
HCL has developed a highly advanced governance structure, which ensures that the highest levels of risk and compliance are embedded into its FAO operations to cater to industry-specific nuances.
HCL’s multi-domain Integrated Global Delivery Model (iGDM):
HCL leverages its iGDM to seamlessly deliver services across multiple countries and multi-shore operations. HCL's Business Services division has built a presence across multiple geographies with state-of-the-art BPO delivery centers (34 centers across India, USA, Europe, Ireland, UK, Latin America and the Philippines). These delivery centers form a global integrated framework, which allows HCL to meet the needs of global clients while harnessing the right skills and talent across the globe. Clients seek standardization across such global centers. For instance, the work being done for a U.S. client with offices in Europe will require standardization across all its global locations. HCL integrates its global centers and standardizes operations to create a seamless delivery experience for its customers.
Combined capability across ERP and Business Process Management Tools (Toscana™):
transforming end-to-end processes within the organization Toscana© optimizes the process through auto Work Distribution, Prioritization, Exception & Approval Management, Audit Trails, Compliance, SLAs Management, enabling quality controls and managing hand offs, providing real time performance reports and work status reports. Toscana© can also integrate with Customer’s ERPs’.
Global strategic alliances with the Big4 consulting firms and leading platform partners:
HCL works with the Big4 consulting firms for benchmarking and finance transformation, by utilizing their expertise in 3 distinct areas:
- Best-in-Class Advisory
- PMO and Governance – Quality Assurance and ongoing monitoring/review
- Regulatory and Statutory Advisory services regarding specific, in scope, accounting standards
This provides our clients with ‘Program Assurance’ especially around designing their operating model, the creation and successful implementation of the transition, and risk/change management. While the Big 4 provide the support, HCL retains accountability for the overall success of the program, including process migration and transformation implementation as described in our solution.
HCL’s proprietary ASSeT™ methodology for risk-free and seamless transition:
HCL’s ASSeT™ is an end-to end integrated transition framework designed to address large deal, multi-service transition needs and support, and integrated governance needs. ASSeT™ is supported by a detailed step-by-step workflow and a rich repository of templates, artefacts, and best practices. ASSeT™ is HCL’s major contract implementation framework, which was developed with the following objectives.
- To establish a well-defined process/ strategy that ensures success in major programs, with a focus on value creation
- To create a common framework/process for effective transition
- To have a controlled, customizable, sustainable framework – enabled via automation
Innovative partnership models:
HCL works closely with its customers to develop a business model that delivers the maximum value. HCL has successfully implemented a variety of partnership models such as: BOT, virtual captive, managed hybrid, equity-based JVs, assisted captive, carve-outs, outcome or output based pricing, etc./p>
Business Value for Customers
Several industry leaders have benefitted from our Finance and Accounting Outsourcing services:
- Over €4 million in savings
- 30% reduction in resources
- Consolidation of operations across 100+ locations
- 4% increase in operating profits
- Cost savings of approx. $10.3 million per annum
- Order processing turnaround time improved from 24 hours to 5 hours
- Real-time information about the status of shipments helped improve on-time delivery by up to 92%
- 93% of documents are processed on the same business day with 100% quality
- 36% estimated cost savings and post-transformation reduction in TCO
- Finance reporting services to over 100 regulators on a utility model, enabling a cost reduction of $130 million over 5 years
- Productivity benefits of around 25% over deal life
- Maximized automation of reporting across IFRS, Local GAAPs, industry specific needs, etc.
- Commenced with 6 LOBs in 2008 and currently taking care of more than 40
- 40% improvement in FTE productivity
- Overall cost savings and cost reductions right from Year 1
- CSAT score of 7 on 7 for the past 5 years
- 100% SLAs met right from Year 1
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