ny summit

8/14/2019 Ny Summit

1/12

LogicaCMG 2006. All rights reserved

Finance and Accounting Business Processing in the Philippines

New York Outsourcing SummitNew York Outsourcing SummitNew Directions in Offshoring and Outsourcing in the Philippines

September 27 th 2007

8/14/2019 Ny Summit

2/12

2LogicaCMG BPO Concepts

Finance and Accounting in the Philippines

Accounting andAccounting andProcurement BackProcurement BackOfficeOffice

- Chevron Texaco, Shell,Deutsche Bank

Industry FinancialIndustry FinancialProcessingProcessing

-- AIG, Manulife, HSBC, JPMorgan Chase

8/14/2019 Ny Summit

3/12


Why Philippines?

The Philippines has more than 100,000licensed accountants

Every year there are 3,000 CPAsqualified

Filipino accountants are well versed in

GAAP and International Accountingstandards used in the United States

Good customer service mindset andstrong affinity with western culture

8/14/2019 Ny Summit

4/12


What services areoffered?

8/14/2019 Ny Summit

5/12


F & A services

Documentmanagementtotal invoice management(scanning invoices, OCR,workflow), printing & postingAR invoices & AP remittances,cheques

F&A shared servicemanagementcommercial, HR,Service improvement,client management,service management, training

Help desk/customer managementcall logging, resolution,incident reporting, outboundcalling

Systems supportERP and other systemsupport & maintenanceliaison with vendor report development

Accounting and business support

Financial Planning Services

Accounts Payable

Accounts receivable

Treasury and cash management

General accounting

Reporting

Financial analysis, accounting support, change governance,project accounting, audits

Budgeting and financial planning, forecasting

Invoice processing, credit note processing, paymentprocessing, supplier administration, payroll service,expense management, project specific accounting &reporting

Customer invoice processing, cash application, credit &collections

Payment management, cheque processing, receiptallocations, standing order mandate, bank reconciliation

General ledger, inter/intra company, fixed assets, financialreconciliations, monthly/ quarterly/ annual close

VAT reporting, management reporting, s tatutory & reporting,performance management

Finance and Accounting services

Financial planning services

Accounts payable

Services typically retained in-house

8/14/2019 Ny Summit

6/12


The Levels of Service approach

Services are provided based on a tiered approach varying from basic to complex F&Aprocesses based on the client requirements and extent of outsourcing.

Core transaction processing and reports generation,supported by a transaction information desk.

Ancillary services which, together with the foundationlevel, provide high levels of user support.

Complex accounting services which demandspecialist skills.

Foundation

Foundation Plus

Enhanced

High value services such as financial and marketanalysis, budget process administration, andConsultancy.

Enhanced Plus

8/14/2019 Ny Summit

7/127LogicaCMG BPO Concepts

Case Study: F&A process efficiencies

Business case requirementover 35 per cent operating costreduction

payback under 2 years

on time delivery

no impairment to financial control.

Metrics

supplier invoices from 7 to 3 days

customer invoices 100% on time

management reports 20%quicker

staff debtors reduced by 70%

missing timesheets reduction - 40%

Controls

duplicate invoice detection

high value reviews

removed duplicate suppliers

removed duplicate customers.

Knowledge

policy

methodology

system

performance based

strong European language skills.

Automation

18 process automations

390 man-hours savings per month

F&A

Systems upgrade6%

Improvement

60%

Operationalchanges

16%

Process transitionchanges

18%

8/14/2019 Ny Summit


Case Study: Procurement

Efficiency outcomes reduction in average lead time by 50 per cent. reduced inactive supplier database by 15 per cent implementation of Immediate monthly reporting.

Business targets achieved

reduction in operating cost by 30 per cent

payback within one year consistent on-time delivery internal control strengthened.

Off-shored processes

vendor management quotes and ordering through platform

and quote builder system

negotiations fulfillment inventory management reporting to RPM/VRM/VPP non-cost of sales support quality procedures training.

Requisitionentry

Requisitionapproval

Purchaseorder eCommerce

eCommerce

Supplier

Invoicematching

AP/GL

Posting

Invoiceapproval

Match

Not match

Archive

E-procurement using ERP platform

8/14/2019 Ny Summit


Case Study: Offshore Insurance Centre in the Philippines

What they do: Set up transaction processing and call centre in early 2003

Provided Quality Management and project work in 2005 for the parent

Fully USA focused

Benefits:

Improvement in productivity over 10% by year 2 Quality improvement and consistency weighted average transaction quality at

98%

Lower attrition and higher level staff than the industry norms

Savings over US at 50% per employee

Metrics (see next slide): 482 positions transferred with work done by 462 Philippine staff. Volume

increase over two years of 6%, giving a total 10% improvement in productivity

Actual costs almost USD400,000 less than planned as training was handled bylocal employees not travellers from US

Fully USA focused

8/14/2019 Ny Summit


Case Study: Actual Customer Savings

49% hard dollar savings

66% totalsavings

Cost Savings

US Baseline Costs Fully-LoadedCosts (including customer's

expenses)

US Project Office & Remote I/TDeliverySG&A

International Telecom

I/T Equipment & Maint.

Facility

Indirect Labor

Direct Labor - Supervision

Direct Labor

49% hard dollar savings

66% totalsavings

8/14/2019 Ny Summit


Case Study: Financial Services Management

PRODUCTIONSYSTEM

E-FAXWEB

EMAILMANAGEMENT

INTERNET

FUND MANAGER (I.O.M)

LOGICACMG BPO(PHILIPPINES)

$

BANK (VARIOUS)

128-bit encryption

FUNDADMINISTRATION

(USA)

DISTRIBUTORS(VARIOUS COUNTRIES)

`

`

`

`

`

ADMIN SYSTEMSA.S.P. (USA)

8/14/2019 Ny Summit

12/1212L gi CMG BPO C t

LogicaCMG has taken reasonable care to ensure that the information contained herein is correct at the time of publication. Before using or relying on any

content in this presentation, independent verification should be obtained. LogicaCMG accepts no liability nor responsibility for any use of or reliance upon thecontent of this document.

ny summit

Documents