FAB Draft Deliverable Sanjay Gupta Discussion 7-14-03.FNL.pptVIP免费

FinanceatitsBestDRAFTF&ABPOFindingsandInitialOptionsJuly14,20032DRAFTExecutiveSummaryHypothesisAXPhasutilizedsharedservices,processreengineeringandleveragedlowcostlabormarketswhichmayprovideanopportunitytogeneraterevenue(AXPreferstoitas“insourcing”)AmarketexistsforcompaniessuchasAXPandotherbusinesspartnerstoleveragetheircapabilitiestocapitalizeonthisopportunityInitialResultAccordingtoGartnerandIDC,theglobalF&ABPOmarketsizefor2003isabout$34billionwithaCAGRof12-14%ArecentCGE&Ysurveyindicatesthat49%oftheglobal/largemarketcompaniesand33%ofmidsizecompanieshaveawillingnesstooutsourceF&AactivitiesSurveyalsoidentifiedthatglobal/largemarketcompanieshaveahighutilizationofsharedservicesandERP(65%and76%respectively)Asasresult,futureBPOopportunitieswillexistinmarketsegmentsthatinclude(1)largemarketcompanieswithoutsharedservicesandERPand(2)middlemarketcompanieswithorwithoutsharedservicesandERP(3)companieswithouttheinvestmentcapabilityinlowercostmarketssuchasNewDelhi,China,EasternEuropeBasedonCGE&Yinterviews,themarketplacesthehighestemphasisoncostcompetitiveness,servicequality,technicalcapabilitiesandtrackrecordforexistingandpotentialFA&BPOprovidersAXPhasleveragedassetsinNewDelhiandotherlowercostareastoyieldlowtransactioncostsandaverageproductivitylevels(within2quartileprocessperformance)butprocessconsistency(I.e.sigmalevel)isstillevolvingAXPtechnologyorganization(AET)hasleveragedNewDelhitomaintainitsapplicationsinacosteffectivemannerandoperatesatCMMlevel3,thoughthetechnologyishighlycustomizedAXPhasprocessandtechnologyimprovementopportunities(ascomparedtocommercialquality)thatwillhavetobeaddressedpriortoofferingservicesonacommercialbasisAddressingtheGapThoughtheAXPGTPorganizationhasbeensuccessfultodate,implementationofERPtechnologyandrelatedintegrationofprocesseshavethepotentialtofurtherimproveitscostandproductivitylevelsandtoimprovepredictabilityandconsistencytolevelsrequiredforcommercialpurposesAXPcouldcontinuetotransformitsGTPprocessesthroughprocessreengineeringand/orimplementationofnewtechnologies(ERPandNon-ERP),requiringsubstantialcashinvestmentwithsome,average,butnotoutstanding,returnsBasedoninputfromAXPseniormanagementweunderstandthatasubstantialinvestmentwouldnotbeanattractivegoforwardoptionAdditionally,oneofthemajorstrategicobjectives,costvariablization,cannotbereadilyachievedthroughAXPtransformationaloneAdditionalOptionsAXPmayconsideroutsourcingitsF&Aprocessesandtechnologyapplicationsmanagementtoabusinesspartnertoachievesubstantialbenefitsandtovariabilizecosts,withoutAXPalonemakingsubstantialinvestmentsCGE&Yiscurrentlyevaluatingtheseopportunities3DRAFT•AccordingtoGartnerandIDC,theglobalF&ABPOmarketsizefor2003isabout$34billion•U.S.currentlydominatestheF&ABPOmarketandwillcontinuetodoso,thoughhighergrowthratesareexpectedintheUKandAsia•Researchindicatesthatsmallandmediumsizedbusinessesareshowingincreasedopportunitiesnearterm,withmarketshareof$6billiongrowingat15%CAGR•Onaprocesslevel,CGEYanalysisindicatesthatA/P,A/R,T&EandPayrollareamongthefourlargestandmostattractiveF&AprocessesforcompaniestooutsourceF&ABPOisaLargeandGrowingMarketwithStrongCustomerDemandandaLargeNumberofCompetitorsMarketSizingMarketSizingCustomerAssess-mentCustomerAssess-mentCompeti-tiveAssess-mentCompeti-tiveAssess-ment•Largeglobalcompanies(ascustomers)willcontinuetoleadth...