1DRAFT–CONFIDENTIALNOTTOBEDISTRIBUTEDJuly,2003CompetitiveAssessmentFinanceandAccounting(F&A)BusinessProcessOutsourcing(BPO)2DRAFT–CONFIDENTIALNOTTOBEDISTRIBUTEDF&Aoutsourcingisacrowdedmarketplace,withservicesofferedbyITandtraditionalconsultingcompanies,pureBPOplayers,andcompanieswithlargesharedservicecentersinlowcostlocationsCurrentlythemarketisstillhighlyfragmented,andnoclearmarketleaderhasyetemergedContinuedmarketentryaswellasconsolidationisexpectedtooccurwithinthenext2yearsthroughacquisitions,partnerships,andbankruptcies/exitofsmallerplayersMostplayers,includingtheleadersinthisspace,arestrengtheningtheirF&Aofferinginanattempttobecometheundisputedgloballeaderinthisfastgrowingmarketbyofferinganall-inclusivebest-of-breedF&ABPOpackagearoundtheworldManyplayerslookingtoexpandgeographicallybyreachingouttoclientsbeyondtheUSandUKPlayersarefocusingonbuilding/acquiringoffshoreoutsourcingservicecenterstocontinueloweringtheircostsByleveragingtheCGEYBPOcapabilitiesandtheDiversifiedFinancialInstitutionprocessingcenters,anewjointventurecouldquicklybecomeamarketleaderCGE&YandDiversifiedFinancialInstitutioncanleveragetheirreputation,brandandrelationswiththeworld’slargestcompaniestoacceleratethepenetrationbythenewjointventureManyofthesmallerandmorespecializedplayersareexpectedtobeinterestedinforgingstrategicalliancesoramergerwiththisnewmajorplayerTheF&ABPOmarkethasTheF&ABPOmarkethasmanycompetitorsbutisstillmanycompetitorsbutisstillhighlyfragmentedhighlyfragmentedManyplayersareinvestingManyplayersareinvestingsignificantlyandgloballytosignificantlyandgloballytoexpandandimprovethebreadthexpandandimprovethebreadthandqualityofF&AservicesandqualityofF&AservicesCGE&Y&DiversifiedFinancialCGE&Y&DiversifiedFinancialInstitutionhaveanopportunitytoInstitutionhaveanopportunitytobecomealeadingproviderinF&AbecomealeadingproviderinF&ABPOspaceBPOspaceTheF&ABPOMarketIsHighlyCompetitiveButVeryFragmented,CreatinganOpportunityforCGEYtoBecomeaLeader3DRAFT–CONFIDENTIALNOTTOBEDISTRIBUTEDCGEYAnalyzedFourMajorCategoriesofF&ABPOPlayersThehighlyfragmentedmarketoffersstrongopportunityforCGEYThehighlyfragmentedmarketoffersstrongopportunityforCGEYIT&GeneralConsultingFirmsIT&GeneralConsultingFirmsLeadingconsultingandITcompanieswithworldwidecoverage,multipleproductsandservices,withF&ABPOrepresentingasmallbutgrowingpartoftheirrevenuePureBPOPlayersPureBPOPlayersSmall,medium,andlargecompanies,forwhichalargeportionofrevenueisderivedfromofferingBPOproductsandservices,someofferingF&ABPOexclusivelyProcessSpecialistsProcessSpecialistsSmall,medium,andlarge-sizecompaniesfocusingononeF&ABPOprocess,suchaspayrolloraccountsreceivableOther/PotentialCompetitorsOther/PotentialCompetitorsLargecompaniesofferingmulti-processF&ABPOfor“in-house”needs,withmultipleoffshoresharedservicescenters,whichcouldpotentiallyofferthisserviceto3rdpartiesCGEYAccentureIBM/PWCDeloitteEDSCSCCGIBearingPointCreditekOutsourcePartnersInternat.APIOutsourcingEphinayExultXchangingCoEfficientWiproSpectramindOutsourcingSolutionsXansaNetLedgerSourceNetSolutionsEquitantEcreditCompassConnectionsEfundsWorldNetworkConnectionsIntacctACSCrossdomainSolutionsInaltusEXLServiceGelcoNechoSystemsConcurTechnologiesAutomaticDataProcessingCeridianPaychexDiversifiedCreditServices...