While cost savings remains the key factor driving companies to hire BPM vendors to manage their process, more and more companies are looking ways to transform their business process to achieve next level of cost savings. In this context, the one critical process that is likely to adopt BPM services is the finance and accounting process.
According to industrial experts, in the times to come, the services of finance and accounting process managers will not only be defined by merely the lower hourly rates for invoice processing but also on the basis of reduction in invoice errors, lessened supplier enquiries, lower processing rates and improved working capital position.
Traditional F&A outsourcing has indeed helped the companies to earn some savings by means of paper invoice handling, scanning and indexing. However, the saving was offset by managing activities like invoice exception handling and corrections. Thus, in real, outsourcing of F&A process has only resulted in creating friction in the relation between the companies and suppliers. While on the other hand, new generation finance and accounting process management service providers focus on driving a transformation in the finance and accounting process of a company and thus improving the relation between the buyer and supplier. The transformation process in turn will result in additional cost savings apart from labor arbitrage.
The new generation F&A process managers no longer consider finance and accounting process to be merely transaction processing, but rather they partner with latest technologies to streamline the F&A process better, to manage the cash better, to help the companies to adhere to the compliance requirements of the contract and thus improving the relation with suppliers. The modern BPM service providers who offer F&A process management services use E-invoicing, the technology to electronically transfer of information related to purchase and sales of goods between buyer and seller to deliver high value to the companies. E-invoicing helps to automate the low cost manual invoicing process, eliminate the burden of errors while invoice processing, lower the processing time, increase the collaboration with the suppliers and do not require doubling the resources as the business volume increases.
Partnering with technology to manage the process of clients will help the BPM service providers to transit the process of the clients as desired. The end result for the companies will be more cost reduction, reduced dependency on heavy resources and a better ROI. Further, the F&A service provider also offers more flexible pricing models like risk-reward pricing for their partners to support the transformation solutions.
As savings with respect to labor cost are normalizing, process transformation is viewed as the new wave of cost saving. New generation, F&A process managers in this context can play the key role in helping the companies to transform one of their core process, F&A, to earn that next level of cost savings.