e – Accounting (Financial BPO)CA Vibhas Pethe.

(Indian Chartered Accountant equivalent to CPA in USA)

History of Outsourcing to India

• 1980 – Manufacturing

• 1990 – Information Technology

• 2000 – BPO & KPO

• 2010 – Data processing & Financial BPO

Present outsourcing and future outsourcing plans• Present Future

Why India?• Low-cost offshore destination• Integrity• Language• Education• Quality

- Communication

Cost Analysis

•Low-cost offshore destinationAnnual Salaries In IndiaExperience of 3 to 5 years

$4,500 to $9,000

Experience of 5 to 8 years

$10,000 to $20,000

Experience of 8 to 10 years

$22,000 to $30,000

Real Estate PunePer sq. ft.(For Rented Property) $1 Per sq. ft. (For Sale) $300

Hot Players in OutsourcingBusiness Services Software Development Call Centers

1. Hewitt Associates (U.S.) 1. Tata Consultancy Services (India) 1. Convergys (U.S.)

2. ACS (U.S.) 2. Infosys Technology (India) 2. Wipro (India)

3. Accenture (U.S.) 3. Wipro (India) 3. ICICI One Source (India)

4. IBM (U.S.) 4. Accenture (U.S.) 4. ClientLogic (U.S.)

5. EDS (U.S.) 5. IBM (U.S.) 5. 24/7 Customer (India)

6. Hewlett-Packard (U.S.) 6. Cognizant Techonology Solutions (U.S.) 6. SR.Teleperformance (France)

7. Wipro (India) 7. Satyam (India) 7.e Telecare International (U.S.)

8. HCL Technologies (India) 8.Patni Computer Systems (India) 8. SITEL (U.S.)

9. Tata Consultancy Services (India) 9. EDS (U.S.) 9. Teletech (U.S.)

10. WNS Global Services (India) 10. CSC (U.S.) 10. CustomerCorp. (U.S.)

Source: BusinessWeek, The Future of Outsourcing

Why Indian CA?

• Accountants Equivalent to CPA in USA

• Recognised by ICAI (Equivalent to AICPA)

• Superior quality

• Low cost

• Timely solutions

• Singular vision of perfection

How it works?

• Global Accounts Payable Processing of Procter & Gamble by  Hewlett-Packard

Global Accounts Payable Processing

Benefits

The ASP(Application Service Provider)- Three options

• By using an ASP on rent as arranged by overseas firms.

• We can host our own server with controlled access and requisite applications.

• We could also log in to the overseas end-client's server and post the entries.

E-Accounting solution—ASP model

Imagine,• All users of accounting data are virtually connected • Work from their respective physical location• The network is secure, data is protected• All information is in real-time• Advantage of geographical location of India & USA

(Pune is 9:30 hours ahead of New York)

Operational Work Flow Process

• Step 1: Source documents are sorted, scanned and sent electronically by the Overseas Firm, along with the other relevant data to a file sharing system on the ASP.

Operational Work Flow Process

• Step 2: The files are viewed on-screen and processed remotely by Chartered Accountants in India.

• The application is run online from a protected data center and provides access through a Web Browser - data is entered directly by the Bookkeeper.

Operational Work Flow Process

• Step 3: Review notes are prepared by Chartered Accountants in India and sent to overseas firm for clarification.

• Emails are generated to appropriate contacts overseas, indicating that review notes for a specific client have been posted and are awaiting review.

Operational Work Flow Process

• Step 4: Upon hearing from firms overseas, the Accountants in India complete the rest, have it reviewed by a supervisor and upload it for final review.

Operational Work Flow ProcessSummary,

• Explain what to do – 01 Hour(USA)

• Processing Hours – 70 Hours(India)

• Review by overseas firm – 04 Hours(USA)

• Rest of finishing work – 30 Hours(India)

• Final Review – 02 Hours(USA)Total Hours spent-USA(1+4+2) – 07 Hours

Total Hours spent-India(70+30) – 100 Hours

Security & Virtual Desktop• All processes actually occur on the terminal server and not

at the client's desktop.• The only data that is sent back and forth between the

terminal server and the user desktop is screen, keyboard, printer and mouse data.

• By default the data stream is compressed and encrypted the data at the server is backed up regularly and moved off-site to a remote location.

• This way real business continuity is ensured.• Also, we assure data secrecy of all data on our side.

Overseas Concerns and our assurances• Quality of work –We are intelligent chartered

accountants and globally recognized• Cost Effective – Yes. You can focus on

expanding your business • Time saving –Basic processing is done in

India, you can spend quality time for Review• Data Security – Data is on servers

maintained by overseas firm and no data is stored at processing location in India

Thank you.

Contact us:

CA. Vibhas Pethe (Pune, India)

Mobile: +91 9970178560

E-mail: pethevibhas@gmail.com

Sources• http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/

Documents/IMOs/Shared%20Services/us_sdt_2012GlobalOutsourcingandInsourcingSurveyExecutiveSummary_050112.pdf

• Gibson, Stan. “HP Goes DistanceFor P&G,” eWeek, 3/20/2006, Vol. 23 Issue 12, p49-52, 3p.

• http://www.sourcingline.com/outsourcing-location/india• “A world of work,” The Economist, November 13, 2004, pp. 6-7. • Booton, Bob (2005). Outsourcing in a box. San Jose, CA: Bidness Books

Publishing.• Engardio, Pete, "The Future of Outsourcing," Business Week, January

30,2006. pp. 50-58.• http://economictimes.indiatimes.com/articleshow/1468167.cms• http://www.behtimes.com/article/123/7/• http://us.rediff.com/money/2004/jan/08bpo.htm• http://www.cyfuture.com/business-process-outsourcing.htm• http://www.bpoindia.org/• http://www.xicom.biz/research.html• http://www.networkworld.com/news/2004/0407updatibm.html• http://encarta.msn.com/encyclopedia_701702628/Outsourcing.html