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Case Study

A US-based global professional services firm lowers costs by 30% and increases productivity by over 10%

 

A globally renowned professional services firm faced high costs owing to slower and non-standardized finance and administration processes, and heterogeneity in policies and procedures across its offices. TCS standardized the firm’s processes and policies by setting up a consolidated multi-shore service delivery model, helping the firm reduce costs by over 30% and increase productivity by over 10%. In addition, the improved business processes allow for better decision-making and increased responsiveness, while contributing to the firm’s continuing growth and profitability.

The Customer: TCS’ client is one of the largest accounting and consulting firms in the world and provides a range of professional, industry-focused services in assurance, tax and advisory. The firm counts a majority of the world’s largest companies among its clients.

Business Challenge:
TCS’ client was grappling with the consequences of lack of standardization in its finance and administration processes. Each regional office followed its own quality standards and procedures in its day-to-day operations. This resulted in high operational costs and hindered effective decision-making. The firm decided to consolidate its Finance and Accounting (F&A) service delivery operations supported by different providers and use a shared services model delivered by a single vendor instead. With this move, the firm expected to realize standardized processes and reliable delivery that would cater to both planned and unplanned urgent tasks. The firm chose TCS as its partner in this engagement, given our proven multi-shore delivery experience, and our deep expertise in managing IT services for several clients worldwide.

TCS’ Solution:
To address the firm’s needs, we recommended a multi-shoring approach to shared service delivery using our Global Network Delivery Model (GNDM™) with offshore delivery from Bangalore, India, nearshore delivery from Montevideo, Uruguay and onsite delivery from Tampa and Florida. Our GNDM™ averted the risks associated with a single delivery location, and helped address urgent requests while creating a cost-optimized location diversified delivery solution. We performed all the transitions in line with TCS’ 5D Transition methodology to ensure high quality delivery during the initial transition period. The proposed consolidation process centralized C2C services in a single location (Montevideo), thereby standardizing contract creation, maintenance and billing procedures. This helped eliminate redundancies and reduce costs, while ensuring compliance with the firm’s policies and reducing turnaround times. Additionally, the Montevideo near-shore center offered the advantages of same time zone flexibility, close cultural alignment, multi-lingual capabilities, and cost optimization, to effectively complement the offshore centers.   

We created a Quality Assurance team to standardize quality controls, enhance metrics and identify and implement process improvements, including system enhancements. A formal governance procedure for process improvements has been established in collaboration with key client stakeholders.

Results:
Business Benefits:
By partnering with TCS, our client has been able to eliminate redundancy, improve resource availability and reduce costs.  Other benefits that the firm reports include the following:

  • Faster decision-making, with rapid service delivery by the near-shore team located in the same time zone
  • Reduction in turnaround time by nearly 30%
  • Improvement in productivity by almost 15%
  • Significant cost savings of over 30% due to elimination of the third shift since the near-shore team is located in the same time zone

F&A Benefits: 32 new analytical processes, including Payroll, Time & Expense and National Debt, were transitioned smoothly. At year-end 2012, the firm’s procurement team had negotiated around 1,000 contracts - a 200% increase in the volumes handled. There have been significant costs savings of over 30% due to the consolidation of work from 82 US offices to one office and standardization of processes and reduction of Full Time Equivalents (FTEs), an indicator of the number of employees working on a task full time, from 180 to 105 in one year. With TCS’ detailed audit processes, the firm is now able to perform 40,000 expense audits worth $500 million annually. This increase in volumes is addressed seamlessly, without affecting service levels. 

Today, TCS performs close to 85% of the US firm’s F&A transactions. This engagement, combined with the success of previous deliveries, has further strengthened our five year strong business partnership with the firm. With TCS as its partner, the firm is assured that all its processes are executed with maximum efficiency, and continuous improvement in service delivery remains a top priority.

Customer Quote:
“We are seeing much from the team in terms of advice and consulting especially at the leadership level. I would like to see that continue and expand.”
- Director