Vengroff, Williams & Associates Predicts Strong Increase in 2010 for F&A Global Outsourcing

Garden Grove, Calif. — Vengroff, Williams & Associates Inc., an innovative global provider of a full range of customized Order to Cash BPO services to improve customers working capital, today announced the company’s annual trend forecast for 2010.  With substantiation from worldwide industry analysts and advisory firms, VWA anticipates that ongoing economic instability will give additional rise to BPO outsourcing within a more expansive set of industries. Clients will be focused on optimizing operations while containing costs, and improving working capital. The driver within cost containment and improved working capital will be utilizing Order to Cash BPO solutions as the lever to gain strategic competitive advantage. Business transformation will continue to be driven by shareholder insistence on earnings improvement and improved valuations.

“The underlying issues that continued to push the economy into a deep recession this year, are still very much evident in that unemployment continues to increase, consumer spending is still depressed, and consumer savings are up. These factors will continue to plague the global economy through 2010. In response, Fortune 1000 companies have scaled back significantly on production, and will continue to run their enterprises conservatively. Corporations are in a streamlining mode and are re-thinking their entire Business strategy,” according to senior executives at Vengroff, Williams and Associates.

Reflecting on 2009, VWA remained laser-focused on maintaining a customer-centric mentality, centered on delivering innovation and driving efficiency.  

VWA’s 2010 Trend Predictions

BPO Providers Elevate Outcome-Based Risk Reward – Form Partnerships with Clients
In 2010, key suppliers will look to develop innovative contracting and pricing structures which will shift the risk from the buyers to the supplier. VWA predicts that providers will focus on relationship management, by working with clients’ entire business organization to help improve the business.  Service providers will continue throughout 2010 to look for ways to mitigate problems and become a partner with customers to establish a trust relationship, rather than simply being viewed as a provider.  Providers will be working outside the project scope with the spotlight being centered on forward-thinking preventative measures in order to eliminate pain points throughout the BPO cycle.

Successful providers will empower their staff to construct relationships and contracts to deliver increased productivity, transformation and innovation, thus taking on more risk so decision makers can focus on optimizing operations and containing costs. Providers will hone their ability to work together with other suppliers and take on risk for the integration of third party services.  Decision makers will look to shift more of their sourcing energies from the transaction to the governance process to optimize their strategic relationships with providers.

Comprehensive Innovation: Technology’s Role in BPO in 2010
F&A BPO decision makers will increasingly look for their outsourcing relationships to deliver more than simple cost arbitrage: for example, a growing number of decision makers now expect their chosen vendor to drive process improvements, and provide them with access to the latest technology. Non-disruptive technology augmentation that solves a company’s specific process issue which is negatively impacting the business is the driver behind decision makers’ embracing technology and the resulting implementation.

VWA predicts that technological innovation will help drive down the pure cost savings through the labor arbitrage debate by significantly improving business process efficiency. Combining innovation in technology with delivery excellence will allow buyers and suppliers alike to focus energies on what is best for the entire business and create true transformation.

End to End BPO Solutions for Both Mid-Size and Large Companies
As the F&A BPO market matures, decision makers are more willing to outsource end-to-end accounting processes, such as order-to-cash.  To date, the majority of order-to-cash (OTC) outsourcing has been focused on project based outsourcing two or three functions, such as invoicing, cash applications, and collections  In 2010, the trend will shift as corporate decision makers move from simple transactional processes to an outsourcing business model designed to manage and provide complex O2C strategies across the enterprise.  Decision makers will look for expert solutions designed and customized to their businesses that don’t represent disruptive change to the existing business. Providers who offer a consultative approach and perform as a trusted partner will be rewarded with expanded scope and contract renewals. Providers will need to work in concert with clients, stay focused on costs, effectively manage working capital and establish a relationship of trust.  

According to VWA, increasing the depth and scope of O2C solutions will give companies more working capital and improved business processes to realize the maximum potential of a full-service O2C BPO in 2010.  Additionally, experienced vendors, such as VWA, will incorporate expertise, project planning and technical automation that address a customer’s pain points.

About Vengroff, Williams & Associates, Inc.
Founded in 1963, and with $23 billion dollars under its management, Vengroff, Williams & Associates is a leading provider of receivables management business process outsourcing (BPO) solutions for Fortune 1000 companies such as Ford Motor Company, Federal Express, Kodak, Microsoft, Yamaha and others. Applying state-of-the-art proprietary information systems, best practice work flow and people to realize cost reductions, operating efficiencies, and improved process design, VWA’s approach enables clients to easily insource or outsource all or part of the quote-to-cash function. Solutions are customized to each client’s requirements or expanded to incorporate specialized tools and SAS 70 compliant processes and procedures. Services include full order to cash processing, third party collections, EIPP systems, deduction management, dispute management, auto cash solutions, front-end risk mitigation, and tax resolution. VWA has been named a Top 21 enterprise-level FAO service provider by FAO Today Magazine. To learn more about VWA, please visit www.vwainc.com or telephone (866) 393-4892.