CFOs have tough decisions to make deciding when the time is right to write off legacy Finance & Accounting (F&A) technology and move to the cloud. Experts from HfS, emerging “As-a-Service” HR and F&A provider OneSource Virtual, KPMG, and Smith & Nephew share insights into the progress of Plug and Play Digital Business Services and the considerations for the F&A function to make the leap. The discussion includes: - The impact of the As-a-Service Economy on today’s finance operations - Current dynamics in F&A outsourcing and anticipated growth in the medium and long-term - How buyers, advisors and providers are approaching change management in the finance function - How the F&A function can follow the examples of other business functions, such as HR and insurance, which more advanced in their adoption of As-a-Service models - The Impact of Robotic Process Automation on finance and why it’s being so rapidly implemented View the webinar replay here: ow.ly/Cxjw301FfAt Download your copy of "Is Finance Finally Ready To Write Off Legacy And Move To BPaaS?": ow.ly/Hcg1301FfXC

1. The Services Research Company
Is Finance Ready To Move To As-a-Service?
An HfS Webcast, 23rd June 2016
Host:
Phil Fersht, CEO & Chief Analyst, HfS Research
phil.fersht@hfsresearch.com
@pfersht #hfsresearch
Web: www.hfsresearch.com | Blog: www.horsesforsources.com

2. About HfS, The Services
Research Company

3. Overview:
• 20 years’ business experience in the global IT and business process
outsourcing and shared services industry
• Coined the “As-a-Service Economy” in 2014
• Industry analyst, author, speaker, strategist and blogger
• Advised and cogitated on 100’s of global IT services, BPO and shared
services engagements
• Meddles with the largest global network of enterprise services and
operations professionals
Career Experience:
• Practice Lead, IT Services & BPO Research, Gartner, Inc
• Global BPO Marketplace Leader, Deloitte Consulting
• Consulting Practice Lead, IDC Asia/Pacific
• IT Markets Practice Lead, IDC Europe
Education:
• BS with Honors in European Business & Technology, Coventry University,
United Kingdom
• Diplôme Universitaire de Technologie in Business & Technology from the
University of Grenoble, France
phil.fersht@hfsresearch.com
Phil Fersht, Founder, CEO and Analyst, HfS Research

4. Get tweeting!
#HfSResearch

6. Unbridled Opinion… Simply Calling It How It Is
www.horsesforsources.com

7. © 2016 HfS Research Ltd. Proprietary │Page 7
…With a More Serious Side Too! www.hfsresearch.com

8. © 2016 HfS Research Ltd.
The HfS Service Buyers Summits…next up New York
www.hfsevents.com/new-york-2016

9. The As-a-Service Economy
And The “Intelligent OneOffice”

10. Digital and Cognitive are Driving Enterprise Operations
Do you agree or disagree with the following statements?
24%
28%
32%
46%
44%
43%
70%
72%
75%
Deploying intelligent operations to align the
front office with core business will have the
biggest impact
Cognitive computing is becoming a critical
component of our future operations strategy
New digital technology initiatives are radically
changing the way we manage business
operations
Strongly Agree Somewhat Agree
Source: “Intelligent Operations" Study, HfS Research2016
Sample: Buyers = 371

11. Senior Management Driving Customer First Thinking
Please indicate whether you agree or disagree that Sourcing of external as-a-Service models will be
driven by a “Customer First” strategy
Source: “Intelligent Operations" Study, HfS Research 2016
Sample: Buyers = 371
51%
46%
SVP+ VP and below
Over half of upper management (51%)
view this as impacting sourcing model
change and strategy more than any other
business driver

12. 2020 Vision: The “Intelligent OneOffice” will emerge from
Digital + Automation
The Digitally-Driven Front
Office
Mobile, Social/Interactive, Real-time
actionable data, Design Thinking
Digital Underbelly
Intelligent Automation
of manual processes
Digitization of
documents
IoT
Intelligent Digital Support
Function
Front office-aligned IT, Finance,
HR, Procurement, Supply Chain
Intelligent Digital
Processes
Predictive &
Operational Analytics,
Cognitive.
The Customer-first Digital
Organization
The Enabling Intelligent
OneOffice
The Nervous System,
incepting & Processing
all Inputs
The
Neural System
The
Circular System

13. Moving into the As-a-Service Economy means changing the nature and focus of
engagement between Enterprise Buyers, Service Providers, and Advisors
Journey to the As-a-Service Economy with Intelligent
Operations
Write Off
Legacy
Brokers of
Capability
Design
Thinking
Collaborative
Engagement
Intelligent
Automation
Accessible &
Actionable
Data
Holistic
Security
Plug & Play
Digital
Services
CHANGE MANAGEMENT IDEALS SOLUTION IDEALS
LEGACY OPERATIONS AS-A-SERVICE ECONOMY
Intelligent
Simplification

14. Traditional and As-a-Service to Run in Parallel For Now
Please indicate whether you agree or disagree with the following statements
about YOUR Intelligent Operations mindset today – just agree
39%
42%
46%
48%
24%
29%
42%
38%
Sourcing of external as-a-Service models
will be delivered by the existing landscape
of traditional IT Service providers
Sourcing of external as-a-Service models
will largely be delivered by a constellation
of new breed providers
Sourcing of external as-a-Service models
will happen in parallel with traditional
sourcing models.
Sourcing of external as-a-Service models
will eventually replace traditional
sourcing models
VP and below
SVP+
Source: “Intelligent Operations" Study, HfS Research 2016
Sample: Buyers = 371

15. Introducing The Panelists

16. Our Webcast Panelists Today…
Michael Roseman
SVP,
F&A Outsourcing,
OneSource Virtual
Melinda Lawrence
Chief Financial Officer,
OneSource Virtual
Keith Mattioli
Principal,
Workday Practice Leader,
KPMG
John Ashworth
SVP Finance Operations,
Smith & Nephew
Reetika Joshi
Research Director,
HfS Research

17. What Can
Finance
Learn From
HR As-a-
Service?

18. © 2015 HfS Research Ltd. Proprietary │Page 18
The HR As-a-Service Market As A Model For Finance
HfS Blueprint 2015: Workday Services
INNOVATION
EXECUTION
High Performers
HP
HexawareTechnologies
Mercer
Aon Hewitt
NGA
Human Resources
OneSource Virtual
Meteorix
Collaborative Solutions
CPSG Partners
IBM
Sierra-Cedar
KPMG
Deloitte
Appirio
Accenture
Towers Watson
Ataraxis
everBe
Winner’s Circle

19. What kind of
F&A buyers
are out there
today?

20. Proprietary │Page 20© 2016 HfS Research
State of the F&A As-a-Service Market
n F&A service buyers fall into three categories:
Legacy Buyers
• Looking for “lift and shift”
•Aim is for provider to run operations at a
lower cost over a long contract
• Usually with minimal process transformation
These buyers are becoming fewer and
farther between
Progressive Buyers
•Realizing labor arbitrage benefits are finite
*Seek partner with higher quality process
expertise, compliance, transparency in
operations
*Appetite to move to consumption-based
pricing
•Using a combination of talent and
technology that keep pace with client
needs on a sustained basis
The growing majority of services buyers
are at this stage
As-a-Service Buyers
•Eager to work with a strategic partner
to define and execute against achievable
business outcomes
*Part of a broad transformation and
change management effort within their
own organization
*Tapping into talent and technology,
both internally and externally
These are the future-oriented buyers
that are in the minority

21. F&A Leaders Seek Rapid Cycle Time Optimization From
Digital
To what degree do you think the adoption of digital technologies will impact the following in
the next two years?
34%
28%
26%
26%
25%
21%
19%
53%
49%
65%
54%
62%
54%
53%
11%
20%
8%
17%
13%
21%
25%
Cycle time optimization
Agility of the business to drive changes in operating
model
Cost and productivity
User experience in finance processes
Leveraging financial and non-financial data for better
decision making
Internal and external customer experiences of finance
processes
Operational risk management
Huge impact Some impact Minimal impact No impact at all
Source: “Finance In The Digital Age”, HfS Research 2016
Sample: Enterprise Buyers = 160

22. F&A Leaders Have Sky High Expectations for Operations
Maturity
Which of your business functions are the most mature in terms of intelligent operations now?
Where would you like them to be in 3 years? (Scale 1-5, just 4&5)
19%
19%
19%
23%
25%
25%
25%
26%
41%
44%
45%
50%
50%
54%
53%
50%
Finance and Accounting
Human Resources
Procurement
Supply Chain and Logistics
IT application maintenance & development
IT and Network infrastructure support
Customer Service
Sales / Marketing / CRM
Target for 3 years Maturity Now
Source: “Intelligent Operations" Study, HfS Research 2016
Sample: Buyers = 371

23. …Yet Still Looking For Legacy Contracts
What are your plans regarding any outsourcing / managed
services agreements you have for any of the following?
Source: “Intelligent Operations" Study, HfS Research 2016
Sample: Buyers = 371
29%
38%
37%
34%
40%
36%
38%
41%
44%
47%
16%
15%
16%
20%
13%
19%
19%
18%
30%
27%
45%
52%
53%
53%
54%
55%
56%
59%
74%
74%
Sales
Customer Service / Sales Support
Marketing
Supply Chain and Logistics
Finance and Accounting
Procurement
Human Resources
Industry-specific Process (i.e. claims processing)
IT and Network infrastructure support
IT application maintenance & development
Renew / change provider -
Similar contract
Renew / change provider -
As-a-Service Contract
40% of IT Outsourcing contracts
going As-a-Service
But only 30% of BPO…
25% of F&A

24. Low Investments Thus Far, But SaaS Tops The List
14%
15%
11%
10%
10%
9%
43%
39%
41%
42%
33%
26%
30%
38%
36%
35%
23%
34%
13%
8%
11%
14%
35%
31%
Cloud-based / SaaS platforms upon which to build
shareable digital capabilities
Analytics and big data tools and applications
Mobility tools and applications
Interactive / collaborative tools, applications and
social media
Cognitive computing platforms and machine
learning
Robotic process automation (RPA) tools and
applications
Investing heavily to get ahead of the curve About the right amount for today's needs
Some investment, but not enough Minimal / no investment
What have been your investments so far in embedding Digital components into your F&A
processes?
Source: “Finance In The Digital Age”, HfS Research 2016
Sample: Enterprise Buyers = 160

25. What is really
holding back
BPaaS in
F&A?

26. Proprietary │Page 26© 2016 HfS Research
How As-a-Service Is Taking Shape in F&A:
Plug-and-Play Business Services
Undertaking complex and often painful
technology transitions to reach a steady
state
Plugging into “ready to go” business
outcome–focused, people, process, and
technology with security measures
§ While Finance is heavily dependent on ERP systems, plug and play business services
can unlock value by interfacing with these systems, and making them more extensible
and valuable.
§ Plug-and-play also is well positioned for smaller but growing companies, and in
support of replacing systems for companies going through mergers. It does require
business executives to drive the business case and coordinate with IT and procurement
to be successful.
§ As an industry, we need to make it easier to use “plug and play,” contractually.
§ The F&A business process services is in the “Initial” stages of using Plug & Play
Business Services.
§ Many service providers are shaping, partnering, developing, and offering options, and
it is a matter of readiness and momentum among clients.

27. What has to change to
make this a reality?
(In technology, enterprise
behavior, the market
overall, the economy)

28. What kind of
service
provider will
it take to
deliver?

29. Proprietary │Page 29© 2016 HfS Research
HfS Blueprint Grid: Finance & Accounting As-a-Service
INNOVATION
EXECUTION
Excellent at Innovation and ExecutionInvesting in Innovation to Change
Building All Capabilities Execution Is Ahead of Innovation
AS-A-SERVICE
WINNER’S
CIRCLE
EXECUTION
POWERHOUSES
HIGH
POTENTIALS
HIGH
PERFORMERS
Accenture
arvato
Capgemini
Cognizant
EXL
Genpact
Aegis
HCL
HPE
IBM
Infosys
OneSource Virtual
WNS
TCS
Wipro
Xchanging
Xerox
Sutherland

30. Download your copy now!
Is Finance Finally Ready To Write Off Legacy And Move To BPaaS? | 1
IS FINANCE FINALLY READY TO
WRITE OFF LEGACY AND MOVE
TO BPAAS?
Authors:
Reetika Joshi, Research Director, HfS Research
Barbra Sheridan McGann, EVP, Business Operations Research, HfS Research
May 2016
Grappling with change has always been hard for the finance function and “legacy” has plagued finance and
accounting operations for many years now. Major enterprises have started to realize the potential for step change
in operational performance with the advent of digital technologies. In the past, the watchwords for financial
processes were “operationally stable and efficient.” However, today’s ambitious enterprises look to high value
services and real-time, actionable data that is readily accessible in the emerging As-a-Service Economy.
Our research shows that major enterprises’ F&A operations are delivered using a hybrid network of distributed
internal business units, shared services and outsourcing centers. This diversified spread of global operations took
shape over the last two decades, in many enterprises, in a bid to contain labor costs, centralize delivery staff and
create standard processes and greater controls. So, while the operational engine has seemingly been assembled to
hum along smoothly, the reality, today, is that the engine is clunky and broken, leading enterprise F&A leaders to
want “something different.” Exhibit 1, from HfS Research’s recent survey of 160 global F&A leaders, captures the
current state—F&A leaders are largely underwhelmed, with only 9% being Very Satisfied with the operational
performance of F&A processes as of today.

31. Questions?

32. Appendix

33. © 2015 HfS Research Ltd. Proprietary │Page 33
Workday Services: OneSource Virtual
Relevant Acquisitions/Partnerships Key Clients Staff & Operations Technology Tools and Platforms
• OSV has partnerships with other members of the
Workday partner ecosystem including PwC,
Meteorix, CPSG, Appirio, DayNine and
SafeGuard World. These partnerships can be to
team-up on opportunities where BPaaS services
are part of the sale, staffing support, or in the
case of OSV and PwC, provide a unified sales
strategy around Workday Financials..
• Workday invested in OneSource Virtual after its
founding, and currently holds less than a 4%
stake. Halyard Capital has invested $22 million
and OneSource Virtual is looking for additional
investment in 2015.
• More than 300 clients., which is more than
30% Workday customer penetration. The
company boasts more than 300 initial
deployments and more than 603 follow-
on projects.
• Historic focus was on reselling to small
organizations of less than 1,000
employees
• Average size of client organization now is
5,000 employees.
• Clients include: Chiquita, GENBAND,
GoPro, Uber, Junior Achievement and
Michael & Susan Dell Foundation
• Partner since: 2008
• Number of Workday certified consultants:
266
• Total number in practice: 564. Expects to
have 650-700 by year end 2015.
Locations:
• Irving (US): Headquarters
• Mesa, Arizona (US): processing center
• Derry (Ireland): opening in 2015
• Atmosphere: proprietary platform built on
Force.com to automate activities around
multiple Workday tenants and APIs.
• Inspect: proprietary automated testing
tool.
• Insight: proprietary customer project and
consultant management tool
Strengths Challenges
• First HCM BPaaS service provider. OneSource Virtual was the first Workday partner to
offer business process as a service “BPaaS” capabilities in addition to its professional
implementation services. It has the ambition to become the leading BPaaS provider for
best-of-breed SaaS application vendors over the next decade. Focused on the Workday
HCM product today, OneSource Virtual reports the most number of total customers in
the Workday ecosystem, at more than 300.
• Focus on talent acquisition and training. The service provider is focused on diversity
among its workforce, which spans 25 different nationalities and a healthy mix of male
and female employees, it says. In 2014, senior leadership underwent training to help
guide the company to the next level of growth. Middle management will undergo
training in 2015.
• Atmosphere: OneSource Virtual's proprietary in-tenant BPaaS platform provides central
visibility of all client activities in one place and automated enterprise service bus (ESB)
processing helps deliver business solutions across tenants. While this tenancy access is
no longer exclusive to OneSour ce Virtual, the service provider has a head start over its
competition for building similar scalable support solutions in the emerging area of
robotic process automation.
• Converged implementation and outsourcing services. Virtual understands the
importance of converging technical and outsourcing skills in engagements to better
meet the real needs of customers in the cloud today. It is common for customers to
engage OneSource Virtual for 2-3 short projects throughout the year, for example
aligning on using new Workday software updates, in addition to payroll finishing
services. Moreover, it is one of the few partners running its own Workday regional user
groups to share on-going operational learnings.
• Focus on BPaaS. “Business process as a service” may be
the latest buzzword to describe the evolution or
intersection of software as a service (SaaS) and outsourcing
and go out of favor quickly as business processes
themselves are less of the service focus. Others are also
aggressively wrapping services around Workday and could
surpass OneSource Virtual with their broader experiences
in delivering services worldwide.
• Workday limitations. Focused on following in Workday’s
own footsteps leave OneSource primarily US-based today
and could mean missed opportunities in other regions in
the next few years. While it is opening an office and
operating capabilities in the United Kingdom in 2015, it is
not recognised as a global provider and will meet fierce
competition in other areas as global expectations increase.
• Services menu approach. OSV services offerings are
standardized and customers can select from preconfigured
options. Services providers have always standardized
offerings but they typically haven’t presented it in this way
to customers,. They focus on discussing the customer’s
pain points and business objectives and then fit them into
the appropriate service offering. It seems that OSV is asking
customers to do this fit themselves with a in-house
consultative, high value approach seeming to be missing.
Blueprint Leading Highlights
• Quality of Account Management
• Incorporate Feedback
• Flexibility to Deliver Both End-to-
End Solutions and Point Solutions
• Tailor to Business/industry
• Value Beyond Cost Savings
• Integrate Technology into
Business Process
• Vision
PLAN
IMPLEMENT
MANAGE
OPERATE
OPTIMIZE
Winner’s Circle
Close Workday BPaaS partner combining consulting and management
services capabilities for customers

34. © 2015 HfS Research Ltd. Proprietary │Page 34
OneSource Virtual
Entering the F&A business process services market as Workday-based
BPaaS provider, starting with Accounts Payable and strong potential
Acquisitions / Partnerships Client Profile Service Delivery Operations Proprietary Technologies
Acquisitions:
• NA
Partnerships:
• NA
OneSource Virtual targets a niche customer
base: companies that use Workday Financial
Management solutions in the U.S., Canada,
UK, and EMEA
Target Industries:
OneSource Virtual has platform based
approach, not targeting or limiting itself to
any vertical. However, the service provider
does not offer services to the Federal
Government.
Headcount: <50
Delivery Centers (3):
• USA – 89% (Irving, Texas; Mesa,
Arizona)
• UK & Ireland – 11% (Derry, Ireland)
• OneSource Virtual’s AP Automation
• Atmosphere: a central processing system
• INspect: an automated testing system
Strengths Challenges
• First-mover Advantage: OSV is truly a “born in the cloud” service provider, and is an
option for companies that are looking for finance operations that are digitally-led and
not digitally transformed (the starting point of legacy BPO providers). It offers business
process services for Workday Financial Management customers.
• Its Own Niche Market Segment In F&A: Building off a strong start in HR, for Workday-
based BPaaS, OSV can easily add F&A to its large base of existing HR clients. Refer to the
HfS Workday Services Blueprint (link) for additional insight on OSV. HfS tapped into
client feedback from HR experience since there are no F&A clients to date.
• Unique P2P Offering: OSV combines Workday’s Accounts Payable functionality with a
proprietary invoice capture tool as well as a Workday based proprietary rules engine.
“Shared automation” is the foundation of the offering; OSV has created a platform for
the extraction – and then automation of – recurring processes, starting with P2P. Even
though invoices are processed by OSV, clients can access the data through standard or
custom reports.
• RPA Is “Native” to its Atmosphere Development Environment: OSV has expertise to
standardize and automate the transactional side of AP management within a cloud
specific application while leveraging all of its security and data protection.
• Early Adopter of Workday FM and Forward Thinking Internal Approach to F&A: OSV
uses Workday internally, and the CFO provides input on how the BPaaS services should
support the Finance function. Principles include a focus on data accuracy and
accessibility for decision making, self-service, automated workflow, and collaboration
not just in finance but with HR and business leads throughout the company. OSV is
Workday customer #67, and the service provider has been investing in scoping and
scaling the BPaaS F&A services within its own walls before launching it in September
2015. Straightforward Transaction Based Pricing: All contracts are only based on a "per
invoice” processed.
• Build a Credible F&A Brand: OSV has to help F&A
prospects and clients understand the value of shared
automation and BPaaS, and is tied to Workday FM
success. However, we see increasing interest in this
approach from the Finance world, and OSV has a strong
position in HR and partnership with Workday to leverage.
• Expand Beyond Limited P2P Scope: Although OSV has
plans of extending its offerings to the entire value chain
of F&A BPO, today, only support for Procure to Pay is
available. It has a long way to go to have a full suite of
financial management support and there is no analytics
capability.
• Tough Competition: Legacy service providers are fast
catching up with as-a-service offerings and capability, and
have established relationships and global presence. F&A
is a competitive market, and slow to change. OSV needs
to be very targeted in its customer base selection and
investment.
• Limited Ecosystem: OSV does not have the extensive
ecosystem of partners in Finance & Accounting that we
see with its competitors, beyond KPMG. The service
provider is focused on supporting what it does with its
own resources, and has yet to build an ecosystem to
move beyond it.
Blueprint Leading Highlights
• Quality of Account Management
• Incorporates Feedback
• Strategy for Intelligent Automation
• Use of Technology to Support
Business Processes
• Vision for Finance As-a-Service
• Plug and Play Digital Business
Services
Value Chain Coverage:
Procure to Pay
Order to Cash
Record to Report
Finance Transformation
Analytics
High Potential