North America F&A Hotspots - Overview (Executive Summary)

January 2014

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Key Locations

New York, Bay Area, Chicago and Boston are the top US locations for F&A Activities

Greater Seattle Area

Talent Heat Map Top 36 locations

Portland Boston Boise Milwaukee Chicago Sacramento Indianapolis San Francisco / Bay Area Las Vegas Los Angeles Albuquerque Nashville Memphis Denver Kansas City St. Louis Charlotte, North Carolina New York Baltimore Philadelphia Washington

Detroit
Pittsburg

Columbus

Atlanta
Santa Diego

Phoenix Tucson

Dallas/Fort worth Austin

Jacksonville

Installed talent is greater than 10,000 Installed talent is between 5,001-10,000 Installed talent is between 1,000-5,000 Note: Hubs were identified based on installed base
Source: Talent Neuron research and analysis

San Antonio

Houston

Tampa, St. Petersburg Miami

Installed Talent

Closing & reporting, Order to cash functions approximately comprise 40% of the talent
New York City San Francisco Chicago Boston Washington Los Angeles Dallas/Fort Atlanta Houston Denver Philadelphia Seattle Detroit Miami/Fort San Diego Phoenix Austin Charlotte Columbus Tampa/St. Indianapolis St. Louis San Antonio Portland Baltimore Sacramento Jacksonville Kansas City Pittsburgh Nashville Milwaukee Las Vegas Memphis Albuquerque Tucson Boise

14% 3% 4% 17% 25% 13% 3% 4% 18% 23% 14% 4% 5% 17% 24% 14% 3% 7% 20% 19% 19% 7% 3% 21% 17% 6% 6% 19% 16% 5% 4% 17% 23% 14% 3% 6% 18% 29% 16% 5% 9% 22% 16% 4% 5% 25% 18% 5% 4% 23% 24% 6% 8% 21% 23% 8% 6% 18% 22% 9% 9% 16% 22% 8% 8% 17% 23% 8% 8% 17% 21% 9% 9% 17% 20% 7% 7% 29% 24% 5% 3% 18% 24% 6% 6% 18% 24% 6% 5% 18% 24% 6% 6% 18% 26% 6% 3% 20% 24% 6% 6% 18% 24% 6% 6% 18% 24% 5% 3% 18% 25% 6% 3% 17% 24% 6% 5% 18% 24% 5% 3% 18% 22% 9% 7% 16% 24% 5% 3% 18% 24% 6% 6% 18% 22% 6% 3% 19% 24% 6% 6% 18% 24% 6% 5% 18% 25% 6% 5% 18% Compliance Financial Planning/ Analysis General Accounting

24% 18% 22% 19% 21% 25% 18% 21% 25% 18% 16% 18% 24% 23% 21% 18% 15% 16% 18% 16% 17% 17% 17% 16% 18% 18% 18% 18% 14% 18% 18% 18% 17% 18% 18% 16% 18% 18% 19% 18% 18% 18% Procure to Pay 21%

13% 14% 18% 13% 9% 11% 7% 9% 11% 10% 7% 10% 11% 12% 11% 11% 7% 9% 9% 9% 9% 9% 9% 9% 9% 8% 10% 9% 8% 9% 9% 9% 9% 10% 10% Treasury & Tax

19% 16% 17% 17% 17%

16%

24% 18% 21% 18% 23% 18% 18% 24% 25% 18% 24% 22% 24% 18% 22% 18% 18% 18%
Order to Cash

Closing & Reporting

Source: Talent Neuron research and analysis

Trends

We are seeing an emerging trend where some functions such as finance, HR and IT are beginning to get combined
Preference of companies to outsource/offshore support functions
Current Scenario: in Single function centers
M&S

Emerging Scenario: in Multi Function centers

F&A + Procurement

Inside Sales

F&A + IT

Procurement F&A + HR + IT Customer Support F&A+ HR + Procurement HR F&A + HR F&A IT + F&A + Finance + Procurement

IT

Low

High

Low

High

Source: Talent Neuron Research and Analysis

Trends

Though annualized cost saving in single function centers are lower initially, post steady state multi-function centers witness high cost savings
Illustrative

Pre Steady State

Post Steady State

Incremental Differential

Average Annualized Cost Savings

High Differential in Annualized Cost Savings

Steady State

Single Function Centers have better cost advantage

Multi-Function Centers have better cost advantage

Year 1 1 Function Source: Talent Neuron Research and Analysis

Year 2 2-3 Functions 3 or More Functions

Year 3 and Beyond

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