Outsource or Consolidate your AP function? Which is right for you? Jeff Haller Managing Partner & CEO, DataServ

Proud sponsor of the Business Process Outsourcing Track Welcome Important Information

Where are you on the shared services/outsource continuum? Competitive Advantage Drive Internal Change Best Practices Acquire Business Expertise Acquire New Tech Reg Compliance Cost Savings

Outsource or consolidate your AP function? Which is right for you? % Respondents indicating outsourcing efforts have been “Very Effective” Access new technology Access new business knowledge Build competitive advantage Force change internally 13% 18% 18% 11% Build more effective global operations 21% Institute best practices 21% 34% 46% Meet regulatory requirements Reduce costs The State of the Outsourcing Industry in 2011 HfS Research

The State of the Outsourcing Industry in 2011 HfS Research % of Organizations Indicating Function is a Shared or Outsourced Function The State of the Outsourcing Industry in 2011 HfS Research IT Help Desk Benefits Admin. Recruitment/Staffing Payroll ERP Maintenance Application Dev. Purchase-to-Pay Accounts Payable IT Infrastructure Mgt. Employee Contact Center Accounts Receivable General Accting. G/L Logistics/Supply Chain Mgt. Workforce Data Mgt. Strategic Sourcing: Indirect Procurement Record-to-Report Strategic Sourcing: Direct Procurement 55 53 45 44 42 35 32 23 20 57 48 49 47 38 28 26

The State of the Outsourcing Industry in 2011 HfS Research % of Organizations Indicating Function is a Shared or Outsourced Function IT Help Desk Benefits Admin. Recruitment/Staffing Payroll ERP Maintenance Application Dev. Purchase-to-Pay Accounts Payable IT Infrastructure Mgt. Employee Contact Center Accounts Receivable General Accting. G/L Logistics/Supply Chain Mgt. Workforce Data Mgt. Strategic Sourcing: Indirect Procurement Record-to-Report Strategic Sourcing: Direct Procurement 55 53 45 44 42 35 32 23 20 57 48 49 47 38 28 26 The State of the Outsourcing Industry in 2011 HfS Research

Outsource or consolidate your AP function? Which is right for you?

Outsource or consolidate your AP function? Which is right for you? Top Reasons Cost reductions Institute best practices Lower cost of payments/DSO/ Past Due accounts Reduced costs through productivity gains Other: improved business performance, ensure regulatory compliance, improve competitive advantage

Outsource or consolidate your AP function? Which is right for you? Don’t just focus on cost savings “What have you done for me lately” Internal culture matters Connect “value delivered” to strategy

Outsource or consolidate your AP function? Which is right for you? “Value” Performance Speed Innovation Continuous improvement

Hybrid Approach AP tasks best outsourced: Utility bill payments Others perform best when centralized, PO Invoices Incremental approach

Virtual Shared Services Retain best employees Re-deploy without relocating Leverage their knowledge System-enforced best practices SaaS Automation for Visibility and Control

Outsource or consolidate your AP function? Which is right for you? Are your cost savings\performance improvement goals well defined? What other benefits should this decision enable? Which alternative represents the best “value”? What choice will receive the highest level support from Executive leadership? Which approach aligns best with your culture?

Outsource or consolidate your AP function? Which is right for you? Questions?