Client Background
Client: American multinational technology company
Area of operations: Worldwide
Products and Services: Leader in business communication and cloud solutions
Number of Employees: Around 8000
Challenge
There were multiple changes in accounting and reporting requirements due to financial restructuring, acquisitions, divestment, and new tool implementations. The company wanted to optimize their Finance and Accounting (F&A) operations while bringing down the high running cost of its F&A operations spread across the globe. There was lack of standardization of processes across multiple geos with significant variance in each process step.
There were also changes in accounting estimates around revenue recognition, bad debt provisions, onerous contracts, tax and inventory provisions, and other special considerations around impairment and fair value assessments due to COVID-19. The aim was to bring in contingency measures for reduction of extended month end close and manual time consuming processes.
The processes also lacked transparency of workflow, platforms, and case management. Hence, the controllership had to spend endless hours in consolidation and provide visibility to the leadership.
Solution
The customer approached Wipro with objectives of TCO (total cost of ownership) reduction, standardization, and transformation of their F&A operations. Wipro being a seasoned partner for multiple clients, operated as a one-stop solution for all its challenges. Wipro took over the operations of the client’s global shared services catering across US, Canada, and ASEAN.
We deployed a platform led service approach designed to harmonize the process and move from region based to global model while enhancing the process efficiency and addressing cost control. Wipro partnered with the client during critical business scenarios like financial restructuring and ensured no impact on accounting operations despite extreme complexities.
- Financial Planning and Analysis: The team is responsible for Global & Area wise reporting and variance analysis (QoQ and YoY variances, Actuals v/s Forecast/ Plan, Trend analysis, Commentary). Wipro standardized and automated FP&A reports by partnering with clients in implementing Adaptive Insights, Power BI, VB Scripts, and leveraging Hyperion Smartview in global reports to provide single view of theatres, functions, BUs, to deliver value to the client’s CFO organization through comprehensive Management, Planning and Decision support reporting and forecasts.
- Record to Report: Focused on optimizing pre close activities and review process resulting in quality deliverables with better time management, implementation of improved mechanism to track channel reserves, retail maintenance commission, and SOX controls. Supported UAT for upgraded Rev pro RP-3 and N box closure, testing, and migration. Supported in Blackline implementation for automating reconciliations and journal posting.
- Global Accounts Payable: Partnered with client in the migration from Ariba to Coupa including support for change management; implementation of Vertex Tax engine.
- Support for Complex Business Scenarios: Partnered with client by supporting complex scenarios like integration of assets and liabilities of newly acquired entities, accounting for sale of business; working with consultants on revaluation of assets and liabilities; absorbed complex accounting and reporting requirements during changes in statutory compliance requirements like ASC-606 & ASC-842 implementation, and introduction of GST. Aligned to the client’s business roadmap and socio economical events such as mergers and acquisitions, technology changes/ upgrades, financial restructuring, and COVID-19.
Business Impact
With better tracking mechanisms, we gained efficiencies in effective process controls and monitoring. Wipro achieved standardization and simplification of work, which helped in faster book close, aligned to the client’s ‘Speed to Close’ initiative and translated in achieving two days of cycle time reduction in month close cycle.
- Closed various old tax assessments with savings and tax refunds of $1M.
- Benefit amounting to $1.2M transferred to client through process efficiencies.
- ~50% cumulative headcount reduction, with additional efficiencies planned for next 3 years.
