SIX MONTHS TO TRANSFORM: CONSOLIDATING A DRILLING PROVIDER’S PROCURE-TO-PAY OPERATIONS

DIGITAL INTELLIGENCE

CASE STUDY

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SIX MONTHS TO TRANSFORM: CONSOLIDATING A DRILLING PROVIDER’S PROCURE-TO-PAY OPERATIONS

EXL’s client, leading drilling equipment service provider reached out

to EXL to consolidate their procure-to-pay (P2P) and fixed assets (FA)

operations from offices in Asia Pacific, Europe, and Africa to their

corporate office in the US. The client saw this as a great opportunity for

improving costs and productivity by centralizing their operations.

However, this went beyond being a simple migration. The client looked

to partner with EXL to bring in experts who could lay the entire plan

on the table, had strong domain knowledge of P2P functions to bring

about transformation, familiarity with EMEA tax/VAT regulations, and

understood all other statutory requirements and their implications.

Everything had to be accomplished end to end within six months.

ContextEXL has strong domain expertise in finance and accounting, in business

consolidation, and setting up shared services. Our proprietary Digital

EXLerator Framework enables us to apply robotics and automation

to our client’s business environment and make digital real for client

partners. Our proven methodologies and framework enabled strong

collaboration with the client’s business stakeholders. EXL delivered the

right solution the first time, so our client could start realizing efficiencies

and cost savings faster.

Our own internal technology architecture Center of Excellence (CoE) is

fully focused on refining best practices for developing and implementing

digital technologies like RPA, artificial intelligence, and other automation

tools. This CoE standardizes and optimizes EXL’s delivery and support

mechanism, and continually improves this framework. The client

received optimal outcomes with minimal disruption to their day-to-day

business.

Orchestration The EXL team flew to one of the client’s European locations for three

weeks and studied client’s systems and processes. This included

collecting and analyzing data to process baselining, metrics reviews,

system efficiency, month-end closing and reporting. EXL also conducted

interviews with process subject matter experts, statutory teams, and

regional controllers. Additionally, the team performed risk assessment

and mitigation, documentation, opportunity identification, and more.

Similar activities were carried out in the client’s P2P and FA operations in

the US office.

Over a period of three months, there were over 45 process improvement

and standardization opportunities identified. A transformation roadmap

was developed using our proprietary Digital EXLerator Framework.

In parallel, the EXL team worked with the client’s HR partner and

key stakeholders to develop corporate communications for change

management, as well as identifying and rebadging top talents to

new SSC corporate location. Process documents and SOPs were

developed at a lightning speed, including capturing process subtleties

and exceptions to ensure stabilized operations within a reasonable

timeframe. Necessary checks and balances were put in place to comply

with tax/VAT regulations and other statutory requirements.

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SIX MONTHS TO TRANSFORM: CONSOLIDATING A DRILLING PROVIDER’S PROCURE-TO-PAY OPERATIONS

Having retained employees for an agreed amount of time at the sending

site for ongoing training and support, and closely monitoring progress at

each migration tollgate using EXL’s SMART migration methodology, the

SSC team went live in sixth month.

With just a little bit of turbulence, the SSC operations were quickly

stabilized and restored to its normal state.

Key metrics and KPIs were implemented for effective performance

management and better external and internal customer experiences.

OutcomesEXL delivered a total savings of $1M over three years, reducing operating

costs through business consolidation, as well as P2P and FA operation

centralization. Additionally, there were over 45 process improvement

and standardization opportunities identified with an aggregate annual

impact of $500K. A successful transition and go-live in six months with

minimal disruption was performed using the lift-and-shift model.

Challenge

• • Compliance with EMEA tax laws and statutory requirements

• • Language constraints by needing to support over 12 different major languages

• • Time zone and coverage

• • Lack of process documentation

• • Broken systems and processes

• • Country-specific knowledge and supplier mapping to individual resources, with a high level of dependency on resources

• • Changes in VAT regulations, with a split payment mechanism in Poland

• • Lack of key metrics and robust tracking/reporting mechanism

• • Lack of standardization

Context

• • Deep expertise and global outlook on business consolidation, transition management and setting up shared service centers

• • Deep domain expertise in finance and accounting and compliance with country-specific statutory requirements

• • Extensive experience in applying robotics and automation to streamline manual functions

• • Proven delivery methodologies ensure the right solution is deployed more quickly

• • Internal/technology architecture CoE standardizes and optimizes delivery for better performance and external/internal customer experience

Orchestration

• • End-to-end process documentation in seven weeks

• • 45+ process improvement and standardization opportunities identified, including 29 opportunities with high or medium business impact

• • Highly focused documentation on VAT/tax and other statutory requirements

• • Clearance from local tax authorities

• • Robust risk assessment and mitigation involving people, process and technology

• • Process study and baselining at both locations, with a view to quick wins and long-term benefits

SUMMARY

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SIX MONTHS TO TRANSFORM: CONSOLIDATING A DRILLING PROVIDER’S PROCURE-TO-PAY OPERATIONS

EXL (NASDAQ: EXLS) is a leading operations management and analytics company that helps our clients build and grow sustainable businesses. By orchestrating our domain expertise, data, analytics and digital technology, we look deeper to design and manage agile, customer-centric operating models to improve global operations, drive profitability, enhance customer satisfaction, increase data-driven insights, and manage risk and compliance. Headquartered in New York, EXL has more than 31,700 professionals in locations throughout the United States, the UK, Europe, India, the Philippines, Colombia, Australia and South Africa. EXL serves multiple industries including insurance, healthcare, banking and financial services, utilities, travel, transportation and logistics, media and retail, among others. For more information, visit www.exlservice.com.

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Outcomes

• • Business consolidation benefit of $1M over 3 years

• • Successful transition in six months using lift-and-shift model

• • 45+ process improvement and standardization opportunities identified with an aggregate annual impact of $500K

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