The performance improvement services provided by Practus assisted the IT & KPO MNC in reducing DSO by 15%.

ClientROIIndustryOwnershipManagement# of EmployeesSizeProject Duration
A
Multinational Technology Company
5.8xIT ServicesMultinationalProfessional 150,000+>1 billion
2.5 months

About The Company

Biz Solutions is a Multinational technology company offering IT and KPO services to companies across the globe.

Practus’ Role

  • To create a plan to reduce DSO from 122 (unbilled 33 + billed 89) to 89 days.
  • 25%< AR was in the unbilled bucket, while billed AR contributed to ~75%.
  • To run a root-cause analysis of AR by reviewing 70,000+ invoices and 4,500+ active contracts spread across 400+ active customers.
  • As-is process mapping for the ‘Order-to-Cash’ process.
  • Gap Analysis against industry best practices and recommendations.
  • Line of business-wise industry AR benchmarking.
  • Cross-functional assessment of rigor of reporting and reviews.
  • Review commercial negotiation process.
  • Introduction of PESTLE analysis for macro-environmental factors.

Impact Delivered

  • Reduction of DSO by 15%.
  • Release of cash flow (due to the reduction in AR) of approximately $70 million.
  • Executed a root-cause analysis and created a bridge to reduce the number of days by 18.
    • 7 days through process improvements.
    • 8 days with better rigor and responsiveness.
    • 3 days by influencing behavior.
  • Recommended realignment of Business Unit Heads’ KPIs and variable pay to include DSO.

See how Practus can assist you in improving your organization’s Performance

*Client Name has been masked for the purpose of confidentiality