The performance improvement services provided by Practus assisted the IT & KPO MNC in reducing DSO by 15%.
| Client | ROI | Industry | Ownership | Management | # of Employees | Size | Project Duration |
| A Multinational Technology Company | 5.8x | IT Services | Multinational | Professional | 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
