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|
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.
- 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.
- 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.
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*Client Name has been masked for the purpose of confidentiality