To date, the majority of order-to-cash (OTC) outsourcing has been focused on outsourcing two or three functions, such as invoicing, cash applications, and collections. This has traditionally occurred in the “invoice-to-cash” (ITC) segment (see graphic below that captures OTC functions outsourced among larger companies where the total contract value is more than US $25 million).
This trend is shifting. In our view, the development of service providers’ capabilities to provide end-to-end OTC outsourcing solutions is the key trend in the OTC arena over the past five years and will likely continue as companies (buyers) are moving toward outsourcing their entire OTC process instead of just outsourcing selected functions. In other words, service providers are beginning to see a return on their investment in OTC.
This ISG white paper discusses the reasons for the market’s shift from function-based to process-based (i.e., end-to-end) OTC outsourcing, including observations on other emerging trends affecting OTC solutions.
