Genpact and LeaseAccelerator diffuse the lease accounting compliance time bomb

Two market leaders—Genpact (a member of the HfS Winner's Circle) and Lease Accelerator (a leading enterprise lease accounting software firm)—are working together to help companies prepare for new lease accounting and reporting regulations that kick off January 1, 2019. The partnership is an example of cost-effectively using a digital as-a-service platform and process design to drive significant value for clients regarding compliance.

The solution also typifies the Five Ps needed to get to F&A 3.0.

Purpose. By January 1, 2019, all enterprises will have to collect a vast amount of data, deploy new software, re-design processes, and establish controls. Some view this as an opportunity to focus on what they need to do to survive and succeed.

Problem-solving. The Genpact-Lease Accelerator partnership combines Genpact's lease domain expertise and experience in data discovery, lease abstraction, process design and delivery and technology implementation with Lease Accelerator's robust SaaS solution. The latter can be easily integrated with client's existing ERPs. Genpact is also committed to being a long-term partner in the compliance process.

Partnership. No single firm can do it all. Genpact realizes this, as evidenced by its recent investments in a partner ecosystem to deliver future F&A services that includes Lease Accelerator.

Pricing. We expect Genpact to move to a “pay-for-performance” commercial philosophy in which they partner with clients.

People. The outcome of this partnership will depend on the execution. That means Genpact must shift its talent search to attract digital-savvy, creative, and right-brained individuals who are comfortable with F&A 3.0.

Still, the partnership serves to plug a market gap within only a small portion of the record-to-report (R2R) space. But, the broad set of F&A services that continue to operate in the F&A 2.0 world (cost plus value proposition) are ripe for disruption. We have higher expectations from market leaders like Genpact to drive F&A 3.0 from an analyst's vision to market reality.

This report was authored by Saurabh Gupta, Chief Strategy Officer at HfS Research. Download report to learn more.