SOURCE: IQ BackOffice

November 14, 2007 08:00 ET

IQ Backoffice Predicts Increased Use of Outsourcing of Individual Finance and Accounting Processes

Recent Research by EquaTerra Projects Increase in Overall Outsourcing in 2008

LOS ANGELES, CA--(Marketwire - November 14, 2007) - IQ BackOffice, a leading provider of accounts payable, payroll management and accounting business process outsourcing solutions, today announced its predictions for 2008.

The news come on the heels of recent research by EquaTerra, a research firm focused on business process outsourcing (BPO), that predicts growth in the outsourcing market with 51 percent of respondents saying that demand for outsourcing services was up in the third quarter of 2007, and the outlook for 2008 was optimistic (source: FAO Today, October 18, 2007 article).

Based on feedback from clients, partners and industry experts, IQ BackOffice sees the following specific trends emerging:

--  Outsourcing of accounts payable and payroll processes accelerates as
    the need for CFOs to focus on strategic activities increases and the
    shortage of skilled accounting clerical staff worsens.  Economic factors,
    Sarbanes-Oxley requirements, -- and now the move to fair-value accounting,
    which could affect everything from hedging strategies to emissions credits,
    and a push to overhaul financial statements to make them better reflect
    corporate performance -- has meant that CFOs more than ever have to focus
    on strategic issues instead of spending valuable capital, time and effort
    in improving low-value-added transactional processes such as accounts
    payable and payroll.  These factors, combined with the severe shortage and
    rising salaries of experienced accounts payable and payroll staff, have
    meant that CFOs are increasingly looking at outsourcing these processes to
    stay ahead of the game.
    
--  Companies are outsourcing individual finance and accounting processes
    such as accounts payable and payroll, rather than outsourcing the entire
    accounting function.  As the use of outsourcing has matured, companies have
    realized that outsourcing of individual processes can achieve rapid and
    significant results with minimal risk.  Many outsourcing firms have single
    process solutions utilizing advanced technology and best practices to bring
    a true state-of-the-art solution to a client.
    
--  Shift away from use of pure technology solutions to best practices
    enabled by technology to address back office issues.  In the continual
    search for ways to improve back office processes, CFOs have realized that
    technology by itself cannot solve back office business process issues.  A
    good example is the use of document management and workflow software to
    attempt to streamline and improve the accounts payable process. For most
    companies -- except for those with plentiful resources such as the Fortune
    500 -- this technology generates a negative return on investment if the
    true costs and benefits are measured accurately due to the extensive scale
    required to generate benefits. Companies now understand that technology is
    simply an enabler of a process.  In order to achieve real and lasting
    results, companies need to develop and implement best practice processes --
    enabled by technology -- while utilizing the best talent from across the
    globe.
    

About IQ BackOffice

A division of R.C. Baral & Co., IQ BackOffice is headquartered in Southern California, and is a known innovator in the finance & accounting outsourcing industry. With more than a quarter of a century of service to over 60 widely recognized clients in the restaurant/foodservice, manufacturing, distribution, financial services and publishing markets, clients typically reduce costs by 20% to 50% annually.

SAS 70 Type II compliant, IQ BackOffice keeps up-to-date on the latest government-mandated regulations and delivers a complete solution that includes both technology and finance-specific domain expertise aimed at keeping clients in complete control, while significantly reducing operating costs. For more information, visit www.iqbackoffice.com.

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