NTT DATA Corporation 100 City Square Boston, MA 02129 Tel: +1 800 745 3263 Fax: +1 617 241 9507 Email: info@nttdata.com Approach to Overhead costs allocation for BPO business (White Paper for NTT Data Gold Club) KARTHIKEYAN VADIVEL BMS Version 10.01 STATEMENT OF CONFIDENTIALITY / DISCLAIMER This document is the property of NTT Data and is produced in response to your request. No part of this document shall be reproduced, stored in a retrieval system, or transmitted by any means, electronic, mechanical, photocopying, recording, or otherwise, to parties outside of your organization without prior written permission from NTT Data. TABLE OF CONTENTS 1 ABOUT THE AUTHOR(S)/CONTRIBUTORS III 2 SCOPE IV 3 INTRODUCTION V 3.1 NEED FOR CUSTOMER LEVEL P&L analysis v 3.2 Existing methodology vi 3.3 Proposed methodology vii 4 TARGET AUDIENCE X 5 CONCLUSION XI 6 GLOSSARY XII 7 REFERENCES XIII 1 About the Author(s)/Contributors • Karthikeyan Vadivel is a Team Lead at NTT Data Global Delivery Services, joined the company in 2007 and is holding master’s degree in Business administration specialized in Finance and Systems, with engineering background. He joined the company in internal audit team as a process planner and then worked as Accounts Payable specialist for the UK entity. He is now into Financial Planning & Analysis, supporting the BPO business and the Corporate team. 2 Scope To overview the current methodology of allocating the overhead costs at client level for NTT BPO business and suggest ways of improvement. 3 Introduction P&L STATEMENT A financial statement that summarizes the revenues, costs and expenses incurred during a specific period of time - usually a fiscal quarter or year. These records provide informat... ... middle of paper ... ...lation In the proposed methodology, we can see the true picture of the P&L at client level. 4 Target Audience Senior management (for management reporting) BPO Delivery team Accounting team (GL) Facilities team 5 Conclusion BENEFITS: This helps to identify the true picture of client P&L Helps in comparing the benefits of shift and non-shift operating model Enabling meaningful Client level comparison Provides a better clarity for forecasting and pricing future deals with the client In addition, it helps in better utilization of the facilities. 6 Glossary 1. BPO - Business Process Outsourcing 2. INR - Indian Rupees 3. P&L - Profit and Loss 4. TP - Transfer Pricing 5. GM - Gross Margin 7 References • WEBSITES: 1. www.Investopedia.com 2. http://www.experts123.com
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This document is considered as a financial document because the financial statement provides the statement of financial position and comprehensive income, and cash flow statement and statement of changes in equity. for example, "The cash flow of the Group Lufthansa from operating activities to 3.4bn euros in the reporting year, which is 1.4bn euros, or 71.6 percent, higher than the figure registered previous year."
Nortel was exhibiting several characteristics that would cause it to be identified as a high-risk audit by its auditors. The fraud triangle tells us that fraud occurs when you have opportunity, incentives/pressures, and rationalizations.
Akamai Technologies, Inc. is an organization which delivers the content over the Internet. It is one of the largest organizations which provide the distributive Computing Platforms; it provides a cloud based services to the end user. It serves 30% of the overall web traffic. Akamai provided numbers of servers which are located all over the globe and stores the web application of the clients. It provides a faster access to those applications because of the distributive contents in to various servers around the world. Akamai does not want the long routes to it distributed the data based on the locations, it works as like a work or a task which is not possible to be completed by a single persons is divided in to multiple process or threats or assign to teams to complete their individual part, so that task can be complete faster, in the same way the contents are stored at different servers based on their access mechanism.
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An income statement refers to a document that is produced on a monthly basis or annually. It gives a report on a company’s earnings by showing all the incomes earned by the company as well as all the expenses that the company incurs in the generat...
Financial accounting is the analysis, classification, and recording of financial transactions and reporting such information to respective users especially external users who use the information to make decisions about their engagements with the entity. In financial accounting general purpose financial statements are used for external reporting. The public by standards imposes the development of the statements through respective national professional bodies, International Accounting Standards Board and respective company Acts for various nations.
The Purpose of Financial Statements The financial statements of a business are used to provide information about the status of the business, set performance targets and impose restrictions on the managers of the firm as well as provide an easier method for financial planning. The financial statements consist of the Profit and Loss Account, Balance Sheet and the Cash Flow Statement. There are four areas of information, which we can collect from a company's financial statements. They are: Ÿ Profitability - This information comes from the Profit and Loss account. Were we can compare this year's profit with the previous years.
Financial statements provide an overview of a business' financial condition in both short and long term. They help in understanding the past performance of the company and making future predictions about the company. It thus helps us to look beyond the profit figures.
Financial reporting is the final product of financial accounting . Providing financial information to different users, either internal or external users of an entity, is done in the form of accounting reports. Those accounting reports that are prepared and presented with the aim of meeting the information needs of external users of an entity are within the scope of financial reporting.
The company uses the annual report to provide the financial information of the company. Annual reports include financial statements such as statement of comprehensive income, statement of financial position and cash flow statement.
When looking at a company's finances, there are essentially four items to consider: the income statement, the price earnings ratio, the balance sheet, and the statement of cash flows, (Block, 2005). The income statement is a tool used to measure profitability over a given period of time, i.e. quarterly, annual. The income statement evaluates the cost of producing goods or services and the money that was made as a result of selling those goods/services. Gross profit and net earnings are two key features to look at.
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Financial Statements include the Income Statement, Balance Sheet, and the Statement of Cash Flows. The income statement records all revenues and expenses of a f...