 "IBM Provides Shared Services for PepsiCo India")
IBM has announced that it is providing Finance and Administration Shared Services for PepsiCo India (PI). In 2009 PepsiCo India and IBM signed a five-year business process services agreement. Under the terms of the agreement IBM Global Process Services business will help PI centralise its financial processes across multiple plants, office locations and business units under a single shared services operation.
The agreement covers Payments, Revenue and Reporting processes and will help PI enhance governance, drive standardisation and simplification and create value through increased productivity. The agreement is the first example in the Indian market of a company of the size and scale of PI making the strategic decision to outsource its accounting processes.
“India is one of the most important markets for PepsiCo. It is large and complex and the core objective of the finance function will be to partner with the business in strategic decision making and provide thought leadership without the additional distraction of managing routine transaction processing. We have chosen IBM to run our transaction and accounting processes. IBM will bring their tools and expertise and help PepsiCo enhance its governance while providing innovative solutions through superior analytics and productivity opportunities,” said Kimsuka Narasimhan, Chief Financial Officer, PepsiCo India.
“This is a highly strategic project for both IBM in India and PepsiCo India and represents a great example of innovation being led by India. It ‘reinvents’ the Finance and Administration outsourcing value proposition from a traditional focus on labor arbitrage by moving work from global operations to India. Rather, this engagement looks at India-to-India outsourcing as a vehicle for enhancing process quality, process standardisation, business model agility and creating a scalable platform for growth in one of PepsiCo’s fastest growing markets in the world,” said Darren Oberst, Vice President, IBM Global Process Services, India.