Accenture (ACN) today announced a five-year contract extension with Deutsche Bank to continue to provide procurement business process outsourcing (BPO) services globally to the bank.
The extended agreement is designed to reduce operational costs, enhance spending control and streamline sourcing and procurement services of Deutsche Bank.
Accenture is a member of Deutsche Bank’s Supplier Partnership Programme which was successfully launched in June 2014 and concentrates the most strategic vendors based on business impact across all categories of the bank.
Under the original contract signed in 2004, Deutsche Bank outsourced its procurement operations and accounts payable processing to Accenture, as well as the maintenance of its procurement information technology (IT) system. The new contract extends the initial agreement, which was scheduled to expire in December 2016, through the end of 2021.
In addition to continuing to provide Deutsche Bank with procurement operations and accounts payable processing services, Accenture will further automate the source-to-pay process, including invoice processing and contract compliance management. Accenture will also migrate Deutsche Bank’s current on-premise procurement IT platform to an on-demand procurement solution from Ariba, an SAP company.
“We extended our relationship because Accenture understands how to derive real financial benefits and business value from sourcing and procurement,” said Mark Loring, Head of Source-to-Pay and Travel Operations, and John Goyanes, Head of Purchasing, Deutsche Bank. “The contract extension positions Accenture as one of our few strategic business partners, and we can now leverage their enhanced sourcing capabilities to accelerate the source-to-pay process with strong compliance, and ultimately work towards meeting our clear business objectives, including sustainable cost savings targets.”
Julian Crossley, a managing director within Accenture Operations, said, “Procurement organizations, specifically in the banking industry, are under increasing pressure to deliver cost efficient and effective source-to-pay operations whilst maintaining high levels of compliance. In an ever-changing business landscape, our robust yet flexible services offerings create the foundation that will enable us to continue helping the bank meet its goals.”
“Our BPO contract extension with Deutsche Bank is a testament to the business value Accenture is able to create,” said Julian Skan, a managing director in Accenture’s Financial Services operating group and the client account director for Deutsche Bank.
Contributed | what does this mean?