A STUDY ON VIRTUAL CFO ENGAGEMENT TRENDS IN CHENNAI MARKET

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ABOUT THE TOPIC VIRTUAL CFO
The rising issues and complexities faced by the businesses majorly due to the economic
slowdown and other business factors have warranted the need for full-time finance officers in
companies. The cost to deploy such a professional for full-time on a long-term basis may,
however, be an unaffordable proposition for many SMB companies.

As a result, a concept gradually gaining ground is that of Virtual CFO. Virtual CFOs are
professionals who can manage the overall financial, legal, taxation and compliance part of the
business house. In such an arrangement, a company hires a group of consummate
professionals (representing the organization as a CFO) having diverse experience and exposure
at a far lower cost.

The role of virtual CFOs varies from assignment to assignment but generally they are
responsible for overall accounting, finalization of accounts, financial control including cost
optimization, strategic advisory to the management and Boards of the business houses, direct
and indirect tax matters of the company, legal, secretarial and statutory compliances of the
company. All the services are customized based on client companys sector and requirements.
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RESEARCH OBJECTIVE
Primary objective:
To analyze the Virtual CFO engagement trends in Chennai market

Secondary objective:
To find the most commonly outsourced F & A function
To find the F&A function to which supplier availability is very high
To find the highest preferred outcome of V-CFO
Target Industries for V-CFO Firms
Industry preferring V-CFO the most
Size wise preference for Outsourcing
Most commonly outsourced Taxation function
Future prospects of V-CFO in domestic market
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NEED AND SCOPE OF THE STUDY
Based on our polite survey, we found domestic accounting and finance KPO industry is in an
unorganized. But the business viability and market value are huge.
However, now that we are towards the economy recovery stage, this bubbling market has
started to boom.
Thus, the need for this study is to find accounting KPO business viability and opportunity.
The scope of the study stretches from identifying the current scenario to finding out the
future plans of expansion for this market.
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METHODOLOGY
Research Design : Descriptive type
Sampling Type : Judgment sampling technique
Sample size : 100 in Demand side and 100 from suppliers
Sample description : Supplier here refers to the KPO organizations and Demand Organizations refers to
the SMB, Retail, Manufacturing, CA and other organizations belonging to core industries that can
outsource their Accounting functions. The universe here is Chennai.(domestic market).
Size wise split up of Sample (in terms of employee number and Turnover)
<10 10-20 20-50 50-100 Above 100
Primary data: collected through questionnaires, scheduled and telephonic interviews.
Secondary data: supplemented from books and journals.
SAMPLING TOOL
Questionnaire will be used as a Sampling method for this study. Based on the questionnaire, primary
data was collected based on the information gathered from the questionnaire.

The Questionnaire comprised of both open ended as well as closed ended questions
There were approximately 15-20 questions for the final survey.



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DATA ANALYSIS AND INTERPRETATION
The collected data have been scientifically codified, tabulated and arranged by using some
statistical techniques such as percentages.
TOOLS OF DATA ANALYSIS
Information and Interpretation have been furnished using Charts, Pie diagrams and Tables.
LIMITATIONS OF THE STUDY
The study has been done with utmost care but some of the major constraints which could not be
avoided during the survey are described below:
Judgment is made only on the basis of questionnaire, which is subject to personal bias of the
respondents. The study is subject to sampling error.
This report /project cannot be used in future (except for reference) as the data collected and
other variables are subject to change
The executives from whom mostly the information was collected may not have given the right
picture. The fear of confidentiality may also have led to errors in the answers.
The lack of complete understanding in some cases also had an impact

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SANCUS BUSINESS SOLUTIONS
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Sancus Business Solutions is a fast growing consulting company with a twist. Our model combines the
benefits and expertise of a traditional consulting organization with the cost effectiveness and flexibility
of independent consultants.

We deliver projects across the consultancy spectrum from strategy, Sales & Marketing, business
development and turnaround, through to operational improvement, organizational development and
change.

We manage engagements in multiple sectors including Electrical, Electronics, Food, media, telecoms,
retail, FMCG, healthcare, other government and non-profit . Our projects are based across India and
internationally.

Our style supposes teamwork, respect for people, founded opinions and open communication. We are
constantly training our people with the purpose of being ready to face the changes in the business
environment, regarding regulatory aspects and management tools. Our aim is to keep an overall view
oriented to the business of our clients.
Thank you
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