A recent survey of 200 chief financial officers (CFOs) from top U.S. companies with revenues exceeding $500 million revealed an average 15% return on investment (ROI) from outsourcing finance-related operations.
The study by Everest Group with Conduent Inc.’s support highlights how business process outsourcing (BPO) can enhance efficiency and maximize returns in finance, accounting, and procurement (FA&P) functions.
Strategic focus on efficiency and analytics
According to the survey, operational efficiency emerged as the top priority for 46% of CFOs engaging in outsourcing. While some companies hesitate to outsource because of pricing disputes, resistance to change, and technology limitations, 94% of respondents plan to focus on predictive and prescriptive analytics within the next three to five years.
Others aim to focus on basic analytics (93%), cognitive technologies (91%), and robotic process automation or RPA (90%). These numbers reflect a strategic shift toward data-driven decision-making in outsourced finance operations.
The survey highlighted specific areas where outsourcing yields the most substantial returns:
- Management reporting and analysis. By delegating these tasks to BPO providers, companies can gain deeper insights into their financial performance, identify trends, and make data-driven decisions.
- Billing. Outsourcing billing processes can streamline operations, reduce errors, and improve revenue cycle management (RCM).
- Accounts receivable. The critical benefits of outsourcing accounts receivable functions are accelerating cash flow, reducing bad debt, and enhancing customer satisfaction.
- Capital budgeting. Leveraging external expertise and advanced tools supports better capital allocation and investment decisions.
Choosing the right BPO partner
By strategically outsourcing finance and accounting functions, companies can unlock significant value, improve operational efficiency, and drive growth. But Conduent BPaaS Solutions president Jeff Weiner emphasizes the significance of choosing the right outsourcing partner.
He said a successful partnership requires due diligence, careful evaluation of capabilities and experience, and alignment with the company’s objectives. “When companies connect with the right outsourcing partner, FA&P teams quickly achieve the benefits of outsourcing,” he added.
Outsourcing partners often provide access to advanced technologies such as artificial intelligence (AI), machine learning (ML), and data analytics. These tools enable companies to modernize operations and achieve faster, more accurate financial reporting, helping businesses remain competitive and adapt swiftly to market changes.
How to improve ROI
Here’s how companies can improve ROI with outsourced FA&P functions:
- Adopt a team approach. Engage staff from various departments to gather diverse insights. Work with business units to identify challenges such as procurement officers highlighting vendor spending and supply chain issues. Focus on collecting the most critical data to guide decisions, streamline operations, and improve performance.
- Prioritize automation and workflow efficiency. Centralize processes and implement automation to boost efficiency. Strictly adhere to workflow to enhance quality and maintain robust controls. Choose technology-agnostic solutions for seamless integration and adaptability.
- Drive data-informed strategies. Encourage discussions focused on actionable insights from quality data. Clearly define how these insights shape business strategies to support informed decision-making and drive results.
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Suroy suroy, H. J. (2024, November 6). Outsourcing finance and accounting yields 15% ROI:
Everest CFO survey. Outsource Accelerator. Retrieved from https://news.outsourceaccelerator.com/outsourcing-finance-accounting-yields-roi/
