Outsourcing the Finance Function & Deriving a Competitive Advantage

Outsourcing the Finance Function & Deriving a Competitive Advantage

This day in age more and more organizations are reconsidering the time-honored practice of retaining finance and accounting functions within an organization’s core team. These functions are now being redefined, as there is a growing awareness that outsourcing could deliver cost savings without compromising on quality or security related issues.

This development is the result of the significant advances in technology and communications that we have witnessed over the last decade. Today we see increasing evidence of conventional business operating models being re-evaluated as organizations seek to improve performance & productivity.

The demand for finance and accounting outsourcing (FAO) services is strong and will continue to grow in 2010, according to the findings of The WNS Annual CFO Survey 2010.

The survey gives us a clear glimpse of the future. Currently, many companies contract suppliers to process data, but outsourcing to add value is generally accepted as the ‘way forward.’ The payroll function is currently the most popular to outsource, but accounts receivables & account payables management along with tax planning and tax compliance are also being increasingly viewed as suitable for outsourcing. It is likely that the next few years will see a significant increase in the outsourcing of these functions.

The most popular destinations for outsourcing the finance function are India, South Africa and Eastern Europe. Asia Pacific started to emerge last year, capturing 35 percent of new contracts. Companies look for suppliers that can deliver cost savings, security and improved productivity.

Moving forward, successful suppliers will continue to identify and refine target buyer segments, meet client needs in terms of global delivery capacity and service, bring technology and process solutions that more closely link process operations with business outcomes, and focus on client relationship management.

For more information about our services please contact:

Mar Hernandez m.hernandez@amicorp.com