More firms are seeking F&A outsourcing providers due, says ISG
More enterprises are turning to finance and accounting outsourcing providers as their Chief Financial Officers (CFOs) take on more strategic business roles, said technology research and advisory firm ISG.
In its latest ISG Provider Lens™ report, the firm revealed that this increased dependence is due to the rapid change in finance and accounting services following the COVID-19 pandemic.
ISG Global Business Services Partner Scott Furlong said, “Financial data and processes have become tightly integrated with sales, marketing, and procurement.”
“With the ubiquitous adoption of emerging technologies such as blockchain, IoT, intelligent automation, and advance analytics, the lines between front, middle and back office are increasingly blurred,” he added.
Furlong also noted that companies that need to transform their business processes on a deadline outsource many functions to partners that can provide “scarce and essential skills.”
ISG’s report also found that the role of outsourcers is expanding as many enterprises transform higher-level finance-related functions. Other companies also rely on third-party firms to assist them in their digital and cloud transformation.
Further, many enterprises are turning to providers for effective environmental, social, and governance (ESG) reporting.
“FAO outsourcing customers are now looking for partners with deep domain expertise that will commit to sharing the risks and rewards of transformation,” said ISG Provider Lens Research Partner and Global Leader Jan Erik Aase.
