Outsourcing finance and accounting yields 15% ROI: Everest CFO survey
NEW JERSEY, UNITED STATES — A recent survey by Everest Group, supported by Conduent Incorporated, revealed that outsourcing finance and accounting functions through business process outsourcing (BPO) providers can significantly enhance efficiency and return on investment (ROI).
The study surveyed 200 Chief Financial Officers (CFOs) from U.S. companies with revenues over $500 million, finding an average ROI of 15% in finance-related outsourcing.
Key finance areas where outsourcing yields the highest ROI include:
- Management reporting and analysis: 43% of respondents reported this area as yielding the highest returns.
- Billing: 41% indicated significant returns from outsourcing billing processes.
- Accounts receivable: 40% saw notable benefits in this area.
- Capital budgeting: 39% experienced high ROI from outsourcing capital budgeting tasks.
Strategic focus on efficiency and analytics
Operational efficiency is a primary goal for CFOs engaging in outsourcing, with 46% citing it as their top priority. This focus is complemented by a strategic shift towards predictive and prescriptive analytics, with 94% of CFOs planning to emphasize these areas in their outsourcing efforts over the next three to five years.
Jeff Weiner, President of BPaaS Solutions at Conduent, stresses the importance of choosing the right outsourcing partner.
“Successful outsourcing partnerships stem from due diligence, vetting capabilities and experience plus evaluating an outsourcing partner’s approach and alignment with the company’s objectives,” he stated.
Technological advancements enhance performance
The survey highlights the role of technology in enhancing financial operations. 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.
Leveraging BPO for strategic gains
The findings from Everest Group’s survey, supported by Conduent’s insights, underscore that strategic outsourcing of finance and accounting functions can significantly enhance operational efficiency and deliver substantial ROI.
By focusing on key areas such as management reporting, billing, accounts receivable, and capital budgeting, companies can leverage BPO providers‘ expertise and technology to drive performance improvements and achieve their business objectives.
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Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
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