Businesses are outsourcing more finance and accounting functions to service providers, seeking tailored solutions with modern technology, according to the ISG Provider Lens™ report.
STAMFORD, Conn., September 25, 2024–(BUSINESS FEED)–Companies have expanded their outsourcing of financial and accounting operations while demanding more specialized capabilities from vendors, according to a new research report released today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and consulting company.
The 2024 ISG Provider Lens™ Global Financial and Accounting Outsourcing (FAO) Services Report reveals that a growing number of companies are interested in comprehensive service packages that go beyond traditional outsourcing. They want providers to integrate advanced analytics, strategic advice and industry-specific expertise into solutions that streamline financial processes and are tailored to customer needs.
“Finance and accounting require complete digital transformation to optimize processes and improve data accuracy,” said Robert Stapleton, ISG Partner, Business Outsourcing Services. “Service providers are adding advanced tools and industry-specific expertise to help their customers grow and achieve operational excellence.”
Enterprises are turning to vendors for holistic orchestration capabilities that support unified user experiences, real-time insights and data-driven strategies for greater efficiency and better decision-making, says ISG. Businesses also want vendors to provide insight into best practices, compliance issues and market trends in their industry, as well as solutions that meet industry requirements.
AI, machine learning, robotic process automation (RPA) and cloud computing are significantly changing finance and accounting processes, making them more efficient and accurate through real-time data analysis, says the report. Generative AI (GenAI) has strong potential to improve data analysis and planning, although most GenAI applications in this area are still at the proof-of-concept stage. If FAO services, SaaS and financial platform providers collaborate more closely, the GenAI trend could accelerate.
The most commonly outsourced financial process remains procure-to-pay (P2P), but many companies outsource more advanced functions, such as record-to-report (R2R) and financial planning and analysis (FP&A), explains ‘ISG. AI and advanced analytics are revolutionizing these functions, changing the way businesses create budgets, forecasts and financial statements.
“Companies are automating R2R with the help of service providers and significantly reducing manual efforts,” said Jan Erik Aase, partner and global leader of ISG Provider Lens Research. “This shortens their close cycles and reduces errors.”
Advisory and consulting services are becoming central to FAO’s engagements, as more clients adopt complex technologies such as ERP and cloud solutions, says ISG. Vendors are also building their services around environmental, social and governance (ESG) practices and sustainability reporting, although companies have adopted them more slowly, mainly due to regulatory requirements.
The report also explores other trends in FAO services, including the increasing use of results-based models in FAO contracts and co-innovation between providers and clients.
For more information on the financial and accounting challenges businesses face, including shortages of skilled resources, as well as ISG’s advice on how to address these issues, see the ISG Provider Lens™ Focal Points Briefing . here.
The 2024 ISG Provider Lens™ Global Financial and Accounting Outsourcing (FAO) Services Report assesses the capabilities of 31 providers across four quadrants: Procure to Pay (P2P), Order to Cash (O2C), Record to Report (R2R) and Financial Planning and Analysis (FP&A).
The report names Accenture, Capgemini, Cognizant, Deloitte, EXL, Genpact, HCLTech, IBM, Infosys, TCS, Wipro and WNS as leaders in all four quadrants. It names Sutherland as leader in two quadrants and Tech Mahindra as leader in one quadrant.
Additionally, Datamatics, Tech Mahindra and Teleperformance are designated as Rising Stars – companies with a “promising portfolio” and “strong future potential” as defined by ISG – in one quadrant each.
In the area of customer experience, Accenture is named a 2024 Global ISG CX Star Performer among FAO Service Providers. Accenture achieved the highest customer satisfaction scores in ISG’s Voice of the Customer survey, part of ISG Star of Excellence™ Programthe first quality recognition for the technology and business services sector.
Customized versions of the report are available from Auxiliary, Capgemini, Aware, HCLTech, Infosys, Wipro And SMB.
The 2024 ISG Provider Lens™ Global Financial and Accounting Outsourcing (FAO) Services Report is available for subscribers or one-time purchase on this site. Web page.
About ISG Provider Lens™ Search
The ISG Provider Lens™ Quadrant research series is the only service provider assessment of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of the advisory team world of ISG. Businesses will find a wealth of detailed data and market analysis to help them select appropriate sourcing partners, while ISG advisors will use the reports to validate their own market knowledge and make recommendations to business clients of ISG. The study currently covers providers offering their services globally, across Europe, as well as in the United States, Canada, Mexico, Brazil, United Kingdom, France, Benelux, in Germany, Switzerland, Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information on ISG Provider Lens research, please visit this Web page.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory company. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping businesses, public sector organizations and service and technology providers achieve operational excellence and faster growth. The company specializes in digital transformation services, including AI and automation, cloud and data analytics; procurement consultancy; managed governance and risk services; network operator services; design of strategies and operations; change management; market intelligence and technology research and analysis. Founded in 2006 and headquartered in Stamford, Connecticut, ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries. A global team known for its innovative thinking, market influence, deep industry and technology expertise and world-class leadership. research and analysis capabilities based on the most comprehensive market data in the industry. For more information, visit www.isg-one.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240925212627/en/
Contacts
Press contacts:
Will Thoretz, ISG
+1 203 517 3119
will.thoretz@isg-one.com
Julianna Sheridan, Matter Communications for ISG
+1 978-518-4520
isg@matternow.com