Based on our experience in all industries of different sizes, a typical finance department that has not outsourced its F&A function is spending 70-80% of its time on transactional activities. A recent KPMG report states that organizations outsource more than 40% of their finance function processes. Outsourcing allows the internal finance team to focus on and specialize in forward-looking analysis and providing business decision support to the management and leadership.
Transactional activities are routine, rule-based, repetitive, and process-driven which can be delivered either off-site or on-site when outsourced. These lower value-add activities are easier to transition to a Shared Services or BPO model and provide the foremost immediate return on investment.
Outsourcing the F&A function helps with cost reduction, gives you access to the best talent pool, provides faster turnaround, helps you meet compliance requirements, generates reporting and analytics, and long-term savings. From the several F&A processes which a client can outsource, we typically recommend the following: