Upcoming ISG Provider Lens report will evaluate providers using digital technologies to streamline clients’ financial processes for improved efficiency and agility
Information Services Group, a leading global technology research and advisory firm, has launched a research study examining outsourcing services that help enterprises improve their finance and accounting operations through digitization, analytics and automation.
“Increasingly, they are providing customized solutions for industry-specific use cases.”
The study results will be published in a comprehensive ISG Provider Lens™ report, called Finance and Accounting Outsourcing Services (FAO), scheduled to be released in July. The report will cover companies offering services for procurement, reporting, budgeting, financial planning and other functions.
Enterprise buyers will be able to use information from the report to evaluate their current vendor relationships, potential new engagements and available offerings, while ISG advisors use the information to recommend providers to the firm’s buy-side clients.
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Companies are outsourcing many finance and accounting functions as they digitize financial operations to improve efficiency, productivity, data accuracy and customer experience. Analytics and automation, which enable CFOs to make decisions more quickly and with better information, are now central to all FAO engagements. Digitization is increasingly important as companies navigate business challenges arising from inflation, geopolitical conflicts and a possible recession in 2023.
“FAO providers are becoming partners in holistic efforts to make companies more agile financially,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Increasingly, they are providing customized solutions for industry-specific use cases.”
ISG has distributed surveys to more than 30 finance and accounting outsourcing providers. Working in collaboration with ISG’s global advisors, the research team will produce four quadrants representing the finance and accounting outsourcing services the typical enterprise is buying, based on ISG’s experience working with its clients. The four quadrants are:
- Procure to Pay (P2P), evaluating providers of services across the accounts payable process, including paying suppliers, reconciling accounts, tracking expenses and spending patterns and negotiating contracts. P2P providers use new technologies including AI and machine learning to automate processes and increase efficiency.
- Order to Cash (O2C), assessing providers of end-to-end O2C operations, including processing customer orders, ensuring payments are received promptly, managing credit risk and providing customer support. Clients look to these partners to streamline operations, often through automation to reduce manual processes.
- Record to Report (R2R), covering providers that manage clients’ financial record-keeping and reporting, including complex processes such as managing the end-of-period close process, preparing financial statements and assessing clients’ internal control systems.
- Financial Planning and Analysis (FP&A), evaluating providers of high-end financial functions including budgeting, forecasting, financial planning and M&A, which enterprises are now beginning to outsource. These providers act as partners to clients, delivering comprehensive and meaningful data and insights.
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A report from the study will cover the global finance and accounting outsourcing market and examine products and services available globally. ISG analysts Gaurang Pagdi and Sneha Jayanth will serve as authors of the report.
A list of identified providers and vendors and further details on the study are available in this digital brochure. Companies not listed as finance and accounting outsourcing providers can contact ISG and ask to be included in the study.
All 2023 ISG Provider Lens™ evaluations feature expanded customer experience (CX) data that measures actual enterprise experience with specific provider services and solutions, based on ISG’s continuous CX research.
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