Finance and Accounting
Debunking common misconceptions about finance outsourcing services
Businesses around the globe are on the journey of digital transformation, with modern next-gen technologies revolutionising different business functions.* And outsourcing services have made it easier for modern businesses to access these solutions without building in-house expert teams or investing in infrastructure resources. As a result, global spending on outsourcing services is set to reach $731 billion in 2023.
Finance and accounting operations are no exception, with more and more businesses relying on finance outsourcing services to navigate the challenges towards digital transformation. 71% of finance and accounting executives now outsource one or more services, with 70% of businesses planning to outsource more. However, several misconceptions about finance outsourcing services prevent businesses from taking advantage of their benefits.
Most common finance outsourcing misconceptions
The need for digital transformation and geopolitical events – like the COVID-19 pandemic – have accelerated digital transformation efforts. While some finance outsourcing misconceptions are still holding many businesses back from fully embracing finance outsourcing services, it's essential to understand and address these misconceptions to make informed decisions about outsourcing finance functions and realise its benefits. Some of the most common accounting and outsourcing myths include:
Outsourcing only covers accounting basics:
There is no single purpose to outsourcing your finance and accounting functions. Although bookkeeping and processing were some of the first and most common services to outsource, you can build a finance outsourcing strategy to suit the needs, expertise, and goals of your existing accounting team.
You lose control and quality with outsourcing
You can keep a closer eye on accounting functions with an in-house team. But you can overcome this obstacle by choosing a trustworthy outsourcing service provider and building the right systems to promote control and visibility. You can also improve the overall quality of your accounting functions by leveraging new expertise.
You don’t need to outsource if you already have an accounting team
Your accounting team may be juggling one too many responsibilities. Or they may lack the expertise that can support your business’ growth. You can overcome both these obstacles by outsourcing some of the finance functions, allowing your team to focus on key areas and leverage expert experience without hiring and retaining a new team.
Outsourcing means letting go of my accounting team
Finance outsourcing services often amend your accounting team, allowing you to combine in-house oversight with external expertise for the best possible outcome.
Only big companies need finance outsourcing services
Big companies have high-volume finance and accounting functions. But early-stage or growing companies can also benefit from finance outsourcing by gaining access to specialised systems and experts if they do not have the budget for a full-time accounting team.
Finance outsourcing is expensive
Despite the initial investment, outsourcing can help simplify financial management and be more cost-effective in the long run.
Finance outsourcing is impersonal
In the age of personalised services, outsourcing may feel impersonal. But with hybrid and remote working becoming the norm, collaborating with teams across the globe and providing a personal touch has become much easier.
If they are not in the office, they are not working
Location is a non-issue in today’s hybrid and remote workplaces. You can easily collaborate with and supervise teams across the globe to ensure quality and productivity.
You will need to train someone new on your system
Finance outsourcing services give you access to expert finance and accounting executives who can easily navigate your systems, dashboards, and reporting tools without additional training.
Outsourcing is only useful for cost-cutting
Although cost-cutting is one of the objectives of outsourcing, it can also offer your business immense value in terms of improved efficiency and user experience.
Outsourcing puts your data at risk
There is data security and privacy risk when sharing data with a third-party service provider. But reputed finance outsourcing service providers acknowledge and uphold their data protection responsibility, have stringent data security protocols, and abide by relevant data protection regulations.
All finance outsourcing service providers offer the same value:
Just as all businesses do not have the same outsourcing needs, all service providers do not offer the same value. You can select the finance outsourcing service provider that best meets your needs and goals.
You’ll face language and cultural barriers with outsourcing
This finance outsourcing misconception stems from the confusion between off-shoring and outsourcing. While cultural and language barriers may be an issue when off-shoring, outsourcing service providers are well-versed in their clients’ workplace culture and language, making collaboration much easier and effortless.
It's important to note that while finance outsourcing services can offer many benefits, it also requires careful consideration and due diligence to select a reputable provider and establish effective communication and management processes to ensure a successful partnership. By choosing the right partner and understanding and addressing the common misconceptions about finance outsourcing, companies can reap the benefits of outsourcing while mitigating potential risks and achieving their financial goals.
How can Infosys BPM help?
Infosys BPM Finance and Accounting Outsourcing Services support the end-to-end finance and accounting operations, empowering the finance leaders to design, transform, and operate in the digital business ecosystem. We harness digital innovation with the domain expertise of our team to help you "Navigate the Next" effortlessly with efficient, effective, flexible, agile, and resilient finance functions. With services like procure-to-pay, record-to-report, digital finance solutions, tax support, and accounts payable on cloud (APOC), you can leverage finance outsourcing services to add value to your business and deliver an enhanced user experience.
*For organisations on the digital transformation journey, agility is key in responding to a rapidly changing technology and business landscape. Now more than ever, it is crucial to deliver and exceed organisational expectations with a robust digital mindset backed by innovation. Enabling businesses to sense, learn, respond, and evolve like living organisms will be imperative for business excellence. A comprehensive yet modular suite of services is doing precisely that. Equipping organisations with intuitive decision-making automatically at scale, actionable insights based on real-time solutions, anytime/anywhere experience, and in-depth data visibility across functions leading to hyper-productivity, Live Enterprise is building connected organisations that are innovating collaboratively for the future.