CFOs are worried about their digital finance transformation trajectories. In a recent Gartner survey, 55% of finance leaders are not confident with current progress and only 37% have a digital finance strategy in place today. Plus, given the current unstable macroeconomic conditions, cost optimization objectives are in parallel with progressing digitalization.
Finance and accounting (F&A) business process outsourcing (BPO) providers recognize the low satisfaction level and slow returns with transformation progress done in-house and they have transformed their service offerings significantly in recent years to bring digital services and transformation expertise to finance.
“Leaders who consider working with outsourcing providers for digital transformation have a greater chance of meeting cost optimization objectives while simultaneously securing finance technologies that accelerate digital agendas,” says Sanjay Champaneri, Senior Director Analyst at Gartner.
Digital finance transformation typically consists of three phases:
1. Assess and benchmark: What is the prioritized order of the challenges we face across our finance operations and how do we compare with others?
2. Consolidate and standardize: Where best should these operations be processed from and what is the simplest way of doing these activities?
3. Digital process automation: What are the technology solutions we need to purchase and who are the vendors that can help solve our challenges?
The benefits of using a BPO for digital transformation
BPO vendors have invested in alternative methods and solutions to meet the challenges faced during the three phases of digital transformation, differentiating themselves in two key ways. CFOs that take advantage of this will increase the likelihood that their digital finance transformation programs succeed.
Benefit 1: BPOS can demonstrate their technology capabilities before you buy
BPO providers frequently add technology to their portfolio of solutions, which makes it easy to demonstrate their capabilities and give a compelling reason to adopt their digital solutions. This saves time during the initial assessment and provides the opportunity to see how these technologies can solve operational challenges. Providers can assess an organization’s current operating state and map performance issues and challenges back to their technology solutions.
Benefit 2: BPOS can own vendor administration across your tech stack
As you evaluate and purchase digital finance software independently, you run the risk of struggling to juggle multiple finance technology vendor relationships for the long term. Software vendors compete for attention with upgrades, new capabilities and enhancements. BPO providers can take this pressure away and own the vendor administration across all of your technology portfolio.
A technology roadmap managed by a BPO provider reduces the burden on internal finance and IT resources while ensuring best-of-breed technology is still accessible.