Finance Outsourcing: How SMBs Can Benefit from Outsourcing non-core Finance Functions
An Overview of the Outsourcing and Shared services industry
Significant Global trends have been shaping today’s workforce in recent times and have disrupted the way business’s function. Business leaders are required to become creative in how they solve such workforce related challenges in order to build the most optimal workforce ecosystem. Trends like the Great Resignation have led to businesses and its leadership scrambling to identify the best solutions in order to ensure business continuity and to manage risks while ensuring that the best possible support is available as well as optimize Finance function’s costs.
Globally, there has been an increase in the usage of Outsourced Finance Partners. Large global conglomerates have reached a point of maturity in extracting value from offshore services or having their own shared services setup as Centres of Excellence. While that is being said for large organizations, Small and mid-sized businesses have been taking measured steps and tapping into finance department structure in offshore for niche requirements. However, SMBs need to strategically approach and implement solutions to manage disruptions in the workforce ecosystem. Global outsourcing of Finance function’s processes can help with significant cost savings by tapping into high quality talent while reducing the overall staff expenses.
According to Gartner, Business Process Outsourcing today accounts for 7.3% of the world’s GDP and is growing at three times the rate of traditional manufacturing. The cost benefits, access to knowledge and technology, operational flexibility and access to the global talent pool are seen as the main reasons for this increase.
Significant Global trends have been shaping today’s workforce in recent times and have disrupted the way business’s function. Business leaders are required to become creative in how they solve such workforce related challenges in order to build the most optimal workforce ecosystem. Trends like the Great Resignation have led to businesses and its leadership scrambling to identify the best solutions in order to ensure business continuity and to manage risks while ensuring that the best possible support is available as well as optimize Finance function’s costs.
Globally, there has been an increase in the usage of Outsourced Finance Partners. Large global conglomerates have reached a point of maturity in extracting value from offshore services or having their own shared services setup as Centres of Excellence. While that is being said for large organizations, Small and mid-sized businesses have been taking measured steps and tapping into finance department structure in offshore for niche requirements. However, SMBs need to strategically approach and implement solutions to manage disruptions in the workforce ecosystem. Global outsourcing of Finance function’s processes can help with significant cost savings by tapping into high quality talent while reducing the overall staff expenses.
According to Gartner, Business Process Outsourcing today accounts for 7.3% of the world’s GDP and is growing at three times the rate of traditional manufacturing. The cost benefits, access to knowledge and technology, operational flexibility and access to the global talent pool are seen as the main reasons for this increase.