In today's competitive business landscape, companies constantly seek avenues to cut costs, increase efficiency and improve profitability. One of the most effective ways to achieve these goals is by outsourcing finance and accounting tasks to a reliable third-party service provider.
Finance and accounting (F&A) business process outsourcing service providers offer several benefits to businesses of all sizes, allowing them to access specialized expertise and new-age technologies that may not be available inhouse. This expertise can help to improve accuracy, reduce errors and rework and ensure compliance with regulatory requirements. By leveraging the expertise of a third-party provider, businesses can streamline their accounting processes, reduce the need for inhouse staff and minimize the risk of fraud and errors.
But like all business decisions, partnering with F&A service providers requires careful planning. Hence, it is essential to explore the various benefits of outsourcing F&A tasks and establish your best practices for managing F&A functions.
Unlocking value at scale through Finance and Accounting operations outsourcing
While the majority of businesses have admirably bounced back from the immediate impacts of the COVID-19 pandemic, it did compromise expansionary initiatives and slowed growth for many. Additionally, the current volatility of the geopolitical landscape, especially in Europe, has further compounded the problem. As a result, forward-looking enterprises today must focus more on their core businesses and outsource more secondary functions to external process outsourcing experts.
For instance, when a retail company does everything inhouse, it must not only divide its focus but also incur higher costs. Instead, by partnering with technology giants with integrated functionalities around human resources, supply chain management, procurement and F&A, it will be able to grow its business faster and ensure specialized and cost-effective outcomes for the secondary functions while enjoying the benefits of standardization, consolidation, automation, best practice sharing and actionable insights from analytics.
Finance and Accounting Outsourcing (FAO) services are becoming increasingly popular among businesses of all sizes. With digital transformation as the centerpiece, FAO has become a business imperative for enterprises across industries. New-age technologies such as AI/ML, big data and analytics, automation and IoT have emerged as pivotal value scalers and differentiators. In such a scenario, enterprises are moving to an operational model where FAO is no longer a futuristic dream but an immediate need.
So, what do the businesses of tomorrow need from their FAO partners?
Holistic transformation: Enterprises need their FAO partners to move beyond the tertiary role of implementation and instead take the responsibility of thoroughly transforming their F&A functions. The purview must expand to even strategic functions such as financial planning and analysis and cost accounting. Also, the labor-cost arbitrage is no longer enough as enterprises expect value additions from digital tools and innovations.
Data analytics-driven insights: There is a growing need for data optimization for faster and more accurate outcomes as well as predictive decision-making. For that, FAO partners must systemically create a collaborative ecosystem that replaces the siloes of the conventional inhouse F&A processes.
Hyperautomation: The need of the hour is to implement hyperautomation in finance and accounting. With the help of AI/ML and RPA, workflows, platforms, ICR/OCR and wraparound tools and technologies, FAO partners must automate functions for an end-to-end touchless F&A process.
Outcome-based pricing: The days of fixed pricing are behind us as businesses are now keen on their partners sharing the accountability of success and failure. Thus, outcome-based pricing models are emerging as more popular options, meaning that FAO partners will have to double down on their promise and potential to drive the success of their customers while bringing the skin to the game.
Innovation-mindedness: In a fast-evolving business landscape that relies heavily on digital advancements, innovations are the key to unlocking performance. FAO partners should proactively and constantly innovate to expand the use cases of their solutions, including joining innovation fund provisions, innovation boards, etc.
Environmental, social and governance reporting: There is increased emphasis on sustainability for enterprises as we collectively march toward carbon neutrality and net zero goals. It is a business-critical global agenda, and FAO partners must assume a leading role in shaping sustainable F&A outcomes.
HCLTech: The F&A partner of choice
In the dynamic landscape of modern business, organizations continuously seek ways to optimize their operations and focus on their core competencies. One area that has seen significant transformation through outsourcing is F&A. With the increasing complexity of financial processes, many companies are turning to experts like HCLTech to streamline their F&A functions, enabling them to enhance efficiency, reduce costs and achieve strategic goals.
Integrated technology partners play a critical role in F&A by providing software solutions, tools, technology and platforms that enable organizations to streamline their financial operations, improve accuracy and efficiency, reduce costs and increase transparency and accountability. HCLTech has the same vision, supporting it with outcome-oriented innovations specific to customer needs. Powered by experiences across industries and expertise in finance and accounting, our Digital Process Outsourcing (DPO) business unit has emerged as a key partner for various Fortune 500 companies.
The shift towards outsourcing
Outsourcing F&A processes has become a strategic decision for many businesses. By leveraging external expertise, companies can not only reduce the burden of non-core activities but also tap into specialized knowledge and resources. We have emerged as a key player in this arena, offering a range of solutions tailored to meet the unique needs of our clients across industries.
Expertise and experience
HCLTech brings a wealth of expertise and experience to the table. With a team of financial professionals well-versed in industry best practices, compliance regulations and emerging technologies, we ensure that F&A processes are executed accurately and efficiently. This expertise extends to accounts payable, accounts receivable, general ledger management, financial planning, analysis and reporting.
The integration of technology is a hallmark of our approach to outsourcing F&A processes. Leveraging automation, data analytics and AI, we streamline routine tasks, eliminate manual errors and enhance decision-making through data-driven insights. By harnessing these technologies, our clients can free up valuable time and resources that can be redirected toward strategic planning and growth initiatives.
One size does not fit all in FAO. HCLTech recognizes this and tailors our solutions to align with each client's unique requirements. Whether designing a scalable solution, incorporating industry-specific compliance measures or adapting to evolving business needs, we ensure our services are flexible and customizable.
Risk mitigation and compliance
In the realm of finance and accounting, compliance is of paramount importance. HCLTech's expertise in navigating complex regulatory landscapes ensures that organizations comply with local and international financial regulations. This mitigates the risk of financial penalties, reputational damage and operational disruptions, allowing our clients to focus on their growth trajectories.
Enhanced efficiency and cost savings
Outsourcing F&A processes to HCLTech can lead to substantial cost savings. By optimizing processes, reducing the need for inhouse staffing and avoiding infrastructure investments, companies can allocate resources more strategically. This cost-efficient approach empowers our clients to reinvest in innovation, expansion and other value-added initiatives.
ISG recognized HCLTech as a Leader
A recent research report by Information Services Group (ISG) Provider Lens™, titled Finance and Accounting Outsourcing Services Global 2022, compared strengths, challenges and differentiators of FAO service providers. HCLTech was ranked among the market leaders across all core strategic finance and accounting processes – order-to-cash (O2C), procure-to-pay (P2P), record-to-report (R2R) and financial planning and analysis (FP&A). Here’s a closer look at ISG’s findings:
O2C: The report found HCLTech’s modular architecture, innovative tools and end-to-end, unified platform to be trailblazers in the O2C space, translating to improved revenue generation, touchless credit management and predictive order management for our clients. Read more about it here.
P2P: With a clear understanding of the market, meticulous strategies in place and productized solutions, HCLTech emerged as a leader in P2P. HCLTech’s AI/ML-based digitalCOLLEAGUE framework augmented human capabilities and expedited outcomes. To know more about it, click here.
R2R: HCLTech’s global partner and client ecosystem, along with deep domain knowledge, helped customers in their finance and accounting processes with SaaS and ERP tools, leading to accurate and faster results. Know more here.
FP&A: HCLTech is a clear leader in the FP&A space thanks to our global delivery capabilities and four high-performance delivery centers specific to finance and accounting. Coupled with technology expertise and diverse local language support, our clients benefited greatly across the FP&A process. Read more about it here.
HCLTech also offers consulting services to help our clients optimize their financial operations. These services include financial process improvement and risk management. Over the years, we have aided companies across industries in pursuing financial and accounting excellence, thereby increasing efficiency, reducing cost and improving customer experiences. Visit our website today to unlock opportunities with us.
In today's rapidly evolving business environment, outsourcing finance and accounting processes has emerged as a strategic imperative. HCLTech's blend of financial expertise, cutting-edge technology, customized solutions and focus on compliance positions us as a valuable partner for our clients seeking to streamline operations, enhance efficiency and achieve their business objectives. By collaborating with HCLTech, businesses can unlock the potential of outsourcing and redirect their energies toward growth and innovation.