Finance and accounting departments globally are present process a digital transformation, aiming to streamline and automate processes, as highlighted within the 2023 ISG Supplier Lens™ world Finance and Accounting Outsourcing (FAO) Providers report. The push for digitalization was notably accelerated by the COVID-19 lockdowns, which necessitated a shift from conventional strategies to accommodate distant work necessities.
The analysis signifies a rising reliance on exterior suppliers to help in formulating digital methods. Robert Stapleton, a associate at ISG, talked about, “Organizations are creating linked finance groups with the expertise to gather and analyze bigger information units for long-term decision-making.” This technological empowerment has positioned CFOs to play extra strategic roles inside their organizations.
The report additionally sheds gentle on the challenges companies face on account of disruptions for the reason that pandemic, similar to inflation and supply-chain points. To navigate these challenges, many are turning to new operational strategies and applied sciences. Notably, there is a surge within the adoption of instruments like SAP S/4HANA, generative AI, blockchain, and the metaverse. Recognizing the potential vulnerabilities of integrating these new applied sciences, there’s an emphasised give attention to bolstering cybersecurity measures.
A big shift within the FAO sector is the desire for outcome-based contracts, the place each dangers and rewards of digital transformation are shared between corporations and FAO suppliers. Jan Erik Aase, world chief at ISG Supplier Lens Analysis, said, “FAO suppliers have gotten strategic companions that collaborate with purchasers along with delivering companies.”
Moreover, the report explores the significance of world supply fashions for FAO companies and emphasizes the necessity for clear methods surrounding environmental, social, and governance (ESG) initiatives.
The great 2023 ISG Supplier Lens™ report evaluates 28 suppliers throughout 4 key areas: Procure to Pay (P2P), Order to Money (O2C), Report to Report (R2R), and Monetary Planning and Evaluation (FP&A). Main companies similar to Accenture, Capgemini, and Cognizant have been acknowledged as leaders in all quadrants.
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