AI, Industry Focus Energize Finance Outsourcing
The 2024 ISG Provider Lens™ global Finance and Accounting Outsourcing (FAO) Services report reveals that enterprises are expanding their outsourcing of finance and accounting operations while seeking more specialized capabilities from providers. Companies are looking for comprehensive services that integrate advanced analytics, strategic consulting, and industry-specific expertise to streamline financial processes.
AI, machine learning, RPA, and cloud computing are significantly changing finance and accounting processes, improving efficiency and accuracy through real-time data analytics. Generative AI shows strong potential, although most applications are still in the proof-of-concept stage. The report highlights that procure to pay (P2P) remains the most commonly outsourced financial process, but many enterprises are also outsourcing advanced functions like record-to-report (R2R) and financial planning and analysis (FP&A).
The report evaluates 31 providers across four quadrants: P2P, Order to Cash (O2C), R2R, and FP&A. It names 12 companies as Leaders in all four quadrants, with additional Leaders in specific quadrants.
Il report globale dei servizi di esternalizzazione della Finanza e Contabilità (FAO) 2024 di ISG Provider Lens™ rivela che le imprese stanno ampliando l'esternalizzazione delle operazioni finanziarie e contabili, mentre cercano capacità più specializzate dai fornitori. Le aziende cercano servizi completi che integrino analisi avanzate, consulenza strategica ed expertise settoriale per ottimizzare i processi finanziari.
L'IA, l'apprendimento automatico, l'automazione dei processi robotici (RPA) e il cloud computing stanno cambiando significativamente i processi di finanza e contabilità, migliorando l'efficienza e l'accuratezza attraverso analisi dei dati in tempo reale. L'IA generativa mostra un forte potenziale, anche se la maggior parte delle applicazioni è ancora in fase di prova del concetto. Il report evidenzia che il processo finanziario più comunemente esternalizzato è il procure to pay (P2P), ma molte imprese stanno anche esternalizzando funzioni avanzate come record-to-report (R2R) e pianificazione e analisi finanziaria (FP&A).
Il report valuta 31 fornitori attraverso quattro quadranti: P2P, Order to Cash (O2C), R2R e FP&A. Nomina 12 aziende come Leader in tutti e quattro i quadranti, con Leader aggiuntivi in quadranti specifici.
El informe global de servicios de externalización de Finanzas y Contabilidad (FAO) 2024 de ISG Provider Lens™ revela que las empresas están ampliando su externalización de operaciones financieras y contables, mientras buscan capacidades más especializadas de los proveedores. Las compañías buscan servicios integrales que incorporen análisis avanzados, consultoría estratégica y experiencia específica de la industria para optimizar los procesos financieros.
La IA, el aprendizaje automático, la automatización de procesos robóticos (RPA) y la computación en la nube están cambiando significativamente los procesos de finanzas y contabilidad, mejorando la eficiencia y la exactitud a través del análisis de datos en tiempo real. La IA generativa muestra un gran potencial, aunque la mayoría de las aplicaciones aún se encuentran en la fase de prueba de concepto. El informe destaca que el proceso financiero más comúnmente externalizado es el de procure to pay (P2P), pero muchas empresas también están externalizando funciones avanzadas como record-to-report (R2R) y planificación y análisis financieros (FP&A).
El informe evalúa a 31 proveedores en cuatro cuadrantes: P2P, Order to Cash (O2C), R2R y FP&A. Nombra a 12 empresas como Líderes en los cuatro cuadrantes, con Líderes adicionales en cuadrantes específicos.
2024 ISG Provider Lens™ 글로벌 재무 및 회계 아웃소싱(FAO) 서비스 보고서는 기업들이 재무 및 회계 운영의 아웃소싱을 확장하고 있다고 밝혔습니다. 기업들은 고급 분석, 전략적 컨설팅 및 산업별 전문성을 통합한 종합 서비스를 찾고 있다고 하며, 이를 통해 재무 프로세스를 간소화하려고 합니다.
AI, 머신러닝, RPA 및 클라우드 컴퓨팅은 재무 및 회계 프로세스를 크게 변화시키고 있으며, 실시간 데이터 분석을 통해 효율성과 정확성을 개선하고 있습니다. 생성적 AI는 강력한 잠재력을 보여주지만, 대부분의 응용 프로그램은 아직 개념 증명 단계에 있습니다. 보고서는 지출에서 지급까지(Procure to Pay, P2P)가 가장 일반적인 아웃소싱 재무 프로세스으로 남아 있다고 강조하지만, 많은 기업들이 기록에서 보고까지(Record to Report, R2R) 및 재무 계획 및 분석(FP&A)과 같은 고급 기능도 아웃소싱하고 있습니다.
이 보고서는 P2P, 주문에서 현금(Order to Cash, O2C), R2R 및 FP&A의 네 가지 구간을 통해 31개의 공급업체를 평가합니다. 모든 네 개의 구간에서 12개 회사를 리더로 선정하고 특정 구간에서는 추가적인 리더도 나열했습니다.
Le rapport mondial 2024 d'ISG Provider Lens™ sur les services d'externalisation de la finance et de la comptabilité (FAO) révèle que les entreprises étendent leur externalisation des opérations financières et comptables tout en recherchant des capacités plus spécialisées chez les fournisseurs. Les entreprises recherchent des services complets intégrant des analyses avancées, du conseil stratégique et une expertise spécifique à chaque secteur pour rationaliser les processus financiers.
L'IA, l'apprentissage automatique, la RPA et l'informatique en nuage transforment de manière significative les processus financiers et comptables, améliorant l'efficacité et la précision grâce à des analyses de données en temps réel. L'IA générative montre un fort potentiel, bien que la plupart des applications soient encore au stade de preuve de concept. Le rapport souligne que le processus d'achat à paiement (P2P) reste le processus financier le plus couramment externalisé, mais de nombreuses entreprises externalisent également des fonctions avancées telles que le processus de reporting (R2R) et la planification et l'analyse financières (FP&A).
Le rapport évalue 31 fournisseurs à travers quatre quadrants : P2P, Order to Cash (O2C), R2R et FP&A. Il désigne 12 entreprises comme Leaders dans les quatre quadrants, avec des Leaders supplémentaires dans des quadrants spécifiques.
Der globale Bericht über Finanz- und Rechnungswesen-Outsourcing (FAO) 2024 von ISG Provider Lens™ zeigt, dass Unternehmen ihre Auslagerung von Finanz- und Buchhaltungsoperationen ausweiten, während sie nach spezialisierteren Fähigkeiten von Anbietern suchen. Unternehmen suchen nach umfassenden Dienstleistungen, die fortschrittliche Analytik, strategische Beratung und branchenspezifisches Fachwissen integrieren, um ihre Finanzprozesse zu optimieren.
KI, maschinelles Lernen, RPA und Cloud-Computing verändern die Finanz- und Rechnungswesenprozesse erheblich und verbessern die Effizienz und Genauigkeit durch Echtzeit-Datenanalysen. Generative KI zeigt großes Potenzial, obwohl die meisten Anwendungen sich noch in der Konzeptnachweisphase befinden. Der Bericht hebt hervor, dass der Prozess von der Beschaffung bis zur Zahlung (P2P) der am häufigsten ausgelagerte Finanzprozess bleibt, jedoch lagern viele Unternehmen auch fortgeschrittene Funktionen wie den Aufnahme-zu-Bericht-Prozess (R2R) und Finanzplanung und -analyse (FP&A) aus.
Der Bericht bewertet 31 Anbieter in vier Quadranten: P2P, Order to Cash (O2C), R2R und FP&A. Er nennt 12 Unternehmen als Führer in allen vier Quadranten und zusätzlich weitere Führer in spezifischen Quadranten.
- Enterprises are expanding outsourcing of finance and accounting operations
- Companies seek comprehensive services integrating advanced analytics and industry-specific expertise
- AI, machine learning, RPA, and cloud computing are improving efficiency and accuracy in finance processes
- Generative AI shows strong potential for improving data analysis and planning
- Outsourcing of advanced functions like R2R and FP&A is increasing
- Most Generative AI applications in finance and accounting are still in proof-of-concept stage
- Companies have adopted ESG practices and sustainability reporting more slowly
Insights
The expanding scope of finance and accounting outsourcing (FAO) represents a significant shift in how companies manage their financial operations. This trend towards comprehensive, technology-driven solutions is likely to benefit leading FAO providers like Information Services Group (ISG).
Key points to consider:
- Increased demand for specialized capabilities and industry-specific expertise could lead to higher-value contracts for service providers.
- Integration of AI, ML and RPA into FAO services may improve profit margins through increased efficiency.
- The shift towards outsourcing more advanced functions like R2R and FP&A suggests potential revenue growth in these higher-value service areas.
- Growing emphasis on consulting and advisory services within FAO engagements could lead to longer-term, more strategic client relationships.
While this report highlights positive industry trends, investors should note that ISG is primarily a research and advisory firm, not a direct FAO service provider. The impact on ISG's financials may be indirect, potentially through increased demand for their research and advisory services in this evolving market.
The integration of advanced technologies into FAO services marks a significant evolution in the industry. Key technological trends include:
- AI and ML: Enhancing data analysis and decision-making capabilities.
- RPA: Automating routine tasks, potentially reducing costs and errors.
- Cloud computing: Enabling real-time data access and improved collaboration.
- Generative AI: While still in early stages, it shows promise for revolutionizing financial planning and analysis.
The potential collaboration between FAO services, SaaS providers and finance platform developers could accelerate innovation, particularly in GenAI applications. This technological convergence may create new market opportunities and competitive advantages for companies that successfully leverage these tools.
For investors, this technological shift suggests a need to focus on FAO providers with strong tech capabilities and partnerships. It also highlights the growing importance of cybersecurity and data management in the FAO sector as more sensitive financial processes move to cloud-based, AI-driven systems.
Companies turn over more finance and accounting functions to service providers, seeking tailored solutions with modern technologies, ISG Provider Lens™ report says
The 2024 ISG Provider Lens™ global Finance and Accounting Outsourcing (FAO) Services report finds a growing number of companies are interested in comprehensive sets of services that go beyond traditional outsourcing. They want providers to integrate advanced analytics, strategic consulting and industry-specific expertise into solutions that streamline financial processes and are tailored to clients’ needs.
“Finance and accounting require complete digital transformation to optimize processes and improve data accuracy,” said Robert Stapleton, ISG partner, Business Outsourcing Services. “Service providers are adding advanced tools and industry-specific expertise to help clients grow and achieve operational excellence.”
Enterprises are turning to providers for holistic orchestration capabilities that support unified user experiences, real-time insights and data-driven strategies for higher efficiency and better decision-making, ISG says. Companies also want providers to offer insight into their industry’s best practices, compliance issues and market trends, along with solutions that meet industry requirements.
AI, machine learning, robotic process automation (RPA) and cloud computing are significantly changing finance and accounting processes, making them more efficient and accurate through real-time data analytics, the report says. Generative AI (GenAI) has strong potential to improve data analysis and planning, though most GenAI applications in this field are still in the proof-of-concept stage. If FAO services, SaaS and finance platform providers collaborate more closely, the GenAI trend may accelerate.
The most commonly outsourced financial process is still procure to pay (P2P), but many enterprises are outsourcing more advanced functions, such as record-to-report (R2R) and financial planning and analysis (FP&A), ISG says. AI and advanced analytics are revolutionizing these functions, changing how companies create budgets, forecasts and financial statements.
“Companies are automating R2R with the help of service providers and dramatically reducing manual effort,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “This shortens their closing cycles and cuts down on errors.”
Consulting and advisory services are becoming central to FAO engagements as more clients embrace complex technologies such as ERP and cloud solutions, ISG says. Providers are also expanding services around environmental, social and governance (ESG) practices and sustainability reporting, though companies have adopted these more slowly, mostly driven by regulatory demands.
The report also explores other FAO services trends, including the increasing use of outcome-based models in FAO contracts and co-innovation between providers and clients.
For more insights into the finance and accounting challenges enterprises face, including a shortage of skilled resources, plus ISG’s advice on how to address these issues, see the ISG Provider Lens™ Focal Points briefing here.
The 2024 ISG Provider Lens™ global Finance and Accounting Outsourcing (FAO) Services report evaluates the capabilities of 31 providers across four quadrants: Procure to Pay (P2P), Order to Cash (O2C), Record to Report (R2R) and Financial Planning and Analysis (FP&A).
The report names Accenture, Capgemini, Cognizant, Deloitte, EXL, Genpact, HCLTech, IBM, Infosys, TCS, Wipro and WNS as Leaders in all four quadrants. It names Sutherland as a Leader in two quadrants and Tech Mahindra as a Leader in one quadrant.
In addition, Datamatics, Tech Mahindra and Teleperformance are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
In the area of customer experience, Accenture is named the global ISG CX Star Performer for 2024 among FAO services providers. Accenture earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
Customized versions of the report are available from Auxis, Capgemini, Cognizant, HCLTech, Infosys, Wipro and WNS.
The 2024 ISG Provider Lens™ global Finance and Accounting Outsourcing (FAO) Services report is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI and automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in
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Press Contacts:
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Source: Information Services Group, Inc.
FAQ
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