U.K. Enterprises Look to Fast Track Finance and Accounting Transformation
The 2020 ISG Provider Lens™ Finance & Accounting Digital Outsourcing Services report reveals a significant shift among U.K. enterprises towards outsourcing finance and accounting functions. This change is driven by the need for digital transformation amid challenges such as Brexit and COVID-19. The report indicates that 83% of enterprises have achieved high automation maturity in their F&A operations, with 95% experimenting with machine learning. Notable leaders in the sector include Accenture, Capgemini, and IBM, indicating a competitive market for outsourcing services.
- 83% of enterprises achieved high automation maturity in F&A operations.
- 95% of enterprises are deploying machine learning technologies in F&A processes.
- Increased inclination among U.K. companies to fast track digital transformation.
- Potential skills shortage due to Brexit-related immigration limits.
- COVID-19 may lead to sluggish growth in 2020.
LONDON, June 22, 2020 (GLOBE NEWSWIRE) -- Enterprises in the U.K. are turning to outsourcing providers to fast track the digital transformation of their finance and accounting functions in the face of daunting business challenges, including Brexit, COVID-19 and GDPR, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2020 ISG Provider Lens™ Finance & Accounting Digital Outsourcing Services report for the U.K. finds the nation’s enterprises embracing the use of providers for finance and accounting (F&A) functions, reversing their more conservative stance toward outsourcing critical functions. U.K. companies traditionally have been slow to adopt transformation projects, the report said.
“Although it is slightly conservative, the U.K. is one of the leading outsourcers of finance and accounting functions,” said Jan Erik Aase, director and global leader of ISG Provider Lens Research. “As the F&A industry matures, the U.K. is seeing a shift in enterprise buying patterns. Traditionally, the U.K. has been a slow mover in transformation; now a growing number of enterprises are showing an inclination to fast track their transformation journey.”
While the U.K.’s exit from the European Union has created uncertainty in the technology space, F&A outsourcing providers have not seen major impacts due to Brexit, the report says. The U.K. may see a skills shortage due to potential Brexit-related immigration limits, and U.K. companies now are more likely to turn to outsourcing providers to help them with their F&A operations.
In addition, the COVID-19 pandemic in the U.K. is likely to lead to sluggish growth in 2020, causing many companies to turn to outsourcing providers for their offshoring and automation capabilities as they look to get work done at lower cost, the report says. The EU’s General Data Protection Regulation (GDPR) is forcing providers to enhance their data security and privacy measures, to minimize calls for greater localization and keep offshoring a viable business strategy.
The report finds the changing role of company CFOs is driving the move toward transformational F&A projects, and thus greater demand for consulting services. Digital-native companies born in the cloud are especially quick to embrace transformation and look for more strategic relationships.
As part of their transformations, more U.K. companies are moving to automate their F&A functions, turning to outsourcing providers to help them implement robotic process automation within their F&A systems, the report says.
According to ISG Research, 83 percent of enterprises have reached their highest level of automation maturity within their F&A operations, the highest percentage of any corporate function. The report also finds nearly 95 percent of enterprises are experimenting with or have deployed machine learning technologies in their F&A processes.
Many U.K. enterprises are also using artificial intelligence-powered analytics for greater insights into their finances, and to enable more proactive decision-making, the report says.
The 2020 ISG Provider Lens™ Finance & Accounting Digital Outsourcing Services report for the U.K. evaluates the capabilities of 25 providers across three quadrants: Consulting Services, Transactional F&A Services and Strategic F&A Services.
The report names Accenture, Capgemini, Cognizant, EXL, Genpact, IBM, Infosys, TCS and WNS as leaders in all three quadrants. HCL and Wipro are named leaders in two quadrants.
A customized version of the report is available from Infosys.
The 2020 ISG Provider Lens™ Finance & Accounting Digital Outsourcing Services report for the U.K. 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 Europe and Latin America, as well as in the U.S., Germany, the U.K., France, the Nordics, Brazil and Australia/New Zealand, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
The series is a complement to the ISG Provider Lens Archetype reports, which offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.
Starting this year, each ISG Provider Lens™ study will include a Global Summary to help enterprise subscribers better understand provider capabilities across all geographic markets covered by that study. All ISG Provider Lens™ reports also will now include an Enterprise Context feature to help executives quickly identify key insights related to their roles and responsibilities.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 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 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 Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.
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Will Thoretz Information Services Group, Inc. +1 203 517 3119 Will.Thoretz@isg-one.com Kate Hartley Carrot Communications for ISG +44 7714065233 kate.hartley@carrotcomms.co.uk
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