U.S. Enterprises Move to Automate Their Finance and Accounting Operations
The 2020 ISG Provider Lens Finance & Accounting Digital Outsourcing Services report highlights a significant shift in U.S. enterprises towards outsourcing finance and accounting processes, with 83% deploying robotic process automation (RPA) and nearly 95% utilizing machine learning technologies. The market is evolving from transactional to strategic relationships with outsourcing providers, focusing on complex functions like forecasting and compliance support. The report identifies top providers, including Accenture and IBM, as leaders in multiple categories, reflecting the growing demand for digital transformation in finance operations.
- 83% of finance functions in enterprises deployed RPA.
- Nearly 95% of enterprises experimenting with machine learning in finance.
- Growing demand for consulting services in complex finance functions.
- Strategic relationships between enterprises and outsourcing providers are increasing.
- None.
STAMFORD, Conn., June 18, 2020 (GLOBE NEWSWIRE) -- Enterprises in the U.S. are increasingly using outsourcing providers to automate their finance and accounting operations, with robotic process automation becoming an integral part of corporate finance functions, 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.S. finds the F&A outsourcing market in the country has reached maturity as U.S. enterprises have moved from outsourcing non-critical functions to transformation and consulting projects.
Finance and accounting (F&A) processes are ripe for bot deployments and robotic process automation (RPA), the report says. About 83 percent of enterprise finance functions have deployed RPA, the report finds, and nearly 95 percent are experimenting with or have deployed machine learning technologies in their F&A processes.
Many U.S. enterprises are also using artificial intelligence-powered analytics for insights into their finances, the report adds. “Today’s finance organizations are looking to become more proactive by leveraging technology to make data-driven decisions quickly,” said Jan Erik Aase, director and global leader, ISG Provider Lens Research. “With enhanced analytical technology, the ability to gain valuable insights from data, identify financial pain points or decide on a course of action are all within reach.”
U.S. enterprises also are looking to outsourcing providers to provide F&A consulting services aimed at making their increasingly complex processes more efficient. Many are leaning on the expertise and capabilities of service providers to develop and design a transformation roadmap.
As consulting services have become more popular in the U.S., many service providers have expanded their onshore and nearshore capabilities, the report adds.
The outsourcing of complex finance functions at U.S. companies is primed for growth, the report says. Among the high-end functions being outsourced by customers are forecasting, cash flow modeling, decision support and compliance support. In response, service providers are investing in hiring skilled employees or are retraining current employees to handle complex queries.
“The relationship between the enterprise and the outsourcing provider has been evolving in recent years to become more strategic and less transactional in nature,” Aase said. “As service providers invest in building capabilities to serve customers across all functions, enterprises are becoming more open to outsourcing high-end finance functions.”
The report finds the changing role of company CFOs also is driving the move toward transformational F&A projects. Digital-native companies born in the cloud are quick to embrace transformation and look for more strategic relationships.
The 2020 ISG Provider Lens™ Finance & Accounting Digital Outsourcing Services report for the U.S. evaluates the capabilities of 24 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 Wipro as leaders in all three quadrants and HCL, Sutherland and WNS as leaders in one.
A customized version of the report is available from Infosys.
The 2020 ISG Provider Lens™ Finance & Accounting Digital Outsourcing Services report for the U.S. 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.
# # #
Will Thoretz Information Services Group, Inc. +1 203 517 3119 Will.Thoretz@isg-one.com Jim Baptiste Matter Communications for ISG +1 978 518 4527 jbaptiste@matternow.com
FAQ
What does the 2020 ISG Provider Lens report reveal about RPA use in finance?
Which companies are identified as leaders in the ISG Finance & Accounting report?
How are U.S. enterprises changing their approach to outsourcing finance functions?
What percentage of U.S. enterprises are using machine learning in finance?
What high-end functions are being outsourced according to the report?
