January 19, 2012: A recent study by ACCA stated that shared services and outsourcing will transform financial services.
The study was conducted among finance experts in 20 companies. The companies which were considered for the survey are leading players like Coca Cola, WPP and Shell. Experts consider the findings of the study conducted by the Association of Chartered Certificate Accountants as a crucial one.
According to Jamie Lyon, who is the co-author of the study, the intention of the study was to find out how Industry leaders are trying to transform the finance functions. The study also touches upon the role played by outsourcing and the issues, challenges and the various opportunities faced. He also added that the financial services transformation is very critical for Chief Financial Officers and other leaders.
The experts of the report also states that in the future there is huge opportunities which will help to get improved business results. The report also add many challenges which must be overcome so that there will be more efficient and flexible platform for improve future value of the business. Some of the factors mentioned in the report are the capability shortfalls and inability of shared services to enhance the vision for finance.
There is also requirement of better working relationship with outsourcing partners so that the present condition can be improved. Another issue highlighted in the report was the lack of service provider’s clarity in understanding the requirements of the clients. Other major issues noted are lack of capability to manage the ongoing change process very effectively. There is also a capability issue in developing an end to end finance model.
Shared services and outsourcing will definitely help to increase the value of business. It is also suggested by experts that though we are seeing advantages from shared services and outsourcing, there is enough space for betterment to make it more materialized and beneficial.
However, if more emphasis is given on shared services and outsourcing then it could have a very good and positive impact for finance transformations which will provide cost savings as well as process efficiencies for companies.