In a maturing market with increasing competition, FAO service providers are making significant investments in developing capabilities to provide judgment-intensive F&A services. Outsourcing of judgment-oriented processes is gaining traction, especially during the renewal / extension phase of the contracts, and is expected to drive the growth in the FAO market. This trend is driven by multiple factors such as increasing buyer maturity levels, end-to-end process scope for FAO contracts, shortage of qualified talent, advances in technology related to automation, cloud, and analytics, and new age demands from the CFO’s office.
In this paper, we attempt to analyze how the above-noted factors are driving outsourcing of judgment-oriented processes, along with their impact on service providers and the steps service providers can take to ensure success.
The global multi-process FAO market witnessed good traction in 2015 with over 100 new contracts signed. Transactional Finance & Accounting (F&A) activities, such as Procure-to-Pay (P2P), witnessed increased commoditization, especially with the impl…