The Changing Priorities of Chief Financial Officers (CFOs) and Chief Procurement Officers (CPOs)

23 Jul 2019
by Rajesh Ranjan, Shirley Hung, Vatsal Gupta, Prateek Singh

In the current, fast-changing and highly-competitive business environment, the role played by CFOs and CPOs have undergone a significant transformation. Traditionally, CFOs and CPOs had significantly different responsibilities, mainly focusing on the technical aspects of their respective domains. Today, they are no longer just domain experts. They have evolved from being heads of their respective support functions to strategic business leaders. This is largely due to the increased expectations that enterprises have from them to deliver business outcomes such as working capital optimization, demand management, and stakeholder experience improvement.

Everest Group engaged in multiple conversations with enterprises to understand and analyze the changing priorities of CFOs and CPOs as part of their transition towards a strategic leadership role. This report explores the evolving roles of CFOs and CPOs, covering their traditional responsibilities, areas of cross-functional collaboration, and increasing scope of functional responsibilities. It provides an understanding of the role played by third-party service providers in addressing the typical pain points faced by CFOs and CPOs. This includes performance assessment of service providers across traditional as well as new-age performance metrics as perceived by enterprises. The report also highlights the key capabilities / outcomes that enterprises should focus on in their engagement with service providers.

Scope of analysis

  • Structured questionnaires were executed, and interviews conducted with enterprises, capturing qualitative and quantitative insights of their engagements with 30+ FAO and PO service providers
  • Sample size included 70+ buyer interactions across multiple industries and geographies in 2018-2019

Membership(s)

Finance & Accounting Outsourcing

Procurement Outsourcing

 

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