May 31, 2021
Finance and accounting (F&A) organisations will not renew 60% of their existing business process outsourcing (BPO) contracts by 2025 because of outdated pricing models that do not drive digitization and process improvement, according to Gartner.
“The era of headcount-based BPO, where the cost is calculated based on the number of full time equivalents (FTEs) needed to complete the work, is becoming obsolete in an age when conducting finance processes efficiently is not reliant on large pools of labour,” says Sanjay Champaneri, research director in the Gartner Finance Practice. “Automation efforts have resulted in fewer, or no humans, required to deliver the work.”