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organisations will not renew 60% of their existing business process outsourcing (BPO) contracts by 2025 because of outdated pricing models that do not drive digitization and process improvement, according to Gartner.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.”
Balance risk management and productivity when using RPA
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May 13, 2021
Chief financial officers (CFOs) must invest in artificial intelligence (AI) within the next few years, or their companies will be left behind.
But to get the full benefits, and thus competitive advantage, from such investments CFOs must look beyond projects that only aim to modernise the function.
“There’s nothing wrong with using AI to modernise the finance function. It’s very important work,” says Clement Christensen, director in the Gartner Finance practice. “However, the most impressive rewards of AI will fall to the CFOs who think bigger about how the technology can fundamentally change the way their company does business.”
May 6, 2021
Gartner has identified four transformation initiatives chief financial officers (CFOs) should implement or risk failing to meet their objectives.
These plans will fail if CFOs do not fully account for the comparative advantages of their function.
“Many business activities that were the traditional remit of finance departments, such as centralised data governance, are either being democratized across the enterprise or are no longer major differentiators in the value that finance teams can offer to the business,” says Peter Nagy, research vice-president in the Gartner Finance practice.
“To meet the vision of a leaner, digital-first finance department by 2025, CFOs need to double down on the things finance can do better than anyone else.”
May 3, 2021
Chief financial officers (CFOs) who improve their organisation’s environmental, social and governance (ESG) reporting to investors will enjoy improved access to capital, stock performance, and customer loyalty, according to Gartner.
“Approximately one in 10 investors find the ESG information they are looking for in corporate disclosures,” says Stephen Adams, director in the Gartner Finance practice. “There is an enormous opportunity here for most companies to stand out better to investors simply by providing the information they are looking for.”
The benefits of delivering better ESG performance are also not purely financial in nature. A company that improves its ESG performance will tend to have a reduced compliance burden, see higher levels of employee satisfaction and find talent more easily, in addition to being a less likely target for shareholder activism.
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