Technology is the key enabler in the growth of Finance Accounting Outsourcing adoption.
Finance & Accounting Outsourcing (F&A Outsourcing) till very recently was largely driven by labor arbitrage and process improvement. The buyers traditionally retained their respective technologies and suppliers contributed selected transactional-oriented F&A processes. Majority of buyers did not invest a great deal of resources in transforming their existing finance and accounting systems or software when they enter into an outsourced F&A environment.
The onus used to be on the supplier to deliver any “tie and run” capabilities and associated “wrap-around” technologies that enable the buyer’s ERP systems to be quickly optimized in an outsourced environment. Buyer system optimization was delivered in the form of non-intrusive “add-ons” of client-specific wrappers, workflows, interfaces, and document digitalization, none of which represents exciting new technology.
As the Accounting Outsourcing market is beginning to “reach maturity,” buyers expectations are changing significantly. Today buyers are revisiting the rationale for retaining these monolithic systems. Key factors influencing this paradigm shift are –
- increasing confidence in supplier capabilities
- availability of technology tools
- financial constraints to keep up with technology advancements
- emergence of Service-Oriented Architecture (SOA) and
- willingness to standardize.
Earlier Accounting Outsourcing was affordable by large enterprises only. Small business accounting teams could not have even dreamt of achieving the benefit of Accounting Outsourcing, but for technology advancements such as cloud computing and on-demand-software. It has opened the flood gate of several significant opportunities for SMEs that earlier did not exist. SMEs now have an easy access to global talents and latest technology advancement through on-demand software and ‘pay per use’ models, without any worry on for high initial capital investments, software maintenance and upgrades.
StylusFMS firmly believe that technology is the key facilitator in Financial accounting processing. StylusFMS as an experienced accounting outsourcing service provider has expertise in variety of technology and solutions and uses them effectively deliver value to its clients.