Finance and accounting outsourcing is one of the branches of outsourcing that has gained ground in recent years, as companies of different sizes have seen the benefits they can gain by hiring a finance and accounting outsourcing company. Among the services offered by outsourcing companies are payroll outsourcing and accounts receivable and payable outsourcing. It is this particular department of a company that can be considered as one of those departments that require a high level of patience and great attention to detail. The volume that is handled in the finance and accounting department of a company is usually heavy, which allows finance and accounting outsourcing companies to offer their services to companies, since they can easily reduce the load at a cost that is not possible. it’s heavy on the budget.
The Wall Street Journal reports that there has been a growing demand for outsourcing services. However, despite the efficiency and benefits that outsourcing shows, there are still company and business executives who are quite uncomfortable with the idea; therefore, they would prefer to host their financial and accounting processes in-house. An Ovum research report shows that one barrier preventing large companies from outsourcing their financial accounting processes would be staff loyalty. Peter Ryan, Principal Analyst at Ovum, suggests that a combination of a company’s sense of responsibility for its staff and their skill level could be an obstacle preventing companies from outsourcing their finance and accounting functions.
Another reason that is being pointed out by the research carried out by Ovum would be the high risks that they attribute to outsourcing is the low-cost tone of the industry. 38.5% of CFOs in the US and UK are hesitant to engage in outsourcing to a service provider, particularly Indian service providers, who offer low-cost financial and accounting services because they feel that this is an “unacceptable risk” and they would feel more comfortable using the services of those who offer services at a higher price.
But despite company executives balking at outsourcing their finance and accounting, there are still some companies like Accenture (NYSE:ACN) and Wipro Limited (NYSE:WIT) that are being tapped for this type of service and are proving that their businesses are growing mainly because they have already established a name in the industry.
Meanwhile, other outsourcing companies are becoming interested in exploring the financial and accounting area of outsourcing. Beginning in May, business process outsourcing company EXLService Holdings (NASDAQ:EXLS) acquired an accounting and financial services provider. The 3,700 professionals and 80 clients of US-based Outsource Partners International would add to EXLService Holdings’ population of 13,000. According to the President and CEO of EXLService Holdings, Rohit Kapoor, this particular acquisition will allow his company to be better known in different verticals, as well as strengthen his company’s presence in three continents of the world, namely the United States, Europe and Asia. .