Key Points:
- Finance and accounting departments are undergoing digital transformations to streamline and automate processes.
- The COVID-19 pandemic accelerated the push for digitalization and remote work requirements.
- External providers are being relied upon to assist with digital strategies and collect and analyze larger data sets.
- Businesses are adopting new operational methods and technologies like SAP S/4HANA, generative AI, blockchain, and the metaverse.
- There is an emphasis on bolstering cybersecurity measures to address potential vulnerabilities.
- Outcome-based contracts are preferred, where risks and rewards of digital transformation are shared between companies and providers.
- FAO providers are becoming strategic partners, collaborating with clients in addition to delivering services.
- Global delivery models for FAO services and clear strategies for environmental, social, and governance initiatives are important.
- The 2023 ISG Provider Lens™ report evaluates 28 providers across four key areas: P2P, O2C, R2R, and FP&A.
- Leading firms like Accenture, Capgemini, and Cognizant are recognized as leaders in all quadrants.
Hot Take:
The digital transformation in finance and accounting departments is vital for organizations to adapt to the challenges of the modern world. By utilizing external providers and embracing new technologies, companies can streamline their processes and make more informed decisions. The shift towards outcome-based contracts and strategic partnerships also signifies a collaborative approach towards achieving long-term goals. As the demand for FAO services continues to grow, it is crucial for businesses to prioritize cybersecurity and align their strategies with environmental and social responsibilities.
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