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There is "no turning back" from finance shared services and outsourcing as a future delivery model for the finance function, say finance experts from 20 leading global organisations in a new report from ACCA (the Association of Chartered Certified Accountants).

The "Finance Transformation: Expert Insights on Shared Services and Outsourcing," report reveals that the use of finance shared services and outsourcing to transform the finance function is here to stay, with gains already made in reducing costs and improving processes. 

"Finance transformation continues to be a critically important issue for Chief Financial Officers and finance leaders, especially in an ongoing challenging business environment," says Jamie Lyon, head of employer services at ACCA and co-author of the report.  

Looking to the future, the report’s global experts see much greater opportunities to drive improved business results, where finance transformation moves beyond just delivering cost savings and process efficiencies.

Accenture’s Anoop Sagoo says in the report "the CFOs I work with see finance transformation as a vehicle to drive change. Now they are most interested in business performance." 

However, the report reveals a number of challenges which must be overcome to unlock future value. 

Global leaders featured in the report continue to recognise capability shortfalls, from the effectiveness of change management processes to the lack of focus on the retained finance team and inability to see shared services and outsourcing in the context of an overarching vision for finance.

These factors are cited as major barriers to finance transformation success.

WPP Group’s Graham Russell says "in all these finance transformation journeys the hardest part is always change management."

Pearson’s John Ashworth states that the new retained function "requires a certain sort of behaviour…..it needs to embrace the change and look for opportunities to push deeper and create purpose." 

The report also suggests that good working relationships with outsourcing partners are important, but concerns were expressed that providers of outsourced finance solutions are not always aligned to the real needs of the clients.

Different cultural values, targets and incentivisation approaches and different views on transformation speed of delivery can "make or break" the success of the finance transformation programme.

Clients see differences in provider capability, and some clients express concerns about losing vital in-house finance knowledge, such as Unilever’s Christian Kauffmann who states "some companies have outsourced their entire knowledge of process…we say you can’t outsource ownership of process."

Lyon concludes that there is much more value still to be gained through finance transformation with shared services and outsourcing so that it drives long term sustainable business performance improvement. 

“The key issue here is about capability; the capability and ambition of business leaders, of providers and their clients to optimise the finance model that best supports the business; the capability to manage the ongoing change process effectively; the capability of the retained finance team to develop effective business partnering skills and provide true insight to the business; and the capability to develop an end-to-end finance model with shared services and outsourcing that best supports the business.” 

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