Top 5 Finance Outsourcing Trends in 2020
Finance outsourcing has made a significant leap in the industry. The industry’s market value is forecast to grow to $16.7 billion by 2025 at a 5.8% compounded growth rate, making it one of the most significant outsourced sectors in the world today.
Services rendered by an outsourced professional in the finance sector can vary in scope and designation, from day-to-day tasks to a full stack of services. However, these five finance outsourcing trends in 2020 will likely persist in many financial outsourcing arrangements to start the decade.
The Rise of Artificial Intelligence
Artificial Intelligence (AI) is slowly but surely seeping into the outsourcing industry, making it the top trend to watch out for this 2020. Many experts believe that AI, along with Robotic Process Automation (RPA), will accelerate, helping to reduce labor-intensive tasks like tax preparation and payroll. AI allows businesses to collate big data, identify potential market risks and provide critical insights to improve the financial capacity of the company.
Contrary to popular belief, RPA and AI are not designed to take over human intelligence and eliminate jobs. Their objective is to reinforce the efficiency of the workforce, delivering real-time information that the company can use as a guide to making big, time-sensitive decisions.
Blockchain is also another emerging technological advancement that serves as the infrastructure for cryptocurrencies. While many financial institutions are still reluctant to embrace this trend, blockchain technology is believed to reduce costs on ledger maintenance and helps automate audit processes and other functions.
Investing in the Cloud
computing is the best solution for small- and medium-sized businesses that are short on budget but still want to efficiently manage financial data that otherwise require data centers to be stored securely. Virtual storage is quickly becoming the norm for small and medium-sized businesses (SMBs) that lack the workforce and infrastructure, like software or hardware, to implement new technologies.
An AccountancyAge report revealed 78% of SMBs would rely entirely on cloud computing by 2020. This trend will enable a business to enhance its resilience and continuity as big data stored on the cloud are often protected by impenetrable security systems. It also helps simplify data management, which will be beneficial for teams wanting to access information remotely.
Cloud-based finance outsourcing will be a crucial trend of 2020, making it a worthy investment for enterprises thinking of handing a portion or all their infrastructure to the cloud.
Integrating Social Media
Social media was previously viewed as laidback sites where people can mingle and share interests, but recent developments to their interface made social media marketing a venture on its own. In 2019, an estimated, making it imperative for businesses to leverage social media to stay competitive in reaching potential clients.
Accounting firms using social media for publicity gain the significant advantage of enhancing brand awareness and tapping leads that could later become actual customers. It also helps clients gather information about prospective accountants and firms, enabling them to choose the right professional who will deliver their needs.
Accuracy of Customer Intelligence
PricewaterhouseCoopers (PWC) reports that customer intelligence will play an integral role in predicting profitability and revenue growth for 2020. Customer intelligence refers to collating and analyzing customer data to gather insights about how a customer responds to your business. It helps in making big decisions and ensures that the enterprise is on the right track towards customer satisfaction.
This trend will be essential to the finance outsourcing sector since it will enable businesses to personalize their services to deliver what the customers want at the right time that they want it. As markets shift customer intelligence markers from surveys and focus groups to more sophisticated, technology-enabled tools like Analytics, knowing what the customers are saying has now become more insightful than ever.
While technology takes a considerable chunk of finance outsourcing trends, focus on the employee’s wellbeing is also a thing of importance for 2020. In the finance sector, 31% of accountants reveal they are These staggering numbers explain why there needs to be a reform in the industry.
Therefore, finance outsourcing firms need to value wellness in the workplace, including addressing mental health challenges to ensure that employees are productive and satisfied. Flexible policies such as improved scheduling models to prevent chronically long hours, promotion of a positive emotional climate, and zero-tolerance against bullying are some practical ways of championing employee health.
Experience the World-class Difference
These trends for 2020 will enable the finance industry to welcome more opportunities and face challenges of providing high-quality services. If you are looking for a values-driven outsourcing partner, Yempo can help you. Send us a message today to learn how.