U.K. Enterprises Look to Fast Track Finance and Accounting Transformation

ISG Provider Lens report finds U.K. companies partnering with outsourcing providers to modernize their F&A operations

LONDON, June 22, 2020 (GLOBE NEWSWIRE) -- Enterprises in the U.K. are turning to outsourcing providers to fast track the digital transformation of their finance and accounting functions in the face of daunting business challenges, including Brexit, COVID-19 and GDPR, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2020 ISG Provider Lens Finance & Accounting Digital Outsourcing Services report for the U.K. finds the nation’s enterprises embracing the use of providers for finance and accounting (F&A) functions, reversing their more conservative stance toward outsourcing critical functions. U.K. companies traditionally have been slow to adopt transformation projects, the report said.

“Although it is slightly conservative, the U.K. is one of the leading outsourcers of finance and accounting functions,” said Jan Erik Aase, director and global leader of ISG Provider Lens Research. “As the F&A industry matures, the U.K. is seeing a shift in enterprise buying patterns. Traditionally, the U.K. has been a slow mover in transformation; now a growing number of enterprises are showing an inclination to fast track their transformation journey.”

While the U.K.’s exit from the European Union has created uncertainty in the technology space, F&A outsourcing providers have not seen major impacts due to Brexit, the report says. The U.K. may see a skills shortage due to potential Brexit-related immigration limits, and U.K. companies now are more likely to turn to outsourcing providers to help them with their F&A operations.

In addition, the COVID-19 pandemic in the U.K. is likely to lead to sluggish growth in 2020, causing many companies to turn to outsourcing providers for their offshoring and automation capabilities as they look to get work done at lower cost, the report says. The EU’s General Data Protection Regulation (GDPR) is forcing providers to enhance their data security and privacy measures, to minimize calls for greater localization and keep offshoring a viable business strategy.

The report finds the changing role of company CFOs is driving the move toward transformational F&A projects, and thus greater demand for consulting services. Digital-native companies born in the cloud are especially quick to embrace transformation and look for more strategic relationships.