ISG to Publish Report on Finance and Accounting Services

Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm, has launched a research study examining outsourcing services that help enterprises improve their finance and accounting operations and business decision-making.

The study results will be published in a comprehensive ISG Provider Lens report, called Finance and Accounting Outsourcing Services (FAO), scheduled to be released in October. The report will cover the global market for services related to procurement, reporting, budgeting, financial planning and other functions.

Enterprise buyers will be able to use information from the report to evaluate their current vendor relationships, potential new engagements and available offerings, while ISG advisors use the information to recommend providers to the firm’s buy-side clients.

Cost reduction, enhanced speed and higher levels of accuracy continue to be the primary drivers of FAO. But as the sector has matured over the last decade, enterprises are expecting their providers to be more consultative and partner-oriented, while leveraging advanced technologies such as AI, machine learning, automation and, most recently, GenAI to deliver more impactful outcomes. Such technologies streamline processes and enable predictive analysis and sophisticated decision-making capabilities essential for strategic planning and competitive advantage.

“Enterprises are looking for FAO providers that act not just as service executors but as advisors and collaborators able to navigate and leverage the broader ecosystem of partners and industry experts,” said Namratha Dharshan, chief business leader, ISG Research. “Providers are expected to understand and align themselves with their customers’ long-term business objectives.”

ISG has distributed surveys to more than 40 finance and accounting outsourcing providers. Working in collaboration with ISG’s global advisors, the research team will produce four quadrants representing the finance and accounting outsourcing services the typical enterprise is buying, based on ISG’s experience working with its clients. The four quadrants are:

• Procure to Pay (P2P), evaluating providers of services across the accounts payable process, including paying suppliers, reconciling accounts, tracking expenses and spending patterns and negotiating contracts. P2P providers use new technologies including AI and machine learning to automate processes and increase efficiency.

• Order to Cash (O2C), assessing providers of end-to-end O2C operations, including processing customer orders, ensuring payments are received promptly, managing credit risk and providing customer support. Clients look to these partners to streamline operations, often through automation to reduce manual processes.

• Record to Report (R2R), covering providers that manage clients’ financial record-keeping and reporting, including complex processes such as managing the end-of-period close process, preparing financial statements and assessing clients’ internal control systems.

• Financial Planning and Analysis (FP&A), evaluating providers of high-end financial functions including budgeting, forecasting, financial planning and M&A. These providers act as partners to clients, delivering comprehensive and meaningful data and insights.

The report resulting from this study will cover the global finance and accounting outsourcing market. ISG analysts Gaurang Pagdi and Sneha Jayanth will serve as authors of the report.