The financial services industry is one of the most influential, dynamic, and competitive in the global market, and also one of the most regulated. According to a recent report - 77% of the retail banks now outsource at least one part of their business to a third-party financial service provider. It is estimated that organizations save about 20-40% of their costs when outsourcing, depending on whether the processes are located locally or abroad.
Organizations are constantly under pressure to reduce their overhead costs to increase their revenues. Businesses need to understand the dynamic and ever-changing nature of the financial industry and be updated with the latest developments. They need to tweak their processes according to the new trends in the market which will help them generate better revenues. In this article, we have listed the latest trends in financial services outsourcing which companies need to consider to make a mark in the year ahead.
The competition in the financial industry has made it mandatory for the companies to stay abreast with the latest developments in the industry. Keeping up with the trends in financial service outsourcing helps clients to serve their customers better and provide them with a new and trendy experience. Some of the latest financial outsourcing predictions are listed here -
In the coming year, it will be seen that more and more companies will shift to cloud-based solutions such as cloud-based finance and accounting software. Companies will continue to use these finance software as an alternate platform in 2017 and beyond. There are no expensive licenses to purchase in case of cloud-based solutions and hence helps organizations to reduce a considerable amount of cost.
There has been a slow but consistent increase in demand for finance and accounting outsourcing especially in areas like Europe and America. The volumes of the outsourcing contracts too will continue to grow due to the rapid increase in the global demand.
Financial outsourcing industry can expect more complex and multi-function FAO contracts in the year 2017 and beyond. Instead of outsourcing just one or two transactional services, companies today find it convenient to outsource more complex and knowledge-driven services like financial planning, management reporting, risk management, etc.
Companies will slowly move away from fixed cost structures towards variable cost structures. The costing will be more on the basis of headcount and even help in saving cost. There is a growing demand for pricing models which allow businesses to reduce back-office costs as and when there is a decline in business volumes.
Businesses will leverage customer process analysis in the year 2017 and the coming future. This will help them uncover certain opportunities and create better training programs for their staff which will further help in making their processes better. Better technology will help vendors to deliver products according to the clients' expectations.
Companies will be more open to sharing their profits with the service providers if they provide high-quality services. In the coming years, organizations will be willing to share their gains with the service providers if they help them to reduce overall costs. Service providers will then be motivated to improve their services and transformation programs.
BPU, which is a detailed managed service offering will gain considerable momentum in 2017 and the coming years. Business process utility is a good mix of skilled and talented resources, sophisticated technology, and the best-in-class processes. Certain financial services like invoice processing and reconciliation are the best options for BPU.
Outsource2india has been providing top quality finance and accounting services to clients around the globe for almost two decades now. India being the hub of outsourcing has proved to be the cost-effective outsourcing destinations in the world. We have a highly talented pool of skilled financial analysts who are trained to handle any kind of financial service requirements. Our vast experience of having worked with several clients from different backgrounds has helped us increase our knowledge base and serve diverse clients better. Our financial analysts stay updated with latest financial trends and predictions and implement them in our processes to provide a great experience to our clients and help them to save cost overheads. Our top quality services can be attributed to our best-in-class infrastructure and access to some of the cutting-edge technologies.
Write to us today or talk to one of our representatives for any kind of financial services outsourcing request and we will be more than happy to guide you through the entire process.