Business Transformation

Industry will Innovate their back ends and accounting support for financial transformation of their businesses in Post COVID era

80% of CFO’s are considering cost-containment measures

80% of CEO’s say their organization’s growth is tied to the ability to challenge and disrupt business norms

74% of CFOs will move at least 5% of their previously on-site workforce to permanently remote positions post-COVID 19

The specter of 2020 will loom over the world for a long time, forcing the global business leaders to urgently look beyond the conventional methods to navigate through this unpredictable crisis and gain financial stability. A recent study by McKinsey rightly describes recovering revenues as an important element for reimagining the return in the next normal. Organizations need to be armed with a high performing finance force to survive and be also be prepared for future volatility.

But, is it viable for finance teams to transition from their traditional transactional role and to jump onto a strategist role and contribute to the growth and business transformation at a lightning speed? The need for trusted partners arises to help them deliver a robust, scalable, rapidly deployable financial solution and provide data-driven insights to free up their time, to revitalize their business. In an industry that involves enormous capital expenditure, Knowledge Process Outsourcing (KPO) can help reduce costs and provide the much-needed scalability. Likely areas that need to be focused on during the upturn are: Customer Service, Finance and Accounting (F&A) and Research and Analytics (R&A).

A CFO’s role has become relevant than ever before, by bringing intelligent operations at the core of the organization with real-time data that will help the leadership team to analyze the short- and long-term consequences of strategic decisions.  Among them, cost-cutting poses to be an elephant in the room.

With a big mandate on their shoulders, CFOs are closely looking at embracing finance outsourcing to streamline their accounting processes need for better, proactive decision-making and turbocharge their businesses. This has been seen already in many large corporates globally.

Let us touch upon the key drivers for opting for outsourcing:

Cost Advantage: While many may argue that a Decentralized F&A processes pose a huge challenge for the hospitality industry. Legacy-prone processes designed and managed at the property level can hardly deliver to the agility and flexibility required by organizations today. It is also essential that the cost structure reduce drastically, considering low occupancy rates. In addition, there needs to be a balance between incremental revenue and credit risk.

A outsources solution which is now being evaluated by many corporates  can address the issues around decentralization. Consolidation and centralization is at the core of a KPO solution so that hotels achieve standardization and better control over processes and their outcome. Offshore KPOs are capable of delivering the optimal long-term cost structure. In an outsourced environment, it becomes easier to drive key enterprise-wide objectives, such as incremental revenue and credit risk by means of KPIs and service levels.

Cost-cutting may not be the only reason to outsource services – but it can be a major factor. It allows companies to put more capital into revenue-producing activities and enhance operational flexibility all through their evolution curve.

Resilience: A trusted finance outsourcing partner will help organizations to stay agile by meeting evolving demand and for a quicker rebound and eventual growth.

Fuel innovation and change in the new business normal: One of the most important drivers for opting for a reliable and expert outsourcing partner is their deep domain knowledge. With several new rules, regulations, new guidelines being announced, organizations are relying on proven processes and top industry talent for providing actionable insight, speeding development and scaling innovation.

Remotely working workforce is an attractive option for CFOs:  With Work from Anywhere becomes the new accepted norm, CFOs are looking at it as an attractive option for rebuilding revenue.  A study done by Gartner revealed 74% of CFOs will move at least 5% of their previously on-site workforce to permanently remote positions post-COVID 19.  A seamless work-from-home culture has also paved the way for leveraging the outsourcing providers’ core domain expertise and technology investments to make key functions more efficient and effective. This allows companies to reap immediate cost savings while reshaping their approach to capital investment.

Today, the corporates , leaderships and CFOs are in unique position to improving efficiencies, considering outsourcing can help them in focuses on planning, forecasting, competitive, market analytics and galvanize change for the businesses to grow sustainably and profitably.

Written by Vikas Chadha. Follow CEOWORLD magazine on FacebookTwitterInstagram, and LinkedIn.

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Vikas Chadha
Vikas Chadha is the Managing Director at Global Infotech and a qualified Chartered Accountant with successful stints with Brands like Berggruen Hotels (Keys Hotels), Tata Global beverages, Bharti Airtel, Thomas Cook, Marico Ltd and Mahindra etc. Vikas is recognised by the Chartered Institute of Management accountants -UK as “One of the Most influential CFO’s of India”. Vikas was also awarded as Best CFO Hospitality and Services at the Asia CFO Excellence awards, Singapore. He writes for CEO world, New York and for Economic Times, HT Mint, Business World and is an active speaker on Bloomberg, CNBC. Vikas is the Author of the Best seller “ Secret of success and a Happy Heart ” where he shared his Mantra for success and happiness. Vikas Chadha is an opinion columnist for the CEOWORLD magazine. He can be found on Linkedin.