Outsourcing Financial Functions: A Strategic Solution

The Financial Services Industry in a Constantly Changing Environment

The financial services industry has undergone significant changes over the past decade. Regulatory frameworks have tightened, technology has advanced, and customer expectations have evolved. To succeed in this environment, financial services providers must navigate these changes, mitigate risks, and minimize exposure to local and global factors that can impact their business.

While some parts of the industry are thriving, such as the insurance industry, others are facing challenges. Global investment management firms are taking a cautious approach due to market volatility and concerns about a possible correction. Small to medium-sized firms, unable to take advantage of scale, have had to look to other solutions to maintain profitability.

The Benefits of Finance and Accounting Outsourcing

Outsourcing finance and accounting functions to top experts can enable organizations to grow and remain viable in this constantly changing environment. By identifying core and non-core processes, companies can strategically focus their resources and increase capacity in areas that will have the greatest impact on their bottom line.

Partnering with trusted professionals who understand the regulatory requirements of the industry is crucial for maintaining work standards and minimizing risks. With a strong culture of performance management and reliable metrics for measuring outcomes, outsourcing financial functions can provide efficiencies and cost savings, while allowing financial services providers to focus on their core competencies and remain competitive in the market.

The Benefits of Offshoring for the Financial Services and Insurance Industry

Why Offshoring is Suited to Financial Services and Insurance Industry

Business accelerator service Aurik suggests that companies should prioritize their time and outsource tasks that are neither core business nor strategic in nature to create value. Fortunately for financial service and insurance businesses, this industry is particularly well suited to offshoring due to various reasons:

• Businesses that have survived the rigors of recent years tend to be well organized and have a strong sense of what their core and non-core functions are, so they’re well placed to know which functions can be offshored to their advantage.
• The expertise required for the advanced technological innovation demanded by customers already exists offshore, with experienced teams specializing in application and software development and management, as well as IT.
• Most business processes involved in day-to-day operations are performed using cloud-based software, which is available via any browser. So the team’s physical location is irrelevant.
• A lot of the work can be done at any time – not just in business hours (although a good offshoring provider will give you access to people who can work your hours if you want).

Frequently Offshored Financial Services and Insurance Roles

Some of the more frequently outsourced financial services and insurance roles include:

• Accountant
• Bookkeeper
• Accounts Receivable Specialist
• Accounts Payable Specialist
• Accounting Supervisor/Manager
• Payroll Specialist/Supervisor/Manager
• Financial Analyst
• Claims Analyst
• Financial Advisor/Insurance Agent
• Underwriter
• Broker
• Loans/Mortgage Specialist
• Collections Specialist
• Billing Specialist