New Study Reveals Leading Global Enterprises are Increasingly Adopting Advanced Operating Models for Financial Planning and Analysis
CFOs taking transformative steps to meet the evolving needs of companies in volatile times
NEW YORK, May 1, 2014
NEW YORK, May 1, 2014 /PRNewswire/ -- Genpact Ltd. (NYSE: G), a global leader in transforming and running business processes and operations, today unveiled the results of its research study on the state of financial planning and analysis (FP&A) in leading global companies. The findings revealed a rapidly growing desire and need to focus on advanced technology and, more generally, advanced operating models, as large organizations focus on making the FP&A function a true business partner that supports CFOs in their strategic role. The results also suggest that leading global companies view FP&A as arguably the most strategic part of the finance function in these volatile times.
"This data shows that the operating performance and operating models in FP&A across industries still present a substantial opportunity for companies to improve and transform the effectiveness of this function. Variations in process and data quality, as well as identifying the right metrics, are two main issues flagged by the respondents. Unsurprisingly more than 80 percent of executives believe there is ample opportunity to improve quality and timeliness of insights – a core component to being a successful business partner. FP&A organizations are responding to this strategic need of the CFO by creating Centers of Excellence that will leverage technology, focus on standardizing data across the organization and embrace centralization to reduce variation and drive consistency and innovation in services," said Shantanu Ghosh, SVP & Global Head – CFO Services, Consulting & Solutions, Genpact.
Interestingly, a company's size and maturity of its FP&A processes both play a big factor in how aggressive it is in adopting centralized operating models like shared service centers or outsourcing. Only 26 percent of firms with annual revenue over $5 billion are still using in-location models compared with 42 percent of smaller companies. Similarly, only 22 percent of high-maturity firms are still using in-location organizational structures for planning and budgeting compared to 53 percent of low-maturity firms.
The study also indicated key, industry-specific insights. While organizations are moving away from the in-location operating model and towards advanced shared target operating models, the shift has been significantly faster in banking, financial services and insurance (BFSI). In addition, BFSI firms are prioritizing consistent standards for process and data quality, with nearly three-quarters of organizations viewing variations in these standards as having a high impact on FP&A performance - more than 10 percent higher than pharmaceutical and manufacturing firms.
Ghosh added, "Organizations across industries are moving away from in-location operating models to incorporate advanced shared, more centralized approaches that will achieve greater economies of scale, deploy the latest technology and analytical tools, drive standardization and simplification and release bandwidth at the businesses and front end operations to be true business partners. As CFOs are being called upon to serve as a strategic partner, we expect this FP&A transformation to accelerate in the next few years."
To view the full Genpact FP&A Research Study visit http://www.genpact.com/docs/resource-/financial-planning-and-analysis-centralized-operating-models-empower-the-strategic-cfo.
To learn more about Genpact's FP&A services and solutions visit http://www.genpact.com/home/solutions/finance-accounting/financial-planning-analysis.
About the Genpact FP&A Research Study
Genpact commissioned Zenesys Consulting to assess the challenges and practices of the FP&A function in 150 global companies. The research was conducted in response to the emerging challenges for CFOs who are more frequently being tasked with monitoring and assessing business performance.
This report also includes preliminary results of another study commissioned by Genpact and conducted among LinkedIn members in North America, Europe and the Asia-Pacific region. It includes 157 respondents from the Finance function in banking, capital markets, insurance and life sciences sectors, as well as manufacturing and high technology enterprises.
Genpact Limited (NYSE: G) is a global leader in transforming and running business processes and operations, including those that are complex and industry-specific. Our mission is to help clients become more competitive by making their enterprises more intelligent through becoming more adaptive, innovative, globally effective and connected to their own clients. Genpact stands for Generating Impact – visible in tighter cost management as well as better management of risk, regulations and growth for hundreds of long-term clients including more than 100 of the Fortune Global 500. Our approach is distinctive – we offer an unbiased, agile combination of smarter processes, crystallized in our Smart Enterprise Processes (SEPSM) proprietary framework, along with analytics and technology, which limits upfront investments and enhances future adaptability. We have global critical mass – 64,000+ employees in 24 countries with key management and corporate offices in New York City – while remaining flexible and collaborative, and a management team that drives client partnerships personally. Our history is unique – behind our single-minded passion for process and operational excellence is the Lean and Six Sigma heritage of a former General Electric division that has served GE businesses for more than 15 years. For more information, visit www.genpact.com.
For more information:
Eric Minuskin (For Genpact PR) email@example.com + 1 202-729-4061
SOURCE Genpact Ltd.