Punit Jain is an MBA from University of Warwickshire, UK. He has more than 20 years of experience in Accounting and Consulting companies. He has worked with leading Accounting firm in West Midlands, BDO International and GE Capital. He specialises in working with Small and Medium enterprises providing them niche consulting around Process Management, Finance Management, etc.
Earlier companies used to outsource business processes as a means of cost saving strategy and the technology used in doing that was to optimize processes which were limited mainly to basic task automation. But today, with the industrialization of technology, that approach is giving way to a smarter one in which companies can outsource to capitalize on more sophisticated provider offerings. These approaches include customized industry solutions and advances in digital technology, such as AI, analytics, and machine learning.
The recent developments in robotics, artificial intelligence, and machine learning have put all industries on the cusp of a new automation age. With the results that outsourcing was bringing in, it was time for the outsourcing sector to also focus on evolving from traditional right-shoring and basic automation to fully digitized operations. These updates are creating an opportunity for both service buyers and providers to leapfrog ahead by generating differentiated advantages in operations and significant bottom-line value.
To analyze the potential impact of automation in accounting outsourcing, one can see that it has already drastically revolutionized the accounting and bookkeeping business of the outsourcing entities. Now with the inclusion of advanced technology, the sector is leaping the ‘obvious’ numbers and records. Hence, to keep up with the upgrading trends in the growing Indian market, it is crucial to automate the outsourced accounting services as per the most neoteric tools if you haven’t already yet.
Welcoming New Technologies into Your Business Strategy
The unprecedented events like the pandemic have significantly accelerated digital disruption to the business process management industry, with the potential to unlock sizable financial and operational benefits for well-prepared organizations. Many organizations are ramping up or are planning to ramp up their investments in automation as factors like sustainability, resiliency, agility, flexibility and security that automation offers are a must-have to keep the business running.
In sectors like the financial, where the combination of high transaction volumes and increased regulation may bring a toll in streamlining operations, robotics are playing a crucial part. It can help in the areas of regulation and compliance and financial risk management, however, where robotics really hits home for financial services firms. In risk management, robotics can help identify and explain changes in risk exposure and determine data-related or business-related causes for such movement. The inclusion of robotics may provide a uniformly high level of quality, regulatory authorities generally welcome its implementation at financial services firms. However, it will not replace the need for human oversight and skills in the risk and compliance functions.
The day-to-day increasing complexity and sensitive processes have become candidates for industrialization forcing innovation and leveraging standardization and third-party platforms. The adoption of robotic process automation is the next potential step in the evolution for banks to consider as an approach to reduce costs while also increasing controls and consistency of execution. Resulting in delivering increased accuracy and control by standardizing tedious, manual tasks, eliminating the need for some aspects of the workforce, while freeing up compliance employees to do more high-value and interesting work.
There are countless ways of overcoming the internal and external challenges and reimagining each step of the sourcing journey will be difficult but business entities, including outsourcing firms, can procure numerous notable benefits by implementing automation processes in business. Only by adopting the new technologies can organizations seize the initiative and capitalize on this shift and flourish.