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Evaluate Opportunities to Outsource Finance, Accounting For Global Initiatives

Keep track of investments to gauge effectiveness.

Companies are recovering from the economic recession quickly and making strides to pick up with expansion projects where they left off prior to the 2008 crash. With greater access to capital, collaborative technology and improved consumer confidence, many markets are thriving and creating opportunities for global growth strategies. Business executives are brainstorming on the different growth investments they can make now to support a more lucrative, international future.

These investments, however, must strike a balance between funding necessary technology and growth to establish leadership in an industry and conservative use of resources as budgets remain tight and consumer confidence has yet to fully rebound. CFOs are tasked with helping other decision makers find this balance to ensure a high return on investment is delivered quickly while also creating an opportunity for long-term growth.

One way growth can be sustained without cutting too deeply into budgets is through global finance and accounting outsourcing partnerships. The expenses associated with building and supporting operations in a number of countries can be high compared to outsourcing many tasks to local markets. Consider th ways outsourcing will reduce financial burdens for the company while providing valuable services from expert providers.

Outsourcing Spending On The Rise
According to data from KPMG LLP and HfS Research, global finance and accounting outsourcing will surpass $25 billion in 2013 as more businesses look to enhance growth with wise spending. The spending on outsourced services will continue to grow at an annual compound rate of 8 percent through 2017 due to a number of market drivers. These forces include a 90 percent rate of engagement with such outsourced services to successfully reduce costs for companies and meet delivery deadlines efficiently. 

Enterprises are also embracing standardized processes and other solutions that allow more to be achieved while spending less on each task - such as eliminating in-house obligations through outsourcing partnerships. Low-cost operations and standardized financial processes are allowing for resources to be allocated elsewhere in the business to optimize creative and growth strategies.

The aftermath of the 2008 recession has also started to dissolve, as more consumers show confidence in purchasing power and companies are comfortable making new hires and entering international markets. There is less focus on conservative business movements, and a greater desire for more aggressive globalization initiatives to boost opportunities and growth.

How Investments Measure Up 
While there is a notable increase in global investments to support growth, CFOs must still collaborate with CEOs and CIOs to ensure all spending offers high return on investment at the expense of minimal risks. Take the time to review each growth investment after a certain period of time to monitor the effectiveness of the strategy before moving forward with more expenditures. Certain investments may perform well initially, and then taper off after a few months. These should be tracked and adjusted so growth remains consistent and opportunities are not lost due to a lack of oversight.

CFO magazine explained the importance of measuring investment effectiveness to build confidence in future spending and gauge successes as they arise. The metrics can be used to pinpoint underperformance as well, to ensure the setback or delay does not derail growth strategies but is quickly fixed to minimize the disruption. Research past performance of the company and compare it to current figures, and set benchmarks based on industry trends. Monitor metrics after set periods of time, and then again farther down the road to ensure long-term sustainability.

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