Outsourcing Finance Functions: What the Reality Looks Like Today
Outsourcing the finance function is nothing new. For years, businesses have looked at ways to reduce cost and streamline operations by moving parts of their finance teams elsewhere. But what we are seeing now is a broader mix of models and a wider impact on finance careers here in the UK.
So what does outsourcing really mean today, and does it always deliver the saving it promises?
🔍 What does outsourcing really mean?
Not all outsourcing is the same.
- Sometimes it means using an external provider to handle your finance operations.
- In other cases, it means moving roles abroad but keeping them in house, still employed by the company, just based in another country.
The second model has become more common. We have seen a rise in businesses setting up shared service centres overseas or relocating roles to countries with lower salary costs. These moves can affect UK based employees directly, and we have supported several candidates recently who were made redundant as a result.
✅ The business case: why companies do it
- Cost savings, especially when roles are moved to lower cost economies
- Access to a larger talent pool
- Ability to run teams across different time zones for greater coverage
- Support for large scale system changes or centralisation projects
⚠️ The challenges and why it is not always a win
- Time zone differences can slow down simple communication
- Language and cultural differences may affect accuracy and clarity
- Quality can suffer, especially in the early stages
- You may lose valuable local knowledge and internal development routes
- What looks like a saving on paper does not always work in practice
In fact, some of the most experienced people in our team have seen this cycle play out more than once. Roles move abroad. Then a few years later, they move back. Then they move again to a different region. What began as a cost exercise becomes a constant reshuffle.
🌍 Where are roles moving now?
India was a frontrunner for many years. A strong talent pool and lower labour costs made it the preferred destination. But so many companies moved operations there that salaries rose and competition for talent increased. People began moving from one shared service centre to the next.
Eastern Europe then became the next logical step, with closer time zones and strong language skills.
Now, we are seeing growing interest in South Africa. The benefits include a similar time zone to the UK, fewer language barriers and a solid base of qualified finance professionals.
Every market has its strengths and weaknesses, and the best option is often determined by timing rather than geography.
💬 Questions to ask if you are considering it
- Are you outsourcing or offshoring? Is the team external or still part of your business?
- What roles are moving, and what impact will it have on your UK team?
- How will you maintain quality, communication and culture?
- What happens if the saving is less than expected?
- Are you ready to invest the time needed for training, integration and oversight?
Outsourcing can bring real value when it is done for the right reasons. But it is rarely as simple as saving money. The model, the execution and the long term impact on people and performance all need to be considered.
We have seen roles move abroad and back again. We have seen individuals affected when decisions were made too quickly. And we have seen businesses thrive when they found the right balance.
It is not just about where the work is done. It is about how well it is done, and how well your team stays connected in the process.