'Outsourcing is key to finance transformation'

Shared services and outsourcing (SSO), is the key finance transformation tool to improve business performance, says the
Association of Chartered Certified Accountants (ACCA).

Country head of ACCA Malaysia, Jennifer Lopez said the growing popularity of the SSO trend has many implications for players as well as the accounting and finance profession.

"The current number of people employed in a finance and accounting role by business process outsourcing is estimated at 200,000 globally and growing at over 10 per cent annually," she added.

Jennifer said this in her keynote address at the ACCA Accountants for Business Forum, "Finance Transformation: Expert Insight on SSO", officiated by Chief Minister Lim Guan Eng, here today.



She said besides cost efficiency, the growing adoption of the SSO is a vital vehicle for financial efficiency and effectiveness, contributing to a company's long-term prospects.

"Across the end-to-end finance model, we foresee that new finance roles will evolve, new career paths emerging and new skills and capabilities being required.

"Hence, it is clear that there are great future career prospects for ACCA members and students, within this environment," Jennifer added.

She said the presence of major industry players in Penang presents an opportunity to share first-hand knowledge and experience across the global business world as well as formulate a strategic response to move the Malaysian SSO industry forward.

Global players in the finance industry such as HSBC and Citibank as well as regional players like Maybank and CIMB, have demonstrated transformation by outsourcing certain operations in Penang to increase productivity levels.

Jennifer said Penang would be the ideal location to enhance the SSO due to its stability, infrastructure, and high-capacity digital fibre-optic network in business hubs and cities.

She said the ACCA aims to produce high quality professionals, and currently Penang is the second largest market for ACCA in Malaysia.

"The growth in SSO will provide opportunities for us to grow the talent here as well as bring in talent from other parts of Malaysia," she added.

Meanwhile, Lim said Penang was able to attract talent due to efforts in making the state greener, cleaner, safer and healthier.

At the same time he added, efforts also included building future talent to address the talent crunch. He said the SSO trend has great untapped potential as the market in Malaysia is estimated at US$2 billion with 300,000 high value jobs this year. -- Bernama