Three-quarters of Finance and Accounting teams do not have the data and analytics capabilities they need, according to EXL and HFS survey

Transition to Data-Driven Finance Leaves Many Organizations Scrambling to Catch Up

NEW YORK, Sept. 07, 2022 (GLOBE NEWSWIRE) -- Data-driven finance has become a top priority for corporate finance and accounting teams around the world, but just 23% feel they have the data and analytics capabilities they need to drive real-time insights and deliver strategic advice to their organizations. That’s according to a new report published today by HFS Research in partnership with EXL, [NASDAQ: EXLS], a leading data analytics and digital operations and solutions company. The report, Behind Every Successful Enterprise, There is Data-Driven Finance (click here), takes the pulse of more than 200 finance and accounting leaders globally across several different industries to identify their biggest priorities, most significant challenges and organizational goals for the year ahead.

“Our study finds that data-driven finance has become a top priority as organizations chase post-pandemic growth and profitability, but the path to that transformation is littered with challenges and many finance and accounting leaders still feel they lack the tools, tech and talent they need to thrive in this environment,” said Saurabh Gupta, President, Research and Advisory Services, HFS Research. “However, for those fast-growing firms at the peak of economic performance, it is clear that prioritizing investment in data-driven finance is paying off handsomely in the form of more agile operations and a repositioning of the finance function from cost center to strategic partner.”

Following are some of the study’s key findings:

• Data-Driven Finance is the Future: The vast majority of finance and accounting executives (89%) believe that data-driven finance is the future and 87% agree that they will need to invest in artificial intelligence (AI) analytics, cloud and digitally-fluent talent to reach their data-driven finance goals.
   
• Most Finance Teams Lag on Data Maturity: Just 23% of organizations currently have mature, data-driven finance functions in place today, while 77% report that they are still working on their finance data and analytics gameplan. On average, finance and accounting leaders anticipate a two-year timeline for achieving their data-driven finance goals.
   
• Empowering Evolution of Finance from Cost Center to Strategic Advisor: The primary drivers behind finance and accounting teams’ push to data-driven finance are identifying growth opportunities to support the business and become a more strategic advisor (25%), driving operational cost reductions (18%) and improving capital allocation (18%).
   
• Fast-Growing Firms Show the Way: Among fast-growing firms with topline growth rates of more than 15%, 36% have mature, data-driven finance functions and 32% cite the primary driver of their data-driven strategies as the ability to become a strategic advisor to the business. The majority of fast-growing firms (52%) are already proactively developing centralized centers of excellence for better management of data and analytics. By contrast, just 23% of mid- and slow-moving firms have started to develop centers of excellence for data-driven finance.

“Against the current backdrop of economic and geopolitical volatility, technological disruption and sweeping changes in consumer behavior, the finance and accounting function has become a critical source of intelligence for guiding corporate strategy,” said Narasimha Kini, EXL Executive Vice President and Business Head, Emerging Business Unit. “To unlock that intelligence, however, finance and accounting teams need sophisticated data and analytics capabilities that give them real-time insights and the ability to forecast across multiple different scenarios. Clearly, many pioneering firms are cracking that code with highly evolved data-driven finance functions, but many still have a very long way to go.”

The full report, Behind Every Successful Enterprise, There is Data-Driven Finance is based on a survey of 207 finance and accounting executives in the banking, financial services and insurance, retail, consumer-packaged goods, manufacturing, media and communication and pharma/life sciences industry, along with a series of qualitative interviews to supplement survey results. The survey was conducted from January-March of 2022.

For more information on this research and access to the full report, visit here

© 2022 ExlService Holdings, Inc. All rights reserved. For more information go to www.exlservice.com/legal-disclaimer

About EXL

EXL (NASDAQ: EXLS) is a leading data analytics and digital operations and solutions company that partners with clients to improve business outcomes and unlock growth. By bringing together deep domain expertise with robust data, powerful analytics, cloud, artificial intelligence (“AI”) and machine learning (“ML”), we create agile, scalable solutions and execute complex operations for the world’s leading corporations in industries including insurance, healthcare, banking and financial services, media, and retail, among others. Focused on driving faster decision-making and transforming operating models, EXL was founded on the core values of innovation, collaboration, excellence, integrity and respect. Headquartered in New York, our team is over 40,600 strong, with more than 50 offices spanning six continents. For more information, visit www.exlservice.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to EXL's operations and business environment, all of which are difficult to predict and many of which are beyond EXL’s control. Forward-looking statements include information concerning EXL’s possible or assumed future results of operations, including descriptions of its business strategy. These statements may include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are based on assumptions that we have made in light of management's experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although EXL believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect EXL’s actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors, which include our ability to successfully close and integrate strategic acquisitions, our ability to respond to and manage public health crises, including the outbreak and continued effects of COVID-19 pandemic, are discussed in more detail in EXL’s filings with the Securities and Exchange Commission, including EXL’s Quarterly Report on Form 10-Q and Annual Report on Form 10-K. These risks could cause actual results to differ materially from those implied by forward-looking statements in this release. You should keep in mind that any forward-looking statement made herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect EXL. EXL has no obligation to update any forward-looking statements after the date hereof, except as required by federal securities laws.