How Managed Service Providers drive growth in challenging business landscapes
Businesses looking to grow in today’s dynamic landscape face numerous barriers to success. Perhaps the most significant is a skills shortage in finance teams. A study from the ICAEW found that 92 percent of accountants experienced hiring difficulties last year, with fewer graduates choosing to enter the profession. Therefore, finance professionals are finding they do not have the capacity to take on the increasing number of tasks required by their organizations.
Rising costs put more pressure on professionals’ routine responsibilities, reducing the time they have available to focus on strategic and big-picture activities. In turn, this negatively impacts the timeline of larger business projects, such as system implementations, process optimizations, and market analyses. When finance teams are held up by resource limitations, the entire pace of organizational growth can be too.
Decision-makers may also be finding it difficult to secure funding for business projects that drive growth, with interest rates at a 22-year high and the ongoing threat of recession. But those who manage to push through with these projects during times of particular economic hardship have been shown to prosper. For example, Netflix introduced its streaming service product during the ‘Great Recession’ of 2008 as a response to the collapse of the video rental industry, and the innovation allowed it to continue to grow into the global entertainment juggernaut it is now.
Looking to IT to solve the challenges
One way many companies think to solve these issues is with a large-scale IT overhaul which, through increased efficiency and deeper insights, might work to reduce internal delays and lower the cost of a new project. But in reality, these are rarely successful. According to reports from McKinsey, digital transformation projects fail 70 percent of the time, and, if they don’t, only result in improved corporate performance 30 percent of the time. Reasons for this include not having the necessary talent to execute them, a lack of support from executives, and a corporate culture that’s not particularly receptive to digital change.
Managed Service Providers can help
Amid today’s challenges of over-stretched finance teams, economic downturn, and failed IT projects, managed service providers (MSPs) have emerged as a beacon of hope for growing businesses. Previously viewed primarily as a solution for IT support or maintenance tasks, MSPs are now sought after for a broad range of business-critical projects.
New-gen MSPs’ expertise spans beyond technology implementation to include the strategic planning, execution, and ongoing management of initiatives. This shift in perspective reflects the recognition that relying solely on internal resources can lead to project delays, cost overruns, and poor outcomes. A report from Grand View Research forecasts that the global managed services market will grow by 13.6 percent from 2023 to 2030 due to increased demand.
Fueling digital transformations
MSPs are enabling companies to drive IT projects to success. CFOs, who have become increasingly tech-savvy, now realize that many of the old arguments for building tech solutions in-house or investing in Software as a Service (SaaS) – processes that could take months – were often motivated by IT’s desire to centralize oversight. But CFOs are empowered to make strategic decisions, and recognize that their organizations can benefit from external expertise and resources from MSPs. That means they escape the common delays and complexities associated with internal IT projects. MSPs can be specialized partners that have experience navigating the challenges that otherwise would lead to the failure of large-scale IT overhauls.
Finding the funds for growth projects
Managed services can also help CFOs liberate working capital to fund strategic growth projects during periods of economic downturn. By outsourcing non-core functions to specialized service providers, businesses can reduce costs while maintaining essential operations with a lower financial burden. The scope of any outsourced services can also easily be adjusted based on the organization’s evolving needs. That prevents resource waste, something which can be crucial in uncertain economic conditions.
A trusted MSP is Corcentric, whose Managed Accounts Receivable (AR) service drives down days sales outstanding (DSO) by an average of 59 percent by accelerating supplier payments, thus increasing cash flow.
Its knowledgeable team takes charge of receivables and increases invoice processing efficiency via unique, individualized solution planning. As a non-recourse and funded managed service, Corcentric’s platform pays invoices on time, every time, eliminating the risk of credit risk, late payments, and bad debt.
With Corcentric, suppliers can upload invoices in their customers’ preferred format while customers can remit payment via their favored method, improving the customer experience overall.
A shorter cash conversion cycle (CCC) – the time it takes for a company to convert its investment in inventory and other resources into cash – frees up significant working capital, providing some much-needed financial security.
Contact the Corcentric sales team to discover more about how they can transform your AR process and let you get back to focusing on what truly drives your business forward.