Survey: Businesses Find Success Outsourcing Finance And AccountingSurvey: Businesses Find Success Outsourcing Finance And Accounting

The majority of businesses that outsource finance and accounting functions characterize the arrangement as successful, according to a survey released Tuesday.

In all, 57% of businesses that outsource finance and accounting say the venture is successful, while 8% say it's very successful. The survey, by Accenture and the Economist Intelligence Unit, polled business leaders at 236 companies in North America. About 30% of the respondents said they outsource at least some finance and accounting work.

The survey also reported that 66% of companies that outsource finance and accounting cite lower costs as the primary benefit, while 55% said finance outsourcing sharpens their focus on core competencies. The finance and accounting function most commonly outsourced is payroll, according to the survey.

The drawbacks of outsourcing cited most frequently by respondents were the risk of valuable data falling into competitors' hands (52%), the risk that the cost of outsourcing will exceed expectations (48%), and the erosion of in-house knowledge (45%). Surprisingly, 82% of respondents who outsource finance and accounting said they have no formal metrics in place to measure the success of the venture.

The survey was conducted in January and February.