How to Measure the ROI of Outsourcing Your Finance Function

Outsourcing your finance function can be a powerful way for UK businesses to cut costs, boost efficiency, and access specialist expertise.

But before deciding whether it’s worth it, you need to understand how to measure the return on investment (ROI) of outsourcing your finance, not just in terms of pounds saved, but in value delivered.

A solid starting point is to focus on what truly matters to your business: cost reduction, time savings, risk mitigation, and scalability.

Key ROI Metrics to Track

1. Cost Savings vs Total Cost of Ownership

Compare the total cost of handling finance in-house, including salaries, training, technology and overheads, with the fees paid to your outsourcing partner. True ROI requires netting outsourcing costs against what the function would realistically cost to run internally.

While cost reduction remains a factor, it is no longer the primary driver. Parseq’s research shows that 32% of UK businesses outsource back-office functions to access specialised skills, compared with 23% who cite cost savings as their main motivation. This highlights why ROI calculations must go beyond headline savings and include expertise, accuracy and resilience.

2. Time and Productivity Gains

Outsourced finance teams often leverage automation tools and specialist workflows. Measuring improvements in turnaround times, for example, month end reporting, reconciliations or forecasting cycles, can reveal productivity gains that directly affect decision-making speed and cash flow.

3. Process Performance Benchmarks

Industry research, such as the 2025 Payments Reconciliation & Reporting Survey, shows how finance tasks can be resource-intensive without streamlined processes. Tracking metrics such as invoice processing time, days payable/outstanding, and error rates gives a clear view of operational improvement delivered by outsourcing.

4. Strategic Benefits and Risk Exposure

Outsourcing can also reduce operational and compliance risk by formalising controls, reporting structures and accountability. In its analysis of managed services, EY notes that outsourcing internal functions can improve efficiency, supplement in-house expertise and reduce budgetary pressure through process optimisation and predictable, subscription-based pricing models.

EY also emphasises that clearly defined governance, key performance indicators (KPIs) and communication structures are essential to evaluating the effectiveness, and ROI of outsourced services.

Turning Outsourced Finance into Measurable Business Value

If you’re exploring outsourcing as a strategic lever for growth, understanding these ROI components is essential.

For tailored advice on designing your finance outsourcing framework and evaluating outcomes, Sanay can support you in putting clear metrics and reporting structures in place to evaluate the impact of outsourcing your finance function.