Accounting role outsourcing drops 25% YoY despite lingering talent issues

As good talent continues to be one of the most valuable commodities in corporate finance, the ways CFOs and their teams address these challenges are evolving.

According to the latest CFO Pulse Survey by Personiv, outsourcing remains prevalent but has dropped significantly. This year, 65% of CFOs reported outsourcing finance functions, a 25% decrease from last year’s report. While many organizations are confronting talent challenges head-on, technology appears to be gaining traction as a solution to the shortage of high-quality finance and accounting talent.

Outsourcing’s development

Although outsourcing rates are beginning to drop, external labor remains a necessary function for many finance teams. Respondents reported outsourcing accounts receivable (37%), accounts payable (35%) and cash application (29%) among other traditional finance tasks.

As CFOs take on more risk and business development responsibilities, concerns about relying on distant labor persist. More than half cited quality and accuracy (59%) and loss of control (56%) as concerns, while system and process integration (25%), communication issues (32%) and internal team morale (11%) also weigh on finance leaders.

The talent challenge

Despite varied approaches, nearly all CFOs say the talent shortage remains. Eighty-seven percent say there is a finance and accounting talent shortage, up from 83% in 2024. One in five (20%) say the situation is worsening, double the number who felt that way last year.

The number of open finance roles has also surged. CFOs reported five open finance and accounting roles on average, up from two last year — a 150% increase. Time is a critical factor: Nearly half (49%) say it takes at least 60 days to fill a role.

When asked about their top hiring challenges, CFOs were split. The most common response was the talent shortage (38%). However, 26% pointed to rising salary expectations, often driven by younger professionals, and 10% cited competition from other industries, an area accounting leaders are actively working to address.

CFOs were also divided on which finance roles are hardest to fill. Twenty-one percent said controller, followed by tax accountant (18%), auditor (16%), FP&A (15%), senior accountant (13%) and payroll (11%).

Though survey authors note college-level accounting enrollment is rising, changing licensure requirements and shifting job expectations make it difficult for young professionals to build clear career paths in accounting. Many top candidates are more entrepreneurial-focused and may apply their accounting skills outside traditional finance roles.

Technology’s role

CFOs are turning to new AI-powered technologies, but adoption is still in the early stages. Thirty-eight percent said they plan to use AI to improve efficiencies. Another 26% said they haven’t seen significant impacts yet but expect to, while 23% already report that AI has reduced the need for some roles.

While choosing the right technology and implementing it effectively are both key challenges, CFOs emphasized the importance of data integrity and security before scaling these tools.

The top barriers to adoption are data security and compliance (29%), high costs (28%), lack of skilled talent (21%) and resistance from teams and leadership (9%). While the first two are largely within the CFO’s control, the latter require organizational collaboration and culture change — two hefty challenges for busy finance chiefs.