Elevate Tax and Finance with Outsourcing
Outsourcing: The heat is on with tax and finance transformation
As regulatory demands intensify and talent shortages persist, many US tax and finance teams are feeling the heat. For tax leaders, two things are typically common: Constant change and the enduring pressure to deliver more with fewer resources.
According to Deloitte’s 4Q 2024 CFO Signals survey , speed—or lack of it—is the issue most worrisome to organizations. Technology deployment, agility, and efficiency were near the top of the list, with cost control also on the menu.
This concern is further echoed in the results of two recent Deloitte surveys: the 2025 Deloitte Tax Transformation Trends survey and the 2024 Global Outsourcing Survey . They show that three key ingredients dominate the recipe for transformation today: Lowering costs, adopting modern technology (especially artificial intelligence, or AI), and shifting their contributions from transactional work to strategic insight.
The conclusion is clear: supporting technology, people, process, or structure can enable tax and finance teams to streamline costs and bring high-quality results to the table.
Tax and finance leaders are in the pressure cooker
Tax and finance leaders frequently face contradictory demands; they are often asked to deliver greater value and insight while reducing costs and increasing efficiency. The 2025 Deloitte Tax Transformation Trends survey results highlight this dilemma:
- Cost constraints: Cost reduction is the top challenge cited, with 83% of organizations surveyed citing cost-cutting as a primary motive to outsource. However, control of the technology budget often lies with finance/IT departments.
- Technology expectations: Of the executives surveyed, 67% say “access to advanced automation” is crucial; 59% want AI-enabled solutions from day one. However, outdated technology and fragmented systems are top obstacles, with 39% identifying legacy systems as a key barrier and only 22% currently rating their tax technology as “leading” or “best in class.”
- Rising regulatory complexity: Tax leaders face thousands of federal, state, and global regulatory changes each year (Pillar Two, e-invoicing, OBBBA, etc.). 40% of those surveyed cite “complying with tax laws and regulations” among their top challenges, reflecting the increasing complexity and frequency of legislative changes worldwide. New digital tax requirements and cross-border rules are causing many organizations to rethink compliance processes and technology capabilities. At the same time, 61% of tax and finance leaders surveyed cite a lack of skilled talent as a major barrier to effective tax transformation.
Combined, these pressures are turning up the heat—making outsourcing a strategic move that can help unlock capacity, capability, and capital.
Outsourcing is on the menu
Outsourcing is not just about supporting day-to-day activities —it’s about adding real value. Instead of short-term savings, many CFOs are seeking business process outsourcing (BPO) providers who drive transformation with innovative, industry-specific solutions, often powered by AI.
The modern operating model typically rests on three pillars:
- Capacity shift: Outsourcing routine tasks like compliance and reconciliation frees teams for higher-value work, and 61% of tax leaders surveyed say this lets them “move up the value chain.”
- Technology infusion: When providers cover the cost of cloud, automation, and AI platforms, clients are often able to access continually updated tech. They can also transfer risk, noted as a top benefit for 61% of surveyed leaders.
- Elastic scale: Operating models can let organizations quickly scale resources up or down, a benefit cited by 67% of surveyed companies.
Prepping for growth with the BOTT outsourcing model
The recent trends report identified a series of challenges that can be addressed by outsourcing, namely regulatory complexity, talent shortages, and technology integration. At the same time, traditional outsourcing can leave companies hungry for more integral solutions.
In response, Deloitte has developed the Build, Operate, Transfer, and Transform (BOTT) model, a practical, future-ready approach to shared services delivery. By leveraging external specialists and advanced technology, organizations can systematically bring new skills and capabilities in-house, setting the stage for ongoing improvement and agility.
By incorporating a structured return of knowledge and capability within the organization, the BOTT model offers a recipe for tax function transformation. It allows organizations to address outsourcing challenges from multiple angles:
- Knowledge retention and control: BOTT is designed for knowledge transfer, enabling internal upskilling as the provider operates the function, so experience and control return to the organization.
- Agility and flexibility: The BOTT model provides flexibility to scale operations up or down as business demands change or even pivot entirely as strategic objectives evolve. This adaptability is crucial in the dynamic tax environment.
- Technology enablement: AI and technology adoption is often difficult to achieve in-house due to resource constraints or lack of experience. You can pick up these skills from working with your service provider.
- Talent development: BOTT closes the talent gap by providing access to tax specialists without the burden of recruitment and upskilling. Organizations can leverage the provider’s skilled talent pool, which can be especially valuable given the increasing complexity of tax regulations and reporting requirements.
- Risk and investment reduction: By utilizing the service provider’s infrastructure and experience, organizations can limit risk and control costs. The up-front investment is often lower compared to building capabilities internally, and operational risks associated with transformation are shared with the provider.
Complexity is rising, but navigating complexity is frequently part of the tax function’s secret sauce. With today’s rapid change, CFOs who treat operating models as crucial to unlocking savings, capabilities, and capacity can enable them to transform faster and deliver more value.
Is your finance organization eager to hone its recipe for transformation? Deloitte can help you find the ingredients you need.
- Eric Peel
