Rewire FP&A to drive enterprise performance with trusted data and strategic context

FP&A is having a moment of reckoning. Once the quiet operator of finance, it is now expected to lead the charge on enterprise data, strategic influence, and operational foresight. In our recent discussion with the FP&A lead at a global energy-tech company, the message was unmistakable: FP&A must transform from a reporting engine to a strategic command center. That shift requires more than new tools; it demands a reinvention of data foundations, operating models, and talent strategies.

This evolution reflects what HFS has defined as the emergence of business data services (BDS). The value has moved beyond executing processes to extracting high-quality, decision-ready data from them, and FP&A is on the front line of that shift.

From retrospective reporting to real-time business partnership

The traditional FP&A charter of reporting actuals, tracking budgets, and preparing forecasts no longer satisfies business expectations. “If we stop at reporting numbers and building clean decks, we’re failing,” said an FP&A leader. “Success today means our analytics lead to operational change.”

That means FP&A must do more than observe margin shifts or revenue deltas. They must explain why they’re happening, contextualize peer benchmarks, and provide trade-offs that help business leaders course-correct.

Achieving this demands business intimacy and agility. FP&A must be embedded in product, strategy, and commercial functions—not just forecasting but actively shaping enterprise responses.

Forecasting has become the barometer of trust

Forecasting accuracy isn’t just about budgeting anymore. It’s a litmus test for executive credibility, especially in public enterprises. “If our forecasts are off, we don’t just miss a target; we lose investor confidence,” the leader emphasized.

High-quality forecasting now requires:

• Bottom-up data aligned with real sales pipelines and historic conversion patterns
• Dynamic scenario planning responsive to market volatility
• Tight governance that stress-tests optimism or bias in projections

However, few organizations have achieved this maturity. “We’re maybe halfway to where we want to be,” the FP&A leader admitted, citing fragmented systems, inconsistent data, and manual friction as major blockers.

AI Isn’t the problem; untrusted data is

Despite investments in AI and automation, FP&A teams are still hand-feeding spreadsheets into headquarters. The problem isn’t that AI tools underdeliver. It’s that the inputs they rely on, i.e., enterprise data—remain broken.

Legacy ERP systems, legal entity sprawl, and fragmented reporting lines make it nearly impossible to establish a trusted single source of truth. The FP&A team we spoke with is building a five-dimensional data model across products, cost centers, functions, geographies, and accounts to close that gap. And it’s not just about aggregation. It’s about ensuring that everyone—from line managers to the board—works off the same foundation.

HFS data reinforces this challenge. Among finance and accounting professionals (see Exhibit 1), only 16% say data is widely accessible across departments. In contrast, 33% report only moderate accessibility, and 27% operate in siloed environments with no data sharing. For FP&A teams, this fractured access model makes it nearly impossible to deliver real-time insights, scale automation, or apply GenAI responsibly. In short, they’re being asked to drive with one hand tied behind their back.

Exhibit 1: Only a small fraction of finance teams enjoy wide data accessibility across departments

Source: 49 F&A leaders, HFS Research, 2025

The goal is to standardize upstream data ingestion so that reporting becomes a refresh, not a reconstruction. This multi-quarter journey is essential for trusted automation and AI enablement.

“AI will only give you good output if your input data is clean,” the leader emphasized. “Right now, we’re asking too much of AI before solving the basics.”

BPO’s value has shifted—from labor arbitrage to data enablement

Traditional BPO models focused on shifting tasks offshore are losing relevance. The future of enterprise services lies in enabling clients to access and act on clean, contextual data. FP&A is a clear proof point.

Our conversation reinforced this pivot. Strategic activities such as forecasting and business partnerships cannot be commoditized. What matters isn’t who does the task; but who owns the context.

To deliver real BDS value, service models must evolve from completing tasks to delivering data outcomes.

The future operating model must be built on strategic context, not cost control

As enterprises rewire for insight-driven performance, FP&A becomes a litmus test for what BDS should look like in practice. Service models must evolve to deliver data outcomes, not task completion. This means rethinking what gets outsourced, not by effort, but by the value and context of the data involved.

Exhibit 2: How FP&A is evolving toward business data services

Source: HFS Research, 2025

The future of FP&A will not involve choosing between in-house and outsourced. It will involve intelligently balancing both.

The leader outlined a clear bifurcation.

• Transactional processes (e.g., cash collections, reconciliation, or report generation) can and should be outsourced.
• Context-rich work (e.g., forecasting, scenario planning, and business partnering) must stay in-house.

This philosophy also applies to their global center of excellence (COE) team, which handles backend work but not strategic forecasting.

The key? Clear role definition and mutual alignment on what outcomes each team is accountable for. Scale and cost-efficiency are no longer enough. Business intimacy and outcome ownership are now non-negotiable.

Future talent must translate finance, technology, and business

As FP&A shifts from hindsight to foresight, the talent profile must shift too. The organization doesn’t just need more accountants; it needs translators who can connect finance with strategy, technology, and operations.

The most valuable FP&A professionals are:

• Curious learners, not static domain experts
• Clear communicators, not technical specialists
• Cross-functional collaborators who ask the right questions and frame the right narratives

Adaptability, agility, and critical thinking are now table stakes. FP&A teams that fail to evolve their talent model will fall behind.

FP&A is not yet ready to lead…but it
must be

What stood out in this conversation was not just the ambition but the remaining gaps. Most FP&A teams still operate in silos, lack trusted data, and rely too heavily on manual processes. The move to strategic insight and AI-driven forecasting will remain blocked until organizations:

• Solve for data quality and ERP fragmentation
• Invest in upskilling and hybrid talent models
• Redefine FP&A’s mission to align with real-time, front-line decision-making
• Design a delivery model that balances scale with business intimacy

To fulfill its potential, FP&A must become the central nervous system connecting finance, operations, and execution. “If you walk into work every day and don’t know what’s coming next, that’s not something you can outsource. That’s where FP&A needs to lead.”

The Bottom Line: FP&A is the enterprise’s litmus test for business data services.

Enterprise leaders must stop outsourcing context. If FP&A is to fulfill its potential they must embed it in every decision, backed by:

• Trusted data
• Connected talent
• Outcome-driven delivery models

The FP&A leader we interviewed didn’t use the term ‘business data services’; but everything he described embodies it. Forecasting powered by context. Decision support driven by clean data. Talent that turns insight into action.

It’s time for enterprise leaders—and their service partners—to stop outsourcing effort and start enabling intelligence.