US-based digital transformation solutions major UST sees opportunities for M&A deals as it evaluates companies that could align with and grow its technological capabilities and geographic presence. “This helps us build on our offerings, expand into new markets of interest, and bring new clients while staying aligned with company values,” Vijay Padmanabhan, CFO, said.
UST recently completed two acquisitions in Australia, and one in the US. In Australia, Leonardo and Strativity Group were added to enhance process transformation and consulting services and to expand its local presence. The acquisition of Endeavor Consulting Group in the US focuses on life sciences and SAP, which are high-growth segments, Padmanabhan told businessline in an interview.
- Also read: UST to upskill more than 80% of employees in Generative AI
Looking at new geographies, it is considering the DACH region [Central European countries of Germany (D), Austria (A) and Switzerland (CH)], LATAM, and the Middle-East as areas of interest to expand business. Excerpts:
How has a CFO’s role evolved from being a traditional financial steward to one of the key strategic leaders driving change?
I have seen the CFO’s role evolve into more of a collaborator on strategic decision-making, rather than serving as an isolated contributor. The CFO and finance team enable the CEO and sales team to prepare commercial conditions that make large deals a win-win for both parties. While the CFO might own compliance as a function, he can’t drive it successfully without partnership with the CIO and technology infrastructure. We also see a trend wherein the CFO and the larger finance function must collaborate closely with business units. Another aspect where the CFO’s role has evolved is capital allocation. He must take an active role in understanding and prioritising investments. This means conducting in-depth analyses of each investment’s needs, projected ROI, and alignment with strategic goals. This helps the company balance growth and profitability in equal measure.
Have traditional aspects of finance been automated or delegated so CFOs can focus more on setting strategy, spurring revenue growth, and driving data initiatives?
Yes, in the continual pursuit of operational excellence, CFOs are turning to automation and artificial intelligence (AI) to transform the landscape of financial operations. By automating the mundane, they enhance accuracy and redefine efficiency. This revolution frees up valuable time, allowing finance teams to pivot towards strategic endeavours to fuel growth. This helps reimagine financial management to be more agile, responsive, and strategically focused. As technology dismantles operational barriers, finance leaders are empowered to steer their teams toward higher-value pursuits, cementing the CFO’s role as a strategic architect.
Does digital transformation need to be prioritised over cutting costs, managing cash/risk, or attracting/retaining talent?
Digital transformation cannot be seen in isolation or treated as a separate channel. Its impact is interwoven with talent, cost management decisions, and risk exposure. For example, it has the potential to unlock stagnated cash, especially if it can improve the cash management cycle and reduce working capital requirements. At this juncture, 70 per cent of CFOs are channelling investments into digital technologies, notably in hyper-intelligent automation, aiming for a seismic shift in efficiency and error reduction. However, the real challenge is extracting the full value of its potential. Upskilling employees, educating, and enabling them to leverage the power of this transformation are key to unlocking their full capacity and achieving the most successful outcome. Digital transformation should be seen as a catalyst to facilitate further initiatives within the company.
How are CFOs coping with ‘doing more with less and driving profitability growth’ post-Covid?
The pandemic was indeed a huge lesson for any business leader. It added further momentum to technology adoption, increasingly seeing technology as an enabler for ‘doing more with less’. It also exposed fault lines in the business supply chain and highlighted the need to eliminate single points of failure. This brought CFOs to question the resilience of businesses and their ability to adapt to volatility. A lot of investments in the post-Covid world have been directed towards improving this and securing the future of business. Another aspect brought to focus by the pandemic is the balance between growth and profitability. A culture of questioning the status quo, especially on cost, has since come to the forefront.
