According to the recent 2025 Global CFO Report from FTI Consulting, Inc., nearly three-quarters (72 percent) of chief financial officers (CFOs) expect revenue growth of 10 percent or more over the next 12 months. This robust optimism comes amid ongoing economic uncertainty, supply chain improvements, and evolving market conditions, and it underscores a significant trend: organizations are increasingly leveraging outsourced and fractional CFO expertise to navigate complex financial landscapes.
Survey Highlights and the Rise of Outsourced CFOs
The survey, which gathered insights from 655 CFOs across North America; Europe, the Middle East and Africa; Asia; and Australia, provides a detailed look at the current priorities and challenges faced by CFOs. Here are some of the key findings:
Revenue Growth Projections:
Overall, 72 percent of CFOs anticipate double-digit growth in the coming year. Among larger companies (revenues greater than $5 billion), optimism is even higher, with 77 percent forecasting significant growth despite pressures such as talent retention and complex financial forecasting.
Mid-Market Firms Adjusting Expectations:
For mid-market companies with revenues between $100 million and $1 billion, expectations have shifted. Only 67.5 percent of these CFOs predict double-digit growth for 2025, a notable decline from 76 percent in 2024. This shift is largely attributed to rising operational costs, increased competition, and talent shortages—factors that underscore the need for external, expert financial leadership.
Cybersecurity Takes Center Stage:
With cybersecurity emerging as a top concern across all regions, 75 percent of CFOs in North America have identified cyber-attacks as a primary challenge. This has driven increased investment in robust cybersecurity measures, often supported by specialized external resources who can provide both strategic oversight and technological expertise.
The Outsourcing Trend:
The report indicates an 11 percent increase in the outsourcing of finance functions from 2024 to 2025. This growing reliance on external capabilities is a testament to the rising demand for flexible financial leadership. Fractional CFOs, in particular, offer a cost-effective solution by providing strategic insights and operational efficiency without the commitment of a full-time hire.
CFO Tenure and Strategic Leadership:
While 54 percent of respondents note that the average tenure of a CFO is between three to five years, there is a growing trend toward longer tenures. An increase of 5 percent in CFOs staying for five years or more highlights the value organizations place on sustained, strategic leadership—an area where fractional CFOs can provide continuity and long-term planning support.
Enhancing Forecasting Accuracy:
A striking 85 percent of CFOs identify forecasting accuracy as a key area in need of improvement. Outsourced CFOs are increasingly sought after for their ability to deploy advanced analytical tools, including AI, to enhance predictive capabilities and provide deeper insights into market trends.
Adoption of AI Tools:
Demonstrating a commitment to innovation, 87 percent of CFOs plan to integrate AI tools within the next 12 months. This move towards technology-driven finance is further supported by fractional CFOs, who bring both the expertise and agility to implement these advanced systems effectively.
The Strategic Role of Fractional CFOs
As the report details, the evolving role of CFOs now extends far beyond traditional financial stewardship. In today’s fast-paced and unpredictable environment, strategic decision-making is paramount. Fractional and outsourced CFOs are at the forefront of this shift, offering:
Expertise on Demand:
By tapping into external CFO resources, organizations can access top-tier financial expertise without the long-term commitment of a full-time executive. This allows companies to scale their leadership in line with business needs and market dynamics.
Agility in Strategy:
Fractional CFOs are well-equipped to handle rapid changes in the market. They bring fresh perspectives and innovative approaches to financial planning, helping businesses adapt to new challenges such as inflation, supply chain disruptions, and competitive pressures.
Cost-Effective Leadership:
Outsourcing finance functions not only enhances operational efficiency but also significantly reduces costs. This is especially valuable for mid-market firms that are facing tighter margins and increased competition.
Looking Ahead
As companies prepare for 2025, the emphasis on external, flexible financial leadership is set to intensify. The FTI Consulting report illustrates that with the right blend of technology, strategic foresight, and expert guidance from fractional CFOs, organizations can not only weather economic challenges but also seize growth opportunities. The future of finance is here, and it’s more agile, innovative, and impactful than ever before.
If you are a business owner or CEO within the San Francisco Bay Area and Silicon Valley, in need of an experienced fractional or outsourced CFO to help your company control costs, increase profit margins, improve cash flow as well as identify strategic growth opportunities, our highly skilled outsourced CFO services provide direct access to high-quality expertise in a cost-effective manner.
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