Digital transformation of financial management: innovative technologies and outsourcing in the development of territorial communities

Abstract

The purpose of the study is to assess the impact of the level of digital maturity and the application of outsourcing practices on the effectiveness of financial management in territorial communities of the Lviv region.

Methodically, the study is based on typological analysis, comparative statistics, Student's t-criteria, and Mann-Whitney U-criteria.

As part of the analysis, typologised communities were identified: 21% had a comprehensive digital architecture, 48% – a fragmented one, and 31% – a basic level of digital presence. In digitally mature communities, the average time for approving financial decisions was 1.9 days (vs. 6.5 days), documentation processing – 2.4 days (vs. 7.1), and the share of errors in financial documents – 3.2% (vs. 11.4%). Integrated accounting platforms provided forecast accuracy of 5.7%, while basic accounting platforms provided forecast accuracy of 13.1%. In communities with digital control, the frequency of exceeding budget limits did not exceed 4.1%, and the share of erroneous transactions – 2.8%. Outsourcing was applied in 38% of communities and was accompanied by a 27% reduction in costs, errors – up to 3.1%, delays in reporting – up to 1.1 days. In 24% of communities, analytical functions were transferred to external performers. Based on the results, a conceptual model for integrating digital technologies and outsourcing with a network of shared service centres is proposed.

Practical importance lies in the possibility of applying the results to form digital development strategies, optimise costs, and improve the efficiency of municipal administration in the context of decentralisation.

The obtained conclusions can be used by heads of territorial communities, specialists of local self-government bodies, regional divisions of the Ministry of Digital Development, and specialised consulting structures in the development of digital transformation programs, selection of outsourcing support models, implementation of electronic budgeting platforms, and in the development of inter-municipal initiatives to create joint service centres.