The global finance and accounting outsourcing market is predicted to grow by more than 30 percent in 2007, according to a report from consulting group Everest Research Institute.
The institute’s “Finance & Accounting Outsourcing Annual Report 2006,” points to maturing global infrastructure as the key to allowing companies to take advantage of low-cost offshore talent and technology-dependent supplier process offerings.
Everest said the global FAO market has grown by more than 45 percent since the beginning of 2005 and reached $2 billion in expenditures in the United States last year. North America-based contracts continue to account for over half of FAO revenues, with increasingly rapid growth in Europe. Among the industry verticals, manufacturing and energy and utilities are leading the FAO adoption, capturing nearly 50 percent of the market. Retail and financial services are the most under-penetrated sectors.
The report’s findings also included that:
- The number of multi-process FAO contracts signed doubled between 2004 and 2006;
- Offshoring is now established as the key value lever in FAO, with more than 80 percent of all contracts including an offshore component; and,
- The FAO industry is witnessing an increasingly level playing field -- last year, Genpact, HP, Infosys BPO and Xansa significantly increased their market share -- though Accenture, IBM, ACS and Genpact currently lead the market on a capability market success matrix.
More information and samples from the report are available at www.outsourcing-center.com.
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