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 Global
Finance and Accounting Business Process Outsourcing (FABPO)
Global market for
finance and accounting outsourcing services, which reached over
$ 30 billion in 2003, will reach $ 47.6 billion in 2008, a study
by a US research firm has said.
Finance and Accounting Business Process Outsourcing (FABPO), one
of the largest and fastest growing segments within the BPO
offering, will grow at a 5-year compound annual growth rate of
9.6 per cent, with spending on outsourcing of the transaction
management function expected to grow the fastest, at 9.8 per
cent, over the next five years, International Data Corps said.
The study entitled 'US Finance and Accounting Outsourcing Market
Forecast and Analysis,' 2003-2008, provides an analysis of major
market drivers and inhibitors, insights on key buyer trends,
overview of major competitive dynamics and essential guidance
for FABPO services vendors.
The US will remain by far the largest finance and accounting BPO
market, while Europe, the Middle East and Africa will be the
fastest growing region in terms of F&A BPO spending in the short
to mid-term, the study said.
While cost-cutting remains the primary reason for outsourcing
F&A, IDC said the need to solve strategic business issues is
increasingly driving F&A BPO spending globally.
Mergers and acquisitions among FA BPO vendors will continue to
accelerate as providers aim at gaining market share, expanding
into key regions and acquiring specialized business process and
consulting expertise.
However, the report also noted that finance and accounting would
not become a fully outsourced business function in the
foreseeable future, due to the strategic importance.
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