The prospects for finance and accounting outsourcing have been high as more businesses seek to focus more on core processes to grow their business. Early this year, finance and accounting outsourcing which includes processing of accounts receivable services, accounts receivable follow-up as well as general accounting and back-up will grow steadily. In the everest research report which came out, it was predicted that the Finance and accounting outsourcing market would revert back to pre-recession levels by the end of the year. The global economy continues its path towards recovery. They expect to see the FAO market regain traction, driven by new deals and scope expansions as well as more than 45 contracts up for extensions. They foresee increased adoption across industries and geographies to continue.
Beyond the United States, they expect contract signings in the domestic Asia-Pacific market as well as Rest of Europe to rise. The company predicted growth of as much as 20 percent up from the 11 percent growth in 2009. A second report from from Everest research director stated that the mature FAO market is getting increasingly competitive with the players vying to carve out unique value propositions to differentiate themselves. In 2009, while the FAO market saw massive deals among large players including the Genpact, Accenture and IBM given the increasing demand for FAO in the past few months, the new players in the FAO market have emerged or are emerging in order to take advantage of the growth in the market.
The second largest in the accounts receivable outsourcing market while introducing Huntsman Gay into the A/R outsourcing market, one such company is private equity firm. The regional growth meanwhile in the FAO sector has seen expansions notably in the key areas including the Latin Americas and the Philippines. The Latin American countries including Guatemala has been pinpointed by the outsourcer, the Genpact as a key area where finance and accounting talent can be found. The company announced plans of expanding its workforce in the city of Guatemala by opening a second facility. The company also advised that they are looking into the other Latin American countries, Colombia and Brazil along with the Guatemala were previously unknown in the FAO market.
When the company announced expansion planns in the country following the increased demands for the services. The WNS Global Services CEO Keshav Murugesh, cited that their Philippines site will serve as a hub for the clients in the banking and financial industry for the APAC region. Considering that the quality of talent available in the country and the demand for their services, they believed that 10 percent of WNS workforce could be based in the Philippines over the next few years. While the Everest seems to have predicted the finance and accounting outsourcing market accurately so far, it will be interesting to see whether the market will continue to grow as predicted as the year nears its conclusion.
REFERENCE:
http://www.blog.infinit-o.com/finance-accounting-outsourcing-update-players-destinations/
