2. Markets Covered
Nordic – Finland / Poland / Sweden / Norway
UK
France
Belgium / Netherlands / Luxembourg
Rest of Europe
Holistic View of Finance and Accounting Outsourcing
– Europe
3. FAO Europe Overview
Overall Business Process Outsourcing has grown significantly over the past 5
years, with average annual growth rates of above 25% for Finance outsourcing
This growth is primarily driven by Large North American and British Firms
The European BPO market has started to move in the UK, however the rest of
Europe has been slower in adopting the concept
Social and regulatory constraints, cultural fit, ability to manage different
cultures, language capabilities are the reasons often stated for this slow
adoption process
Royal Philips of the Netherlands has set an example by signing a 7 year
agreement with Infosys BPO to take care of its Finance and Accounting for more
than 400 of its organizations across the globe.
Holistic View of Finance and Accounting Outsourcing
– Europe
4. Its time the European markets grew
Competing in the global economy and having to deal with a strong Euro, European firms need
to be more agile and scalable.
Cost reduction and organizational agility are essential for all European based companies to
compete in the global market
Europe also faces issues pertaining to availability of Skilled resources in a number of areas
including Accounting
Outsourcing has always been an answer for Business Processes that are not core to the
company’s value proposition.
In the past, outsourcing was of interest only to large companies, but now organizations of all
sizes and with budgets of various magnitude are showing interest
Holistic View of Finance and Accounting Outsourcing
– Europe
5. European buyers are moderately satisfied with the quality of their organizations' own
outsourcing governance skills and competencies to manage their service providers
Expected Renewals from Jan 2011–Dec 2013 is valued at $118 billion opportunity in Western
Europe
Increased demand in the United Kingdom and the Netherlands, A mega-deal in Finland
and the continuing expansion of outsourcing adoption in France. Together the region
recorded $9.5 billion in Total Contract Value (TCV) for the second quarter 2011.
Nordic – Finland / Poland / Sweden / Norway
oThe benefits of outsourcing and shared services are obviously not lost on those
operating in the Nordic countries
oWhile TCV fell by up to 50 per cent in traditionally strong markets such as the UK and
Germany, large deals in the Nordic region helped to offset such falls in 2010
Holistic View of Finance and Accounting Outsourcing
– Europe
6. UK
The UK is now the biggest outsourcing market outside of the United States, with the number of
outsourcing contracts taken out in the public sector increasing 47 per cent on 2010
The public sector market is now worth €4.4bn Euros (£3.7bn), which surpasses the commercial
sector which is around € 3.4bn
The public sector accounted for 55 per cent of the UK’s annual contract value ACV.
In 2012 there were 148 contracts signed in the UK worth €4.4bn
Holistic View of Finance and Accounting Outsourcing
– Europe