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Finance & Accounting outsourcing (FAO) expected to grow by 15-20 % Y-o-Y
By Anupam Rajey

The Global outsourcing market is valued to be more than US $40 billion and continued to steadily
grow with annualized growth rate of about 6 percent in the year 2010. In the year 2011, the
outsourcing market saw BPO growth rate declining as compared to year 2010, where the sector
witnessed a growth of about 12%. Pure BPO corporations around the globe are finding it difficult to
meet their annual growth target and are losing shine because of the rising employee cost and
reducing gap in the real estate prices between the outsourcing destination and the client destination.


Finance and Accounting outsourcing by contrast seems to be on the rise and is expected to grow
over 15-20%, moving towards 20% and reach nearly US $4 Billion in annual contract value (ACV).
According to Everest, ACV of the sector grew almost 15% in 2010 as compared to 10% in 2009.
The opportunity of Finance & Accounting outsourcing equals approximately US $ 150-200 Billion.


Future Outlook:
    •   FAO is moving beyond labor arbitrage, Price, Cost and basic process improvements to
        standardization and advanced analytics.
    •   Client organizations are looking for more technology enabled business models, vertically
        oriented solutions and enterprise business outcomes including increased revenues.
    •   Technology inclined and Process centric vendors to provide next level of outsourcing. The
        incidence of hybrid pricing models (FTE-based pricing in combination with either transaction-
        based or performance-based/gain-sharing models) is increasing.
    •   FAO vendors are focusing on ways to create differentiations in terms of products and
        services and build a long term relationship with individual clients.


Client organizations enjoy utmost benefits by implementing FAO, particularly relative to reducing
cost and using savings to fund F&A transformation efforts. The role of outsourcing in driving
profitability has increased significantly in the current economic scenario. Organizations that adapt
outsourcing will not only lower their operating costs but gain significant competitive advantage within
their industry.




HEADQUARTERS                           REGIONAL OFFICE
India                                  Delhi, India
1st Floor, STP-Complex,                B-30 A, Ground Floor,
Adjacent Gomti Barrage,                Near Dashmesh Chowk,
Gomti Nagar,                           Kalkaji,
Lucknow-226010(UP)                     Delhi- 110019
Tel: +91.923.544.3893                  Tel: +91.114.657.2182

Contact: info@acelerartech.com                                                              www.acelerartech.com

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Finance & Accounting outsourcing (FAO) expected to grow by 15-20% Y-o-Y

  • 1. Finance & Accounting outsourcing (FAO) expected to grow by 15-20 % Y-o-Y By Anupam Rajey The Global outsourcing market is valued to be more than US $40 billion and continued to steadily grow with annualized growth rate of about 6 percent in the year 2010. In the year 2011, the outsourcing market saw BPO growth rate declining as compared to year 2010, where the sector witnessed a growth of about 12%. Pure BPO corporations around the globe are finding it difficult to meet their annual growth target and are losing shine because of the rising employee cost and reducing gap in the real estate prices between the outsourcing destination and the client destination. Finance and Accounting outsourcing by contrast seems to be on the rise and is expected to grow over 15-20%, moving towards 20% and reach nearly US $4 Billion in annual contract value (ACV). According to Everest, ACV of the sector grew almost 15% in 2010 as compared to 10% in 2009. The opportunity of Finance & Accounting outsourcing equals approximately US $ 150-200 Billion. Future Outlook: • FAO is moving beyond labor arbitrage, Price, Cost and basic process improvements to standardization and advanced analytics. • Client organizations are looking for more technology enabled business models, vertically oriented solutions and enterprise business outcomes including increased revenues. • Technology inclined and Process centric vendors to provide next level of outsourcing. The incidence of hybrid pricing models (FTE-based pricing in combination with either transaction- based or performance-based/gain-sharing models) is increasing. • FAO vendors are focusing on ways to create differentiations in terms of products and services and build a long term relationship with individual clients. Client organizations enjoy utmost benefits by implementing FAO, particularly relative to reducing cost and using savings to fund F&A transformation efforts. The role of outsourcing in driving profitability has increased significantly in the current economic scenario. Organizations that adapt outsourcing will not only lower their operating costs but gain significant competitive advantage within their industry. HEADQUARTERS REGIONAL OFFICE India Delhi, India 1st Floor, STP-Complex, B-30 A, Ground Floor, Adjacent Gomti Barrage, Near Dashmesh Chowk, Gomti Nagar, Kalkaji, Lucknow-226010(UP) Delhi- 110019 Tel: +91.923.544.3893 Tel: +91.114.657.2182 Contact: info@acelerartech.com www.acelerartech.com