Finance Accounting Business Process Outsourcing Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Canada, China, UK, Germany - Size and Forecast 2024-2028

Finance Accounting Business Process Outsourcing Market Size 2024-2028 

The finance accounting business process outsourcing market size is forecast to increase by USD 27.30 billion at a CAGR of 7.85% between 2023 and 2028. The market is experiencing significant expansion, driven by several key factors. Firstly, companies are increasingly prioritizing cost reduction through outsourcing their finance and accounting functions. Secondly, the number of finance accounting BPO service providers is surging, offering businesses a wide range of options to choose from. Lastly, the need for accounting agility is on the rise, with businesses requiring real-time financial data and analysis to make informed decisions. The integration of artificial intelligence and machine learning technologies is further enhancing accounting processes, enabling businesses to automate data analysis, predict trends, and gain deeper insights for more accurate and timely decision-making. This trend is expected to continue, as more organizations seek to streamline their operations and improve their financial performance.

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The market is evolving rapidly, particularly in India and the Philippines, where businesses leverage cost-saving solutions. Companies are implementing Business Continuity Plans (BCP) to ensure resilience while integrating process automation technologies and cloud computing. Knowledge Process Outsourcing (KPO) is becoming essential for specialist processes like accounts payable, accounts receivable, general ledger, and treasury and cash management. The modernization effort includes adopting hybrid cloud solutions and AI insights to create intelligent workflows and enhance business analytics. Social media marketing services are also being integrated to drive customer engagement. By focusing on end-to-end experiences and intelligent processes, organizations can optimize yield management and improve overall efficiency in financial operations.

Further, the market is thriving, particularly in India and the Philippines, where financial organization seek cost saving solutions. Leveraging AI insight enables enterprises' leadership to make smart decision-making based on continuous, real-time insights. Understanding the CFO's imperatives is crucial for BPO industry providers, as they tailor their services to meet the unique needs of finance and accounting organization. The F&A domain encompasses critical functions such as shareholder accounting, collections, and financial administration. Additionally, risk analytics plays a vital role in enhancing decision-making and mitigating potential pitfalls. As companies increasingly turn to BPO contract for efficiency, the focus on data analysis will drive further innovation and improvements in the financial services landscape.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• End-user
  • Large enterprises
  • SMEs
• Application
  • BFSI
  • IT and telecommunications
  • Manufacturing
  • Healthcare
  • Others
• Geography
  • North America
    • Canada
    • US
  • Europe
    • Germany
    • UK
  • APAC
    • China
  • South America
  • Middle East and Africa

By End-user Insights

The large enterprises segment is estimated to witness significant growth during the forecast period. The large enterprise segment is the most important end-user of business accounting software in the global market. In addition, large enterprises have many operations, a large number of resources, and a complex set of financial management requirements. Therefore, they need finance accounting business process outsourcing that is able to manage large transactions, provide comprehensive financial reports, and offer sophisticated financial analysis and forecasting capabilities. 

Moreover, one of the main reasons why large enterprises automate financial processes and minimize manual mistakes. In addition, these large enterprises handle hundreds of transactions every day, such as sales, procurement, and payroll. Furthermore, finance accounting business process outsourcing helps assist these large enterprises in accounting and payroll, among other services in finance. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.

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The large enterprises segment accounted for USD 29.88 billion in 2018 and showed a gradual increase during the forecast period.

Regional Insights

North America is estimated to contribute 31% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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As per the market forecasting, North America is an early adopter of advanced technologies, the region has been a lucrative market. In addition, the strong presence and penetration of top companies fuel the market growth in North America. Moreover, according to the market forecast, the adoption of finance accounting business process outsourcing in North America is comparatively high in small and medium enterprises (SMEs) compared with large enterprises. Furthermore, banking, financial services, insurance (BFSI), health care, manufacturing, travel, and logistics, among other sectors are the major adopters in the market. Hence, such factors are driving the market in North America during the forecast period.

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

One of the key factors driving the market is the increasing focus on reducing operational costs. Operational costs mainly comprise the cost involved in manufacturing goods and services, maintenance, and administration on a regular basis. In addition, finance accounting business process outsourcing helps minimize operating costs and enhances business efficiency.

Moreover, finance accounting involves service aid for different business processes such as loan claims, accounting, payroll, and financing. Thus, organizations have started outsourcing their finance and accounting business processes and operations. In addition, organizations need finance accounting business process outsourcing to increase market share, expand their customer base, and improve customer relationships. Hence, such factors are driving the market during the forecast period.

Significant Market Trends

A key factor shaping the market is the rising number of acquisitions and partnerships by market players. Competition between the existing companies in the global market is increasing. Thus, the companies are opting for strategic partnerships and acquisitions with various providers of services and platforms. In addition, through acquisitions and strategic partnerships, companies have strengthened their technological competence, process portfolio, and geographical reach.

Moreover, collaborations enable companies to explore new opportunities for their products and services and generate revenue through a large customer base. For example, in September 2020, Accenture Plc collaborated with Oracle Corp. to transform Nickel Banks finance functions. In addition, Accenture Plc helped Nickel to deploy a centralized accounting processes system in order to provide broad functional coverage and integrate core banking, payroll, and other applications of Nickel. Therefore, these market growth and trends continue to impact the market positively. Hence, such market trends are driving the market during the forecast period.

Major Market Restraints

The inability to offer proven finance accounting services is one of the key challenges hindering the market growth. Finance accounting business process outsourcing players that have never dealt with unique aspects of finance and accounting functions might unknowingly include errors in the system, which will lead to administrative problems. In addition, companies must be capable enough to precisely access and understand the risks of engaging in a long-term contract.

Moreover, instead of focusing on revenue and profitability, companies need to establish a long-term strategy that focuses on offering additional features across the same infrastructure. Therefore, failing to meet such expectations can tarnish a firm's reputation. Furthermore, players offer all-inclusive packages to entice businesses which increases the overall cost of outsourcing. Hence, such factors are hindering the market during the forecast period.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Accenture Plc: The company offers finance and accounting process outsourcing services which helps organisations to increase operational efficiency and improve liquidity management.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Alight Solutions LLC
• Amdocs Ltd.
• Anderson Business Solutions Pvt. Ltd.
• Capgemini Service SAS
• Cognizant Technology Solutions Corp.
• Concentrix Corp.
• Deloitte Touche Tohmatsu Ltd.
• ExlService Holdings Inc.
• Genpact Ltd.
• HCL Technologies Ltd.
• Infosys Ltd.
• International Business Machines Corp.
• NTT DATA Corp.
• Oracle Corp.
• Tata Consultancy Services Ltd.
• Tech Mahindra Ltd.
• Wipro Ltd.
• WNS Holdings Ltd.
• Datamatics Global Services Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

The market has been experiencing significant growth in recent years. Financing and Financial Management are crucial aspects of any business operation, and outsourcing these functions to specialized service providers has become a popular trend.The administering and managing of financial records and accounts is a key function of Finance Accounting BPO. Tax accounting is another important area where BPOs provide expertise and efficiency. Additionally, trade finance is an emerging area where BPOs are increasingly offering specialized services, helping businesses streamline their international trade transactions, manage risk, and ensure compliance with regulations. The Accounting process involves recording, summarizing, analyzing, and reporting financial transactions. The Risks associated with financial reporting and compliance are mitigated through the use of experienced and knowledgeable BPOs. The Trend towards outsourcing these functions continues, as businesses seek to reduce costs, improve efficiency, and focus on their core competencies.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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