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The Global Finance Accounting Business Process Outsourcing Market size is forecast to increase by USD 27.30 billion, at a compound annual growth rate (CAGR) of 7.85% between 2023 and 2028. The growth rate of the market depends on several factors, including the increasing focus on reducing operational costs, the surge in the number of finance accounting BPOs, and the increased need to improve the agility of accounting.
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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.
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.
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.
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.
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The large enterprises segment was the largest segment and was valued at USD 29.88 billion in 2018. 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.
The growing focus on operational efficiency in the BFSI segment will increase the market. Several companies in the BFSI industry are transforming operations with the help of AI. In addition, AI plays a major role in optimizing costs while improving operations and performing critical functions such as fraud prevention and regulatory compliance. Moreover, technologies such as robotic process automation and machine learning (ML) are helping banks replace labor-intensive, manual workflows with highly reliable, cost-efficient, and fast robotic operations. Furthermore, several market players are partnering with business process outsourcing to be able to provide cloud services for digital transformations and enhance operational efficiencies. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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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. 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.
The market forecasts include the adoption lifecycle of the market research and growth, 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 and forecasting as well as market trends and analysis strategies.
Customer Landscape
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 growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
The market analysis and report include the qualitative and quantitative analysis of companies that have 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.
The global finance and accounting business process outsourcing (BPO) market continues to witness significant growth, driven by the expansion of the BPO industry and the increasing demand for operational efficiencies. Emerging economies are becoming key players, leveraging their operational capabilities to attract service providers and secure contractual agreements with buyers from developed nations. This shift towards developing nations is reshaping business operations, leading to standardized processes and reduced fixed operational expenses.
Services ranging from record to report, insurance claim processing, to account and booking services are outsourced, with a rising trend towards Knowledge Process Outsourcing (KPO) for strategic level functions like consulting, market intelligence, and legal services. Cloud computing, business analytics, and process automation technologies are revolutionizing BPO service delivery, enhancing operational efficiencies, especially in CRM services and customer interactions. Non-core back-office and front-office functions including call center operations, IT services, and recruitment are increasingly outsourced to third-party providers, leveraging information and communication technology (ICT) innovations. The market landscape is witnessing a transformation with fragmented production processes being streamlined for optimal performance.
The market research report forecasts market growth analysis by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Finance Accounting Business Process Outsourcing Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.85% |
Market Growth 2024-2028 |
USD 27.30 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.45 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 31% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, 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., and Datamatics Global Services Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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