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The General and Administrative Outsourcing (GAO) Market size is forecast to increase by USD 29.05 billion, at a CAGR of 5.35% between 2023 and 2028. The growth rate of the market depends on several factors, including the high focus on reducing operational operating costs, the need to focus on core competencies and improve efficiency, and the increasing demand to standardize processes, technology, and governance. Outsourcing is a process in which a company assigns its specific tasks, such as business processes, to other companies on the basis of a contract that has been signed between them. Due to the rapidly changing nature of technological developments and the need for businesses to streamline their operations, outsourcing is becoming more common. General and administrative outsourcing (GAO) is the outsourcing of certain general and administrative processes, such as finance and accounting outsourcing (FAO), recruitment process outsourcing (RPO), payroll outsourcing, and procurement outsourcing, to an external service provider.
The report offers extensive research analysis on the General and Administrative Outsourcing (GAO) Market, with a categorization based on Type, including finance and accounting outsourcing, payroll outsourcing, recruitment outsourcing, and procurement outsourcing. It further segments the market by End-user, encompassing large enterprises and SMEs. Additionally, the report provides Region segmentation, covering APAC, Europe, North America, Middle East and Africa, and South America. Market size, historical data (2018-2022), and future projections are presented in terms of value (in USD billion) for all the mentioned segments
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One of the key factors driving the general and administrative outsourcing market growth is the high focus on reducing operational operating costs. Operating costs can be referred to as the costs involved in manufacturing goods and services, maintenance, and administration on a regular basis. In addition, GAO helps minimize operating costs and enhances business efficiency. Furthermore, GAO involves service aid for different business processes such as procurement, payroll, F&A, and recruitment.
Moreover, organizations need GAO services to increase market share, expand their customer base, and improve customer relationships. In addition, to set up an in-house business process team, an organization needs to bear 50%-70% extra costs in terms of the management of an extra workforce, infrastructure, and training for new employees. Furthermore, it is estimated that GAO services can yield between 30%-50% cost savings on operating costs for a company. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
A key factor shaping the general and administrative outsourcing market growth is the increasing number of startups partnering with BPOs and rising transparency. The number of startups has been increasing at a significant rate. In addition, startups are under a lot of pressure to compete with their contemporaries. Furthermore, these startups have small budgets and look for cost-effective labor. Thus, they depend on BPOs to provide talent at low costs and complete business processes such as finance, accounting, and recruitment.
Moreover, Infosys, Wipro, and TCS are among companies whose outsourcing services can improve business operations, as they use the latest technology platforms and widespread corporate networks. In addition, emerging technologies such as cloud computing, AI, and social media services generally enhance the overall customer service experience, accelerate productivity, and maximize revenue. Hence, such factors are positively impacting the general and administrative outsourcing market. Therefore, it is expected to drive the market growth during the forecast period.
Lack of quality standards in service-level agreements is one of the key challenges hindering the general and administrative outsourcing market growth. The main purpose of a service-level agreement (SLA) is to establish a contract between the service provider (either internal or external) and the end-user. In addition, the service provider covers all possible expected levels of services through such a contract. Furthermore, SLAs are output-based as they specifically define what benefits and support the customer will receive during the course of the agreement.
However, SLAs do not specify how services are delivered. In addition, end-users are also uninformed about full services to be included in SLAs to protect their businesses. Furthermore, they also lack experience in terms of negotiating SLAs before opting for GAO services, and most of the time, they realize the discrepancies later. Thus, service providers need to be clear and transparent about their SLAs to increase the adoption rate of GAO services. Hence, such factors are negatively impacting the general and administrative outsourcing market. Therefore, it is expected to hinder the market growth during the forecast period.
The finance and accounting outsourcing segment is estimated to witness significant growth during the forecast period. Finance and accounting (F&A) are often used together since both of them cover the same general areas. In addition, organizations are outsourcing their F&A functions as a result of the fast-paced development of these functions. Furthermore, this makes the software and services accessible to businesses of all sizes.
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The finance and accounting outsourcing segment was the largest segment and was valued at USD 48.19 billion in 2018. Moreover, these services ensured that the company's regulatory and financial risks were appropriately controlled. The global economic crisis will increase the demand for FAO services in coming years as the service needs less customization when the process and technology are outsourced. In addition, companies are being pushed to standardize their FAO activities by rising transparency demands and more stringent rules. Furthermore, numerous F&A standards are regulated, which enables FAO service providers to roll out a single platform for different clients, decreasing customization, boosting margins, and enabling clients to take advantage of economies of scale. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
The advantages offered by outsourcing in large enterprises segments will increase market growth. Large enterprises segment often outsource general and administrative functions to achieve cost efficiencies. In addition, outsourcing allows them to access skilled resources at a lower cost compared with maintaining in-house teams, leading to substantial cost savings. Moreover, outsourcing provides scalability, allowing large enterprises to adapt to changing business demands more effectively. In addition, it offers the flexibility to scale up or down operations based on business requirements without the complexities associated with managing internal workforce fluctuations. Furthermore, large enterprises benefit from the knowledge and experience of outsourcing providers in handling various administrative functions, ensuring efficiency and compliance with industry standards. 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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APAC is estimated to contribute 32% 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.
Another region offering significant growth opportunities to companies is North America. The region has always been a lucrative market for GAO as the region is an early adopter of advanced technologies. In addition, the strong presence and the penetration of top companies fuel market growth in North America. Moreover, some of the most advanced economies in the world are in North America, which increases the rate of data generation and consumption. Furthermore, the integration of cloud-based services, automation, and AI into the GAO process is expected to lead to the development of a new intelligent general and administrative outsourcing market in the region during the forecast period.
General and Administrative Outsourcing 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 general and administrative outsourcing market growth and trends strategies.
Global General and Administrative Outsourcing Market 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 general and administrative outsourcing services that includes intelligent finance operations, sourcing and procurement, and supply chain.
Aon plc: The company offers general and administrative outsourcing services that includes payroll and benefit administration, and also expertise in the areas of tax, accounting, law, actuarial science, and finance.
Automatic Data Processing Inc: The company offers general and administrative outsourcing services that handle hiring, engagement, employee issues, benefits and payroll outsourcing.
The General and Administrative Outsourcing market growth and Market forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
general and administrative outsourcing market growth and forecasting analysis and report of qualitative and quantitative analysis of companies 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 general and administrative outsourcing market 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
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General And Administrative Outsourcing Market Scope |
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Report Coverage |
Details |
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Page number |
180 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.35% |
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Market Growth 2024-2028 |
USD 29.05 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.95 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 32% |
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Key countries |
US, Canada, China, UK, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Accenture Plc, Aon plc, Automatic Data Processing Inc., Capgemini Service SAS, CGI Inc., Cognizant Technology Solutions Corp., Concentrix Corp., CPEhr Inc., ExlService Holdings Inc., Genesys Telecommunications Laboratories Inc., Genpact Ltd., Hewlett Packard Enterprise Co., Infosys Ltd., International Business Machines Corp., ISP GROUP, Kelly Services Inc., RKCO Group, Tata Consultancy Services Ltd., Wipro Ltd., and WNS Holdings Ltd. |
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Market dynamics |
Parent market analysis and report, 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. |
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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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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