Global outlook of the general and administrative outsourcing (GAO) market

Technavio’s market research analysts have predicted that the global general and administrative outsourcing (GAO) market will grow steadily during the predicted period and post a moderate CAGR of more than 3% by 2020. The exponential increase in the number of companies across the globe has augmented the need to use shared services for automation and administration consolidation. MNCs have already started employing service providers for standardizing and consolidating their payroll structure and F&A services into one platform. Moreover, organizations are constantly focusing on opportunities to expand their operation to new locations. This will demand the requirement to standardize and optimize business process, which will be one of the major factors that will have a positive impact on this market’s growth in the coming years.

The need to reduce administrative costs and the increased complexities in the global supply chain and distribution systems have induced organizations to use operational analytics solutions. Also, analytics solutions help organizations to reduce their administrative expenditure through statistical modeling and data science technology. This will lead to a rise in the number of BPO firms offering supply chain analytics services and will subsequently lead to the growth of the analytics BPO market.

Competitive landscape and key vendors

Characterized by the presence of several outsourcing companies, the GAO market appears fragmented. However, the large well-established vendors dominate the market with their innovative and high-quality services. The growth and revenue of vendors mostly depends on the foreign exchange market of the country in which GAO services are delivered. To deliver the best services, vendors are also in the need to manage their supplier relationships effectively. Currently, vendors are concentrating on process automation, simplification of IT and operation environments, and development of an economical cost structure.

The leading vendors in the market are -

• Accenture
• Capgemini
• IBM
• Infosys
• TCS

The other prominent vendors in the market are ADP, Aon Hewitt, CTS, EXL Services, Genpact, GEP, HCL, HP, NGA HR, WNS, and Xerox.

Segmentation by solutions and analysis of the GAO market

• FAO (finance and accounting outsourcing)
• RPO (recruitment process outsourcing)
• Payroll outsourcing
• Procurement outsourcing

This market research report predicts that the FAO segment will dominate the GAO market by the end of the predicted period and will also post an impressive revenue of almost USD 14 billion by 2020. Third-party providers provide quality finance and accounting outsourcing services, with a focus on financial reporting and better business decision making. Also, the use of legacy systems and the requirement of skilled labor, will lead to an increase in G&A expenses, which will compel more organizations especially in the healthcare and BFSI sectors to opt for BPaaS (business process-as-a-service) solutions.

Geographical segmentation and analysis of the GAO market

• Americas
• APAC
• EMEA

According to this market research and analysis, the Americas accounted for more than 42% of the total share of the market and dominated the GAO industry during 2015. Financial service providers in the region are increasing their investments in BPO services such as transaction management and other G&A services. Additionally, continued reengineering in organizations and the need to standardize accounting operations across geographies and business units will also drive the demand for the market in this region.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the GAO market?
• What are the key market trends impacting the growth of the GAO market?
• What are the challenges to market growth?
• Who are the key vendors in the GAO market?
• What are the market opportunities and threats faced by the vendors in the GAO market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the GAO market?

Technavio also offers customization on reports based on specific client requirement.

Related reports

• Global Back Office outsourcing Market in the Financial Services Sector 2016-2020
• Global Healthcare Business Process Outsourcing Market 2016-2020
• GAO Market in Latin America – Market Research 2015-2019

General and administrative outsourcing (GAO) which includes finance and accounting outsourcing (FAO), procurement outsourcing, human resource outsourcing (HRO), and RPO has gained huge popularity as it serves the administrative requirements of several industries. Many leading service providers across the globe are strategizing to capture this untapped market. The developed nations such as Japan and Australia, and the rapidly developing economies, such as India and China, are improving business process transparency, compliance, and governance which has prompted their respective governments to make investments in the training activities associated with GAO functions. GAO has increased innovations and advancement of business operations of several organizations as its strategies are considered to be next-generation business value propositions.

The report, global GAO market, is part of Technavio’s ICT research portfolio. This portfolio provides a comprehensive market analysis along with the market share, market sizing, and market segmentations covering areas such as automatic identification system, cloud computing, data center, enterprise application, IT security, ITO and BPO, and product lifecycle management. These market research reports provide a perspective on the various market opportunities and market threats along with the key trends that would influence the market growth during the forecast period. It presents insights into the changing competitive landscape and a detailed profiling and market analysis of the vendors. Also covered in the research are the key regions or countries that would have an impact on the market during the assessment years.