Finance Accounting And Outsourcing - Procurement Intelligence
Home / Procurement Intelligence / Corporate Services / Finance Accounting And Outsourcing

Procurement Market Intelligence Report

Finance Accounting And Outsourcing – Procurement Best Practices & Sourcing Strategies

Finance Accounting And Outsourcing Market – Executive Summary, Market Analysis, Market Monitoring Insights, Industry Best Practices, Sustainability Initiatives and Best Practices, Industry Updates, Covid Section, Supplier Section

1. Executive Summary
1.1. Executive Summary
1.1.1. Key FAO Delivery Locations
1.1.2. Supply Market Outlook
1.1.3. Demand Market Outlook
1.1.4. ELINT’s Recommendations for an ideal Category Strategy
1.1.5. Category Opportunities & Risks
1.1.6. Talking Points to Business: F&A Outsourcing Service
2. Market Analysis
2.1. FAO: Market Overview/Growth
2.2. F&A Outsourcing Activities: Adoption Trends in the Market
2.3. Type of F&A Activities Performed In-house vs. Outsource by the US/Europe Headquartered Companies
2.4. F&A Outsourcing Industry: Drivers and Constraints
2.5. Porter’s Five Forces Analysis: FAO Industry
2.6. Key Market Trends: FAO Services
2.7. Key Technological Trends and Technology Innovations in the Market
3. Market Monitoring Insights
3.1. Cost Drivers and Cost Structure: F&A Outsourcing Services
3.2. Cost Analysis and Expected Savings
3.3. Billing Rate Benchmarking
3.4. Billing Rates: Overview
3.5. F&A Outsourcing Service Billing Rates
3.6. Billing Rates: Methodology
3.7. Factors Influencing F&A Outsourcing Service Rates
4. Industry Best Practices
4.1. Pricing Models
4.2. Engagement/Sourcing Models
4.3. Best Governance Mechanism: To Ensure Success in Outsourcing to a F&A BPO Provider
4.4. F&A Outsourcing Service: Key Performance Indicators
4.5. Purchasing Process: RFP/RFI Builder
5. Sustainability Initiatives and Best Practices
5.1. Sustainability Initiatives
5.2. Sustainability Best Practices: Case Studies
6. Industry Updates
6.1. Sustainability Initiatives
6.2. Sustainability Best Practices: Case Studies
7. Covid Section
7.1. Impact of COVID-19 on F&A outsourcing Services (1/2)
7.2. Impact of COVID-19 on F&A outsourcing Services (1/2)
8. Supplier Section
8.1. Supply Market Outlook: Supply Trends and Insights
8.2. Key Service Providers in Market: Supplier Landscape
8.3. Key Global Supplier Profile and SWOT

What is the anticipated size of the finance accounting outsourcing procurement market?

 

The financial accounting and outsourcing sector is anticipated to increase, with a projected CAGR of 9–10%, and reach $133.1 billion by 2023–2024.

 

What forces propel the growth of the finance accounting and outsourcing market?

 

The need for cost-effectiveness, rising regulatory compliance requirements, globalization, cloud computing and artificial intelligence, and the growing desire for efficiency drive the growth of the financial accounting and outsourcing market.

 

Which sectors dominate the finance accounting and outsourcing market landscape?

 

The BFSI sector still dominates the finance accounting and outsourcing industry due to its complex financial operations and requirements for regulatory compliance. Outsourcing is also primarily relied upon to boost productivity and simplify financial procedures.

DESCRIPTION

Finance Accounting and Outsourcing Procurement Market Size

 

The finance accounting and outsourcing procurement market research report by ELINT Market Research projects the sector to grow substantially. By 2023-2024, the finance accounting and outsourcing market is anticipated to reach a $133.1 billion market size. According to Global Multi-Process FandA, Outsourcing Deals with Annualized Contract Values (ACVs) of at least $1 million indicate a great deal of room for growth in this sector of the economy. Additionally, the pattern points to a steady growth rate of 9–10% in 2023, creating advantageous circumstances for all parties involved. The finance accounting and outsourcing procurement market is a significant participant in the global economy, as evidenced by these statistics that show its adaptability and resilience.

 

The finance accounting and outsourcing procurement market research report has projected strong growth of the finance accounting and outsourcing market due to several vibrant factors crucial for shaping current market trends and realizing the goals. Foremost, outsourcing firms are likely to provide the required specialized knowledge amidst ever-burgeoning complexities and regulations governing operations in the finance sector. Meanwhile, businesses are looking for low-cost methods for streamlining operations, and it is obvious that outsourcing is one such successful approach.

 

Market Definition

 

The finance accounting and outsourcing industry has seen a dramatic upheaval as a result of technological advancements and shifting market dynamics. In the current dynamic business landscape, enterprises can enhance their growth, flexibility, and competitiveness by leveraging digital technology and forming strategic outsourcing partnerships. Long-term success in these fields will depend on utilizing state-of-the-art technology and keeping up with new trends.

 

Finance Accounting and Outsourcing Procurement Market Drivers

 

  1. Cost-Effectiveness: Outsourcing finance and accounting services can save money since labor costs are lower in nations with lower pay rates. Using highly skilled workers from locations with affordable labor costs reduces expenses.

 

  1. Concentrate on Core Competencies: Companies can hire specialized service providers to handle accounting and financial tasks to emphasize their core business activities. It allows companies to focus their attention and resources on essential projects and ventures that will bring in money.

 

Finance Accounting and Outsourcing Procurement Market Challenges

 

  1. Data Security Challenges: Outsourcing part of the private financial information to third-party service providers relates to data security and confidentiality challenges. Unauthorized access may lead to loss of money and may constantly lead to a dent in reputation.

 

  1. Regulatory Compliance: Businesses need proper compliance with legal frameworks and industry standards, which should be observed in accounting and finances. The past few years have seen one try to stay updated with trends in regulations and requirements in their efforts to ensure compliance is accurate.

 

Finance Accounting and Outsourcing Procurement Market Opportunities

 

  1. Niche Services: As demand for niche services with a new focus on specialized finance and accounting services like tax compliance, audit support, and financial planning rises, restructuring in niches thus represents the outsourcing business.

 

  1. Cloud-Based Technology Integration: Cloud technology provides a vast scaling capability and flexibility when remote access to financial data is required. Cloud-based products take care of real-time collaboration, data exchange, and remote access to financial data.

 

Finance Accounting and Outsourcing Procurement Market Segmentation

 

  1. Service Type: As per service type, the finance accounting and outsourcing procurement market research report divides the market into Financial Reporting and Analysis, Payroll Processing, Transaction Processing, Tax Compliance and Planning, and Audit Support.

 

  1. End-User Industry: According to the end-user industry, the finance accounting and outsourcing procurement market research report classifies the market into BFSI, Healthcare, Retail and Consumer Goods, Manufacturing, and IT and Telecommunications.

 

  1. Organization Size: As per organization type, the finance accounting and outsourcing procurement intelligence market research report segments the market into Small and Medium Enterprises (SMEs) and Large Enterprises.

 

Regional Outlook of the Finance Accounting and Outsourcing Procurement Market

 

Regional perspectives on the financial accounting and outsourcing market paint a varied picture, especially regarding affordable onshore and offshore locations in the Americas and Europe. Some of the best offshore locations in the Americas are Guadalajara, Mexico City, San Jose, Costa Rica, Monterrey Bay, Brazil, and Buenos Aires. These areas’ competitive labor pools, sensible regulatory frameworks, and affordable operating costs make them attractive destinations for outsourcing accounting and financial services. However, a few low-price near-shore solutions, such as close-shoring operations from Europe, are particularly prominent. Travel throughout Budapest, Portugal, and the Czech Republic is well-liked because of the geographic advantage with which these locations provide excellent infrastructure and talent pools in expanding accounting and finance industries.

 

Some of the regarded financial accounting and outsourcing market’s offshore hubs in Asia include China, India, New Zealand, Malaysia, and the Philippines, among many others. These countries have been some of the favorite places for financial accounting and outsourcing services in recent years. They have great technology capacities, highly qualified labor, and firmly entrenched outsourcing ecosystems. As such, there are several excellent yet affordable near-shore destinations to the European region, even within Europe itself, in the form of lower Central Europe, extending many options inclusive of Budapest, the Czech Republic, Prague, Poland, and Portugal, given emerging opportunities in their economies combined with a business-friendly nature. End of background.

 

Cost Component in the Finance Accounting and Outsourcing Procurement Market

 

The fact remains that the involved stakeholders must be most versed in the cost-related factors. This cost structure can include labor costs of training, hardware and software costs, infrastructure to deploy hardware and software, and, of course, all other ancillary costs. Other factors that determine the cost can also be the location, extent of technology adoption, nature of services, and volume. Assessment and management of costs associated with the security and compliance regulation is yet another cost-intensive component.

 

Engagement Strategies in the Finance Accounting and Outsourcing Procurement Market

 

The risks associated with depending entirely on one vendor are mitigated, and a broad range of skills are provided by using a national or local network of service providers. Scalability and operational coordination can be increased by selecting a regional outsourcing strategy that combines two or three service providers. On the other hand, standardization and process streamlining are promoted by executing a global outsourcing strategy with a single service provider. The Global Business Services (GBS) and Shared Services (SBS) model provides flexibility and customization suitable for business needs by combining dual supply and an in-house/outsource mix.

 

Contract Period in the Finance Accounting and Outsourcing Procurement Market

 

A longer contract length significantly impacts operational stability and strategy planning for the financial accounting and outsourcing markets. Short-term contracts (1-3 years) provide flexibility and an opportunity for constant periods for the re-evaluation of performances. Mid-term (3- 5 years) operation has the potential to balance stability and react to changes in the business needs. Fostering collaboration and the acquisition of funds for the improvement projects long-term partnerships should last 5-7 years.

 

Pricing Models in the Finance Accounting and Outsourcing Procurement Market

 

Pricing models are the core elements that deal with financial organizations specializing in the finance accounting and outsourcing market. Full-time Equivalent (FTE) offers simplicity and clarity in balancing prices versus levels of services. Transaction-based pricing offers cost-effectiveness and scalability of actions, or definite amounts as per need, as well as the workload, ideally through this. When applied to the different kinds of gain-share or results-based pricing, they encourage costs saved by better performance of the service provider and improved performance between the client and the service provider.

 

Negotiation Factors in the Finance Accounting and Outsourcing Procurement Market

 

The finance accounting and outsourcing industry involve multiple elements during their negotiations to agree. The service level agreement, performance metrics, pricing structures, contractual clauses, data and information, IP security maintenance, and compliance are prime. The negotiation acumen emphasizes transparency, communication, and collaboration to level off reductions in costs, avoidance of risks, and the maximization of value for all the stakeholders from the successful execution of their business pursuits.

 

Leading Players in the Finance Accounting and Outsourcing Procurement Market

 

Key players in the financial accounting and outsourcing market are Capgemini, IBM, TCS, Infosys, Accenture, Genpact, WNS, Wipros, Conduent, Sutherland Global, Cognizant, HCL, DXC (Xchanging) etc. ELINT, a leading procurement intelligence company, uses the latest procurement intelligence tools to present the most accurate data and trends prevailing in the market.

 

Additional Information

Purchase Option

Multiple User License, Single User License

Quantity

Related Products

Shopping Basket