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Global F&A Outsourcing Market to Surpass $47Bn in 2008 - IDC

St. Paul, MN, Monday, July 12, 2004 - According to new IDC study, the worldwide finance and accounting (F&A) outsourcing market will reach USD 47.6 billion in 2008, growing at a 5-year CAGR of 9.6 percent.

Spending on outsourcing of the transaction management function is expected to grow the fastest, at 9.8 percent, over the next five years. From a regional perspective, the study determined that the US will remain by far the largest F&A BPO market, while EMEA will be the fastest growing region in terms of FA BPO spending in the short to mid-term.

Anna Danilenko, Program Manager, Consulting and FA BPO Services, IDC, talking about the report, said, “The F&A BPO opportunity is one of the largest and fastest growing BPO segments. As the opportunity matures, corporate buyers will increasingly be looking at F&A vendors to provide an expanding range of services, collaborate on building full-scope back-office solutions, and solve strategic business challenges.”

Other findings of the study points out that cost cutting remains the primary reason for outsourcing of F&A, the need to solve strategic business issues is increasingly driving F&A BPO spending globally. Transaction management services represents the largest opportunity within the F&A BPO space while accounts payable remains the most widely outsourced FA function.

The study also predicts that mergers and acquisitions among F&A BPO vendors will continue to accelerate as providers aim at gaining market share, expanding into key regions and acquiring specialized business process and consulting expertise.

Source: IDC (Edited Press Release)

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