In the Everest Research Institute report, it was predicted that $3.7bn will be spent on finance and accounting outsourcing (FAO) this year. This is a 20 percent increase year-on-year in 2010.
According to the report, "2010 promises to be a stronger year for FAO than 2009. There is a significant pent-up demand in financial services, which could be a key growth driver in 2010.” The report added that the 20 percent increase in global expenditure is a sign that the period of low activity in FAO is now over.
In 2009, FAO had seen a slow growth in total annual value of contracts - only 11 percent compared to 20 percent annual increase from 2006 to 2008. Also, there were only 65 new FAO contracts that were signed in 2009, compared to 82 in 2008.
FAO involves outsourcing capital budget and internal audit, processing of payroll, and general accounting.