Everest Group Projects 15-20% Growth Rate in F&A Outsourcing
Wednesday, March 23, 2011 |
Global services advisory and research firm Everest Group says the Finance & Accounting Outsourcing (FAO) will grow by 15-20 percent this year, as total contract values (TCV) of new deals and contract extensions reach an all-time high. This translates to US$4 billion in annual contract value (ACV) for this year.
“Last year saw a strong rebound in multi-process FAO adoption, which we expect to continue this year as buyers look to reduce costs and optimize processes,” said Saurabh Gupta, vice president, Research. He added, however, that clients still opt for a more phased approach than “big-bang solutions”.
Everest report also states that 70-75 percent of total FAO spending in 2010 can be attributed to strong adoption of FAO across different industries including financial services, manufacturing, travel and logistics, and retail. More than half of total FAO spending last year came from the US, but Asia-Pacific posted the fastest growth rate. The report also shows that accounts payable and receivable, as well as general ledger are the most outsourced business processes.