Tag Archives: Accounting Outsource Market

Accounting Outsourcing 
 
In 2008, the global accounting outsource market was expected to grow 9.6% to surpasss 47.6 billion according to the IDC.  The accounting outsource profession is said to include transaction management, finance, general accounting, treasury and risk management, and tax management.    Spending on tax management is one of the accounting specialties that is expected to grow the fastest whilc accounts payable is the most widely outsourced finance / accounting function according to the IDC.
 
The finance and accounting BPO segment is one of the largest and fastest growing according to Anna Danilenco, program manager.  From a regional point of view, the U.S.A will remain the largest finance / accounting business process outsourcing market.   Cost cutting was one of the primary factors involved in what made companies want to outsource, while enhancing productivity was another main factor.
 
Payroll is the most commonly outsource finance / accounting work., while budgeting and forecasting are the least likely to be outsourced.  It looks like more manual work is more likely to be outsourced, while more critical work is more likely to be done back home.
 
Most companies engaged in outsourcing have no metrics to measure the success of their outsourcing efficiency, however, companies generally report a savings in costs.  Many companies worried, that outsourcing would cause a greater risk that critical information would fall into the hands of competitors.  Putting risk aside, companies involved in outsourcing reported an increase in business activity.  Another fact to note is that the Asia Pacific region, in particular China is growing in the FA accounting industry. China is growing rapidly in Finance and Accounting outsourcing, and we’ll see how they do in the long run.