Tag Archives: Finance and Accounting Outsourcing

Accounting Outsourcing

September 21, 2010 by 123outsource
Categories: Accounting | Tagged , , , , , | Leave a comment

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.

Finance & Accounting Outsourcing

September 17, 2010 by 123outsource
Categories: Accounting | Tagged , , , | 1 Comment

Finance & Accounting Outsourcing
Finance & Accounting Outsourcing (F&A outsourcing) represents a huge percentage of the global outsourcing revenue.  The US dominates Finance & Accounting outsourcing revenue, but the UK and Australia also do a lot of F&A outsourcing.  123outsource.net has many companies in India that specialize in various types of accounting and finance.  There are companies that specialize in UK  accounting that can computer your VAT tax, and other types of taxes as well. These companies can put together financial statements, spreadsheets, calculate sales taxes, income taxes and much more.  With the high cost of services in America, UK and Australia, outsourcing to India has become a popular way to save on expenses.  Many companies in India do a great job on various types of services, and in addition, offer fast turnaround which in many industries is virtually impossible in America.

Finance & Accounting is one of the fastest growing outsourcing industries, along with Legal Process Outsourcing and Pharmaceutical Research. Future growth of Indian companies in this industry rest in their communication and marketing strengths.  If they can successfully woo Western clients, and offer smooth interaction, and reliable work, companies in India will win over many Accounting and Finance contracts. Although there is a lot of global competition for any type of outsourcing work, India has their history of being colonized by the British in their favor.  The educated classes generally have a good command of English in India, not to mention a long standing cultural relationship with the UK and America!
I am wondering if all of the outsourcing to India will cause a general widespread reduction in hourly fees for Accounting and Finance services.  This happened in the IT industry about a decade or two ago due to mass outsourcing.  We will wait and see.  Let’s hope that India will save a few industries for the rest of us, otherwise we will all have to move to Bangalore!

Tweets:
(1) Accounting is the one task you can outsource to India and consistently get really smart people
(2) Finance & Accounting Outsourcing: who does it and what can you expect?

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