Finance and Accounting Outsourcing Services Market Dynamics 2021-2031
The finance and accounting outsourcing services market size is expected to register a CAGR of 10.4% during 2023–2031. The adoption of advanced technologies such as artificial intelligence (AI), machine learning and robotic process automation is likely to remain a key trend in the market.
Finance and Accounting Outsourcing Services Market Analysis
The finance and accounting outsourcing services market includes growth prospects owing to the current market trends and their foreseeable impact during the forecast period. The finance and accounting outsourcing services market is growing due to the rapid adoption of outsourcing services and increased globalization. Growing SMEs and startups provide lucrative opportunities for finance and accounting outsourcing services market growth.
Finance and Accounting Outsourcing Services Market Overview
Outsourcing finance and accounting refers to hiring a third party (outside the company) to carry out the organization's financial and accounting tasks. Organizations in the financial and accounting sector can outsource services such as bookkeeping, financial reporting, management reporting, tax preparation, accounts payable, accounts receivable, and others. Organizations nowadays have realized the huge potential of contracting out essential company functions to external companies and individuals. Businesses are transitioning from internal operations to outsourced operations for services, from human resource outsourcing to accounting outsourcing.
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Finance and Accounting Outsourcing Services Market: Strategic Insights
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Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Finance and Accounting Outsourcing Services Market: Strategic Insights
Naveen
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Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
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Finance and Accounting Outsourcing Services Market Drivers and Opportunities
Rapid Adoption Of Outsourcing Services to Favor Market
Over the past few decades, many companies have decided to outsource finance and accounting functions to professionals because they can have a tremendous long-term impact on their business. Long-term benefits include saving time to concentrate on the essential components. Many businesses are starting to outsource their accounting and finance functions more frequently now due to the cost of outsourcing is less than that of hiring one financial executive. All businesses must reduce costs and acquire stronger financial leadership to succeed. Thus, the rapid adoption of outsourcing services will drive the finance and accounting outsourcing services market growth.
Increased Globalization
The increasing integration of economies, cultures, and communities, or globalization, has had a significant impact on many industries, including finance and accounting. Auditors and accountants must modify their procedures to meet the intricacies and difficulties posed by this global environment as companies grow internationally and trade internationally. Globalization offers chances for innovation, cooperation, and progress, but it also poses difficulties in terms of risk exposure, regulatory compliance, and ethical issues. In order to be efficient and current in this dynamic environment, auditors and accountants must continue to outsource services as the world grows more interconnected.
Finance and Accounting Outsourcing Services Market Report Segmentation Analysis
Key segments that contributed to the derivation of the finance and accounting outsourcing services market analysis are service outlook, enterprise size, and vertical.
- Based on service outlook, the finance and accounting outsourcing services market is divided into order-to-cash, procure-to-pay, record-to-report, source-to-pay, and multi-processed.
- By enterprise size, the market is segmented into small & medium enterprises (SMEs) and large enterprises.
- By vertical, the market is segmented into BFSI, healthcare, manufacturing, IT & telecommunications, retail, and others.
Finance And Accounting Outsourcing Services Market Share Analysis by Geography
The geographic scope of the finance and accounting outsourcing services market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
North America is experiencing rapid growth and is anticipated to hold a significant co-finance and accounting outsourcing services market share. With the advancement of technology and the increasing demand for outsourcing services, organizations in North America are investing heavily in upgrading their finance and accounting sectors. Moreover, organizations in North America are focusing on enhancing customer experience, improving operational efficiency, and ensuring regulatory compliance through the implementation of outsourcing services.
Finance and Accounting Outsourcing Services Market Report Scope
Finance and Accounting Outsourcing Services Market News and Recent Developments
The finance and accounting outsourcing services market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the finance and accounting outsourcing services market are listed below:
- Trintech, the leading global provider of integrated record-to-report software solutions for the office of finance, announced its partnership with IBM to include Trintech’s ReconNET as part of IBM’s financial solutions technology portfolio for Business Process Outsourcing (BPO). Adding ReconNET to IBM’s portfolio demonstrates its commitment to providing continuous innovation around “best-in-class” finance solutions facing its BPO’s customers’ finance departments (Source: Trintech, Press Release, November 2023)
Finance and Accounting Outsourcing Services Market Report Coverage and Deliverables
The “Finance and Accounting Outsourcing Services Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Finance and accounting outsourcing services market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Finance and accounting outsourcing services market trends, as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Finance and accounting outsourcing services market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the finance and accounting outsourcing services market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
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to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
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Some of the customization options available based on the request are additional 3–5 company profiles and country-specific analysis of 3–5 countries of your choice. Customizations are to be requested/discussed before making final order confirmation, as our team would review the same and check the feasibility.
The leading players operating in the finance and accounting outsourcing services market are Accenture, Infosys Limited (Infosys BPM), HCL Technologies Limited, Wipro Limited, Capgemini, Sutherland, IBM Corporation, Tata Consultancy Services Limited, Genpact, Fiserv, Inc., Datamatics, Vee Technologies, Sutherland Global Services, Hewlett-Packard Development Company, Exlservice Holdings, WNS, Cognizant Technology Solutions Corporation, Genpact, Serco Group Plc, and Teleperformance
Adoption of advanced technologies such as artificial intelligence (AI), machine learning and robotic process automation is anticipated to play a significant role in the global finance and accounting outsourcing services market in the coming years.
The global finance and accounting outsourcing services market is expected to grow at a CAGR of 10.4%% during the forecast period 2024 - 2031.
The major factors driving the finance and accounting outsourcing services market are the rapid adoption of outsourcing services and increased globalization.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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