Increased demand for automation and digital technologies is driving the finance and accounting outsourcing category’s growth

Finance and Accounting Outsourcing Category - Procurement Intelligence

The finance and accounting outsourcing category is expected to grow at a CAGR of 6% from 2023 to 2030. Companies are concerned about data security and depend more on outsourcing partners for their financial operations. In 2023, the companies emphasized a strong focus on cybersecurity protection and severe attention to data privacy guidelines. Modern security protocols are being used by outsourcing service providers to protect sensitive financial data from online attacks. The demand for data security in this category is driving the market growth.

There is a growing emphasis on regulations and compliance, which has an impact on the financial and accounting landscape. Outsourcing providers put significant focus on ensuring the competence of national and international financial regulations such as ISO 27001, Payment Card Industry Data Security Standard (PCI DSS), etc. while remaining fully compliant with compliance standards like Generally Accepted Accounting Principles (GAAP), American Institute of Certified Public Accountants (AICPA), etc. Following these regulations helps companies and their outsourcing providers prevent potential fines and damage to their reputations.

The growing trend of remote work and digital collaboration has increased the market scope of BPO services for finance and accounting. As a result of exposure to a large pool of global talent, businesses will be able to acquire the necessary talent. The digitalization trend encourages diversity, innovation, and cost-effectiveness because it gives businesses access to a variety of highly qualified individuals around the world.

Companies’ emphasis on collaborating and incorporating new technology to develop new products/services. For instance,

• In August 2023, Capgemini's AI-enabled Frictionless Finance platform offers professional financial insights, cutting-edge tech integration, and process optimization that promote operational efficiency and value realization for its clients.

• In February 2023, GI Outsourcing, a UK-based outsourcing provider announced a corporate training and development partnership with the Association of International Certified Professional Accountants (AICPA) and the Chartered Institute of Management Accountants (CIMA). GI Outsourcing has incorporated qualifications from the AICPA and CIMA in its employee training and development program for the employees who are assisting their international clients to keep them educated on various international accounting standards.

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Finance and Accounting Outsourcing Sourcing Intelligence Highlights

• Because few service providers can compete with market leaders in terms of end-to-end service delivery capabilities and geographic reach for global/regional engagements, buyers in the finance and accounting outsourcing category have limited negotiating power.

• The average cost of outsourcing one of the finance and accounting services, i.e., accounting and bookkeeping services, ranges from USD 500 to USD 5,000 per month.

• The global finance and accounting outsourcing category is fragmented. The industry encompasses a wide range of services, including accounting and bookkeeping, payroll processing, tax return preparation, auditing, and many more.

• The category can be described as mature with several active players equipped with advanced technologies and global talent pool capabilities.

Finance and Accounting Outsourcing Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Market Intelligence along with emerging technology and regulatory landscape

• Market estimates and forecasts from 2022 to 2030

• Growth opportunities, trends, and driver analysis

• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments

• Porter’s 5 forces

• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis

• Engagement and operating models, KPI, and SLA elements

• LCC/BCC analysis and negotiation strategies

• Peer benchmarking and product analysis

• Market report in PDF, Excel, and PPT and online dashboard versions 

Cost Intelligence Highlights

Grand View Research has identified the following key cost components for the finance and accounting outsourcing category:

• Labor cost

• Technology cost

• Bill pays and coding

• Financial report

• Financial statement and analysis

• Others (set of services selected (such as accounting bookkeeping support, invoicing and collection)

  • Outsourcing bookkeeping services

    • Range of services (i.e., vendor invoicing, bank/credit card reconciliations, etc.)

    • Staffing method

    • Volume of transaction

    • Geographic location

    • Level of talent expertise

    • Others

Technology cost, labor cost, financial reports, as well as financial statements and analysis form the largest cost components of the finance and accounting outsourcing category.

List of Key Suppliers in the Finance and Accounting Outsourcing Category

• Accenture Ltd.

• Capgemini SA

• Conduent Inc.

• Fusion Business Solutions (P) Limited.

• Genpact Ltd.

• Hewlett-Packard Development Company, L.P.

• Infosys BPO Limited

• Meru Accounting

• International Business Machines Corporation

• Steria Limited

• Wipro BPO

• WNS Global Services