Businesses to embrace outsourcing highly in 2022

Everest Group predicts that the finance and accounting outsourcing (FAO) industry will increase significantly, up to 10 percent yearly in 2022

FREMONT, CA: Since businesses are displaying openness to expanding their spectrum of services with third-party service providers, Everest Group predicts that the finance and accounting outsourcing (FAO) industry will increase significantly, up to 10 percent yearly in 2022. While FAO is one of the most established Business Process Services sectors, it is far from saturated, and there is still plenty of room for growth, as indicated by Everest Group's forecasted double-digit growth rates over the next five years.

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Mature buyers are increasingly willing to use third-party assistance for more complicated, judgment-intensive processes such as financial planning and analysis (FP&A) and tax as well as industry-specific activities like premium collections and claims accounting in the insurance sector. Banking and financial services (BFS), media and entertainment, healthcare, retail and consumer packaged goods (CPG), and travel and transportation are all areas that demand specialist finance and accounting skills. To consolidate governance frameworks, execute environmental, social, and governance (ESG) programmes, and demonstrate performance with measurable and defined metrics, CFOs and other financial leaders are increasingly relying on a one-team strategy with third-party providers.

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In their Global Business Services (GBS)/Shared Services Center (SSC) operations, organizations are likewise growing more open to enlisting the help of service providers. Service providers are evolving in many ways to position themselves for growth by developing global service delivery and location paradigms that are more adaptable. While facilitating office, work-from-home, and hybrid models, providers are rebalancing and de-densifying labor across locations. Further, they are creating a strong talent management strategy based on a diverse, techno-functional talent pool. They are also investing in collaborative technologies and platforms to create strong, agile, and secure workspaces and in partnerships to meet digital demand, particularly with respect to cybersecurity.