Understanding the Finance and Accounting Outsourcing Market

The global market for Finance and Accounting Outsourcing, which was predicted to be worth US$37.9 billion in 2020, is expected to expand to US$53.4 billion by 2026, with a CAGR of 5.9% over the period considered

FREMONT CA: Accounting outsourcing services play an important role in the finance and accounting business. Because the service requires less customization when the process and technology are outsourced, the global economic crisis is likely to boost demand for F&A BPO activities (compared to customer care and HR BPO). Companies are standardizing their F&A (Finance and Accounting) BPO services as the demand for transparency grows, and laws become more stringent. The trend toward standardization also encourages the implementation of best practices in financial management, which is a major motivator for the use of F&A BPO services.

Since many F&A standards are regulated, BPO service providers can use a single platform to serve various customers, eliminating customization, increasing margins, and allowing customers to benefit from economies of scale. The number of new organizations using accounting outsourcing each year has been steadily increasing, while the service contracts of existing clients have been extended for outsourcing firms. In the future, outsourcing service providers will increasingly rely on new technologies such as machine automation and artificial intelligence to help clients do jobs faster and more efficiently. To stay relevant and assure service contract renewal, providers in the finance and accounting outsourcing industry must move away from traditional pricing patterns and automation initiatives.

In the year 2021, the finance and accounting outsourcing market in the United States was expected to be worth US$18.3 billion. China, the world's second-largest economy, is expected to reach a market size of US$2 billion in 2026, representing a CAGR of 7.6% throughout the period under analysis. The country presently holds 45.7 percent of the worldwide market share.