About Financial Process Outsourcing
Outsourcing is defined as the transfer of the day-to-day execution of the complete business functions by an outsourcing organization. The word outsourcing stands for “Outside Resource Using“. During the time of globalization and international competitiveness, many companies were searching for ways to optimize their productions and also to maximize their earnings and profit. One method to achieve this is “outsourcing”. Outsourcing gives away a part of the business process to some other company so as to achieve cost reduction. The outsourcing company has to take full responsibility for the part of the business process that has been given to it. Financial Outsourcing is a service that provides a full experience of the finance department for small businesses. A finance department manages the entire day-to-day transactions, accounts payable and receivable, payroll, managing financial reporting and many more other services.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Million) |
The companies are now exploring the market by adopting mergers & acquisitions, expansions, investments, new developments in existing products and collaborations as their preferred strategies. The players are also exploring new geographies and industries through expansions and acquisitions so as to avail a competitive advantage through combined synergies. Analyst at AMA Research estimates that United States Players will contribute the maximum growth to Global Financial Process Outsourcing market throughout the forecasted period. Established and emerging Players should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
Accenture (Ireland), IBM (United States), Cognizant (United States), Concentrix (United States), Wipro (India), Genpact (United States), ADP, LLC (United States), EXL Service (United States), Invensis Technologies (India), Vee Technologies, Inc (United States), BDO Global (Netherlands) and Tata Consultancy Services (TCS) (India) are some of the key players that are part of study coverage. Additionally, the Players which are also part of the research coverage are ValeurHR (Singapore), Sutherland Global Services (United States) and Datamatics Global Services Limited (India).
Segmentation Overview
AMA Research has segmented the market of Global Financial Process Outsourcing market by Type (Data Collection, Budgeting, Planning (strategic planning, P&L, and balance sheet planning, capital planning, project planning, production and capacity planning), Forecasting (long-range forecasting, rolling forecasts, cash flow forecasting), Reporting (management, statutory, disclosure) and Others), Application (Preparing financial statements books, Analytical review and variance analysis, Communicates the business strategy to staff, Tracks progress and Manage cash flow cycles and plan supplier spending) and Region.
On the basis of geography, the market of Financial Process Outsourcing has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by End-User, the sub-segment i.e. Individuals will boost the Financial Process Outsourcing market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Organisation Size, the sub-segment i.e. Start-ups will boost the Financial Process Outsourcing market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Increasing Trend of Flexibility in Customization of Any Equipment So As To Predict the Cash Flow and Budget Accurately and Increasing Urbanization and Growing Infrastructure in Developing Countries
Market Growth Drivers:
Increasing Competition in the Market and Growing Demand of Different Sectors for Getting Complete Solutions and Services at a Single Place
Challenges:
Lack of Service Disruptions or Data Safety and Security
Restraints:
Lack of Technical Expertise
Opportunities:
Increasing Governmental Regulations for Developing Infrastructure and Growing Technical Advancements
Market Leaders and their expansionary development strategies
In November 2023, Atento Luxco 1 one of the world's largest providers of customer relationship management and business process outsourcing services and industry leader today announced its new business strategy following the successful completion of its restructuring process. Moving forward, Atento enters a new phase in its business strategy aimed at leading the way to Business Transformation Outsourcing, boosting its competitiveness in the market, and improving its growth outlook. In line with this new strategy, the Company is adopting a strong focus on technological investment for the transformation of the CX and its geographic expansion, with the employees and clients at the center.
In July 2023, IBT announces the launch of its innovative Business Process Outsourcing (BPO) services. With a proven track record of delivering excellence, IBT aims to revolutionize the way businesses handle their non-core functions, enabling them to focus on strategic growth and maximize productivity.
With implementation of the European Union General Data Protection Regulation (EU GDPR) in May 2018, Indian outsourcing companies specifically business processing and IT/ITES companies, had to revamp their existing practices to align with the stricter requirements, including data inventorisation, conducting information security audits, implementing privacy contact management, streamlining information sharing and retention policies and appointing data protection officers. Also PDP Bill 2018 is significantly influenced by the EU GDPR, proposes establishment of a Data Protection Authority and contains rigorous principles, conditions and compliances for processing PI. It also provides for substantial penalties and imposes personal liability on corporate offices for breaches.
Key Target Audience
Financial Process Outsourcing Companies, IT Industries, Financial Bodies, End Users of Financial Process Outsourcing and Regulatory Bodies
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.