Every sport has its players and guidelines, and just like in a race there is an underdog and a crowd favorite. This is quite similar to how finance and accounting outsourcing is being perceived by the outsourcing industry experts today since there are those solutions providers which the market prefers over the others.
It was reported by Horses for Sources that Accenture (NYSE:ACN) and IBM (NYSE:IBM) have a greater percentage of the finance and accounting outsourcing pie graph in terms of market share; 42% is attributed to these two solutions providers, with the remaining 58% being shared among 14 other companies. These two are considered to be the main players in this particular field of outsourcing, having the number of deals sealed annually and the size of their clients as the basis.
But it seems that even with the dominance of these two players, other companies have remained undaunted. Just recently, Genpact (NYSE:G), whose back offices are situated in India, has released a statement announcing that it has signed a 6-year contract extension with Serco (LON:SRC). This deal will allow Genpact to further improve the processes for Serco in different continents across the globe. They will be managing the finance and accounting processes for this international service company, which includes accounts receivables, accounts payable, general accounting and payroll processes.
Addition to this is the recent funding of Liberata, which is a London-based company, by Endless, a Leeds-based management firm. Liberata, whose clientele includes the government and local authorities, is a solutions provider for finance and accounting services. This recent funding will allow Liberata to streamline their processes.
Horses for Sources has also mentioned that the deals for finance and accounting outsourcing may experience a downturn in terms of the scope since it has been declining for the past couple of years. While this is a long term prediction, companies are trying their best to avoid this. Accenture, which is one of the companies who captured the larger portion of the pie presented in the blog of Horses for Sources, just recently opened a facility in the Philippines to support their finance and accounting solutions. This could likely help alleviate the current challenges that the industry is facing since the resources available are enough to support the demand of a deal with a wider scope.
However, not all locations are conducive to the growth of the finance and accounting outsourcing industry. This is according to the Business Director of Acotax, Sergey Bulavsky, in a statement released on the occasion of their company’s fifth year anniversary. Bulavsky highlighted the fact that the company’s milestone accomplishment of reaching five years in the Russian market is cause for much celebration considering the sheer number of accounting solutions providers who rarely get past the three-year infancy stage.
There may be predictions that the finance and accounting outsourcing industry will be facing a bump in the road, paving the way for the other industries such as IT outsourcing and recruitment processing to race ahead, but with finance and accounting outsourcing services providers exhausting all efforts to avoid this then finance and accounting outsourcing may be able to cruise on ahead regardless.
Audrey B is a member of Infinit Outsourcing content writing department, one of the leading accounting outsourcing companies in the BPO sector with offices in US, UK, and Asia.