The Everest Research Institute predicts Finance and Accounting Outsourcing (FAO) market will experience an impressive 20 percent growth (year-on-year) in terms of Annualized Contract Value (ACV) this 2011. The renewals in Total Contract Value of an estimated $2 billion will contribute to such growth with expansion of the scope of services.

This is the same growth experienced, before the recession.

It will still be more of a “phased” approach rather than with a “big bang” approach. The period to close sales or to reach the “done deal” stage will still be a little long since companies are still cautious before jumping into the outsourcing bandwagon.

2011 will usher in growth in new set of industries such as healthcare and financial services and the mid-market segment will experience growth in terms of adoption of FAO.

Knowledge process outsourcing; a specialized form of outsourcing of talent-intensive activities, such as internal audit, financial analysis, et cetera, will continue to increase because businesses start to see the need for these specialized services and because of the lack of talents internally.

There is a big demand for knowledge outsourcing from the mid-market segment since most of companies are now leaning more to talent utilization and cost arbitrage, rather than hiring.

In this regard, companies are now also opting to co-source certain internal audit functions rather than hire specialists into their pay-roll.

Globally, companies will be looking into more of “best-in-process” rather than cost arbitrage according to Everest Research Institute.

Platform and SaaS (Software as a Service) based offerings or the integration of a computerized system in the F&A service will be a demand more from mid-sized buyers.

It is going to be an exciting year for F&A outsourcing globally. With more businesses setting their sights to 2011 to outsource their accounting functions, the Philippines would be the place to find qualified professionals in Finance and Accounting.


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Miranda, Wilma. “2011 Forecasts on F&A Outsourcing.” 27 January 2011. The Manila Bulletin. Accessed 27 January 2011. Link Here.


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