Trends in F&A Outsourcing

In the era of globalization many companies have undertaken outsourcing as a part of their business strategies. As more and more companies are joining the bandwagon of outsourcing, this phenomenon is gaining a lot of attention. Recent market surveys indicate that almost 80 percent of companies expect to increase their investment in outsourcing.

Finance and Accounting outsourcing can be defined as a process in which a company delegates some of its in-house accounting/operations to a third party.
In the F&A space, companies are either outsourcing entire finance and accounting functions or sourcing single functions such as Accounts Payable, Accounts Receivable, Credit and collection, Tax Preparation, Statutory reporting and Financial Statement analysis.

Recent trends in Outsourcing F & A

• Cost pressures continue to drive companies to take advantage of cheap labor in developing country like India.
• Outsourcing of accounting used to consist primarily of invoicing, AP/AR processing and other minor tasks. Now, organizations are outsourcing their entire financial transaction processing. 
• Transaction management services are the largest opportunity within the FA BPO space while accounts payable will remains the most widely outsourced FA function.
• Increased government regulations in US and European market are prompting companies to outsource F&A to external providers.
• F&A Outsourcing is not just restricted to transaction accounting. It is increasingly covering complex and high end F&A activities like year-end finalization and statutory compliance.
• Small to mid-sized business offer fantastic opportunities for outsourcing F&A.
• Major accounting firms are depending on offshore outsourcing providers for tax returns and other services.
• A survey revealed that companies today are largely adopting F&A Outsourcing not only for cost savings, but also to transform the F&A function from a resource and cost intensive support process to an integrated flexible function able to quickly respond to changing business needs.

- Finance and Accounting is one of the fastest growing BPO segment in the outsourcing industry.
-  According to Phil Fersht, Founder & CEO of HFS Research, the market for F&A  BPO services is poised for a new phase of growth, as businesses recover from the recession and focus on new strategies to drive more efficient operations in an increasingly global economy. For complete report on F&A BPO Market Landscape, visit www.hfsresearch.com. 

Given the opportunities in F&A space, Aria Global has taken the initiative of offering cost effective F&A outsourcing solutions and services. For more details go to www.ariabpo.com.