PUBLISHER: The Business Research Company | PRODUCT CODE: 1664292
PUBLISHER: The Business Research Company | PRODUCT CODE: 1664292
Finance and Accounting (F&A) Business Process Outsourcing (BPO) involves providing support to customers for various business processes in the F&A domain through a consolidated BPO contract. This service aids businesses in optimizing accounting, tax-related activities, financial planning, and analytical processes.
The primary service types within F&A BPO include order-to-cash, procure-to-pay, record-to-report, source-to-pay, and multi processes. Order-to-cash encompasses business operations and activities related to receiving and fulfilling customer requests for goods and services. F&A BPO services cater to enterprises of different sizes, including small and medium enterprises (SMEs) and large enterprises. These services find applications across various industry verticals such as banking, financial services, and insurance (BFSI), healthcare, manufacturing, energy and utilities, travel and logistics, information technology (IT) and telecommunications, media and entertainment, retail, and others.
The F&A BPO market research report is one of a series of new reports from The Business Research Company that provides F&A BPO market statistics, including F&A BPO industry global market size, regional shares, competitors with an F&A BPO market share, detailed F&A BPO market segments, market trends, and opportunities, and any further data you may need to thrive in the F&A BPO industry. This F&A BPO market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The F&A BPO market size has grown strongly in recent years. It will grow from $53.93 billion in 2024 to $58.21 billion in 2025 at a compound annual growth rate (CAGR) of 7.9%. The growth in the historic period can be attributed to cost efficiency and operational optimization, focus on core business functions, globalization and expansion strategies, compliance and regulatory requirements, access to skilled financial professionals.
The F&A BPO market size is expected to see strong growth in the next few years. It will grow to $79.42 billion in 2029 at a compound annual growth rate (CAGR) of 8.1%. The growth in the forecast period can be attributed to rise in demand for advanced analytics and reporting, focus on strategic financial planning, emphasis on risk management and fraud prevention, shift toward outcome-based service models, integration of ES (environmental, social, and governance) metrics. Major trends in the forecast period include focus on regulatory compliance, integration of blockchain technology, demand for customized solutions, adoption of predictive analytics in financial forecasting, focus on cost optimization and efficiency.
The evolution of new rules, regulations, and income tax laws set forth by governments is poised to drive the expansion of the F&A BPO market. These regulatory changes are implemented to curb inflation, address housing concerns, facilitate urban development, and regulate activities for the broader public interest. F&A BPO processes play a pivotal role in tax filings, enabling taxpayers to enhance mechanisms for preventing and resolving tax disputes. For instance, in July 2022, the United States Congress introduced the Billionaire Minimum Income Tax Act, mandating a 20% minimum tax on individual taxpayers with net wealth exceeding $100 million. The tax is calculated as 20% of the sum of taxable income and net unrealized gains, capped at 40% of the taxpayer's net worth. This shift in regulations underpins the growth of the F&A BPO market, emphasizing the need for efficient tax compliance and resolution mechanisms.
The escalating threat of cyberattacks is projected to be a catalyst driving the growth of the F&A BPO market. Cyberattacks encompass malevolent and intentional efforts to breach, disrupt, or illicitly access computer systems, networks, or digital devices for various nefarious purposes. F&A BPO plays a pivotal role in fortifying cybersecurity by implementing robust protocols, overseeing financial transactions, and ensuring adherence to compliance standards to counter cyber threats. For instance, recent data from Checkpoint revealed a substantial 38% increase in global cyberattacks in 2022 compared to the previous year. This heightened risk landscape is fueling the demand for F&A BPO services as businesses seek enhanced security measures against cyber threats.
The surging adoption of cloud-based accounting software emerges as a prominent trend shaping the F&A BPO market. Cloud-based accounting software, hosted remotely rather than locally installed, simplifies financial management processes by transferring and processing financial data on distant servers. Key players in the F&A BPO landscape are introducing innovative cloud-based accounting software solutions to fortify their market positioning. For example, in March 2023, Focus Softnet, an India-based software company, unveiled FocusLyte, its cloud-based accounting software tailored for small and medium enterprises. This software streamlines complex financial accounting tasks, managing invoices and company payments, catering to the evolving needs of modern businesses.
Leading companies in the finance and accounting (F&A) BPO market are increasingly focusing on developing advanced technological solutions, such as generative AI features, to boost efficiency, automate repetitive tasks, and enhance customer interactions. Generative AI involves using artificial intelligence systems that can create new content, including text, images, music, or code, by analyzing patterns and structures from existing data. This allows AI systems to generate original outputs, simulating human creativity and problem-solving. For example, in June 2024, Sidetrade, a France-based Order-to-Cash technology company, introduced generative AI (GenAI) features within its platform. Sidetrade's GenAI integrates sophisticated large language model (LLM) algorithms with the industry's only real-time Data Lake, setting a new standard in the Order-to-Cash process. This advanced combination enhances accuracy and ensures data privacy through the use of self-hosted LLMs developed by domain experts, enabling businesses to gain unique insights while retaining complete control over their data.
In February 2023, Accenture plc, an Ireland-based consulting company, successfully finalized the acquisition of SKS Group Holding GmbH, a Germany-based financial consultant. This strategic acquisition by Accenture aims to bolster the company's technological capabilities, regulatory services, and consulting expertise. SKS Group Holding GmbH specializes in providing regulatory management and strategic analysis, contributing to Accenture's diversified portfolio and strengthening its market position within the financial and advisory services domain.
Major companies operating in the F&A BPO market include Accenture plc, Capgemini SE, Genpact, International Business Machines Corporation, Infosys BPM Limited, Sutherland Global Services, Tata Consultancy Services Ltd., Wipro Ltd., Cognizant Technology Solutions Corporation, Exlservice Holdings Inc., Serco Group Plc, HCL Technologies Limited, DXC Technology, WNS Global Services, Mphasis Limited, Sopra Steria, Tech Mahindra Business Process Services, Williams Lea Tag, Quatrro Global Services, Datamatics Global Services Limited, Invensis Technologies, Firstsource Solutions
North America was the largest region in the F&A BPO market in 2024. Asia Pacific is expected to be the fastest-growing region in the F&A BPO market report during the forecast period. The regions covered in the f&a bpo market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the f&a bpo market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The F&A BPO market includes revenues earned by entities by providing financial reporting, accounts payable, accounts receivable, treasury and cash management, yield management, tax accounting, shareholder accounting, risk analytics, and financial administration services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
F&A BPO Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on f&a bpo market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for f&a bpo ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The f&a bpo market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.