NEW YORK, April 4, 2013 /PRNewswire/ -- Spending on finance and accounting business process outsourcing (F&A BPO) services will surpass $25 billion globally in 2013, and will rise at an annual compound growth rate of eight percent through 2017, according to new research from U.S. audit, tax and advisory firm KPMG LLP and HfS Research, a leading analyst authority on global business operations strategies.
More than 100 enterprise-level F&A BPO engagements are expected to be signed this year alone, according to the research, which covers 399 major global enterprises and analyzed 745 current enterprise F&A engagements. The research also profiled 17 leading suppliers of F&A BPO services.
The report, "Finance and Accounting BPO Market Landscape, 2013: Market Evaluation, Forecast and Competitive Analysis," found that key market dynamics fueling global growth include:
- Proven performance: 90 percent of F&A BPO engagements have been consistently meeting their cost-reduction targets and initial delivery performance, making it difficult for finance leaders to avoid evaluating its potential.
- Desire to reduce costs and standardize processes: Enterprises overwhelmingly want to look at new ways to take advantage of lower-cost operations and standardized financial processes, where there is little competitive differentiation to be achieved by operating in house.
- The lethargy of the 2008-10 recession has slowly lifted: More enterprise leaders are now looking at more radical strategies to increase productivity and global business effectiveness. Recent activity shows an increasing number of enterprises getting more aggressive with globalizing their finance operating models to include outsourcing services.
Ron Walker, a partner with KPMG and the F&A service line leader for KPMG's Shared Services and Outsourcing Advisory practice, said "F&A BPO needs to be viewed as an extension to an enterprise's capabilities, not a substitute. KPMG is helping clients evolve toward a global business services framework that optimizes the mix of human capital, service delivery models, process innovation and technology to deliver services on an enterprise-wide, cross-functional basis to support the business strategy."
Phil Fersht, CEO of HfS Research and a co-author of the research report, said, "Too many enterprise leaders are approaching F&A BPO with a myopic vision to reduce costs and mitigate risks. They are kicking the can down the road by failing to invest in better technology platforms, analytics capability and an innovation roadmap. They should be approaching the F&A BPO as an opportunity to invest in their firms' futures."
Click here to request a copy of the report.
About KPMG LLP
KPMG LLP, the audit, tax and advisory firm (www.kpmg.com/us), is the U.S. member firm of KPMG International Cooperative ("KPMG International"). KPMG International's member firms have 152,000 professionals, including more than 8,600 partners, in 156 countries.
About HfS Research
HfS serves the research and strategy needs of business operations leaders across finance, supply chain, human resources, marketing, customer management, IT and core industry functions. In addition to researching business operations strategies, HfS educates and facilitates discussion among the world's largest knowledge community of enterprise services professionals, currently comprising 120,000 subscribers. HfS Research also facilitates the HfS Sourcing Executive Council, the acclaimed elite group of sourcing practitioners from leading organizations, which meets on a bi-annual basis to share the future direction of the global services industry and discuss the future enterprise operations framework.
Now in its sixth year of publication, HfS Research's acclaimed blog "Horses for Sources" is widely recognized as the leading destination for unfettered collective insight, research and open debate of sourcing industry issues and developments.
Contact: Christine Curtin
SOURCE KPMG LLP