Yankee Group Reports Finance and Accounting BPO Market To Reach $11.2 Billion in 2004

Worldwide outsourcing market for finance and accounting services will reach $114 billion by 2008

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Friday, July 30, 2004; 12:00 AM

BOSTON - July 30, 2004 - According to the Yankee Group report, Finance and Accounting BPO, Part 1: Market Analysis and Forecast 2003 to 2008, the global market for F&A BPO will increase at a CAGR of more than 10 percent during the forecast period, with the Americas commanding a 57 percent market share in 2004 ($6.4 billion); EMEA at 39 percent ($4.4 billion); and Asia-Pacific at 6 percent ($0.7 billion).

The largest segment of the F&A outsourcing market is consulting services, accounting for almost $48 billion in 2004 (more than 50 percent of the market), increasing 6 percent per year to an estimated $59 billion by 2008. F&A volume processing services will account for $33 billion this year, increasing to $37 billion by 2008, at a CAGR of barely 3 percent.

"Today, enterprises are just beginning to outsource the management and execution of F&A processes to external service providers," says Andrew Efstathiou, Yankee Group Business & IT Services program manager. "Principal drivers are cost reduction, regulatory compliance, industry consolidation, reduction of environment complexity and access to new technology and management portals."

"The ability to source most or all the F&A function to a vendor as part of a BPO arrangement is a major shift in the way organizations are operating. Many organizations are now accustomed to trusting a services company to handle some of their most intimate business processes," says Efstathiou.

Part 2 of this report will be published in August 2004.

PRESS CONTACT

For interviews, contact Andrew Efstathiou, aefstathiou@yankeegroup.com or Phil Fersht, pfersht@yankeegroup.com.

CORPORATE CONTACT

Kimberly Vranas, director of marketing, press liaison, 617.880.0214, kvranas@yankeegroup.com.

The Yankee Group (http://www.yankeegroup.com)

The Yankee Group is the global leader in communications & networking research and consulting. The company helps businesses understand the opportunities, risks and competitive pressures of developing, deploying and consuming products and services that drive communication or information exchange. Now in its fourth decade, the Yankee Group is based in Boston with offices throughout North America and Europe.