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Economic Downturn Expected to Boost Demand for Finance and Accounting Business Process Outsourcing, Says IDC

  • 13 February, 2009 10:56

<p>NORTH SYDNEY, 13 February 2009, Increased regulation and the demand for transparency are becoming strong drivers for enterprises to standardise their Finance and Accounting (F&amp;A) Business Process Outsourcing (BPO) activities.</p>
<p>This is also allowing for "best practices" in financial management, which is one of the biggest factors driving F&amp;A BPO adoption.</p>
<p>IDC has just released a special report which provides an in-depth analysis of trends and opportunities arising within the Finance and Accounting BPO landscape.</p>
<p>"Global delivery is becoming a deal clincher in almost all contracts. This is likely to pose a threat to some of the local specialised F&amp;A providers that do not have a global delivery capability and can only offer limited pieces of the value chain.</p>
<p>"As customers embark on supplier consolidation they are clearly showing a preference for multi-function or full scale BPO providers like IBM, Accenture or the Indian providers like Infosys, Wipro and HCL Technologies. In most deals these players are getting first right of refusal over the function specific specialised providers," comments Aprajita Sharma, Program Manager BPO at IDC.</p>
<p>The economic downturn is expected to boost demand for F&amp;A BPO as it requires less customisation when the process and underlying technology are outsourced (when compared with HR and customer care BPO).</p>
<p>Many F&amp;A standards are regulated and have common practices with customers. This enables BPO service providers to deploy a common platform across multiple customers, provide less customisation work, allowing better operating margins and enable customers to benefit from the economies of scale equation.</p>
<p>"In contracts where the underlying technology is also outsourced, over 75% of F&amp;A contracts have packaged ERP systems, with SAP taking almost 45% of this market, further reducing the amount of customisation workload," Sharma adds.</p>
<p>Other key areas discussed in the report are;</p>
<p>·Competitive Analysis</p>
<p>·Opportunity forecasts and addressable markets</p>
<p>·Survey results to gauge customer preferences</p>
<p>·IDC's opinion on what it takes to win in this market</p>
<p>For further information on the findings contained in this report or to request an analyst briefing on this topic, please contact Sally Taylor-Phillips, Marketing Communications Manager at IDC on +61 2 9925 2234 or e-mail
<p>For more information please contact Sally Taylor-Phillips, Marketing Communications Manager at IDC on +61 2 9925 2234 or e-mail</p>
<p>About IDC
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends covering over 110 countries worldwide. For more than 44 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting or</p>

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