[FINANCE & ACCOUNT OUTSOURCING] FAO Market Is on a RollSmriti Sharma
The FAO market continues to be vibrant and dynamic. According to reports, the United States accounted for over half of total FAO spending in 2010 while Asia-Pacific witnessed the fastest growth.
The FAO market continues to be vibrant and dynamic. According to reports, the United States accounted for over half of total FAO spending in 2010 while Asia-Pacific witnessed the fastest growth. Large buyers accounted for 55 percent of contracts signed in 2010. Mid-market companies that have revenues of $1-5B annually, revived adoption of FAO last year.
More than half the market engagements are with Accenture, IBM and Genpact, the report says. Approximately 48 percent of 2010's engagements involve gainshare incentive. This space is witnessing a growing demand for more transactional and outcome-based pricing models.
The FAO Leaders
Accenture and IBM dominate the global F&A BPO market. Accenture, IBM, Genpact, Capgemini, Infosys BPO and HP have been recognized as the major players by advisories. In Everest Group’s Performance/Experience/Ability/Knowledge (PEAK) matrix, leading service providers named were Accenture, IBM, Genpact, Capgemini, Infosys BPO and HP.
Recent years, have witnessed these players bag multiple engagements in the $50M+ range and thus they are able to dominate this space. Interestingly, market leader Accenture and IBM adhere to different approaches as per HfS Research on FAO: Accenture has consolidated its commanding presence with large-scale enterprise customers, but IBM has determinedly gone after the mid-market to take a commanding position in that sector.
Capgemini and Genpact are the major contenders for large scale engagements. Multi-billion dollar offshore-centric providers Infosys, TCS and Wipro, and BPO pure-play specialists EXL Service and WNS, are also very active in the market for large engagements. ACS has merged with Xerox, they have commercialized their end to end Source to Pay capabilities.
Genpact's strategy for addressing the market in 2011 is not different from their 2010 plan. That is, client acquisitions will continue to be very aggressive in terms of both new logos as well as expanding their footprints with their existing logos.
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[FINANCE & ACCOUNT OUTSOURCING] FAO Market Is on a Roll
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more . . .