As it gains more and more popularity over the years, business process outsourcing has destroyed the walls once confining it to simple business tasks. Regarded as one of the fastest growing industries in the world, today’s BPO has become more complicated and is fueled by complex business functions like customer care, information technology services and human resources. Its impressive spread is more proven when BPO started to invade one of the most important aspects of business: finance and accounting.
Finance and accounting business process outsourcing, or FABPO, has been in existence for many years. Yet, its popularity boomed, as today’s companies prefer to outsource many of their important business functions primarily to cut costs and focus on core competencies for better performance. The current global leaders in FABPO are India and the Philippines. While India takes pride in its large talent pool and low cost of labor, Philippines boasts of its high degree of understanding the US market and strong workforce of competent accountants.
At present, FABPO comprises one of the largest segments within the BPO offering. In 2003, the global market for FABPO raked over $30 billion. International Data Corps, a US research company, estimated that the industry would reach $47.6 billion on 2008, with an annual growth rate of 9.6%. The study entitled US Finance and Accounting Outsourcing Market Forecasts and Analysis 2003-2008 also stated that companies today outsource finance and accounting operations not just to earn bigger savings but also to solve strategic business concerns.
Moreover, FABPO gives companies the privilege to access cutting edge facilities and professional capabilities served by the service providers. Since companies can choose from a variety of accounting-specialized service vendors, they can free up financial worries and share the risks with the service providers. Consequently, it allows companies to concentrate on improving their core business functions and increasing product and service quality. Also, FABPO service providers allow companies to gain better financial reporting and regulatory compliance.
FABPO offers a wide range of corporate financial and accounting services, which include account maintenance, accounts payable administration, asset management, tax reporting, accounts receivable collection, management consulting, payroll processing, inventory control and financial reporting. A small yet significant segment of FABPO involves other financial services such as credit card administration and logistics management.
The present expansion of FABPO’s vast array of services is a strong evidence that there is no stopping to its growing popularity. The potential of FABPO to reach the global zenith as the fastest growing industry is beyond question. Like the call center industry which currently makes a significant impact in the global market, FABPO is surely on its way to the top, if widely supported by the different sectors of the global economy.
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