Finance and Accounting Outsourcing (FAO) Market Size, Share, Growth, Trends, Global Industry Analysis, By Type (Business Support Outsourcing Service, Specific Functions Outsourcing Service, and Universal Terminal Outsourcing Service), By Application (SME (Small and Medium Enterprises) and Large Enterprises), Regional Insights and Forecast From 2025 To 2033

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FINANCE AND ACCOUNTING OUTSOURCING (FAO) MARKET OVERVIEW

The global finance and accounting outsourcing (FAO) market size was USD 66.8 billion in 2024 and will touch USD 110.68 billion by 2033, at CAGR of 5.77% during the forecast period from 2025 To 2033.

Enterprises are increasingly relying on third-party provider support for their finance tasks as a result of rising inflation, a depressed economy, geopolitical unrest, and volatility brought on by pandemics. The need for next-generation technology and high-end Finance and Accounting (F&A) work from seasoned outsourcers, as well as an increase in the number of first-time outsourcers, will all continue to fuel market expansion in the near future.

Organizations all around the world are adopting digital technology and automating sophisticated Finance & Accounting procedures as a result of the changing business conditions. Such factors are expected to drive the finance and accounting outsourcing market growth in the coming years.

COVID-19 IMPACT

Increasing Adoption Of Outsourcing To Improve Market Performance

The global COVID-19 pandemic has been unprecedented and staggering, with finance and accounting outsourcing (FAO) experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

It is anticipated that COVID-19 will have a negligible impact on the sector during this time. After 2021, industry income is anticipated to increase as the economy and company confidence both improve. In general, outsourcing has become more and more popular as a result of the COVID-19 pandemic. Businesses in Europe are beginning to understand how outsourcing their accounting and finance functions may increase their flexibility and resiliency during challenging times.

LATEST TRENDS

ESG Solutions to Fuel Market Growth

Some of the key ways that providers are differentiating themselves include offering end-to-end transformation solutions, in addition to domain and industry expertise and innovative Environmental, Social, and Governance (ESG) solutions, flexible pricing models, a design thinking-led approach, transformation frameworks, and next-generation offerings utilizing automation and analytics.

Outsourcing has become more widely accepted as the industry has expanded and consumer knowledge has grown. Although there are a few similar threads, the justifications for outsourcing finance and accounting procedures are as different as the firms themselves.

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FINANCE AND ACCOUNTING OUTSOURCING (FAO) MARKET SEGMENTATION

By Type

Based on type, the market is divided into Business Support Outsourcing Service, Specific Functions Outsourcing Service, and Universal Terminal Outsourcing Service.

By Application

Based on the application, the market is divided into SME (Small and Medium Enterprises) and Large Enterprises.

DRIVING FACTORS

Increasing Adoption from Offshore Model to Fuel Market Growth

Because the accounting sector is struggling with a pipeline issue that is going to only get worse, finance and accounting is in a unique position to succeed in outsourcing, particularly with an offshore model. There aren't nearly enough next-generation prospects entering the workforce to replace the estimated 75 percent of certified professional accountants who are now employed who will retire over the next 15 years, according to the American Institute of Certified Public Accountants (AICPA). Accounting is still regarded as a respectable and realistic career option in overseas countries like the Philippines, where certified accountants meet the same standards as CPAs in the U.S.

Expansion of BPO to Expand Market Growth

Over the past two decades, business process outsourcing has grown tremendously popular with businesses of all sizes, from Fortune 500s to startups. Today, companies across all sectors can outsource non-core tasks while allocating greater resources to vital operations. The practice of hiring outside service providers for various company-related tasks and operations is known as business process outsourcing. Although manufacturers were the ones who first adopted BPO, nearly every industry you can think of now incorporates it into their business structures. Because business process outsourcing solutions offer a variety of opportunities for cost reduction and business growth, businesses across all industries have adopted BPO.

RESTRAINING FACTORS

Disadvantages to Harm Market Growth

One should be aware that outsourcing has drawbacks as well. Before selecting a choice, it is critical for business owners to be aware of the following potential disadvantages: When you farm out some of your business operations, you are essentially handing over control to your outsourcing company.

When you farm out some of your business operations, you are essentially handing over control to your outsourcing company. The fact that they will still be reporting to you means that you won't necessarily lose complete control over the jobs they were subcontracted to undertake.

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FINANCE AND ACCOUNTING OUTSOURCING (FAO) MARKET REGIONAL INSIGHTS

Presence of SMEs in to Drive Market Share in Europe

Europe is anticipated to have the largest finance and accounting outsourcing (FAO) market share. Finance and accounting outsourcing (FAO) is becoming more and more popular among European businesses, especially small and medium-sized organizations (SMEs), as a low-cost means of enhancing their operations. Market trends include automation, real-time services, and a need for partners that can provide added value.

The second-largest economy in Europe is that of the U.K. The sector that contributes most to the UK's GDP is finance and banking. This industry frequently outsources finance and accounting functions, which increases demand for finance and accounting outsourcing services in the UK.

KEY INDUSTRY PLAYERS

Leading Players Adopt New Strategies to Stay Competitive

The report covers information about the list of market players and their latest development in the industry. The information includes mergers, partnerships, acquisitions, technological developments, and production lines. Other aspects examined for this market include complete research on companies producing and introducing the latest products, regions they conduct their operations in, automation, technology adoption, generating the most revenue, and making a difference with their products.

List of Top Finance and Accounting Outsourcing (FAO) Companies

• Capgemini SE (France)
• Accenture PLC (Ireland)
• Datamatics (india)
• Wipro (India)
• Vee Technologies (India)
• Sutherland Global Services (U.S.)
• Infosys BPM Limited (India)
• Hewlett-Packard Development Company (U.S.)
• Exlservice Holdings (U.S.)
• IBM Corporation (U.S.)
• Tata Consultancy Service Ltd. (India)
• WNS (Holdings) (India)
• Cognizant Technology Solutions Corporation (U.S.)
• Genpact (U.S.)
• Serco Group Plc (U.K.)

REPORT COVERAGE

This research profiles a report with general studies that explain the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by examining the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, and others. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.