Quickie item from Everest Research Institute, the research arm of the Everest Group, an advisory firm in outsourcing: Finance & accounting outsourcing (FAO) is growing in popularity in the Global 500 and has reached about $12 billion in value. This conclusions come from a study of the 108 multi-process FAO contracts signed between 1991 and April 2005. About 70 of those were signed in the past four years.
Key drivers, according to Managing Research Director, Joe Fernandes, are to reduce costs and improve compliance. The first factor is driving this new work offshore (probably to India, where other business process outsourcing services such as human resources management have become so dominant).
