Tech analyst Gartner has predicted the finance and accounting business process outsourcing (BPO) market is set to become a €3.3bn market in Europe by 2008.
Gartner says an increasing number of companies are looking to outsource portions of their finance and accounting process. BPO providers are gearing up to meet this demand, it says.
As a result, the finance and accounting BPO market will grow at 10pc in western Europe to become a €3.3bn market by 2008.
In a key report on the subject, Gartner says the European finance and accounting BPO market is still immature. At present there are some 70 finance and accounting BPO deals in Europe with an average value of €40m to €100m.
Gartner predicts by the end of 2006 an additional 12 major finance and accounting BPO deals will be signed in the region.
Only a few major companies have signed up to outsource more than one process; the majority of their finance and accounting BPO deals so far have only outsourced selected portions, such as accounts payable processing.
BPO providers are especially worth considering, for companies that have a large pan-European finance and accounting team that could benefit from automating more activities and consolidating to a centralised location
By John Kennedy