NelsonHall, Research, F&A, Outsourcing

Research from NelsonHall reveals 2006 F&A outsourcing predictions

04 Apr 2006 | (News)

NelsonHall, the leading independent Business Process Outsourcing (BPO) analyst firm, announced the availability of its latest research entitled "Global F&A Outsourcing Customer Requirements."  Authored by John Willmott, CEO of NelsonHall, the report is the result of an impressive body of interviews with 520 senior finance and accounting (F&A) executives in the U.S., U.K., Continental Europe and Asia Pacific.

Willmott, who is widely regarded as one of the foremost experts internationally on BPO, commented, "F&A outsourcing has been relatively slow to take-off over the past five years compared to other BPO services. However, there has been a marked increase in F&A outsourcing contract activity over the past six months and, on the basis of our latest extensive user research, NelsonHall expects F&A outsourcing to become a mainstream BPO service during 2006."

In conjunction with this major study, NelsonHall has made eight distinct predictions covering the development of the F&A Outsourcing market. These predictions include:

• F&A outsourcing activity will grow strongly in 2006 with contract activity peaking in 2008
• Credit-to-cash management will grow strongly alongside full-scope F&A outsourcing
• Multi-shore utility services will dominate full-scope F&A outsourcing from 2006 onwards
• The Retail, Consumer Packaged Goods and Distribution sectors will be at the forefront of multi-shore F&A outsourcing adoption in 2006
• Government entities will begin to form local consortia in preparation to establish F&A shared service centers

Assessment of satisfaction with current F&A capability was a key element of NelsonHall's interviews with the 520 F&A executives. "F&A departments face the dual challenges of delivering cost-effective services and supporting the geographic expansion of the enterprise and will in 2006 increasingly turn to F&A outsourcing to address these issues," emphasized Willmott. "The major drivers of F&A outsourcing will remain a strong need to reduce F&A costs, combined with a need for business and process change, and a need to support new geographies or markets. At the same time, competitive forces and fluctuations in demand will continue to be strong instigators of F&A outsourcing."

NelsonHall's 2006 F&A Outsourcing Predictions and Global F&A Outsourcing Customer Requirements reports are available now through its subscription services, with individual F&A outsourcing industry sector and regional reports to be released throughout 2006.  Visit NelsonHall for more information.

Related Content: