According to IDC, a market research firm, the take up of finance and accounting BPO services by European firms will nearly double from its present size of USD 5.1 billion to USD 9.6 billion by 2008.

The report says that accounting scandals in the US, which led to legislation such as the Sarbanes-Oxley Act, have given companies in the US and elsewhere reasons to overhaul their finance and accounting systems.

The report further adds that similar forces are at work in Europe, with legislation proposed by the International Accounting Standards Board and the European Commission to require all publicly traded EU companies prepare their consolidated financial statements in accordance with one single set of accounting standards, International Accounting Standards (IAS), by 2005.

These considerations, as well as the need to re-engineer complex, outdated business processes relating to accounts and general ledger, are therefore encouraging large European MNC’s to consider outsourcing their finance and accounting processes and systems to third-party providers.

According to Mike Friend, Research Manager, IDC, "While cost remains a prime motivator for outsourcing, the emergence of service providers with both the process and technology expertise to re-engineer processes to meet the requirements of the modern business environment has placed a growing emphasis on improved customer service and shareholder value."

globalsourcingnow