Introduction

The Finance and Accounting Outsourcing (FAO) market landscape varies substantially by geography. While the North-American based contracts continue to account for over half of FAO revenues, the FAO activity in Europe is growing rapidly. This report analyzes the 2006 FAO market size and growth, factors affecting adoption, and the supplier landscape for North America, Europe, and Asia Pacific. This report will assist companies considering outsourcing F&A to a third-party or FAO suppliers to understand in detail the geographic trends in FAO adoption.

Scope

• Third-party FAO contracts (does not include shared services or captives)
• Multi-process FAO contracts with a minimum of two F&A processes, over US$1 million in Annual Contract Value (ACV), and a minimum contract term of three years
• All multi-process FAO contracts across all industries signed as of April 2006
• Leading suppliers including Accenture, ACS, EDS, Genpact, IBM, etc.
• Geographies covered include North America, Europe, and Asia Pacific

Contents

This report summarizes key market adoption trends and potential by geography. Key market adoption trends are divided into three sections: North America, Europe and Asia Pacific. Each section provides the market size and growth, factors affecting adoption, and supplier landscape for each geography in detail (illustrated with supporting data and analysis) to provide the reader information in easy-to-apply, bite-size pieces. For example, North America section is detailed along the following points:

• Overall market adoption: The North American FAO market has experienced steadily rising contract value since 1999
• Trends and potential by market segment: Since 2004, over 85% of North American FAO contracts have included an offshore component
• Factors influencing FAO adoption: The business environment in North America and outside has been favorable for increased FAO adoption
• Supplier landscape: IBM leads the North American FAO market, accounting for over 40% of the North American contract value