Key Findings & Highlights:

NelsonHall estimates the global finance and accounting transformation services market to be approximately $12.8 billion in 2024, with a projected CAGR of 3-4% through 2029. The manufacturing sector holds the largest market share, followed by healthcare and financial services, with these three sectors accounting for ~69% of the total market. However, sectors such as retail, telecom and media, financial services, and healthcare are also expected to show strong demand growth.

The F&A services vendor landscape has significantly evolved in recent years. Rising client demand for automation and data-driven insights, coupled with vendor solutions powered by proprietary and third-party IPs and digital enablers that utilize automation, AI, and GenAI, have driven vendors to transform and reimagine F&A services.

Most leading vendors' reimagined offerings now fall into two main categories: transactional and strategic. Transactional services, including PO processing, invoice processing, payment processing, journal entries, helpdesk, period-end closing, and order processing, are experiencing significant automation and data-driven transformation and are becoming increasingly touchless. Consequently, vendors are shifting away from traditional FTE-based and fixed-pricing models, and moving to per transaction pricing in these areas. Elsewhere, vendors are increasingly adopting pure outcome-based or gain-share engagement models for strategic areas such as working capital management, duplicate invoices/payments, and dispute and returns management.

As AI and GenAI become more accessible over the next few years, areas like contract management, helpdesk, reporting and insights, cash flow analysis, and accounts payable will evolve significantly. This is expected to substantially increase automation levels from 30-40% to 60-80% within two to three years.

While P2P remains the most frequently outsourced process by F&A services buyers, followed by O2C and R2R, vendor offerings are set to advance significantly, focusing more on high-end finance services such as tax, treasury, audit, statutory and legal reporting, and derivatives accounting.

The top five finance and accounting services vendors by revenue include Genpact, Accenture, TCS, Infosys, and Capgemini, which together account for ~51% of the market. Other key vendors covered in this report include WNS, Cognizant, Exela Technologies, Tech Mahindra, and Datamatics, with further market insights available for IBM, Wipro, and HCL Technologies.