Market Analysis
published on Dec 02, 2024
Report Overview:
NelsonHall's market analysis of the Finance and Accounting Transformation market and industry trends consists of 73 pages
Who is this Report for:
NelsonHall’s finance and accounting transformation: from RPA to GenAI report is a comprehensive market assessment report designed for:
- Sourcing managers investigating sourcing developments within the finance and accounting transformation services outsourcing and consulting market
- Vendor marketing, sales, and business managers developing strategies to target finance and accounting transformation service opportunities
- Financial analysts and investors specializing in the finance and accounting services sector.
Scope of this Report:
The report analyzes the worldwide market for finance and accounting transformation services and addresses the following questions:
- What is the market size and projected growth for the global finance and accounting transformation services market by geography?
- What is the profile of activity in the global finance and accounting transformation services market by industry sector?
- What are the top drivers for the adoption of finance and accounting transformation services?
- What are the benefits currently achieved by users of finance and accounting transformation services?
- What factors are inhibiting user adoption of finance and accounting transformation services?
- What pricing mechanisms are typically used within finance and accounting transformation services, and how is this changing?
- Who are the leading finance and accounting transformation services vendors globally and by geography?
- What combination of services is typically provided within finance and accounting transformation services contracts, and what new services are being added?
- What is the current pattern of delivery location used for finance and accounting transformation services, and how is this changing?
- What services are delivered from onshore and which from offshore?
- What are the challenges and success factors within finance and accounting transformation services?
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.