GAO: Key market research findings
- Drive for multi-process outsourcing services drives market growth
- The Americas dominates the market geographically
- Key vendors – Accenture, Capgemini, IBM, Infosys, and TCS
Technavio’s market research analysts predict the global GAO market to grow at a CAGR of around 4% between 2016 and 2020. The market’s growth is spurred fundamentally by the drive for multi-process outsourcing services. Multi-process outsourcing services are provided through the multi-tiered business process outsourcing (BPO) delivery model. Businesses can expand outsourcing as it provides a common operating model. During 2015, the Americas led the general and administrative outsourcing (GAO) market globally by accounting for more than 41% of the overall market share. Substantial investments made by financial service providers in the Americas such as Morgan Stanley, Barclays, and Bank of America coupled with the restructuring of BPO strategies to cut down costs will contribute to the growth of the GAO market in the Americas over the next four years.
The new market research report from Technavio presents a breakdown and analysis of the GAO segments based on the solution.
“Of late, organizations have been adopting analytics to reduce administrative costs by deploying operational analytics solutions. This stems from the increased complexities that are involved in the global supply chain and distribution systems. Analytics solutions help organizations reduce administrative expenditure through statistical modeling and data science technology,” says Amit Sharma, Lead Analyst, ICT, Technavio Research.
The finance and accounting outsourcing (FAO) segment is expected to dominate the global GAO market and will reach a revenue of around $14 billion by the end of the forecast period. FAO improves operations through the standardization and automation of accounts and transaction management business process management systems. Third-party providers in the market are now offering standardized GAO services for accounts management, which will result in improved quality with a focus on financial reporting on time and business decision making.
The key vendors in the market include Accenture, Capgemini, IBM, Infosys, and TCS. Characterized by the presence of several outsourcing companies, the GAO market appears fragmented. However, the large well-established vendors dominate the market with their innovative and high-quality services. The growth and revenue of vendors mostly depends on the foreign exchange market of the country in which GAO services are delivered. To deliver the best services, vendors are also in the need to manage their supplier relationships effectively. Currently, vendors are concentrating on process automation, simplification of IT and operation environments, and development of an economical cost structure.
A more detailed analysis is available in the Technavio report, Global GAO Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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