According to the latest report from KPMG (a global consultancy firm), the financial and accounting services outsourcing industry is going to be worth $5 billion by the year 2010. The entire knowledge process outsourcing industry is expected to be worth $10 billion to $17 billion by that year.
There are different reasons for this huge growth in Financial and Accounting Services outsourcing. Few of them being the availability of those skills in offshore locations, businesses overcoming their fear of outsourcing, global standards to check the quality of the workforce available, and, above all, the inclination of lots of countries to move into the knowledge process outsourcing arena. While India tends to be a preferred destination, India, too, is facing stiff competition from other countries around the world.
Edge Zarella of KPMG stated that they aim to show that KPO is not just an extension of BPO, but a business phenomenon in its own right. Though financial and accounting outsourcing represents only a fraction of the entire BPO market, it is all set of take over a major share of the pie in the coming years.
The more the number of companies joining the financial services outsourcing bandwagon, the more difficult it would become for existing companies to find high quality talent to work at rates that would justify the cost of doing the work offshore.