European Finance and Accounting Outsourcing (FAO) Market in 2014 – Value Realization to Drive Growth in the Post-Recession Era

22 Aug 2014



The European FAO market continued to grow steadily at 6% in 2013. New contracts contributed significantly to the market, outnumbering renewals by more than 2:1. In line with the global market, the value proposition for FAO in Europe is growing beyond cost reduction, with increasing focus on the F&A function helping enable world-class performance. The FAO solution landscape is also evolving to drive this cost+ agenda.

European buyers show higher propensity to seek technology augmentation in FAO deals than the rest of the world. There is growing interest in embedded analytics for F&A transformation. Also on the rise is interest in robotic automation.

In this study, we analyze the multi-process FAO market in Europe in 2013 and compare the findings with global trends.

We focus on

  • Market size and buyer adoption
  • Value proposition
  • Solution characteristics across process scope, technology, industry alignment, global sourcing, and pricing structures
  • FAO service provider landscape covering service providers’ market shares and areas of investments
  • Outlook for the rest of 2014 and 2015

Multi-process FAO

The scope of analyses includes:

  • Third-party FAO deals
  • Coverage of FAO service providers with multi-process capability, including Accenture, Capgemini, Cognizant, EXL, Genpact, HP, IBM Infosys, Serco, Steria, TCS, Wipro, and WNS

Global FAO Coverage


This report assists key stakeholders (buyers, service providers, and technology vendors) understand the changing dynamics of the European FAO market and identify the trends and outlook for the rest of 2014 and 2015. The report provides a comprehensive coverage of the FAO market in Europe, including detailed analysis of market size & growth, buyer adoption trends, FAO value proposition, solution characteristics, and service provider landscape. Some of the findings in this report, are:

  • The European multi-process FAO market continued to grow at a steady 6% to reach US$1.6 billion in ACV
  • FAO adoption in Continental Europe bounced back, after a lull in 2009-2010
  • The share of Continental Europe (Europe excluding the United Kingdom), of the total deals signed in Europe, was 62%
  • FAO value proposition is moving beyond labor arbitrage to drive business and/or strategic impact. The FAO solution landscape is also evolving to support the transformational agenda
  • European deals with global scope increased by 8%. These included 27% of the existing contracts and 46% of the new contracts signed in 2013
  • Interest in robotic automation is growing and the key drivers are savings, efficiency, accuracy, scalability, and compliance
  • Adoption of analytics is moving beyond theory to successful high-impact examples
  • Service providers are leveraging European locations to achieve balance in delivery
  • Key European regions leveraged for delivery include United Kingdom, Poland, Czech Republic, Romania, and Italy
  • Advanced pricing models are leveraged in combination with FTE-based pricing to create an incentive structure that can motivate the service providers. Circa 39% of the deals had FTE and transaction-based pricing combined
  • Indian-heritage service providers are maintaining and increasing their share of ACV in Europe

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