Cambridge, MA -- March 28, 2006 -- FAO Research, Inc., the only research firm focused exclusively on the Finance & Accounting Outsourcing (FAO) market, today announced that its latest research, published today, shows a 40 percent, one-year increase in FAO contract signings in 2005, with the lion´s share of business won by Accenture and Capgemini. Further, the firm predicts that by the end 2006, there will be an additional 60 percent growth in the number of FAO contracts closed than in 2005.
The report, "The World´s Biggest F&A Outsourcing Contracts, 2004-2005: An Overview and Global Market Analysis," indicates that a total of 67 long-term, multi-process, often global FAO arrangements with companies spanning myriad industries were signed in the past two years - 39 in 2005, compared with 28 in 2004. Some of the most well known companies in the world are included in this listing, such as Dun & Bradstreet, General Electric (GE), Kodak, and The Proctor & Gamble Company.
There are 11 service providers that garnered the major contract wins. Accenture captured a 30 percent market share of the total number of contracts signed in year 2005 and 33 percent in 2004. Capgemini also won a large share of FAO contracts during this timeframe, garnering 14 percent market share in 2004 and 11 percent in 2005.
Nine other companies are also noted as the top winners in the 2004-2005 FAO contracts´ landscape, namely: WNS, IBM, Progeon/Infosys, ACS, Genpact, Xansa, EDS, ExlService and Hewlett-Packard. All of these FAO contracts were sole-sourced, and all ranged in scope from less than $50 million to $489 million with terms between three and 10 years.
"Growth in the FAO market is accelerating at an incredible pace that will continue through this calendar year," said Lisa Ross, CEO of FAO Research, Inc. "Our analysis shows that achieving greater cost savings, accessing better technology to facilitate global expansion and gaining industry best practices are the key motivators of companies ranging from financial services, to chemical production, to government and manufacturing. We predict this market will grow another 60 percent in 2006."
According to the report, the most significant FAO service providers during years 2004 and 2005 are:
Accenture:
o has the largest FAO market share of any other service provider worldwide
o won the most high-priced FAO contracts ($100 million or greater)
o won the most FAO contracts involving global service provision
o achieved the most significant FAO presence in the largest number of industries
o won the most long-term contracts (7 years)
Capgemini:
o has the second-largest FAO market share worldwide
o won the most seven-year FAO arrangements in years 2004 and 2005
The report includes a comprehensive listing of all 67 FAO contracts signed over the past two years, with detailed information about the size, scope and customer profile. In addition, FAO Research analyzes the key industries where FAO is most notable, the geographic range of outsourcing engagements and the specific services being outsourced.
"The World´s Biggest F&A Outsourcing Contracts, 2004-2005: An Overview and Global Market Analysis" follows FAO Research´s breakthrough report, "Finance & Accounting Outsourcing Market Overview and Analysis of 14 Leading Service Providers, 2006," published in January 2006. Future 2006 research includes reports focused on buyer demand for FAO services, FAO needs by industry, and how suppliers can work better with third-party outsourcing consultants.
"The World´s Biggest F&A Outsourcing Contracts, 2004-2005: An Overview and Global Market Analysis" can be purchased for $2,500 or as part of an annual subscription package. Additional information and the report´s Table of Contents are available at www.faoresearch.com.
About FAO Research
FAO Research, Inc. is the only research firm worldwide focused exclusively on the Finance & Accounting Outsourcing (FAO) market. Headquartered in Cambridge, Massachusetts, FAO Research provides in-depth market research, custom analysis and consulting services to outsourcing service suppliers to help with critical decisions associated with their FAO business issues. With frequent publishing of reports and independent, unbiased viewpoints, FAO Research is a trusted source for impartial research and opinions. For more information, visit www.faoresearch.com.