According to a report by Everest Group, the FAO market will continue to attract strong activity, resulting in a year-on-year growth of 15 percent in 2012, with the total number of active multi-process FAO contracts expected to reach 700. In terms of total contract value, renewals worth $2.5B and annualized contract value of $4.5B-$5B are expected. Strong tractions will be visible in healthcare, financial services, energy & utility industry segments and mid-market. There will be continued upward growth in India-to-India domestic BPO and the Middle East and APAC regions.





Accenture, IBM, Genpact, Capgemini, Infosys BPO and HP dominate the FAO space. The reason being, recent years, have witnessed these players bag multiple engagements in the $50M+ range.

Tony Chambliss, global offering lead for F&A BPO services at Accenture articulated, “The ability to undertake analytics on transactions, understand the insights and then identify opportunities to improve and add value is what our clients expect from BPO. For F&A BPO clients we process their invoices, collate the spend, map that back to their strategic sourcing agreements and identify rogue spending outside that agreement – that is money sifting through their hands. We’re focused on finding it and 'giving it back' to help drive savings. We’re also seeing more emphasis on deep industry expertise. More and more, clients are looking for providers that have a deep understanding of the industry environment in which they operate.”

Second tier vendors are eying the mid-market and are distinguishing themselves by creating differentiated offerings. Their focus areas will be innovative value propositions such as industry-specific solutions, end-to-end processes solutions, specialized process offerings etc, strategic alliances between pure-play FAO service providers and technology providers to offer platform/SaaS-based offerings and increasing presence and foray into emerging destinations such as Africa, Latin America.