Finance and accounting managed services is scalable way of simplifying the complex and never-ending bookkeeping and accounting tasks by outsourcing the accounting tasks to third party service provider called managed service provider. The managed service providers use an accounting software to automate bookkeeping and other financial activities of their clients. Moreover, the companies specialized in providing managed services for finance and accounting services, keep themselves updated with accounting rules, financial regulations, and compliance policies. The services include account receivables, account payables, bookkeeping, and routine financial year-end services.
APAC and MEA Finance and Accounting Managed Services Industry Market - Impact of Coronavirus (Covid-19) Pandemic
The COVID-19 has poised a significant impact on managed service providers operating across Asia Pacific and MEA (Middle East & Africa). The pandemic has surprisingly influenced the market growth in a positive manner. IT consultancies and managed service providers are in demand in work from home environments. However, captive centers have not been as resilient as managed service providers (MSPs) and small service providers are facing difficulties in handling the massive increase in workload, owing to impact of pandemic on network traffic and remote working.
Asia Pacific is expected to hold dominant position in the APAC and MEA Finance and Accounting Managed Services Industry Market during the forecast period.
Asia Pacific held dominant position in the APAC and MEA finance and accounting managed services industry market in 2019, accounting for 93.24% share, in terms of value.
Figure 1: APAC and MEA Finance and Accounting Managed Services Industry Market Share (%), By Region, 2019
Asia Pacific held dominant position in the APAC and MEA finance and accounting managed services industry market in 2019 and is estimated to retain its dominance throughout the forecast period, owing to rising adoption of cloud services and technology proliferation across the region. According to Coherent Market Insights analysis, in Singapore, 31% of ICT (Information communication technology) companies fully operates on cloud infrastructure, whereas 46% companies operates on both traditional and cloud infrastructure. Moreover, the companies providing managed services, are continuously focused on expanding their foothold in Asia Pacific due to the business potential across Asia Pacific. For instance, on June 2, 2021, Loughborough-based The Access Group announced the acquisition of Sage Group’s, significant local business in Australia and Asia Pacific. As a part of this acquisition, The Access Group acquired Sage Group’s WageEasy compliant payroll services, MicrOpay, and HandiSoft accounting along with UBS Accounting software in Malaysia, and EasyPay payroll service in Singapore.
Major companies operating in the APAC and MEA finance and accounting managed services industry market include: Baker Tilly, BDO, CROWE, Deloitte, Ernst & Young Global Limited, Grant Thornton, KPMG, Mazars, PWC, RSM International, and TMF Group.
|Base Year:||2019||Market Size in 2019:||US$ 879.72 Mn|
|Historical Data for:||2017 to 2019||Forecast Period:||2020 to 2025|
|Forecast Period 2020 to 2025 CAGR:||7.0%||2025 Value Projection:||US$ 1,059.35 Mn|
Major companies operating in the APAC and MEA finance and accounting managed services industry market include: Baker Tilly, BDO, CROWE, Deloitte, Ernst & Young Global Limited, Grant Thornton, KPMG, Mazars, PWC, RSM International, and TMF Group
|Restraints & Challenges:||
Among end user, manufacturing segment is expected to dominate the market during the forecast period, owing to rising number of manufacturing organizations inclining towards automation
Manufacturing sector is expected to lead the APAC and MEA finance and accounting market during the forecast period. The manufacturing sector is transforming at a rapid pace driven by integration of smart technologies such as IoT and cloud computing. Some of the major factors for adoption of cloud computing is the provision of scalability and reliability, and on-demand provision of resources. Managed services offers instant provision of redundant resources to manage agility and availability of economic pricing options that is expected to fuel the market growth in the manufacturing sector.
Figure 2: APAC and MEA Finance and Accounting Managed Services Industry Market Value (US$ Mn), 2018 – 2025
The APAC and MEA finance and accounting managed services industry market was valued at US$ 879.72 Mn in 2019 and is expected to reach US$ 1,059.35 Mn by 2025, is expected to exhibit a CAGR of 7.0% over the forecast period (2020-2025).
Managed service can be defined as a practice of outsourcing any company’s operational processes to some other entity referred as an MSP (managed service provider). The outsourced function may range from basic activities as maintaining books and some other services to full finance and accounting team outsourcing. The key objective to opt for finance and accounting managed services is to cut expenses and improve operational efficiency.
Some of the key factors driving the market growth for finance and accounting managed services include the cost optimization offered by MSPs and skilled professionals associated with these service providers. Usually, managed service providers offer a flat-fee or monthly-based subscription which is less expensive than appointing a fully functional finance and accounting team and handling their expenses (infrastructure, wedges, and salaries). Moreover, the teams of managed service providers are equipped with experienced professionals to fill all the financial roles while maintaining the accuracy and efficiency. This encourages the companies to switch their operational model to managed services. In such cases, budgeting becomes easier as the overheads are reduced and expenses are predictable.
Banks and financial organizations are increasingly shifting towards managed services rather than building their own in-house team. This is intended to concentrate their skills and time to the activities which are more beneficial to their business growth. The adoption of managed services for finance and accounting services is still in initial phase but the market is anticipated to witness rapid growth in coming years.
This report segments the APAC and MEA finance and accounting managed services market on the basis of end-user, and region. On the basis of end-user, APAC and MEA finance and accounting managed service market is segmented into manufacturing, IT & telecom, retail & e-commerce, BFSI, healthcare, and others. On the basis of region, APAC and MEA finance and accounting managed service market is segmented into APAC and MEA
Key features of the study:
**All the pointers will also be provided for the rest of the companies.
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