Friday, January 20, 2006
Why Finance And Accounting Outsourcing Will Experience Double Digit Growth
2006 will probably be a year of rapid growth for finance and accounting outsourcing (FAO). We believe FAO has reached the "emerging rapid growth stage" in its life cycle, thanks to a constellation of events that have come together to create the perfect conditions for growth.
According to research from the Everest Research Institute, the number of new FAO contract signings started to take off in 2002. Of the 108 FAO contracts signed to date, 70 percent were signed since 2002.
But the real growth started in 2004 when 31 deals were signed and continued through 2005. We expect this kind of growth to continue this year. We predict FAO will enjoy strong double digit growth for the next five years. We anticipate the cumulative average growth rate (CAGR) to be 24 percent over that five-year period.
posted by Brian Moran @ 12:02 PM