The finance and accounting managed services market covers a variety of services related to bookkeeping, accounts receivable and accounts payable, payroll processing, tax filing, financial planning and others. With the growth in digitalization and higher demand for cloud-based services across industries, organizations are increasingly outsourcing their finance and accounting processes to managed service providers who have advanced technologies and expertise. This has propelled the demand for finance and accounting managed services in the APAC and MEA regions.

The Global APAC and MEA Finance and Accounting Managed Services industry Market is estimated to be valued at US$ 1328.41 Bn in 2024 and is expected to exhibit a CAGR of 18% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the APAC and MEA Finance and Accounting Managed Services are GuardRFID Solutions Inc., ALE International (Nokia Corporation), Favendo Gmbh, Teldio Corporation, CenTrak, Cisco Systems Inc. (Cisco Meraki), AiRISTA Flow Inc., Creativity Software Ltd., IBM Corporation, DigitalGlobe Inc. (Maxar Technologies), Aruba Networks (HPE Development LP), Ericsson Inc., HERE Global BV, IndoorAtlas Ltd., GL Communications Inc., and Esri Inc. The growing demand for cloud-based finance and accounting services and the increasing needs of SMEs and large enterprises for outsourcing are majorly driving the market. Technological advancements in artificial intelligence, machine learning, analytics and robotics are facilitating automation of finance and accounting processes, thereby boosting the demand for managed services.

Market Trends

The APAC And MEA Finance And Accounting Managed Services Industry Market Growth is witnessing growing adoption of robotic process automation (RPA). RPA allows automation of repetitive manual tasks involved in finance and accounting functions through software robots, thereby improving efficiency and reducing costs. Another trend is the rising popularity of blockchain technology which provides immutable and secure digital records of financial transactions across distributed networks without any centralized monitoring. This enhances transparency, trust and security in finance operations.

Market Opportunities

The increasing spending on cloud-based managed services by organizations and the growing need to optimize costs are expected to create significant growth opportunities for finance and accounting managed service providers. Another major opportunity is presented by the small and medium enterprises who are now increasingly outsourcing their finance functions to managed service providers to focus on their core business areas.

Impact of COVID-19 on APAC and MEA Finance and Accounting Managed Services Industry

The COVID-19 pandemic has significantly impacted the growth of the APAC and MEA finance and accounting managed services industry. During the initial months of the pandemic, the industry experienced a decline in demand as businesses were disrupted and faced cash flow issues. Many companies had to adopt cost reduction measures such as layoffs and pay cuts which reduced the need for finance and accounting outsourcing.

However, the pandemic has also accelerated the shift towards digital transformation and remote working models across many organizations. This has led to increased demand for cloud-based finance and accounting software, automation tools as well as managed services. As more companies adopt a remote or hybrid work model on a permanent basis, the need for finance and accounting managed services is expected to increase substantially. Service providers are enhancing their cloud capabilities and digital offerings to help clients adapt to the new normal.

The pandemic has highlighted the importance of business continuity planning which includes identifying core tasks that can be outsourced. Many organizations will continue outsourcing non-core finance functions such as accounts payable/receivable processing, bookkeeping, payroll and regulatory reporting to ensure workflow disruptions are minimized during crises. Service providers that offer comprehensive digital transformation solutions as well as flexible engagement models will gain significant traction in the coming years. Both businesses and governments are expected to increase their IT spending to build resilience against future disruptions which will drive the long term growth of the finance and accounting managed services industry in the region.

In terms of geographical concentration, the APAC and MEA finance and accounting managed services industry gains the most value from India. The country accounts for over 35% of the total region's market value due to the availability of low-cost skilled labor, strengths in digital technologies and a large English-speaking talent pool. The industry in India is expected to grow at a CAGR of 22% between 2024-2031 surpassing US$ 400 Bn in value.

Within the MEA region, countries in the Gulf Cooperation Council (GCC) offer the fastest growth opportunities for finance and accounting managed services. Organizations across sectors like banking, energy and government are aggressively adopting cloud-based technologies and third-party service providers to enhance efficiency, control costs and gain operational flexibility. Owing to rising digital transformation spends, the GCC market is forecast to expand at a CAGR of 25% during the forecast period, surpassing US$ 150 Bn in size by 2031.

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