Global market for finance and accounting outsourcing services, which reached over $30 billion in 2003, will reach $47.6 billion in 2008, a study by a US research firm has said.

Finance and accounting business process outsourcing, one of the largest and fastest growing segments within the BPO offering, will grow at a 5-year compound annual growth rate of 9.6 per cent, with spending on outsourcing of the transaction management function expected to grow the fastest, at 9.8 per cent, over the next five years, International Data Corps said.

• India and Outsourcing: Complete Coverage

The study entitled 'US Finance and Accounting Outsourcing Market Forecast and Analysis,' 2003-2008, provides an analysis of major market drivers and inhibitors, insights on key buyer trends, overview of major competitive dynamics and essential guidance for FABPO services vendors.

The US will remain by far the largest finance and accounting BPO market, while Europe, the Middle East and Africa will be the fastest growing region in terms of F&A BPO spending in the short to mid-term, the study said.

While cost-cutting remains the primary reason for outsourcing F&A, IDC said the need to solve strategic business issues is increasingly driving F&A BPO spending globally.

Mergers and acquisitions among FA BPO vendors will continue to accelerate as providers aim at gaining market share, expanding into key regions and acquiring specialised business process and consulting expertise.

However, the report also noted that finance and accounting won't become a fully outsourced business function in the foreseeable future, due to the strategic importance.