Global General and Administrative Outsourcing Market 2016-2020 - Need to Standardize and Optimize Business / Shortage of Skilled GAO IT Professionals / Increased Adoption of Analytics - Research and Markets
The report covers the present scenario and the growth prospects of the global general and administrative outsourcing (GAO) market for 2016-2020. To calculate the market size, we consider revenue generated from BPO vendors that offer GAO solutions. We also consider the total contract value (TCV) of GAO contracts awarded to vendors to provide GAO solutions.
With fast changing technological trends, companies need to adopt best practices, new technologies, or transform business models. For instance, growing pressure to optimize business performance has forced many finance executives to look for new strategies that include outsourcing F&A-based services. These factors have made companies operating business in several industry verticals to look for new strategies to align people, operate process, and technologies.
A trend propelling market growth is the increased adoption of analytics. Increased complexities in the global supply chain and distribution systems have compelled organizations to reduce administrative costs by deploying operational analytics solutions. BPO firms are trying to win new contracts from their client firms through supply chain analytics service offerings, and consequently, there is an upsurge in the growth in the analytics BPO market. Analytics solutions help organizations reduce administrative expenditure through statistical modeling and data science technology. For instance, EXL helps clients simplify their business process and identify problems in the supply chain management systems through advanced data mining technology.
According to the report, a key growth driver is the need to standardized and optimize business processes. The majority of MNCs are standardizing and consolidating payroll structure and F&A services into one platform through service providers. The rising number of global and local companies has created the need for automation and administration consolidation by moving to shared services to achieve business efficiencies. This requires consistency of processes, technology, and services to achieve increased efficiency. However, this has increased competition among service providers to add more value to their offerings and focus on innovative solutions.
Further, the report states that one challenge that could hamper market growth is the shortage of skilled IT professionals.