TCS named as leader in Finance and Accounting outsourcing: Everest Group

India’s leading IT firm, Tata Consultancy Services (TCS), has been named as the leader in finance and outsourcing (FAO) by Everest Group Peak Matrix. According to the report “FAO Service Provider Landscape – Survival and Growth in the Crowded FAO Market” published by analyst firm Everest Group, the main attributes that helped TCS to be in the leadership position are:

  • Increase in the number of new finance and accounting contracts.
  • Increase in the number of contract renewals.
  • Intense and continuous investment in process and technology capabilities.
  • Continuous improvement in service delivery systems.

Peak Matrix is an assessment tool to determine the overall capability of service providers and its impact on FAO market. In this study, the research group has analyzed the position of global service providers based on their performance, experience, ability and knowledge (PEAK) in finance and accounting outsourcing market. The study has analyzed the position of 20 such service providers and has categorized them under the three different groups based on their overall performance namely: Leaders, Contenders and Emerging Players. In addition to it, the research report has also selected five ‘2012 FAO, Star Performers’ based on their position in the PEAK Matrix from year to year.

Some of the other findings from the report are:

  • The competition in the FAO market is at an all-time high and is becoming intense.
  • In the year 2011, the FAO market witnessed more number of acquisitions and mergers which helped the service providers enhance their capabilities.
  • The study has assessed overall FAO service delivery capability by measuring individual service providers along four parameters, namely scope, scale, technology and delivery history.
  • The study has found that the gap between the leaders and major contenders are shrinking based on the above mentioned four parameters but emerging players are lagging far behind the leaders and contenders.
  • The study also gives details about the various areas in which the service providers are investing in order to be unique in the crowded FAO market.

TCS is a global player in the IT and BPO services market and is one among the top 10 IT firms in the world. TCS FAO services help the clients to mitigate risks and cost and accelerate revenue growth. They help the CFOs in managing fiscal and regulatory risks and to meet or even exceed the business expectations. The FAO arm of TCS offers financial outsourcing services in the following areas:

  • Payables and receivables
  • General ledger
  • Reporting and compliance
  • Budgeting and forecasting

Earlier this year, Everest Group has reported that the FAO market will grow by 10-15% for the FY 2012-2013 to reach $4.5 billion in their research report Finance & Accounting Outsourcing Annual Report 2012. With competition rising in the market, only those firms that understand the client needs best will survive in the industry.


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