![]() ![]() So their contracts and payments are governed and protected by the same European legislation as in the buyers’ countries. Not only do these countries offer the usual nearshoring benefits, but they are also members of the European Union. The most popular nearshoring locations for buyers in these countries are Central and Eastern European (CEE) countries such as Poland, Bulgaria and Romania. Traditionally, the buyer markets for finance and accounting services are Western and Northern European countries. Europeans increasingly expect finance and accountings to be available and responsive 24/7, which means some overlap in business hours between the two companies is desirable. When outsourcing abroad, they prefer providers in nearshore locations because of language, proximity, cultural similarities and minimal time difference. ![]() You can choose to form subcontracting partnerships with these nearshoring providers or to compete with them.Įuropean companies prefer to outsource services to providers within the same country, a practice also known as domestic outsourcing. This makes service providers in these countries less competitive than offshore service providers, which makes European companies more open to outsourcing to more remote destinations. Prices in nearshoring countries are rising. Nearshoring countries want to keep their prices competitive European businesses are coming to realise that outsourcing their finance and accounting tasks can make them more flexible and resilient in difficult times. In general, the COVID-19 pandemic only increased the demand for outsourcing. Industry revenue is expected to pick up after 2021, as economic conditions improve, and business confidence rises. The effect of COVID-19 on the sector during this timeframe is expected to be minimal. Some finance and accounting services, such as insolvency work, advice on cost-cutting and restructuring, are actually expected to benefit from increased demand in 20. While most industries were impacted by the pandemic in some shape or form, the finance and accounting sector was hardly affected. In short: keep your employees happy and skilled.ĬOVID-19 accelerated the openness to outsourcing Invest in education, create a good work environment. Consider hiring people with the necessary talents who still need to attain the required competencies. Most in demand are tax and audit, risk and compliance professionals. Research by Hays Accountancy and Finance, found that approximately 54% of Europeans companies expect to recruit accountancy and finance staff in 2021. The industry has suffered from the pandemic but remains strong. The market is maturing and SMEs are also increasingly outsourcing their finance and accounting services. This market was long the domain of large companies, but that has changed. Finance and accounting services are the most commonly outsourced services in European companies. It is estimated that by 2025, the European FAO market will be worth worth €921 million, with Germany alone comprising half of this market. The market has moved beyond back-office support and currently includes more specialised industry areas and processes with higher added value. What makes Europe an interesting market for finance and accounting services?Įurope is the second biggest finance and accounting market in the world, after the United States. Outsourcing enables European organisations to scale resources up and down as needed, without the obligation to pay salaries or other employee benefits, and without the need to hire, train and retain accounting staff.
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