Outsourcing has been empowering companies to get more tasks completed at a lower cost since the 1980s. However, the way businesses got their work done then, is very different from how companies outsource today. The technologies have evolved, and practices have changed—and this change is constant. The question is…Are there still benefits to outsource in 2020?
It’s no secret that the rapid outbreak of COVID-19 throughout the world has had a drastic impact on the economy and overall business environment. For many businesses, small and large, the measures taken to help stem the spread of the pandemic have led to shifting workplaces, declining revenues and, in some cases, workforce reductions. While some of these impacts are short lived, others will have long-term implications. Therefore, it’s critical that companies understand and react to the current situation whilst keeping in mind what is the optimum set up to survive the current and future disruptive events. Outsourcing is among the many options business leaders should carefully consider in these unprecedented times.
The 2020 Global Finance and Accounting Outsourcing Industry Market Report, released in July 2020, indicates that the global market for Finance and Accounting Outsourcing estimated at US$36.9 Billion in the year 2020, is projected to reach a revised size of US$51.5 Billion by 2027, growing at a CAGR (compound annual growth rate) of 4.9% over the analysis period 2020-20271 . With many countries now in or on the brink of economic recession, the time is ripe for strategy rethink, planning, innovation at company level to reengineer businesses.
Whilst there were apprehensions during the past, most companies have had recourse to Work From Home (‘WFH’) for business continuityduring the COVID related lockdowns. This has allowed businesses worldwide to get used to the WFH enabling technology and consequently consider outsourcing for their non-core activities, allowing them to focus and succeed on their core operations. With business agility and operational resilience seen as critical post-pandemic virtues, companies are increasingly looking to reduce risk through outsourcing. The Finance and Accounting Outsourcing market in the U.S. is estimated at US$10 Billion in 2020. The outsourcing market of China, the world’s second largest economy, is forecast to reach a projected market size of US$10.6 Billion by 2027 featuring a CAGR of 7.5% over the analysis period 2020 to 2027. Among the other noteworthy markets are Japan and Canada, each forecast to grow at 2.7% and 4.4% respectively over the 2020-2027 period. Within Europe, Germany is forecast to grow at approximately 3% CAGR2.
Mauritius has for the last few years, been positioning itself on the global outsourcing map and is increasingly becoming a competitive destination for BPO and ITO services. The ICT/BPO industry represents a key driver of the Mauritian economy with a GDP contribution of 5.8% for 2019 and employing around 27,000 people3 . Global players have already invested in Mauritius, a trend that is projected to grow the coming years. With strong government support and private sector collaboration, an ideal geographical location in terms of time zones, robust broadband connections, improved IP protection with piracy rate below global median, Mauritius has demonstrated its capabilities in offering a compelling alternative for serving non-voice and IT needs of multinationals. The banking and financial services sector, telecommunications sector and healthcare are the most promising sectors for outsourcing from Mauritius.
Rogers Capital is very present in the Financial services sector in Mauritius. It provides a dedicated and personalised service to a pool of segmented clients with specialised needs and whose structures in Mauritius are not merely passive type structures but active operations with substance and that require the highest service standards. Rogers Capital also has an elaborated Outsourcing strategy focussed on Accounting, Fund Administration, NAV and Compliance Outsourcing.
Having developed an in-house electronic platform to facilitate seamless communication including the exchange of documents and information as well as provide the client the opportunity to closely monitor the process of the outsourced jobs, the Rogers Capital Outsourcing platform is a user-friendly solution ideal for organizations with critical file transfer requirements. It secures, manages, and provides a monitoring platform on the outsourced tasksbeing undertaken by the Rogers Capital team.
Our accounting and other outsourcing specialists use state of the art technology, to meet the strict reporting deadlines of our clientele. They also keep abreast of the latest changes in the accounting and regulatory frameworks to provide a seamless and highly effective service. Our accountancy services range from basic book-keeping all the way to complex financial reporting.
Our accounting services include:
- Management accounting & production of periodic reports
- Financial statements in accordance with IFRS
- Preparation of consolidated accounts
- Financial analysis
- Cash flow analysis
- Assistance for audit
- XBRL reporting as required by the Mauritius Registrar of Companies
- Preparation of surveys mandated by the Mauritius Financial Services Commission
As an outsourced accounting and other services provider offering a full range of book-keeping to preparation of financial statements for tailored businesses, we eliminate the burden of day-do-day book-keeping, ensuring compliance and providing cost effective financial expertise on demand. By partnering with us to help you manage key non-core functions, you can focus on maximizing your core business operations. Rogers Capital has the highest quality, security, and compliance standards in place for client information privacy and data protection and therefore ensures hassle-free, confidential, accurate, cost-effective, and time-bound accounting outsourcing solutions.
Should you want to learn more about our Outsourcing services, do drop us an email and we shall gladly assist.