Trends In The Eu Countries Posing Opportunities And Threats For Accounting Services Providers

Finance and accounting services have started dominating the global intelligence export market in a big way

. The changing trends and the dynamism in market trends have always offered a host of opportunities and threats to any business where products and services are exported beyond boundaries. The analysis of trends in services has to be carried out in relation to specific circumstances as opportunities for some may pose serious threats to others.

The finance and accounting services provided through third parties in developing countries face several opportunities and threats which frequently stem from the trends in the European Union markets.

The underlying points can be of a great utility to DC firms providing to EU countries:

1.With each passing financial year, there are new regulations that get added on to accounting procedures. This increases the demand for company services to be outsourced to expert providers.

2.The companies in the search for specialization, and focus on finance accounting services relevant to specific industries require the creation of a vertical structure for the provision of the same. This often leads to higher margins for complex features provided by the firms who take up the outsourced job.

3.The finance accounting services provided by the firms in the developing countries have tremendous opportunities in the form of outsourced work from the European Union firms, which focus on higher value processes and transaction based processes such as Accounts receivable which are highly standardized in nature.

4.The increasing shortage of qualified accountants in the EU countries has provided the much needed gap for finance accounting services providers from the third world countries. The current economic crisis has lowered the shortage to a certain extent, but the situation is expected to revert as an opportunity for the firms in the developing countries once the economic scenario recovers.

5.The increasing competition and availability of a parallel market of services closer to the shores of the clients pose a threat for the smaller companies in the emerging markets. Partnership with other firms from the third world countries which are in a position to offer lower rates yield a larger market share in the EU countries for these firms.

6.The European Union countries are in the process of looking towards alternative BPOs and finance services providers that are located near shore or across continents. This creates added opportunities for companies in some countries which have stable environments.

7.The current trend of increasing usage of online accounting services has lowered the requirement for outsourcing the general business accounting processes. This reduces the opportunities available for the providers in the developing countries.

8.The lack of faith in the expertise, security levels and the quality of services provided by firms from smaller countries, have discouraged the outsourcing of from Companies in the EU, who do not want to lose control over their processes.

by: Ruby Sahiwal

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