Published on :

December 22, 2024

Global FP&A Explained

Did you know? Nepal, while known as an emerging outsourcing hub for IT services, has also grown its presence in Finance and Accounting (F&A) services? In the eyes of the public, F&A services are often associated with bookkeeping, accounting, and reporting. However, FP&A has evolved far beyond these traditional roles. With growing demand, Financial Planning and Analysis (FP&A) services now hold immense potential in the financial landscape. But what exactly are Global FP&A services?

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πŸš€ Global FP&A Explained 🌍

Financial Planning and Analysis (FP&A) encompasses activities like planning, forecasting, budgeting, and analysis to guide a company’s key business decisions and maintain its financial health. Global FP&A extends these functions across all international operations. This has been made possible due to the rise of Outsourcing in countries around the world. Outsourcing involves assigning tasks or services to external experts or companies, allowing organizations to concentrate on their core functions and operations. The teams involved integrate financial, operational, and external data into a unified framework to deliver comprehensive insights and services.

πŸ“Œ FP&A is essential for translating company strategy into actionable plans, forecasting outcomes, setting performance targets, and driving business success.

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Major Countries Involved in Global FP&A

🌎 Following are the major countries involved in Global FP&A related services:

  • The Philippines
  • Brazil
  • India
  • China
  • Mexico
  • Ukraine
  • South Africa
  • Malaysia
  • Poland
  • Vietnam

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πŸ“Š Recent Global Trend Towards FP&A

The Global FP&A market is projected to grow from $49.5 billion in 2023 to $75.2 billion by 2030, offering significant opportunities for FP&A teams to take on a pivotal role. With outsourcing and reshaping business models by 2025, FP&A must adapt to drive smarter and more strategic decision-making in this rapidly changing landscape.

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πŸ“ Source - Statista

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🏒 Key Industries Focused on by Global FP&A Firms

Global FP&A firms primarily focus on the following key industries:

  • MNC Banks and Financial Services
  • FMCG Companies
  • IT Service Companies
  • Startups Companies & D2C Brands
  • E-commerce Companies
  • Consulting Firms

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πŸ“ˆ Emerging Trend in Nepal Towards Global FP&A

The FP&A market in Nepal is projected to grow from $77.50 million in 2023 to $114.50 million by 2029. With more companies outsourcing non-core functions to Nepal to save costs and focus on core competencies, the potential for Global FP&A in the region continues to grow. Nepal offers a highly skilled workforce at a lower cost than other destinations, alongside a favorable time zone.

πŸ“ Source - Statista

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βœ… Value Addition through Global FP&A Services

πŸ”Ή For Service Users:

  • Rolling Forecasts: Rolling Forecasts helps to regularly update financial projections to stay up-to-date and adapt to market changes.
  • Scenario Analysis: Scenario Analysis helps to model potential future scenarios to ensure preparedness and informed decision-making.
  • Data-Driven Decisions: Use of actionable insights from data helps to guide strategies and improve performance.
  • KPI Development: KPIs helps to identify and track critical metrics that help in business growth.
  • Strategic Planning: Linking long-term vision with actionable goals helps to drive business success in the long run.

πŸ”Ή For Service Providers:

  • Expanding Market Reach: Global FP&A helps businesses identify and capitalize on opportunities in new markets with tailored insights and strategies.
  • Gaining a Competitive Edge: By leveraging global FP&A expertise, businesses enhance financial planning and data-driven decisions to outperform competitors.
  • Creating New Revenue Streams: Global FP&A uncovers untapped revenue opportunities and optimizes resources for sustained growth.
  • Leveraging Advanced Financial Tools: Modern FP&A technologies improve forecasting, analysis, and reporting, providing businesses with actionable financial insights.

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⚠️ Major Problems Faced in Global FP&A Related Services

Major problems faced by both Service Users and Service Receivers are:

  • Bridging Communication Gaps: Effective communication strategies and tools align dispersed FP&A teams for collaboration and consistency.
  • Data Security: Strong data protection is crucial to prevent breaches and unauthorized access.
  • Regulatory Compliance: FP&A teams must stay updated on global regulations for compliance across regions.
  • Standardization vs. Quality Assurance: Balancing standardized processes with local flexibility ensures consistency and accuracy.
  • Overcoming Cultural and Operational Differences: Addressing cultural and operational differences fosters better collaboration in global FP&A teams.

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πŸ’‘ Possible Solutions to the Problems Faced in Global FP&A Related Services

πŸ”Ή For Service Users:

  • Dedicated Compliance Teams: Specialized teams should be established to ensure adherence to diverse regulatory requirements across global markets.
  • Regular Security Audits: Conducting frequent audits identifies vulnerabilities and strengthens data protection measures.
  • Collaborative Planning: Encouraging Cross-regional collaboration ensures that financial strategies align with global and local objectives ensuring smooth operation.

πŸ”Ή For Service Providers:

  • Data Standardization: Implementing uniform data formats and definitions enables seamless integration and analysis across regions.
  • Integrated FP&A Systems: Unified FP&A systems centralize data, enhance efficiency, consistency, real-time insights, and global collaboration.

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Here at SwiftFin Global, an ISO 27001 Certified, Finance and Accounting (F&A) outsourcing firm, we are dedicated to driving your business growth. Our team of expert accountants (CPA, ACCA, CA) specialize in advanced tools like Anaplan, SAP Analytics Cloud, NetSuite and others and our skilled IT professionals help to simplify financial management through affordable, secure, and customized solutions designed to meet your unique needs.

The Future of FP&A is Global, Scalable, and Strategic. Is your business ready?

(In our next post, we'll dive into the world of Fractional CFO support services, a game-changing trend that's transforming the Finance and Accounting landscape.)

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