India is increasingly emerging as fastest growing destination for finance and accounting outsourcing (FAO) transaction with total business volumes being projected to touch a whopping range $100 billion by 2019-20.
According to Assocham study the current FAO size, outsourced to indigenous financial industry is estimated at about $2 billion with the FAO industry recording a compounded annualised growth rate of 30 per cent during 2000-2006.
Phenomenal growth
In this 30 per cent growth rate, trading blocs like US and EU played a substantial role because their companies outsourced a great deal of their financial transactions to Indian financial experts, the Study reveals. 
It forecasts that from 2007 onwards, the FAO will witness a phenomenal growth in view of its emerging importance and carry forward its size to over $100 billion in next 12 years time.  This industry has been registering growth as the economies of scale are finding easier to outsource their financial accounting business to domestic chartered accountants. 
This is evident from the fact that the number of FAO contract signed in the last 20 months stood at about 180. This number was just less than half before 20 months back.
Presently, FAO market is pioneered by global 100 companies, it will quickly expand and fatten the list to global 500 in which smaller companies will play a crucial role, it states.
It points out  that while in the prices with over $5 billion of revenues still represent approximately 80 per cent of total FAO contract value, about 50 per cent of new FAO deals were signed with customer with $5 billion of revenue or less in 2005, up from 33 per cent in 2003.  The mid-market in FAO will begin to overtake the enterprises level market in next couple of years.