Financial services outsourcing is fast growing as the third largest segment in the outsourcing market after sales and software outsourcing. According to a recent estimate financial services outsourcing will grow at the rate of 10% every year to reach a whopping $40 billion in the year 2007. This is the reason why business process outsourcing and accounting outsourcing in particular are seen to be budding sectors.

Most companies outsource their financial services to off-shore destinations like India, China, Philippines and Russia. India is seen as of now as a great destination to outsource financial services owing to its relatively cheaper and efficient labor, good infrastructure and quality certified firms. Indian firms have an ability take care of both low end as well as high end financial services such as accounts payable and receivable, payroll administration, time reporting, expenses processing, tax management, accounting etc.

Along with financial services Outsourcing data entry projects in UK and US are also on the rise. Another budding sector is predicted to be in the form of outsourcing safety services. The governments of various developing nations such as India and China are gearing up to lap up the benefits that outsourcing of financial services and other IT services holds for them. These nations have started imporving their communications infrastructure and investor friendly laws.