November 19, 2012
Outsourcing of financial processes in Germany, previously rare, growing by 15 per cent now
BERLIN--The documents for tax returns have been sent, documents are sorted and there will be a recalling of invoices paid: It's all done automatically, reliably and securely in most countries. But in Germany, the outsourcing of these kinds of financial processes has been rare until recently. Today, it seems, German companies are becoming more open to allowing outside vendors to help.
One young business, Smarchive, is pushing this trend and trying to capitalize on it. Promoting for its Cloud-Archive. Financial Times Deutschland reported that their idea has impressed large-scale industry so much so that the telecommunications giant Telekom has invested in the start-up. On a small-scale, this has displayed something of interest for many companies. The outsourcing of financial processes of companies is one of the themes of the 7th Annual Shared Service and Outsourcing Woche 2012 in Berlin. Experts from Germany Trade & Invest will be on site from November 20 to 23.
"The outsourcing of accounting and financial accounting is not so well established in Germany. Although the recent trend study of PAC (Pierre Audoin Consultants) has shown that one in six companies in the DACH region - Germany, Austria and Switzerland - have outsourced. However, over the next three years, a growth of around 15 percent is expected in this area," said Dr. Josefine Dutschmann of Germany Trade & Invest.
According to a study, the main reason for reluctance is due to a lack of experience with financial service providers. Of particular importance is that the company would offer individualized services. In contrast, high savings for many in the German market are not that important. Consequently, the outsourcing of services to low-wage countries is not necessary and is therefore counter-productive, as the study participants would prefer local service provisions.
"This shows that even in this sector, investing in Germany has its advantages. The Annual Forum will discuss the latest trends as the German shared services and outsourcing community meets in Berlin," said Josefine Dutschmann further, "there is no better opportunity to meet the market than this."
Germany Trade & Invest is the foreign trade and inward investment agency of the Federal Republic of Germany. The organization advises foreign companies seeking to expand into the German market. It supports German companies that seek to enter foreign markets, with foreign trade information.