+91 9580 740 740 WhatsApp

All You Need To Know About Financial Services Outsourcing Charges

In today’s multi-dynamic business world, where technological advancement and innovations are supporting overall growth in business operations, numerous companies and business organisations are looking for various types of ways to streamline their business process by reducing expenses, saving time or efforts and gaining a competitive edge in the market. In this article, we are going to discuss one beneficial strategy through which companies and business organisations can focus on core competencies to achieve business objectives, and the strategy is financial services outsourcing. By entrusting finance-related activities to specialized and professional financial service providers, business organizations and companies can efficiently manage their financial processes, access expert knowledge, and free up valuable time and resources. In this comprehensive article, we are going to explore thorough knowledge of financial services outsourcing charges. Whether you’re a small business owner or a finance professional, this article will help you to equip yourself with the crucial insights that are required & needed to navigate the financial services outsourcing landscape effectively, along with enabling you to unlock the secrets of efficiency, savings, and growth.

Financial Services Outsourcing Charges

Table of Content 

  • Introduction to Financial Services Outsourcing
  • Benefits of Financial Services Outsourcing 
  • Financial Services Outsourcing Charges
    • Types of Financial Services Outsourcing 
    • Charges of Financial Services Outsourcing 
    • Factors Affecting Financial Services Outsourcing Charges 
  • Conclusion
  • Frequently Asked Questions

Introduction to Financial Services Outsourcing

Financial services outsourcing is delegating process through which a company hires another company or a third-party vendor to handle specific financial activities or functions for them. In simple terms, instead of doing some financial work on their own companies, business organisation, industries and corporations, delegates certain financial tasks, including accounting & bookkeeping management, tax compliance and preparations, recording on reporting of intricate financial transactions, payroll management and creation of financial statements.  

Benefits of Financial Services Outsourcing

Financial services outsourcing has several benefits and advantages to multiple organisations or companies in today’s business landscape. These services help them in enhancing or streamlining business operations and providing strategic agility and contributing to achieving financial goals along with the overall success of the concerned entity. Here are listed some key aspects that will highlight the benefits of financial services outsourcing. 

Cost Effective 

One of the pivotal significant benefits of financial services outsourcing is cost-effectiveness. Business organisations or companies achieve cost savings with the help of financial services outsourcing by utilising the expertise, manpower and infrastructure of their chosen financial service provider within their budget. By adopting financial outsourcing services, they can avoid huge amounts of costs associated with hiring and training employees, investing in infrastructure and spending the extra money to maintain up-to-date technology.     

Enable to Access Specialised Expertise

The second most important benefit of financial services outsourcing is that companies and business organisations who hire financial services providers have become eligible to access a specialised and knowledgeable team of professional which are not available in their own company. Financial service providers have dedicated teams of finance experts who have thorough knowledge along with practical skills in finance-specific domains. Their educational qualification and real-world experience help concerning entities by contributing to streamlining financial matters, improving accuracy, maintaining transparency or compliance and also helping them in staying updated with dynamic industry trends & patterns.  

Flexibility & Scalability

Companies and business organisations leveraging financial outsourcing services have become flexible in adapting to changing business requirements, market dynamics and demand fluctuations. Outsourcing services help them in adjusting the volume of outsourcing in respect of the business cycle and ensure flexibility or scalability by maintaining that the concerned organisations and companies have access to or required resources, which enable them to scale up business processes up & down.   

Improving Efficiency & Productivity

The next significant key aspect while discussing the benefits of financial services outsourcing is improving the efficiency & productivity of business organisations and companies. Financial services outsourcing providers help them in managing multiple finance-related activities by implementing well-defined work structures or leveraging advanced technologies to provide accurate, error-free results in a streamlined manner. Through the outsourcing of financial services, organisations or companies can achieve higher efficiency and productivity in their financial operations.  

Risk Mitigation 

Risk mitigation is also considered one of the prominent benefits of financial services outsourcing. Many financial services outsourcing providers help business organisations and companies in mitigating or diminishing financial risks by implementing dedicated risk management processes and systems along with expertise by industry regulations & laws.   

Competitive Advantage 

Competitive advantage is also regarded as one of the crucial benefits of financial services outsourcing. Business organisations & companies after transferring associated financial activities to the selected financial service provider, become independently free from managing financial matters. Now they can focus on other significant matters, including streamlining business operations, developing strategies to cost reduction and more. They can also emphasize improving themselves for the competitive edge by addressing their resources and efforts on enhancing customer experience, crafting product innovation and determining market expansion. The competitive advantage gained through financial outsourcing services can contribute to increased market share and profitability along with promoting sustainable growth of business organisations and companies. 

Financial Services Outsourcing Charges

In today’s multidimensional and dynamic business landscape, financial services outsourcing has become common yet one of the most demanding or prevalent practices which are universally utilized by multiple business organisations, industries and companies. Financial services outsourcing assists them in managing various types of financial concerns efficiently and encourages business operational efficiency, reduction of irrelevant expenses and consistent maintenance of accurate or precise financial statements. 

In the above section, we discussed what financial services outsourcing is along with what the benefits origination and companies can achieve through leveraging financial outsourcing services. In this section of the article, we are going to explore types of financial services outsourcing along with financial services outsourcing charges or factors affecting financial services outsourcing charges.

Types of Financial Services Outsourcing

Financial services outsourcing is becoming popular practice, and they are many renowned or prominent companies offering varieties of financial outsourcing services. Here is mentioned list of various types of financial services which companies and business organisations. Individuals who want to learn about the most common but prevalent financial services that are outsourced on a large scale are advised to read this section of the article with due diligence.

Accounting & Bookkeeping Services 

In general terms, accounting & bookkeeping services help business organisations and companies in managing, organising and recording their financial transactions, from the simplest transactions to the most intricate ones. The service of accounting and bookkeeping plays a significant part in ensuring the transparency or authenticity of each financial transaction by accounting principles because it is an important aspect of the concerned entity for making an informed business decision along with ascertaining the financial health of the business. 

Services Include in Accounting

  • Maintaining General Ledger
  • Recording Revenue & Expenses
  • Managing Account Payable & Receivable
  • Reconciling Bank Statements
  • Preparation of Financial Statements

Services Include in Bookkeeping

  • Recording & Categorization of Financial Transactions
  • Maintaining Journal & Subsidiary Ledgers
  • Ensuring Accuracy of Financial Data

Payroll Processing Services 

Payroll processing services assist business organisations & companies in saving money, manpower, and time by outsourcing financial service providers for the management of employee salaries, bonuses, deductions, monetary benefits, overtime payments, and various other monetary incentives on behalf of concerning entity. These services also handle tax withholding on behalf of the company or organisations and are also responsible for ensuring that employees are receiving their salaries accurately and on a timely basis while complying with associating labour laws along with tax regulations.

Services Include in Payroll Processing

  • Calculation of employee wages while considering multiple factors, including working hours, overtime, checking reimbursement, bonuses and commissions.
  • Deduction of taxes and social security contributions.
  • Issuing of paychecks
  • Generating payroll reports
  • Filing necessary tax forms

Tax Preparation & Compliance Services

Tax preparation & compliance services are the most common yet prevalent services that not only focus on helping business organisations and companies but also provide relevant services to numerous individuals. Financial service providers who provide tax preparation and compliance services, which involve the process of multiple tax-related activities, including preparation and filing of tax returns, managing specific tax-associated matters, providing expert recommendations on tax planning and ensuring compliance with tax rules, laws or regulations. This is a significantly essential service for individuals and business organisations to manage or meet their tax obligations efficiently while maximising tax benefits and reducing tax concerning risks.

Services Include in Tax Preparation & Compliance

  • Collection of Financial Information
  • Calculation of Income Tax
  • Identifying Applicable Deductions & Credits
  • Preparation of Necessary Tax Forms & Schedules
  • Ensuring Tax Returns are correctly filled & on time.
  • Staying updated on Ever-Changing Tax Laws & Regulations
  • Tax Planning & Minimising Tax Liabilities

Financial Analysis & Reporting Services

Many financial services outsourcing providers hire professional financial analysts’ experts to provide financial analysis & reporting services to their clients, whether business organisations, companies and individuals. Under financial analysis & reporting services, the analysts help concerning parties by analysing financial data through consistent examination and interpretation of financial statements or related documents to determine financial health along with predicting the financial performance and profitability to support them in strategic financial planning and contribute to the informed decision-making process. Insights obtained from financial analysis and reporting assist business organisations and companies in understanding their financial position, identifying market patterns or trends and more.

Services Include in Financial Analysis & Reporting

  • Evaluation of Financial Statement
  • Analyzation of Financial Ratios
  • Assessment of Profitability & Liquidity
  • Conducting Industry Benchmarking
  • Preparation of Comprehensive Financial Reports:
    • Balance Sheet
    • Income Statement
    • Cash Flow Statement

Auditing Services

Several organisations and companies outsource financial services from a prominent service provider to avail the services of auditing by transferring necessary financial information and data to external auditors. In this service, external auditors from financial service providers are hired by multiple business organisations and companies to facilitate the examination or analysis of their financial records along with transactions, internal controls and various types of expenses or different sources of revenues. The major significance of hiring external auditor services is that they can ensure an impartial assessment of financial statements by independent professionals with specialised expertise. Business organisations & companies can receive accurate insights regarding their business concerns, including accuracy, transparency, reliability and compliance with financial information, along with identifying the key area for improvement. 

Services Included in Auditing

  • Reviewing & Analysis of Financial Statements
  • Verifying the Integrity of Accounting Records
  • Assessment of Internal Controls
  • Test Transactions for Checking Accuracy
  • Esurance of Accounting is conducted in compliance with applicable laws & regulations.
  • Provide Valuable Insights 
  • Identify Control Weaknesses
  • Recommendations to Improve Financial Reporting
  • Adopting Risk Management Strategies

Investment Research Services

Investment research services are the most common yet one of the highly demanding services offered by many financial services providers and outsourced by numerous organisations or companies. Under this service, companies, business organisations, and individuals hire those financial service providers who deliver services in investment research. Investment research financial service providers help their concerned clients by analysing and evaluating the financial market, identifying favourable investment opportunities and providing insights or recommendations on various types of financial matters and contributing to investment-associated decision-making. These services also support managing investment portfolios, ascertaining possible risks and optimizing investment returns. 

Recommended Read,

Services Include in Investment Research

  • Analyzingof Financial Data
  • Assessment of Market Trends
  • Evaluation of Companies & Industries
  • Development of Investment Strategies
  • Recommendation of Investment Opportunities
  • Implementation of Various Methodologies
  • Financial Modeling & Quantitative Modeling
  • Fundamental & Technical Analysis
  • Forecasting the ROI 

Financial Software Development Services

The advent of digitalisation and rapidly growing technological advancement and innovation in the financial sector increase the huge demand for financial software development services on a large scale. Many service providers offer their services in the development of financial software. Today multiple business organisations, companies, industries and corporations are implementing or leveraging various types of financial software to address the requirements of financial management along with the facilitation of automated financial processes, enhancement of financial efficiency or data security, and lastly, streamlining their financial business operations. Numerous types of financial software are specifically designed by professional financial software developers, and many financial service-providing companies hire these experts to provide customized and specifically designed financial software development according to their client’s needs. 

Services Include in Financial Software Developer

  • Accounting Software Development
  • Payroll System
  • Budgeting Tools Creation
  • Development of Financial Reporting Platforms
  • Investment Management System
  • Financial Modeling Software Development

Risk Management & Compliance Services

The last financial outsourcing service we are going to discuss is risk management & compliance services. Today many business organisations or companies hire eminent financial service providers to outsource risk management and compliance services. Let us understand this topic in detail; these types of services help business concerns and companies in the identification or assessment of various types of risks along with the adoption of risk management strategies to mitigate these risks. Financial service providers also support them in ensuring adherence to applicable laws, regulations along with legal and regulatory requirements and maintaining industry standards. Business organisations and companies, after hiring a renowned financial service provider become eligible to leverage the expertise of professionals who have significant qualifications, knowledge and skills in risk management practices.

Services Include Risk Management & Compliance

  • Identification of Risk
  • Curation of Risk Mitigation Strategies
  • Development of Risk Management Framework
  • Monitoring Compliance with Laws & Regulations
  • Providing Guidance 
  • Ensuring Adherence to Industry Standards

Charges of Financial Services Outsourcing

Above, we explore the eight common and famous types of financial services outsourcing, which many business organisations, companies, industries, corporations, financial institutions and individuals outsourced. The financial services outsourcing charges are based on multiple factors, including the specific types of service, the complexity of service, volumes of work, how much manpower is required and the expertise of the service provider. Let us look into the average financial services outsourcing charges for each service.

Accounting & Bookkeeping Service Charges – Average charge for accounting & bookkeeping ranges from INR 25,000 to INR 50,000 per month.

Payroll Processing Services Charges – Average charge for Payroll Processing ranges from INR 10,000 to INR 50,000 per month.

Tax Preparation & Compliance Services Charges – Average charge for Tax Preparation & Compliance starts from INR 5,000 to INR 50,000 per year.

Financial Analysis & Reporting Charges – Average charge for financial analysis & reporting charges start from INR 5,000 to INR 30,000 per report or project.

Auditing Services Charges – Average charge for auditing services can range from INR 40,000 to INR 5,00,000 per audit engagement.

Investment Research Services Charges – Average Charge for Investment Research Services range from INR 10,000 to 50,000 per projector subscription.

Financial Software Development Services Charges – Average charge for financial software development services starts from INR 1,00,000 to 10,00,000 lakhs per project.

Risk Management & Compliance Services Charges – Average Charge for risk management & compliance services range from INR 20,000 to 1,00,000 per month.

Professional Courses from IIM SKILLS

Factor Affecting Financial Services Outsourcing Charges

There are several important factors affecting financial services outsourcing charges on a significant level. Understanding the reason and degrees of factors affecting is essential for business financial services providers and their clients in opted to determine a fair pricing structure and facilitate a mutually beneficial agreement between both parties. Below listed some key factors affecting financial services outsourcing charges.

Scope of Service

The scope of service means the specific type of financial services required by clients will impact financial services outsourcing charges. Services including accounting, bookkeeping and payroll processing will generally be charged lower in comparison to more specialised services such as financial analysis or reporting, tax compliance services, risk management and financial software development services.

Volume of Work

The volume of work is also responsible for affecting financial services outsourcing charges. For example, if a business organisation or company have certain limits on a financial transaction and a small employee base, then services can be hired at a lower cost. On the contrary, if business organisations and companies have large numbers of intricate financial transactions along with a large number of employees, the service provider charges higher because it will require more time & effort.

Also, Check,

Expertise & Experience

Financial services outsourcing charges also depend upon the level of expertise and experience of the service providers. Renowned & prominent financial service-providing companies charge higher fees because they provide services by industry-specific professionals and experts who have years of expertise in finance-related domains.

Service Provider Reputation

The reputation of financial service providers also contributes to affecting financial services outsourcing charges. Well-established and renowned financial service-providing companies with authenticated track records of providing quality financial services according to the requirements of their clients may charge higher for delivering further financial services.

Timeframe & Deadline

If a business organisation or company are required some significant services on an urgent basis or within a specific period or before a specific deadline, then financial service providers may demand extra charges to prioritize and complete the work as per the client’s specified timeframe & deadline.

Service Level Agreements (SLAs)

Service level agreements (SLAs) play a crucial role in affecting financial services outsourcing charges because it defines the quality of services, performance of services and response time by financial service providers. If a business concern or company desire high-quality services and guaranteed response times from selected financial service providers, then they will have to pay higher fees. 


Financial services outsourcing is highly popular in today’s finance-driven business world. Many companies, business organisations, corporations and industries are outsourcing various kinds of financial services from prominent service providers. This article aims to shed light on what financial outsourcing services are, what types of financial outsourcing services and what charges are associated with specific financial services. The article also explains factors affecting financial services outsourcing charges. I believe that my article would serve a significant purpose in educating individuals who are looking for comprehensive details regarding financial outsourcing services and financial services outsourcing charges. 

Frequently Asked Questions

Question: Which are the top five companies providing financial outsourcing services in India?

Answer: The top five companies providing financial outsourcing services in India are:

  • Infosys BPM Ltd.
  • Genpact Ltd.
  • Wipro Ltd.
  • Tata Consultancy Services Ltd.
  • Accenture India Pvt. Ltd.

Question: Where financial services outsourcing comes under BPO or KPO?

Answer: Financial Services Outsourcing fall under both categories Business Process Outsourcing (BPO) or Knowledge Process Outsourcing (KPO), depending upon the nature and types of services provided to clients. Services including bookkeeping, accounting, payroll processing and various other related services come under BPO, while highly specialised services like thorough financial analysis, investment research, risk management and compliance services are classified under KPO.

Question: Are financial outsourcing services secure?

Answer:  Well, the answer to this question depends upon the types of financial service providers clients may have selected to receive various types of financial services. Reputable and recognized service providers give assurance of data security and confidentiality. Many financial service-providing companies signed agreements to protect data in case of breach and maintain confidentiality.  


Leave a Reply

Your email address will not be published. Required fields are marked *


Call Us