The global market for outsourced finance and accounting functions will expand at a 9.6 percent compounded annual growth rate and top $47.6 billion in 2008, according to a new report from technology consultancy IDC.

IDC doesn’t expect that finance and accounting will become fully outsourced in the foreseeable future. Over the next five years, however, it foresees that outsourcing of transaction management will grow at 9.8 percent per year; of tax management, 9.3 percent; and general accounting, 8.3 percent.

Accounts payable remains the most widely outsourced function in this area, noted IDC, and cost-cutting is still the most widely cited reason that companies outsource finance and accounting functions. But the need to solve strategic business issues, added the consultancy, is becoming an ever-larger driver of outsourcing spending worldwide.

IDC also predicted that mergers and acquisitions among finance-and-accounting outsourcing providers will continue to accelerate as they fight for market share, expand into key regions, and acquire specialized business process and consulting expertise.

(For a related article, see “Farewell, Finance.”)