BUSINESS ASSURANCE MARKET ANALYSIS

Market Challenges And Opportunities

Global Business Assurance Market Drivers:

Growing Adoption of Business Assurance to Increase Confidence and Improve Efficiency of Business Processes:

The businesses across the world are operating in highly dynamic and competitive market. The competitive and regulatory forces are making it increasingly important for the companies to have a strong and comprehensive business assurance policy which covers various domains such as; compliance, risk assessment, governance, etc. The regulatory forces across the world are getting increasingly stringent in the current scenarios where organizations have to comply with several statutory, environmental and financial norms. The failure to comply with these norms would lead to strict actions against the company. To avoid such situations having an effective governance and compliance management system is crucial for the organizations. Additionally, to maintain good stakeholder relations, the organizations need to justify the strategic decisions they take. For instance, according to an article published by Hasmukh Shah and Co., in May 2022, the importance of auditing services in improving the efficiency of companies is emphasized due to the factors like building regulatory, compliance and governance systems. Hence, assessment of risk which includes identification, measurement and management of risks becomes necessary.

Expansion of the Industrial Sector:

The Industrial sector is still growing with rapid strides in the developing economies across the world like India, China, Vietnam, Brazil, etc. This expansion is in the primary, secondary as well as tertiary sectors. The industries in the sectors like mining, manufacturing, outsourcing of IT services, etc. are continuously growing in number. The growth in the number of these industries would naturally increase the demand for business assurance market. For instance, according to a report by ASEAN Briefing published in January 2023, the region of South-east Asia is expected to witness an impressive growth in terms of the number of industries due to the factors like improving economic condition, low cost of labor, supportive government policies, etc. For instance, according to an article published by Euromonitor International, in September 2022, the growth prospects of the global industrial sector show a strong trend in the recent future. According to their survey, around 42% of the industries aim to expand their operations, supplier and resource pool to give greater production flexibility in the future. This is an extremely positive sign for the business assurance market as the expansion of the industrial sector would automatically increase the demand for assurance services in the region leading to further growth of the market.

Global Business Assurance Market Opportunities:

Significant growth of the IT services sector:

It is a well-known fact that the current business world is dominated by the Information and Communication Technology sector. The importance of the IT sector can be attributed to the fact that most of the activities in the personal as well as commercial domains are becoming digital. The role of IT industry in digitalization of the business as well as day-to-day processes for the individuals is immense. This has led to an exponential growth of the IT sector. For instance, according to the report published by Skyquest, in April 2023, the global software market was valued at around US $51,800 Mn and is expected to grow upto the valuation of US $1,17,640 Mn. Growing at a CAGR of 8.7%. This growth would be fueled by the evolution of fields like IoT and Artificial Intelligence. The emergence of huge corporations like Google, Amazon, Microsoft, etc. points towards the fact that the potential for growth is huge in the sector. As the IT sector grows, their need for having several business assurance services and systems increase to that extent. As these organizations have been imposed with several compliance norms, industry regulations, internal efficiency systems, effective governance model, etc. All these services are provided by the business assurance market. Hence, the continuous rise of the IT sector across the globe is bound to provide more opportunities to exploit for the business assurance market.

Growing regulations from the governments across the world regarding effective governance of the organizations:

The governments across the world are increasingly focused on maintaining a policy of having strict corporate governance framework in place for the effective management of the organizations and safeguarding the interests of all the involved stakeholders. The corporate governance framework requires the implementation of sound auditing systems, and reporting of vital data within the organization. All these services come under the umbrella of business assurance services. This ensures the availability of strong market for the assurance sector. By developing systems that cater to these requirements of the organizations, companies can take advantage of this growing market. For instance, in October 2021, SEBI made it mandatory for the top 1000 companies by market capitalization to report the ESG (Environment, Soccial and Governance) framework in an updated format. This step was taken to ensure that the culture of sustainability is further promoted. Hence, as the regulatory norms from the authorities across the world become more stringent, this would create more demand for compliance and governance systems in the corporations which would in-turn act as an opportunity for the business assurance market to grow even further.