Market Size (2018)
2018
—
Vertical: ICTBase Year: 2018
Market Size (2018)
2018
—
Projected (2025)
2025
—
CAGR (2018–2025)
N/A
Key Players
100+
Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0in; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Roboto Condensed"; mso-ascii-font-family:"Roboto Condensed"; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:"Roboto Condensed"; mso-hansi-theme-font:minor-latin;} The global tax and accounting software market is expected to grow at a CAGR of 7.9% from the year 2019–2025. The market is driven by increasing demand for automated solutions across various industry verticals, globally. Also, since tax and accounting software offers several benefits including efficient planning and management of financial data in a cost-effective manner, it is being widely deployed across industries including manufacturing, retail & consumer goods, BFSI among others. Tax and accounting software are basically two different types of software solutions that are used by enterprises as well as independent financial consultants to manage the entire process of financial transactions. Tax software is designed to help enterprises and individuals to effectively file various taxes including income tax, corporate tax, and state & regional taxes. Accounting software, on the other hand, manages the accounting transaction including accounts payable, accounts receivable, bank reconciliation statement, journal, ledgers, and payroll among others. Both tax and accounting software have become a key solution for small-, medium- and large-sized enterprises. Companies operating in the market are offering integrated solutions in the form of ERP as well as independent solutions like invoice and billing software and payroll software.
With the growth in several enterprises in the developing regions like Asia-Pacific, South America, and the Middle East and Africa the demand for such solutions is significantly increasing. Also, with the introduction of various amendments in taxation policies in countries like India (GST), EU countries (VAT), the need for affordable tax software is increasing. Individual professionals are also using various cloud-based accounting as well as tax software for managing accounting and taxation transactions. For instance, according to the annual report released by FreshBooks (2018), a tax and accounting software provider, in 2019, an estimated 24 million people would be self-employed in the US. This basically means that the self-employed population will demand cost-effective and easy-to-use accounting and tax software which in turn will lead to an increase in cloud-based tax and accounting software. This trend is visible in other regions like Asia-Pacific and the Middle East and Africa. Solution vendors, with this opportunity, are therefore investing in research and development to offer easy to operate and affordable software. For instance, key players like Xero limited, Sage and MYOB, provider of accounting solution shifted to Amazon Web Services (AWS) in the year 2018.
Further, these companies are focusing on completely automating bookkeeping services of collecting documents in order to make it easy for enterprises and individual professionals to perform accounting. Xero Limited is moving towards automating bank reconciliation processes. For the same, the company acquired Hubdoc Inc., a company that develops document collection and management software Xero Limited is also using optical character recognition technology to extract and analyze data such as due date, amount and taxes.
The global tax and accounting software market is fragmented with a number of small- and mid-size players offering tax and accounting solutions to the enterprises. However, irrespective of the fact that the market is fragmented, few key players dominate the market with significant market share and portrays intense rivalry. Few of these players are Intuit Inc., Sage Group plc., Xero Limited and SAP SE. These players compete with each other on the basis of price, software features, and market presence. Apart from these big players, few of the small- to mid-size players have emerged as a market innovator. These players include Xero Limited, FreshBooks Reviso Cloud Accounting Limited among others. These players have a strong regional presence, for instance, FreshBooks Inc. has a significant subscriber base in the US, Tally Solutions Private Limited has a stronghold on the Indian market. Also, these players are now striving to expand their geographic reach to opportunistic markets like Asia-Pacific and the Middle East. For instance, Xero limited is extensively focusing on the UK market and is directly competing with Intuit Inc. It is targeting small- and mid-sized enterprises operating in the country.
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· 2018: USD 18,643.6 Million
· 2024: USD 31,590.1 Million
CAGR (2019–2024)
· 7.9%
Key Market Drivers
· Increasing demand for an automated solution by financial institutions
· The rapid adoption of cloud-based accounting software
Key Market Opportunities
· Integration of artificial intelligence with accounting and mobile/app-based accounting software
Key Vendors
· Intuit Inc.
Tax and Accounting Software Market is a key focus area for market intelligence and strategic research.
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View Subscription PlansTax and Accounting Software Market
Historical performance and future projections (2020–2030, USD Billion)
Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0in; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Roboto Condensed"; mso-ascii-font-family:"Roboto Condensed"; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:"Roboto Condensed"; mso-hansi-theme-font:minor-latin;} Tax and Accounting Software is a type of software that accounting professionals or business owners use to process accounting transactions and manage accounts. The Tax and Accounting Software is usually created by a third party for small and medium-sized businesses, although large businesses and corporations have their own in-house accounting software.
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View Subscription PlansThis report applies a rigorous multi-stage research process combining primary interviews, secondary data sources, and bottom-up market modelling to ensure accuracy and completeness across all segments and geographies.
Base Year
2018
Historical Period
2018 – 2018
Forecast Period
2019 – 2025
Primary Interviews
150+
Historical data (2018–2018) and forecast period (2018–2025)
Our research process spans primary interviews with industry stakeholders combined with comprehensive secondary data analysis, validated through triangulation across multiple independent sources.
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According to Wantstats analysis, Intuit Inc. is currently leading the global tax and accounting software market in terms of market share. Intuit has a high focus on technology innovation, which augments its ability to design and develop innovative and sustainable products and solutions to its clients. The company is persistently innovating its product offerings to serve a wide application area and consumer base. Furthermore, the company also has a high focus on acquiring other companies for developing its products with advanced capabilities such as AI, expand its product portfolio, and geographic reach. Due to such a wide product portfolio offered by the company, consumers worldwide choose Intuit for their tax and accounting requirements. The company also emphasizes building and strengthening its relationship with channel partners, which enhances its distribution capabilities to boost its consumer base and strengthen its market position.
Sage Group occupies the second position in the global tax and accounting software market. The company offers a wide product portfolio for every type of tax and accounting requirement. The company is highly focused on partnerships, strategic alliances, and acquisitions of firms, which would help Sage to broaden its offerings and enhance its existing portfolio with additional capabilities to meet the growing demand of the consumers. For instance, Sage’s partnership with PayPal enables a secure online payment method, making financial transactions easier and quicker. Furthermore, a wide geographic reach helps the company to maintain its market position.
SAP SE currently occupies the third position in the global tax and accounting software market. SAP SE is known to provide enterprise applications and software solutions with advanced capabilities. The company has a wide portfolio of products covering accounting, financial management, cash management, treasury, and accounts receivables. The SAP S/4HANA Finance solution can be deployed on-premise as well as on cloud and supports financial planning and accounting, accounting and financial close, treasury and cash management, accounts payable and receivable, and risk management among many others on a single platform. Wide geographic reach and strong distribution help the company to strengthen its position in the tax and accounting software market.
Oracle Corporation has currently occupied the fourth position in the global tax and accounting software market. The company focuses on designing technologies using industry standards-based architectures to manage and automate core business functions across enterprises. The tax and accounting portfolio offered by the company offers a complete solutions portfolio to cater to all the client requirements related to tax, accounting, and reporting. The company emphasizes expanding its presence in the global market by opening cloud-based data centers worldwide to support the growing demand for cloud-based services. Oracle also invests heavily in its research and development to enhance its product offerings. This helps the company to further increase its geographical footprint and position in the market.
The global tax and accounting software technology market is at a growing stage and driven by various factors such as increasing demand for automated solutions by financial institutions. The global tax and accounting software technology market is fragmented with large players such as Oracle Corporation along with a large number of smaller players making up the market.
Michael Porter’s Five Forces model is a framework to study the global tax and accounting software technology market. Strategic business managers, trying to gain an edge over competing firms in the global tax and accounting software technology market, can utilize this model to better comprehend the industry in which the company operates. The components of each of the forces and the degree of impact of each component in the context of the global tax and accounting software technology market have been broken down and analyzed.
THREAT OF NEW ENTRANTS The barriers of entry to the tax and accounting software technology market are low. Capital investment required to develop tax and accounting software is low due to the availability of various application programming interfaces to streamline the development process. Government regulations are stringent as tax and accounting norms of the respective countries need to be followed to the utmost accuracy to avoid any violations. Hence, the threat of new entrants is expected to be moderate during the forecast period.
BARGAINING POWER OF SUPPLIERS The number of suppliers in the market is high. Companies such as Oracle Corporation, Microsoft Corporation, Xero Limited are offering competitive products with iterative updates. Product differentiation is low as the government regulations for tax and accounting are applicable for all vendors equally which lowers the bargaining power of suppliers. The cost of switching vendors of tax and accounting software is high for the buyers as moving to a different platform requires data migration capabilities and may result in system downtime. Hence, the bargaining power of suppliers is expected to be moderate during the forecast period.
THREAT OF SUBSTITUTES Tax and accounting software have made taxation and financial accounting processes much faster and less error-prone for organizations. It is a crucial piece of the software system which helps automate various processes such as accounts payable, accounts receivable, and others. Currently, there are extremely limited substitutes available for tax and accounting software. Hence, the threat of substitutes is expected to be low during the forecast period.
BARGAINING POWER OF BUYERS The buyer concentration of tax and accounting software solutions is high. Buyers include government entities, auditing firms, private limited companies, and others. However, brand identity plays a key role in opting for solution providers as brand track record and product support cycle play a large role in decision making. Buyers tend to enter into long-term agreements with the suppliers. Further, due to high cost of switching vendors, the bargaining power of buyers is expected to be moderate during the forecast period.
COMPETITIVE RIVALRY The market is competitive with large players such as SAP SE, Oracle Corporation, and Microsoft Corporation vying for market share. However, smaller players such as FreshBooks, Inc have also been able to offer competitive products and services for small- and medium-sized businesses. According to Wantstats analysis, market growth is expected to be high with favourable prospects during the forecast period which is expected to intensify the competitive rivalry.
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Analytical insights on Tax and Accounting Software Market covering market dynamics, competitive landscape, and strategic outlook.
Tax and Accounting Software Market represents a significant market opportunity with multiple growth drivers across regions and segments.
Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0in; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Roboto Condensed"; mso-ascii-font-family:"Roboto Condensed"; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:"Roboto Condensed"; mso-hansi-theme-font:minor-latin;} The Global Tax and Accounting Software market has shown stagnant growth during the forecast period. Factors such as the rapid adoption of cloud-based accounting software is expected to drive the market during the forecast period. Increased demand for automated accounting solutions by financial institutions is also boosting the growth of the market. However, data security and privacy concerns are hindering the growth of the market.
Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0in; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Roboto Condensed"; mso-ascii-font-family:"Roboto Condensed"; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:"Roboto Condensed"; mso-hansi-theme-font:minor-latin;} Accounting software increases the efficiency of financial operations as it can manage, track, and record financial transactions seamlessly. Utilizing accounting software helps companies to manage and maintain their account receivables, account payables, general ledger, business payroll, and other business modules effectively. Furthermore, such software offers various features such as expense management, financial forecasting, and others which is cost-effective & time saving which improves the company’s productivity. Modern accounting software allows for automation through pre-defined automated task management which saves time. For example, vendor information can be entered into the system and automatic payments can be set up for that vendor on the due date each month. You can also automatically send recurring invoices to customers once their information is entered into the system. Such features are essential for financial institutions that manage a multitude of accounts for hundreds of customers. FreshBooks, QuickBooks, Xero, SAP S/4HANA, and Sage Business Cloud Accounting are some accounting software preferred across various industries.
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Automated solutions are also being implemented in fraud detection by providers like Plaid, which works with financial institutions like Goldman Sachs, Citigroup, and American Express; they analyze interactions under different conditions and variables and build multiple unique patterns that are updated in real time. Plaid works as a widget that connects a bank with the client’s app to ensure secure financial transactions.
Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0in; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Roboto Condensed"; mso-ascii-font-family:"Roboto Condensed"; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:"Roboto Condensed"; mso-hansi-theme-font:minor-latin;} AI-based accounting technology can accomplish tedious tasks of data entry and general bookkeeping with ease and precision. AI has already been adopted in many application areas such as tax compliances and bookkeeping. In tax compliance, robotic process automation (RPA) ‘bots’ act as humans and perform various tasks including entering transactions into a system, extracting information from multiple applications, performing calculations, and filing essential documents. For instance, Botkeeper, an automated software, uses AI and machine learning for bookkeeping. It categorizes expenses, invoices customers, pays bills, accrues revenue and expenses, reconciles accounts, and enters data into the accounting software.
Another provider of robotic process automation is Automation Anywhere, that offers automation processes for financial services such as accelerated underwriting and improved compliance processes. It has also received a funding of USD290 million in November 2019 to expand operations.
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According to IBM X-Force Threat Intelligence Index 2018, the financial service sector experienced 17% of attacks and 27% of security incidents, whereas, the information and communications technology sector was the most-attacked industry with 33% attacks reported in 2017.
Areas of major concern for financial service providers included threats against their digital/online banking services (45 percent), point-of-sale (POS) payment systems (40%), and phishing/social engineering of the institution’s customers (35%). Companies are also concerned about attacks on their office administrative networks (35%) and their ATMs (26%).
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Partnerships between CDMOs and instrumentation vendors should accelerate standard datasets for comparability across sites, improving forecasting models used in capacity planning.
Longer horizon, organoid and microphysiological adoption may reshape segment mix; teams that invest early in assay interoperability and cloud QC hooks are better positioned to capture upside without fragmenting their analytics stack.
Profiles of 100 companies operating in the Tax and Accounting Software Market market, including revenue, employee count, and market positioning where available.
Showing 100 of 100 companies
Applus+
Company Headquarters: Madrid Founded: 1996 Workforce: ~ 25,000 Company Working: Applus+ is a leader in the testing, inspection, and certification sector. Applus+ is a trusted partner, enhancing the quality and safety of clients’ assets and infrastructures while safeguarding their operations and improving their environmental performance. Its innovative approach, technical capabilities, and highly skilled and motivated workforce assure operational excellence across multiple sectors in more than 70 countries. Applus+ offers a complete portfolio of solutions that address a range of needs, from asset integrity management to statutory compliance-based inspections. It places a strong emphasis on technological development, digitalization, and innovation, as well as having the latest knowledge of regulatory requirements.
TUV SUD
Company Headquarters: Germany Founded: 1866 Workforce: ~26,000 Company Working: TUV SUD is a global testing, inspection & certification provider company. TUV SUD divided its operations into three segments including industry, mobility, and certification. Further, it offers auditing & system certification, testing services, product certification, inspection, technical advisory, global market access, training, risk management services for chemical & process, manufacturing, retail, consumer goods, energy, mobility & automotive, infrastructure & rail industries globally. TUV SUD provided more than 605,000 certificates to approximately 1,000 locations worldwide.
Monday.com
Company Headquarters: Tel Aviv, Israel Founded: 2012 Workforce: ~5000 Company Working: Monday.com is a cloud-based platform that allows users to create their own applications and project management software. Monday.com offers work management, Sales CRM and Monday Dev for development and product teams.Monday.com offers solutions as per the team types and company sizes. Monday.com serves more than 180,000 customers present in more than 180 countries across the globe. It offers Work OS that produces maximum productivity, helps in bringing teams together, helps in reaching goals faster, and creates an ideal workflow with its building blocks.
Slack Technologies LLC.
Company Headquarters: US Founded: 2009 Workforce: ~2900 Company Working: Slack Technologies LLC. is a software development business that creates a communication platform for teams that includes real-time messaging, transferring files, archiving, and searching. Slack is a workplace platform that empowers industries such as retail, IT & telecom, BFSI, education, media, and others through no-code automation and AI, streamlines search and knowledge sharing, and maintains connections between teams and businesses. Slack has more than 200,000 paid consumers and has operating users across 150 countries globally.
Asana Inc.
Company Headquarters: US Founded: 2008 Workforce: ~1,666 Company Working: Asana Inc. is a work management tool that assists teams in orchestrating their work, from regular tasks to larger objectives. Asana gives structure to unstructured work, bringing clarity, transparency, and responsibility to everyone in an organization, including individuals, team leaders, and executives. Asana is used by over 100,000 paying organizations and millions of teams worldwide. The company has its operations in more than locations across North America, Asia, and European region. Major companies such as Amazon, Johnson & Johnson, P&G, others integrates Asana for their operations management.
Cognizant
Company Headquarters: US Founded: 1994 Workforce: ~355,300 Company Working: Cognizant Technology Solutions Corporation (Cognizant) is a professional services company. it operates through four segments: financial services, healthcare, manufacturing/retail/logistics, and other. The financial services segment caters to customers providing banking/transaction processing, capital markets, and insurance services. The healthcare segment caters to healthcare providers and payers, as well as life sciences customers, including pharmaceutical, biotech, and medical device companies. The manufacturing/retail/logistics segment caters to manufacturers, retailers, travel, and hospitality customers, along with customers providing logistics services. The other segment comprises information, media & entertainment services, communications, and high technology operating segments. Its service portfolio comprises consulting and technology services and outsourcing services. Its outsourcing services include application maintenance, IT infrastructure services and business process services. Cognizant has more than 270 office locations across 40 countries worldwide.
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