(PRWEB) August 22, 2013
The Banking and Financial Services (BFS) Business Process Outsourcing (BPO) market grew by 16 percent globally in 2012, a robust growth rate driven by small financial institutions seeking to grab a portion of the efficiency benefits promised by BPO services. Adoption of BFS BPO from small financial institutions accounted for more than 50 percent of new contracts in 2012.
The data and insights are included in a new report issued by Everest Group, an advisory and research firm on global services.
The report, Banking and Financial Services (BFS) BPO Annual Report 2013 - Small is the New Big!, chronicles how a higher proportion of contracts in 2012 were extensions or renewals as compared to new contracts. The overall value proposition of BFS BPO continues to be strongly driven by cost reduction. This report aims to assist buyers, service providers and technology providers in understanding the changing dynamics of the BFS BPO market and help them identify the trends and outlook for 2013.
The salient points of the report are:
The scope of the study covers third-party BFS BPO contracts and does not include shared services or Global In-house Centers. Around 300 BFS BPO contracts signed as of 2012 were analyzed as part of the study. A service provider landscape covering 18 BFS BPO service providers includes Cognizant, CSC, Dell, EXL, eClerx, Genpact, HCL, Infosys, iGate, Mphasis, Serco, Sutherland, Syntel, TCS, Tech Mahindra, Wipro, WNS, and Xerox.
Insights from the study include:
“As BFS BPO demand gets more sophisticated, the service provider landscape will become more specialized,” said Saurabh Gupta, vice president at Everest Group, leading the firm’s business process research practice. “The ascending influence of smaller financial services, the risk-averse and focused approach of large global companies, and the rising competitive intensity require service providers to bring their A-game that goes beyond arbitrage and economies of scale.”
About Everest Group
Everest Group is an advisor to business leaders on the next generation of global services with a worldwide reputation for helping Global 1000 firms dramatically improve their performance by optimizing their back- and middle-office business services. With a fact-based approach driving outcomes, Everest Group counsels organizations with complex challenges related to the use and delivery of global services in their pursuits to balance short-term needs with long-term goals. Through its practical consulting, original research and industry resource services, Everest Group helps clients maximize value from delivery strategies, talent and sourcing models, technologies and management approaches. Established in 1991, Everest Group serves users of global services, providers of services, country organizations and private equity firms, in six continents across all industry categories. For more information, please visit http://www.everestgrp.com and research.everestgrp.com.