Dallas, TX (PRWEB) July 03, 2013
A declining market for Banking, Financial Services, and Insurance (BFSI) deals masks a fundamental shift in how large application outsourcing (AO) deals are procured and managed, according to a report just released by Everest Group, an advisory and research firm on global services.
The report, IT Outsourcing in Banking - Annual Report 2013, provides an overview of the AO market for the banking industry, through an analysis of AO contracts over US$25 million in total contract value and more than three years in duration. The report analyzes key trends in market size and growth, demand drivers, adoption and scope trends, emerging priorities of buyers, key investment themes and outlook with regard to large banking AO deals.
In 2012, BFSI buyers continued to remain under pressure to increase revenue, enhance customer experience, reduce costs, replace legacy systems, and meet regulatory requirements. To address these challenges, most banks focused on investments in next-generation technologies such as social media, mobility, big data and analytics, and cloud computing in order to enhance customer experience while simultaneously reducing their operational costs, better managing risk, and improving shareholder returns.
“As financial institutions gear up for new changes, they are making investments in next-generation solutions that enhance customer intimacy and drive efficiency,” said Jimit Arora, vice president of Everest Group. “As technology transformation becomes a key priority for financial institutions, the nature of AO contracts in this segment is witnessing a steady evolution.”
Findings in the report include:
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.