Assets Under Management (AUM), a key metric for global asset management industry, reached US$71.4 billion in 2015. While this was just an increase of 1% from 2014 levels, what is more important that it was led by increase in asset valuations and not by net new sales. Bond yields are at their lowest levels since the global financial crisis in a period of low interest rates in major economies around the world. Brexit has sent shockwaves through the capital markets worldwide, while much of the effects of Brexit will play out in the next two to three years, markets worldwide are grappling with a period of uncertainty.
Capital markets firms struggle with increasing costs, increasing regulation, and a period of low growth. In addition, technological advancement, especially digital, has created a new set of competitors that are not weighed down by the burden of legacy in their product portfolio, customer relationships, and IT setup. In 2016, capital markets firms will operate under these difficult market conditions and will need to compete with aggressive new entrants and peers, as the battle for market share and profit intensifies.
Firms will need to invest in next-generation technologies while holding IT budgets steady. This implies that saving money from run-the-business initiatives to fund change initiatives remains the only plausible way to continue technological advancement.
In this report, we look at the global trends in banking industry and their implication for application services outsourcing. We focus on:
This report is structured across three key sections, each containing insights into application outsourcing in the global capital markets sector, with a specific focus on large-sized contracts:
Banking, Financial Services & Insurance (BFSI) - Information Technology Outsourcing (ITO)