Introduction

Banking BPO is the largest and the most mature market within BFSI BPO. As banks look to further cut costs, grow beyond traditional markets, and find new channels to reach customers, they are increasingly turning to BPO as a key tool to stay competitive. Banks are now rationalizing their BPO service provider portfolios and forging deeper relationships with a smaller number of service providers. Service providers, on their part, are trying to increase market share, develop new offerings, and improve delivery capabilities, through both the organic and the inorganic route. With more comprehensive offerings to choose from, banks should assess service provider capabilities across various parameters, and keep in mind both the current and future needs when selecting a service provider.

Scope and Methodology

In this research, we analyze the global banking BPO service provider landscape. We focus on:

• Relative positioning of 12 service providers on Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for banking BPO
• Service provider market success
• Service provider capability advancements
• Emerging service provider trends
• Implications for key stakeholders 

Content

This report will assist key stakeholders (banks, service providers, and technology providers) understand the changing dynamics of the banking BPO market service provider landscape. It will also help them identify market Leaders, Major Contenders, and Emerging Players for 2011. The report provides detailed analysis of service provider market shares, relative position on Everest Group PEAK Matrix, service provider capability assessment, and emerging service provider trends. Some of the findings in this report are:

• Everest Group showcases its classification of 12 banking BPO service providers on the – PEAK Matrix into the Leaders, Major Contenders, and Emerging Players categories.
• There are two service providers (TCS and Genpact) in the Leaders category and six service providers (Serco, Infosys, Cognizant, Wipro, iGate, and EXL Service) in the Major Contenders category, followed by four service providers (WNS, Syntel, HCL, and Mahindra Satyam) in the Emerging Players category
• Leaders hold a clear advantage over Major Contenders and Emerging Players, with a higher number of average FTEs for banking BPO as compared to Major Contenders and Emerging Players. The average revenue per FTE and average revenue per contract are also higher for Leaders as compared to Major Contenders and Emerging Players
• While Leaders have a more even mix of FTEs across all lines of business in banking BPO, Major Contenders and Emerging Players tend to focus more on particular lines of business. Leaders also focus more on large buyers than Major Contenders or Emerging Players
• While augmentation technology models are employed by service providers in all three groups, platform technology models see highest adoption by Leaders, followed by Major Contenders, and then Emerging Players
• Leaders have established a global delivery footprint with a balanced mix of onshore-nearshore-offshore locations. Major Contenders and Emerging Players continue to be predominantly offshore focused