Stricter regulatory norms, the race to provide personalized banking experience, rise of digital banking, the pressure to contain costs, and the threat from the rise of banking ubers drove investments in banking application services market in 2015. Banks embraced the next-generation technologies and invested in driving revenue growth by providing improved omnichannel experience to the customers.
Activity in the service provider landscape intensified as a result of market consolidation, as large players acquired mid-tier firms to gain access to new markets, logos, and domain capabilities. Digital has now become mainstream and service providers are transitioning themselves to become digital transformation partners of banks by ramping up their capabilities, investing in innovative technologies internally or through alliances, and acquiring strategic targets to address the growing and complex application services needs of banks.
In this research, we analyze the current trends and the future outlook for large, multi-year application outsourcing relationships in the global banking sector. We have assessed 28 banking AO service providers on their capabilities for providing these services globally. These providers were mapped on the Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix, which is a composite index of a range of distinct metrics related to each provider’s capability and market success. In this report, we focus on:
This report analyzes IT applications outsourcing in the global banking subverticals with a focus on large (TCV > US$25 million), annuity-based, multi-year (over three years) relationships: