Role of Global Sourcing in FS BPO - Significant Traction, Yet Tremendous Potential

14 Apr 2011
by Rajesh Ranjan

$2,999.00

Introduction

In the current economic scenario where financial services companies are reconsidering their cost base, Business Process Outsourcing (BPO) across industry-specific processes in banking, capital markets, and insurance is generating much interest. Beyond arbitrage, several other factors including access to new talent pools, risk diversification, and operational flexibility are driving financial services organizations to push the global sourcing envelope. At the same time, the global sourcing market needs to overcome specific legislative, perception related, and operational challenges to realize its potential.

In this research study, we analyze global sourcing in FS BPO across banking, capital markets, and insurance. We focus on:

  • Global sourcing models and trends including, market size, growth, and potential
  • Drivers and challenges to global sourcing in FS BPO
  • Maturity of functions and processes represented as being mature, credible, and emerging
  • Global sourcing location landscape across banking, capital markets, and insurance
  • Global sourcing service provider landscape across banking, capital markets, and insurancebal sourcing service provider landscape across banking, capital markets, and insurance 

Scope of analysis

  • This report covers global sourcing in vertical-specific FS BPO across banking, capital markets, and insurance. The report does not include coverage of horizontal business processes like F&A, HR, procurement and contact center
  • The coverage spans nearshoring and offshoring in third-party service providers. The report does not include coverage of captives and internal shared services
  • The analysis leverages existing Everest IP on FS BPO, detailed assessment of 15+ FS BPO service providers, and interviews with leading FS BPO service providers to understand their perspective on global sourcing in FS BPO 

Contents

This report examines the various global sourcing trends in FS BPO, across banking, capital markets and insurance. The report provides the reader with an accurate overview and clear identification of trends observed. For example, throughout the report key findings are shared, including the following, among others:

  • FS BPO accounts for 40% (US$16-18 billion) of the global sourcing market, and is growing at 20%+ annually
  • Insurance BPO is the most mature FS BPO segment, followed by banking BPO. Capital markets BPO is the least mature
  • Different nearshore and offshore delivery locations offer differing leverage points such as lower operating cost, language capability, time-zone proximity, and cultural affinity
  • Everest analyzed the global sourcing capability of 15 FS BPO service providers for each business segment – banking, capital markets, and insurance, across the parameters, global sourcing scale, global sourcing growth, global sourcing leverage, and global delivery footprint
 

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