Banking and Financial Services (BFS) BPO Annual Report 2014 – Low on Growth, High on Regulations – BFS BPO Adapts to the “New Normal”

19 Aug 2014
by Manu Aggarwal, Rajesh Ranjan



The global BFS BPO market witnessed sluggish growth of 9-10% in 2013. While capital markets BPO maintained its good run, banking BPO drove down the overall growth figures. New contract signings accounted for a major portion of the growth. Regulatory consolidation was one of the main drivers for BPO adoption across the board as several buyers look towards outsourcing to manage their costs.

In this study we analyze the global BFS BPO market in 2013. We focus on:

  • Market size and buyer adoption
  • Banking BPO solution characteristics across size and scope, LoB adoption, analytics & risk regulatory services trends, technology model, global sourcing, and pricing structures
  • Capital markets BPO solution characteristics across size & scope, LoB adoption, regulatory reporting & risk management, technology model, global sourcing, and pricing structures
  • BFS BPO service provider landscape, covering service providers’ market share and areas of investments

Market Size

Scope of analysis

  • Third-party BFS BPO contracts; it does not include shared services or Global In-House centers (GICs)
  • Over 450 BFS BPO contracts signed as of 2013
  • Coverage across 23 BFS BPO service providers including Cognizant, CSC, Dell, EXL, eClerx, Genpact, HCL, Hexaware, iGATE, Infosys, Mphasis, NIIT Technologies, Polaris, Serco, Sutherland Global Services, Syntel, TCS, Tech Mahindra, Viteos, Wipro, WNS, Xchanging, and Xerox

Size Term


This report assists key stakeholders (buyers, service providers, and technology providers) in understanding the changing dynamics of the BFS BPO market and helps them identify the recent trends and future outlook. In this backdrop, this report provides comprehensive coverage of the global BFS BPO market including detailed analysis of market size & growth, buyer adoption trends, banking & capital markets BPO solution characteristics, and service provider landscape. Some of the findings in this report are:

  • The market for third-party BPO in BFS crossed US$4.0 billion in 2013, growing at a CAGR of ~15% over the last four years
  • Downturn in mortgage origination market had a severe impact on BPO activity emerging from the banks
  • Regulatory concerns, among other factors, prompted financial institutions to increase their outsourcing leverage
  • Among the service providers covered by Everest Group, TCS and Genpact continue to dominate the BFS BPO market. However, players such as Syntel and Xchanging have a firmer footing in the capital markets BPO space

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