Capital Markets BPO Annual Report 2016 - Managing Risk and Unlocking Efficiency through Technology

The market for third-party BPO in capital markets reached US$1.9 billion in 2015, growing at a CAGR of 18-20% over last three years. North America and United Kingdom are the major growth drivers with their substantially-sized markets and above-average growth rates. United Kingdom and Continental Europe are witnessing high growth and are expected to continue to do so in a strict regulatory environment. The shifting value chain, the increasing role of technology, and changing consumer needs & demographics are some of the factors shaping capital markets, and consequently the outsourcing relationships of capital markets players. The post-Brexit regulatory environment in Europe is likely to have a significant effect on the BPO industry and will shape outsourcing relationships going forward.

In this study we analyzed the performance of the global capital markets BPO space in 2015. We focused on:

  • State of the market
  • Market trends and solution characteristics across size and scope, Line of Business (LoB) adoption, regulatory reporting, technology model, and global sourcing
  • Service provider landscape, which covers service providers’ market share and presence across various geographies
  • Future outlook, which discusses the issues likely to be faced by capital markets in the future and possible solutions

Scope of analysis

  • Third-party capital markets BPO contracts; it does not include shared services or Global In-house Centers (GICs)
  • ~400 capital markets BPO contracts signed as of 2015
  • Coverage across 19 capital markets BPO service providers including Avaloq, Broadridge, Capgemini, Cognizant, eClerx, EXL, Genpact, HCL, Hexaware, Infosys, Mphasis, NIIT Technologies, Syntel, TCS, Tech Mahindra, Viteos, Wipro, WNS, and Xchanging

Content

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

  • The market for third-party BPO in capital markets reached US$1.9 billion in 2015, growing at a CAGR of 18-20% over the last four years
  • Investment banking and custody & fund administration are driving growth in capital markets BPO
  • Though a few players have a large presence in this space in general, each line of business is dominated by a different player
  • Technology has lowered entry barriers, making it imperative for established players to focus on innovation to stay competitive
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    Banking, Financial Services & Insurance (BFSI) - Business Process Outsourcing (BPO)

     
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