Deal or No Deal – How Real is Digital Adoption in Banks’ Sourcing Relationships

7 Aug 2019
by Manu Aggarwal, Robin Jain, Akanksha Pathak, Harsh Kapoor

Globally, banks continue to face diverse challenges – rising regulatory costs, decreasing revenue, low customer satisfaction, and stiff competition from FinTechs. The industry is witnessing high growth of technology and digital adoption. Buyers now expect providers to go beyond the cost impact and deliver business and strategic impact. As service providers gradually develop holistic capabilities to serve the next-generation buyer demands, they will be equipped to position themselves as able “partners” in the fulfillment of clients’ business and strategic objectives, and this will further lead to growth in the new outsourcing activity.

Scope and Methodology

  • Proprietary database of ~600 Banking BPO contracts (updated annually)
  • Coverage of 30 banking BPO service providers including Accenture, Atos Syntel, Avaloq, Capgemini, CGI, Cognizant, Concentrix, Conduent, Conneqt, Datamatics, DXC, Equiniti, Exela, EXL, Firstsource, FIS, Genpact, HCL, IBM, Infosys, Mphasis, NIIT, NTT Data, Sutherland Global Services, TCS, Tech Mahindra, Teleperformance, Virtusa, Wipro, and WNS


This report provides comprehensive coverage of the global banking BPS market, including detailed analysis of the market size and growth, shifting buyers’ expectations, and other evolving characteristics for this market. It will assist key stakeholders to understand the changing dynamics of the market and identify the upcoming trends. Some of the findings in this report are:

  • The banking BPS market presents a significant opportunity and is poised to grow at a steady pace of 8-12%. The market grew by ~US$400 million in 2018, out of which around 70-80% was contributed by lending and retail banking
  • With the adoption of automation in the cards and payments space increasing rapidly and the subsequent revenue cannibalization, revenue growth for service providers has been rather slow
  • With the focus of buyers now shifting to digital transformation of their operations, more and more buyers will require support from service providers that can bring in the required domain expertise along with the right digital capabilities
  • With a lot of new deals focused on digital and most of these being project-based with a narrow scope (such as automation of specific processes), the average size of new contracts is headed towards a decline
  • While banks are now utilizing the analytical insights generated to track and improve various business outcomes, a lot of analytics engagements are still project-based and RPA leverage in active contracts is on the rise, most of the current deployments are very low in scale
  • With over ~US$900 million worth of contracts coming up for renewal in the next three years, the incumbents need to work hard at guarding this revenue potential and keeping the contracts in their pockets


Banking and Financial Services (BFS) - Business Process Outsourcing (BPO)


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