The pace of technology disruption, changing consumer preferences, and the need for banks to come up with new business models are disrupting the current banking landscape. Banks are moving away from being perceived as a physical structure that offers financial services/products to be an ambient fabric connecting people and businesses. As banks are transitioning from a product-centric to a customer-centric model, technology is becoming core to the banking business. Subsequently, the IT Services (ITS) market is pivoting from a labor-arbitrage model to a value-based digital-first model.

This report analyzes 1200+ active banking IT services contracts to comment on the market size, growth, and demand characteristics for this market. The demand trends, across lines of business, geographies, digital themes, and application services themes, are presented using multi-year IT services deal analysis. Operational capability analysis of 25+ service providers, through annually-updated RFIs, adds supplier perspective in addition to the demand themes outlined in the market. This report also provides analyst estimates and supplier expectations of banking enterprise IT spending across lines of business, geographies, and application services subfunctions.

This report corroborates the banking industry’s accelerated adoption of digital technology themes such as analytics, blockchain, cloud, machine learning, and IoT to support their digital transformation agenda. It further highlights, how these firms are also reimagining their ITS delivery model and the way they engage with third-party IT service providers.

SCOPE OF THE ANALYSIS

• Market segment: IT services
• Geography: Global
• Industry: Banking
• Line of business: Cards & payments, retail banking, commercial banking, and lending

SOURCES LEVERAGED

• Everest Group’s proprietary database of 1200+ active, multi-year ITs contracts within banking industry (updated quarterly)
• Operational capability of 25+ banking IT service providers (updated annually through service provider RFIs)

CONTENTS

The research focuses on banking industry, with primary focus on demand- and supply-side market trends. The contents of the report include:

• Characteristics of IT services deals signed by banking enterprises for 2014-2017, with analysis of deal size, duration, and future growth expectations for the industry
• Banking ITS scope characteristics across
• Applications Services (AS) subfunctions
• Infrastructure Services (IS) subfunctions
• Banking LOBs
• Geographies
• Digital technology themes
• Analysis of deal signing characteristics across deal origination, scope bundling, pricing model, and engagement models
• Characteristics of IT services deals signed by banking firms with analysis of buyer size
• Analyst estimates and supplier expectations of banking enterprise IT spending across lines of business, geographies, and application services subfunctions

Membership(s)

Banking & Financial Services (BFS) - IT Services (ITS)