Global BFSI BPO Services Market: Description
Banking and financial services outsourcing refers to the use of third party vendors to deliver services or perform tasks, which is normally undertaken by financial institutions.
The objective behind its adoption among banks and financial institutions is to make it easier for them to dedicate their time and resources to core business and operations.
Banking business process outsourcing (BPO) is a strategic tool that supports banks for its business growth and account servicing functions.
The third party financial services provider may be offshore on onshore.
Global BFSI BPO Services Market: Overview
The Global BFSI BPO Services Market valued at US $98.02 Billion in 2022 is anticipated to reach a value of US $205.71 Billion in 2030, growing at a CAGR of 9.7%.
The market is driven by factors such as the increasing focus of organizations on improving efficiency and business agility, decreasing operating costs, and emphasizing core competencies to survive the constantly changing business dynamics.
Moreover, several organizations are increasingly focusing on reducing the cost of conducting business for accessing global resources to meet the growing industry demands.
These factors have encouraged the adoption of Business Process Outsourcing (BPO) services across several organizations that focus on technological trends such as AI and cloud computing for driving business efficiency.
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Key Trends of Global BFSI BPO Services Market:Technological advancement in BPO Services Traditional BPO services have been deployed since several decades; however, increased adoption of advanced technologies such as IoT, AI, and robotics process automation have led to the growth of the industry. Increase in technological innovations in Asia-Pacific countries, which include India, China, Australia, and Singapore is expected to create several opportunities for the BFSI BPO services market. The integration of Swiss Post Solutions BPO services with IoT-based devices allows organizations, banks, and financial institutions to identify and eliminate issues such as unnecessary assets and lead to operational efficiencies, cost reductions, and optimal human resource deployment.
Surge in adoption of cloud communicationUpsurge in demand for cloud-based BPO services supported banks to sustain during disruptions. In addition, the BPO services solution played a vital role in keeping the entire banks, businesses, and financial institution processes efficiently operating by allowing banks to use their internal resources for core competencies and essential business function. Cloud communication helps financial institutions improve performance through various features such as remote access, digital data exchange, automated reporting, and real-time work floor control.
Segmental Analysis of Global BFSI BPO Services Market: Based on Service type Customer Service
Finance and Accounting
Human Resource
KPO
Procurement and Supply Chain
Others
The customer services segment dominated the market, with a revenue share exceeding 30%. The segment is expected to retain its dominance, registering the fastest CAGR during the forecast period. The dominance of the segment can be attributed to the increasing number of service centers across the globe that need both online as well as offline technical support.
Based on Enterprise Size
Large Enterprises
Small and Medium Enterprises
Based on End-user
Banks
o Commercial Banking
o Retail Banking
o Cards
o Lending
Capital Markets
o Investment Banking
o Brokerage
o Asset Management
o Others
Geographical Analysis of Global BFSI BPO Services Market:
The Global BFSI BPO Services Market is further segmented into five major countries- North America, Europe, Asia-pacific, Latin America, Middle East and Africa.
North America accounted for over 36% revenue share of the market and is expected to grow steadily during the forecast period. It is expected that the region will remain dominant due to the rising demand for BPO services from several tech giants. Customization of service offerings to better meet individual needs, coupled with the increasing demand for cloud computing, is further expected to support regional growth.
Competitive Landscape:
Accenture, Amdocs, Capgemini, CBRE Group Inc., HCL Technologies Limited, Infosys Limited (Infosys BPM), NCR Corporation, Sodexo, TTEC Holdings, Inc., and Wipro Limited.
In September 2020, Infosys McCamish announced the launch of a new industry platform called Infosys McCamish NGIN. Aimed at the global life insurance and annuity industry, the platform is based on an evolutionary architecture and can be configured to address the regional and global requirements of insurance carriers.
Scope of the report:
Global BFSI BPO Services Market: Historical Years- 2018-2021
Global BFSI BPO Services Market: Forecast Years- 2022-2030
Global BFSI BPO Services Market USD value in 2022- $98.02 Billion
Global BFSI BPO Services Market USD value in 2030- $205.71 Billion
Global BFSI BPO Services Market CAGR- 9.7%
Segments Covered- Service type, enterprise size, end-user and regions
Regions Covered-
o North America (US, Canada)
o Europe (UK, Germany, Spain, Italy, France, Russia)
o Asia-pacific (India, China, Japan, Australia, South Korea)
o Latin America (Mexico, Brazil, Argentina)
o Middle East and Africa (UAE, Saudi Arabia, South Africa)
Key Players: Accenture, Amdocs, Capgemini, CBRE Group Inc., HCL Technologies Limited, Infosys Limited (Infosys BPM), NCR Corporation, Sodexo, TTEC Holdings, Inc., and Wipro Limited.
