Back Officea Outsourcing Market in the Financial Services Sector 2016-2020
- Published: May 2016
- Pages: 65
- SKU: IRTNTR9401
The 2021-2025 version of this report is just being published. Buy it now and get up to $1000 worth of free customization!
This market research report presents a detailed analysis of the global back office outsourcing market share in the financial services sector by category (hardware, software, and services) and by geography (the Americas, APAC, and EMEA). Some of theleading vendors in the back office outsourcing solution market are Accenture, Infosys, IBM, and TCS.
Overview of the global back office outsourcing market in the financial services sector
Technavio’s market research analyst predicts the global back office outsourcing market in the financial services sector to grow at a CAGR of around 7% by 2020. Back office outsourcing is a cost-effective arrangement that helps organizations to save up to 30% of its operational costs. This cost efficiency is achieved because the outsourcing companies help enterprises to manage routine responsibilities at very minimal costs, which in turn, reduces their overhead liabilities. Back office outsourcing companies offer several benefits to the financial institutions such as access to specific domain knowledge, best practices, new ideas, and high-quality talent for data-related services. With such quality outsourcing services, the organizations are able to deliver projects in lesser time and at affordable prices.
According to this market research report, an interesting back office outsourcing trend gaining traction in the market is the increased adoption of cloud computing and virtualization solutions among financial institutions. By implementing these services, financial institutions can outsource their IT infrastructures at reduced costs. Virtualization enables centralized deployment and management of virtual desktop environments to enhance safety measures for desktop access and data sharing over standard network infrastructures. Many players such as Kotak Mahindra life Insurance and Reliance General Insurance, have adopted Vmware-based virtualization solutions to improve the efficiency of their data centers, which will, in turn, reduce their overall infrastructural costs.
Segmentation by category and analysis of the back office outsourcing market in the financial services sector
The services segment dominated the market in 2015 and accounted for around 54% of the total market share. Information technology outsourcing (ITO) and business process outsourcing (BPO) are the two major outsourced services under this segment, out of which ITO occupies around 89% of the overall market share. Factors such as the growing need for digital technologies to improve business efficiency, increased regulatory compliance costs, and competition from non-banking organizations in areas such as payments will fuel this segment’s growth during the forecast period.
Geographical segmentation and analysis of the back office outsourcing market in the financial services sector
During 2015, the Americas was the key revenue contributor and occupied around 47% of the overall market revenue. A rise in the number of outsourcing deals and implementation of various acts such as Dodd-Frank Act and HIPAA have necessitated financial institutions to outsource their business processes. Continuous regulatory and economic volatility issues faced by financial organizations will bolster this market’s growth prospects in the Americas.
Competitive landscape and key vendors
This market is highly fragmented due to the presence of numerous large and small players. In this market, the vendors differentiate themselves by offering innovative, cost-effective, and outcome-based solutions such as BPaaS. Vendors are also increasing their profitability by implementing innovative solutions as per clients' requirement with flexible pricing, which helps organizations to address cost savings issues. Competition in the back office outsourcing solution market is expected to intensify with the entry of new players during the forecast period.
Key vendors in this market are -
The other prominent vendors in the back office outsourcing solution market in the financial services sector include Aegis, Attra Infotech, Birlasoft, Capgemini, CGI, Cognizant, CSC, Dell, eClerx, Endava, EPAM, EXL, HCL, Hexaware, HP, IGATE, Infosys, ITC Infotech, L&T Infotech, Luxoft, Mindtree, Mphasis, NIIT Technologies, Polaris Consulting and Services, Serco Global Services, Softtek, Sutherland Global Services, Syntel, Tech Mahindra, Unisys, Virtusa, Viteos Fund Services, Wipro, WNS, Xchanging, Xerox, and Zensar.
Key questions answered in the report include
- What will the back office outsourcing market size and the growth rate be in 2020?
- What are the key factors driving the global back office outsourcing market in the financial services sector?
- What are the key back office outsourcing trends impacting the market growth in the financial services sector?
- What are the challenges to the back office outsourcing market growth?
- Who are the key vendors in the global back office outsourcing market in the financial services sector?
- What are the market opportunities and threats faced by the vendors in the global back office outsourcing market in the financial services sector?
- Trending factors influencing the back office outsourcing market shares of the Americas, APAC, and EMEA.
- What are the key outcomes of the five forces analysis of the global back office outsourcing market in the financial services sector?
Technavio also offers customization on reports based on specific client requirement.
- Global Outsourcing Market in BFSI Sector 2016-2020
- Global Middle Office Outsourcing Market 2015-2019
- Global CRM Outsourcing Market 2015-2019
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
- Market size and forecast
- Market segmentation
- Geographical insights
- Competitive landscape
Get your FREE sample now!
Get the report (PDF) sent to your email within minutes.
Subscribe & Save
Get lifetime access to our
Did you know?
Did you know?
Did you know?
Want to customize this report?
This report can be personalized according to your needs. Our analysts and industry experts will work directly with you to understand your requirements and provide you with customized data in a short amount of time.