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The Outsourcing Market In BFSI Sector Market is projected to grow by USD 31.15 billion with a CAGR of 4.89% during the forecast period 2021 to 2026.
This outsourcing market in BFSI sector market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers the outsourcing market in BFSI sector market segmentation by type (ITO and BPO) and geography (North America, Europe, APAC, the Middle East and Africa, and South America). The outsourcing market in BFSI sector market report also offers information on several market vendors, including Accenture Plc, Beyondsoft Corp, CGI INC, Cognizant Technology Solutions Corp., Dell Technologies Inc., eClerx Services Ltd., EPAM Systems Inc., ExlService Holdings Inc., Genpact Ltd., HCL Technologies Ltd., Infosys Ltd., International Business Machines Corp., ITC Ltd., Larsen & Toubro Ltd., Mahindra & Mahindra Ltd., Unisys Corp., Valores Corporativos Softtek S.A. de C.V., Virtusa Corp., Wipro Ltd., WNS Holdings Ltd., and Xerox Holdings Corp. among others.
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Our researcher studied the historical data for years, with 2021 as the base year and 2022 as the estimated year, and produced drivers, trends, and challenges for the outsourcing market in BFSI sector market. During the COVID-19 pandemic, the demand for the outsourcing market in BFSI sector market has been impacted significantly, but a holistic analysis of drivers will help in estimating exact demands and refining marketing strategies to gain a competitive advantage.
Key Outsourcing Market In BFSI Sector Market Driver
The growing need to comply with regulatory standards is one of the key factors driving the global outsourcing market in BFSI sector market growth. The need to adhere to regulatory standards is a key factor driving the growth of this market. The BFSI sector is witnessing massive regulatory changes, which has resulted in increased demand for regulatory compliance and transparency in this sector. For instance, organizations in this sector need to comply with regulatory norms such as Basel III, Solvency II, HIPAA, the SOX Act, the US Patriot Act, and the Gramm-Leach-Bliley Act. Such regulatory changes worldwide have increased capital requirements for banks and other financial services organizations, adding to their costs. Outsourcing makes it easier for these companies to focus on their core competencies and also aids in managing the uncertainty caused by changing market regulations besides having a minimal impact on the business. Outsourcing in this sector also helps organizations reduce their operating costs, increase operational efficiency, and achieve a competitive advantage. Such factors are expected to drive the growth of the global outsourcing market in BFSI sector market during the forecast period.
Key Outsourcing Market In BFSI Sector Market Trend
The rising emphasis on process automation will fuel the global outsourcing market in BFSI sector market growth. There has been a huge emphasis on emerging technologies in the outsourcing industry for the past few years. Emerging technologies such as cloud computing, social media, artificial intelligence (AI), and process automation are extensively used by outsourcing companies to reduce costs and accelerate growth. BPO companies offer a wide range of services, which include social media, website designing, and customer support services. Social media helps companies receive genuine customer feedback and gives vendors a platform to enhance the customer experience. It is estimated that one in three people across the world uses social media platforms. Therefore, the emphasis on studying customer needs through social media platforms has grown. The increasing use of social media platforms, coupled with the wide availability of services, will boost the growth of the global outsourcing market in BFSI sector market during the forecast period.
Key Outsourcing Market In BFSI Sector Market Challenge
The growing concerns over data breaches are the major challenge to the global outsourcing market in BFSI sector market growth. For a firm, data theft refers to the illegal transfer of data, which can be confidential, financial, or personal. Such data is normally stored on electronic devices such as servers and computers and includes proprietary process-oriented information, technologies, software codes, and passwords. Data security and data privacy have always been key concerns for outsourcing companies. With increasing technological advances and the rising use of Internet services across the world, the safety of customer data is becoming crucial. Data breaches will be a major challenge for the global outsourcing market in BFSI sector during the forecast period. A data breach can tarnish the reputation of individuals and organizations. For example, British Airways reported a major security breach that exposed the personal and financial credentials of approximately 3,80,000 customers, and the breach took place between August 21, 2018, and September 5, 2018. During this timeframe, attackers were able to gain access to details such as the names, email addresses, addresses, credit card numbers, expiry dates, and security codes of customers. Hence, data breaches may hamper the growth of the global outsourcing market in BFSI sector market during the forecast period.
This outsourcing market in BFSI sector market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the global outsourcing market in the banking, financial services, and insurance (BFSI) sector as a part of the global IT consulting and other services market within the global IT services market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the outsourcing market in BFSI sector market during the forecast period.
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
This statistical study of the outsourcing market in BFSI sector market encompasses successful business strategies deployed by the key vendors. The outsourcing market in BFSI sector market is fragmented, and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments while maintaining their positions in the slow-growing segments.
The report on the outsourcing market in BFSI sector market contains comprehensive market knowledge and an in-depth vendor landscape add-on to an analysis of the key vendors.
Our In-house experts produce extensive information on the value chain and parent market of the Outsourcing Market in Banking, Financial Services, and Insurance (BFSI) Sector Market, which vendors can leverage to gain a competitive advantage during the forecast period. The Value Chain information provides an end-to-end understanding of product insight and profit and also optimization and evaluation of business strategies The players across the value chain includes selective data and analysis from entire research findings as per the scope of the report.
The value chain of the global IT services market. includes the following core components:
The report has further elucidated other innovative approaches being followed by service providers to ensure a sustainable market presence.
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40% of the market’s growth will originate from North America during the forecast period. The US is the key market for the outsourcing market in BFSI sector market in North America. Market growth in this region will be slower than the growth of the market in other regions.
The growing need to comply with regulatory standards will facilitate the outsourcing market in Banking, Financial Services, and Insurance (BFSI) Sector Market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID-19 Impact and Recovery Analysis
In 2020, the outbreak of COVID-19 severely impacted the economic conditions in North America. The increase in the number of COVID-19 cases in the region forced the government in the US, Canada, Mexico, and other countries to impose stringent lockdowns to contain the spread of the disease. This adversely impacted the growth of different end-user industries, including BFSI, telecom and IT, and retail, among others. All these factors negatively impacted the growth of the outsourcing market in BFSI sector in North America in 2020. However, the initiation of large-scale vaccination drives led to the lifting of lockdown restrictions in the second half of 2020. This resulted in the resumption of industrial operations, which increased the demand in the Outsourcing Market in BFSI Sector. Such factors are expected to drive the growth of the outsourcing market in BFSI sector in North America during the forecast period.
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The outsourcing market in BFSI sector market share growth in the ITO segment will be significant during the forecast period. The rising digitization of core processes and the generation of a considerable amount of data across different IT and BFSI companies are the main factors that will drive the growth of this segment during the forecast period. The number of digital transactions and the addition of new users are also increasing in the BFSI sector. In this situation, financial organizations outsource their non-critical content to IT outsourcing providers to improve their operational efficiency.
This report provides an accurate prediction of the contribution of all the segments to the growth of the outsourcing market in BFSI sector market size and actionable market insights on the post-COVID-19 impact on each segment.
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Outsourcing Market In BFSI Sector Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2021 |
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Forecast period |
2022-2026 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.89% |
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Market growth 2022-2026 |
$31.15 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
4.51 |
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Regional analysis |
North America, Europe, APAC, the Middle East and Africa, and South America |
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Performing market contribution |
North America at 40% |
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Key consumer countries |
US, China, Japan, UK, and Germany |
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Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
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Key companies profiled |
Accenture Plc, Beyondsoft Corp, CGI INC, Cognizant Technology Solutions Corp., Dell Technologies Inc., eClerx Services Ltd., EPAM Systems Inc., ExlService Holdings Inc., Genpact Ltd., HCL Technologies Ltd., Infosys Ltd., International Business Machines Corp., ITC Ltd., Larsen & Toubro Ltd., Mahindra & Mahindra Ltd., Unisys Corp., Valores Corporativos Softtek S.A. de C.V., Virtusa Corp., Wipro Ltd., WNS Holdings Ltd., and Xerox Holdings Corp. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Type
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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