A Bright future for India in Finance BPO

A study by global consulting and research firm Everest Group, titled “Role of Global Sourcing in Financial Services,” says that India will play a key role in global Business Process Outsourcing in the financial services sector, which has the potential to reach a market size of $250 billion.

The financial services BPO (FS BPO) sector, is a $16-18 billion market comprising nearly 40 per cent of the $40 billion global sourcing market.

India, Philippines and China are mature locations for FS BPO, while Eastern Europe, Central America and South America are witnessing the fastest growth.

India continues to play a key role in the FS BPO space and offer attractive arbitrage opportunities compared to onshore locations in US, UK, and Europe. The availability of skilled individuals, process excellence, and improved service levels make India an attractive destination.

The report also noted that challenges, such as constraints in the United States associated with the Troubled Asset Relief Programme (TARP) and data protection measures in the European Union, have had a very minimal impact on global sourcing.

Banking BPOs account for nearly 50 per cent of the overall scale of global sourcing operations within FS BPO, while capital markets is the fastest growing segment, with a year-over-year growth of 40 per cent in 2009-2010.

The study analysed the global sourcing phenomena across banking, capital markets, and insurance segments and also analysed labour savings and other factors offered by different nearshore and offshore delivery locations.

via keralait.org