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Global Back Office Outsourcing Market in the Financial Services Sector 2016-2020

About the Back Office Outsourcing Market in the Financial Services Sector

Outsourcing refers to the transfer of business functions or services to a third-party service provider on a contractual basis. Companies primarily outsource to reduce costs and reap potential benefits such as gaining access to skilled expertise, flexible staffing, reduce turnaround time, improve efficiency, and generate more profits. Outsourcing is often divided into two broad categories, back office outsourcing, and front office outsourcing. Front office outsourcing often deals with customer-related services such as marketing. Back office functions comprise those tasks that help in keeping a business running smoothly and efficiently. They, however, do not make up the core of the company business.

Technavio’s analysts forecast the Global Back Office Outsourcing Market in the Financial Services Sector to grow at a CAGR of 7.46% during the period 2016-2020.

Covered in this report

The report covers the present scenario and the growth prospects of the Global Back Office Outsourcing Market in the Financial Services Sector for 2016-2020.

The market is divided into the following segments based on geography:

  • Americas
  • APAC
  • EMEA
Technavio's report, Global Back Office Outsourcing Market in the Financial Services Sector 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

Key vendors
  • Accenture
  • IBM
  • Infosys
  • TCS
Other prominent vendors
  • 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
  • Zensar
Market driver
  • Greater efficiency and productivity
  • For a full, detailed list, view our report
Market challenge
  • High level of attrition and employee turnover
  • For a full, detailed list, view our report
Market trend
  • Increased adoption of digital and mobile solutions
  • For a full, detailed list, view our report
Key questions answered in this report
  • What will the market size be in 2020 and what will the growth rate be?
  • What are the key market trends?
  • What is driving this market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities and threats faced by the key vendors?
  • What are the strengths and weaknesses of the key vendors?


Press Release

Technavio Announces the Publication of its Research Report – Global Back Office Outsourcing Market in the Financial Services Sector 2016-2020

Technavio recognizes the following companies as the key players in the Global Back Office Outsourcing Market in the Financial Services Sector: Accenture, IBM, Infosys, and TCS.

Other Prominent Vendors in the market are: 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.

Commenting on the report, an analyst from Technavio’s team said: “An emerging trend in this market is the increased adoption of digital and mobile solutions. Digital technologies have enabled a diverse range of banking innovations, which include innovative identification methods utilizing biometric, Near Field Communication (NFC) systems allowing contactless payment systems, other technologies such as PayPal’s Beacon and Apple’s iBeacon which operates on user proximity-based Bluetooth connections.”

According to the report, a key growth driver for this market is the need for greater efficiency and productivity. Given the limited workforce and budget allocation, there are always few specific business operations that a company is not able to focus on properly. Expansion through outsourcing of these resource intensive back office functions, such as monitoring budgets, maintenance of database, fielding queries helps companies to refocus on activities that are integral to the company's growth. Also, a huge chunk of the burden of employees is also brought down through the outsourcing of these administrative and procedural back office responsibilities. This, in turn, helps them to utilize the saved time in working towards core competencies of the company.

Further, the report states that one challenge that could hamper market growth is the high attrition levels and employee turnover in BPO companies.

Companies Mentioned

Accenture, IBM, Infosys, TCS, 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, Zensar.

  • Executive summary
    • Highlights
  • Scope of the report
    • Market overview
      • Table Countries covered for market analysis
    • Top-vendor offerings
      • Table Product offerings
  • Market research methodology
    • Research methodology
    • Economic indicators
  • Introduction
    • Key market highlights
  • Market landscape
    • Market overview
    • Market size and forecast
      • Table Global back office outsourcing market in financial services sector 2015-2020 ($ billions)
    • Five forces analysis
      • Table Five forces analysis
  • Market segmentation by category
    • Segmentation of global back office outsourcing market in financial service sector by category
      • Table Segmentation of global back office outsourcing market in financial services sector by category 2015
    • Hardware
    • Software
    • Services
      • Table ITO versus BPO deals in BFSI sector by volume 2015
      • Table ITO by function
      • Table BPO by function
  • Geographical segmentation
    • Geographical segmentation of global back office outsourcing market in financial services sector
      • Table Geographical segmentation of global back office outsourcing market in financial services sector
    • Americas
    • EMEA
    • APAC
  • Market drivers
    • Greater efficiency and productivity
    • Cost savings
    • Risk mitigation
    • Increase in outsourcing of ATM back office services
    • Need to conform with regulatory compliance
  • Impact of drivers
    • Table Impact of drivers
  • Market challenges
    • Increased security concerns
    • Inconvenience for company employees
    • High levels of attrition and employee turnover
    • Lack of domain expertise
    • Adhering to varied requirements
  • Impact of drivers and challenges
    • Table Impact of drivers and challenges
  • Market trends
    • Increased adoption of digital and mobile solutions
    • Consistent occurrence of outsourcing deals pertaining to back office services
    • Rise of big data in financial services
    • Increased adoption of cloud computing and virtualization
  • Vendor landscape
    • Competitive scenario
    • Major vendors
    • Other prominent vendors
      • Table Other prominent vendors
  • Key vendor analysis
    • Accenture
      • Table Accenture: IT infrastructure outsourcing services
      • Table Accenture: BPO service offerings
      • Table Accenture: Financial and accounting BPO services
    • IBM
      • Table IBM: IT outsourcing service offerings
      • Table IBM: Financial services
    • Infosys
      • Table Infosys: Application outsourcing services
      • Table Infosys: Business process services
    • TCS
      • Table TCS: Banking solutions
      • Table TCS: IT infrastructure and application outsourcing services
  • Appendix
    • List of abbreviations
  • Explore Technavio

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