The Financial Services Outsourcing Outlook: Fast Growth Markets, Opportunities And Competitive Strategies
Improved service quality and reduced costs are the most effectively delivered
benefits of outsourcing.
􀂉 Satisfaction is a key challenge for the providers in the market place to both mange
client expectations, as well as to deliver on the requirements and desires of the FSIs.
􀂉 Aside from the perceived risk of users, three significant inhibitors to outsourcing in
the financial services sector are: regulation, taxation, and centralized IT structure.
􀂉 Business process outsourcing (BPO) in financial services is forecast to grow at a
9.9% CAGR creating a total market opportunity of $4.5bn by 2005.
􀂉 The value of the call center outsourcing market in EMEA is set to grow from $5.7bn
in 2002 to $11.5bn in 2007 – a CAGR over the five years of 15%, with FS and
communications making up 50% of that total.
􀂉 The application outsourcing opportunity (development and maintenance) over the
next two years will grow by 7.6% CAGR creating a market opportunity of $170m,
bringing the aggregate market value of infrastructure and application outsourcing in
2005 to $7.9bn.