The global banking and financial services spot hasn't lost its sheen. Regulatory and technology changes will increase the sector's appetite for outsourcing in 2013, across geographies. Europe will be a big opportunity, says Senior Economist, Bank of Ireland.
"Outsourcing will grow in the banking and financial sector in Europe, market leaders will set the standard as they outsource more activities." says, Michael Crowley, Senior Economist, Economic Research Unit, Bank of Ireland, Global Markets.
This is good news for the banking and financial sector-focused service providers in 2013. And not just Europe, other geographies like Asia Pacific too are expected to embrace outsourcing in a big way.
Banking has always been a hot spot in outsourcing. But there has been a fear gripping up that global uncertainties will bring down the scope of revenue margins, and IT companies too have been looking at newer verticals as faster growth options. But, in reality, the banking space is never really going to lose its sheen. In fact economic uncertainties are making outsourcing more relevant for banking organizations that are looking for more efficient operating environments at lower costs.
According to Everest Group, a research company, IT/BPO contracts worldwide fell around 7 percent in the second quarter of this year. But the Banking, Financial and Insurance (BFSI) sector surpassed all other sectors in transaction volumes with annual contract value going up by 61 percent.
New Trends in Banking Services