Everest Group has shared the latest IT outsourcing trends in the banking, financial services and insurance (BFSI) market — estimated at $105-130 billion.
“In 2013, banks and financial services firms battled against low interest rates, strained revenue growth, the growing pressures of regulatory compliance, and the rise of the digital consumer,” said Jimit Arora, vice president at Everest Group.
“This translated into a resurgence of IT outsourcing in BFSI, as buyers reinvented their business models, redefined their technical priorities, and reallocated their IT spend. The clearly emerging priorities of buyers include risk management and compliance, industrialization of solutions, IT transformation, data management, and customer analytics,” Arora said.
The report says BFSI still reigns as the largest adopter of information technology outsourcing (ITO) services.
BFSI market in 2013 logged a 25 percent increase in number of transactions signed (marking a five-year high in transaction volume) and an 80 percent increase in total contract value, the report said.