Total Value of IT Outsourcing Contracts in Banking, Financial Services and Insurance (BFSI) Industry Increases 80 Percent
DALLAS, JULY 16, 2014 — The banking, financial services and insurance (BFSI) market—estimated at US$105-130 billion—still reigns as the largest adopter of information technology outsourcing (ITO) services. In fact, driven by a resurgence of demand, the 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 resurgence of discretionary spending by global BFSI firms in 2013 was focused on development of specific applications for regulatory compliance, risk management, channel-specific initiatives (social, mobile, etc.) and customer analytics.
These findings and more are discussed in a new Everest Group report,IT Outsourcing in Banking – Annual Report 2014: The Return of the King.
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“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.”
Download Publication-Quality Graphics
Click here for high-resolution graphics illustrating the report’s key takeaways. Include in news coverage with attribution to Everest Group. Graphics include:
- Global IT outsourcing market by service type
- Surge of activity in BFSI ITO in 2013 (25 percent transaction growth)
- Global adoption of BFSI ITO
- Banking ITO trends: Sourcing implications for buyers and providers.