Capital Markets ITO Buyers Trends and Implications for Service Providers | Market Insights™
August 12, 2015
Capital markets ITO buyers trends and implications for service providers
Capital markets ITO buyers trends and implications for service providers
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Key Investment Themes in Capital Markets Application Outsourcing (AO)
The changing regulatory environment has increased demand among capital markets buyers for the relatively lower risk fixed-price model
No easy choices among banks’ key initiatives: Low investment / high return imperatives are limited, and most require significant investment
The number of large AO contracts plummets as buyers experiment with digital technologies through smaller AO transactions
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Banks’ emerging priorities have implications for IT service providers
Banking BPO growth has been revitalized, driven by a wide variety of factors
North America spends the most on BPO, but the bulk of future growth is expected to come from Continental Europe and APAC
With the inclusion of robotic process automation (RPA) in banking BPO contracts, revenue grew 30% while FTEs grew only 14%
Increasing use of automation and digital channels across all banking lines of business reduces FTEs needed for transaction-based activities. Service providers are capitalizing on those opportunities to move up the value chain to deliver more complex services.
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