Business Process Outsourcing in Banking: An Analysis of Major Vendors
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The integration of ITO and BPO is becoming increasingly important for staying competitive. IT capabilities that supplement BPO operations improve process efficiency and drastically reduce total cost of ownership for the client. As globalization continues to grow, banks in mature markets will look to outside expertise from global providers.
In this report, Business Process Outsourcing in Banking: An Analysis of Major Vendors, Celent profiles seven BPO/ITO providers, including a view of current business process outsourcing (BPO) and information technology outsourcing (ITO) data. Celent defines BPO providers using a combination of deal size, total deals, and employees dedicated to banking, specifically those with a majority of deals worth less than $5 million and less than 2,000 employees dedicated to banking are consider major, but not giant. Celent has created a map of BPO/ITO vendors and then ranked these vendors using its ABCD Vendor View. XCelent Awards were given to the leading providers within four categories.
Celent believes there are a number of current trends influencing the future of BPO banking. Deals are increasing in scope. Banks are no longer looking to outsource simple rule-based processes but are looking to expand into full-service business relationships with service providers. Additionally, a wider range of financial institutions are exploring BPO/ITO opportunities, while previously underserved outsourcing locations are becoming burgeoning operation center destinations and have garnered increasing interest from major players.
“Global expansion among service providers is becoming an increasingly important driver for meeting the requirements of international clients,” says Stephen Greer, analyst with Celent’s Banking Group and coauthor of the report. “A global footprint for service centers is crucial in maximizing service capabilities and ensuring a robust infrastructure to meet ever-evolving industry needs.”
This report contains a detailed analysis of BPO/ITO service providers, with a summary of banking BPO processes, business models, delivery locations, and IT capabilities.
This is one of two reports covering BPO Vendors for banks. The second report, Business Process Outsourcing in Banking: An Analysis of Giant Vendors, looks at the biggest BPO/ITO vendors.