BPO/ITO Providers in Banking: An Evolving Landscape of Service Complexity
Only a short time ago, BPO was much simpler, but Celent’s observation is that the market is seeing a growing interest by banks to engage in more partner-centric deals that touch a wide variety of areas. This change has driven vendor consolidation as providers see the value in being able to deliver on more than just hand-picked simple processes, but toward value-driven innovation through software, process innovation, and analytics.
In the report, BPO/ITO Providers in Banking: An Evolving Landscape of Service Complexity, Celent covers what’s happening in the outsourcing market, and provides in-depth dives into the capabilities of the featured providers. The report attempts to provide financial institutions with a good base from which to evaluate providers.
The challenges facing the banking industry are many, and should come as no surprise to Celent’s readers. The financial industry is growing ever more complex, while regulatory measures are compounding the pressure. Cost concerns and the age of customer centricity have demanded that banks focus a larger share of energy on their core competencies. For financial institutions, this means rethinking the commitment to housing resources and non-core processes in-house.
“It’s no surprise that banking is much different today than in the past. Products and services are growing increasingly more complex and numerous. Banks are struggling to deliver on their core competency, which in most cases hinges on customer service,” says Stephen Greer, Analyst with Celent’s Banking Group and author of the report. “Financial institutions want to be all things for their customers, but without third party help, that is increasingly difficult, especially in instances where institutions are unable to leverage scale and deep resources.”
This report is focused on providing in-depth looks at BPO/ITO providers for banks interested in engaging in a BPO deal. Around that, Celent looks at the market as a whole, highlighting recent trends, barriers, and drivers. Graphs and charts looks at different comparisons between the providers, such as employees, deal size, business models, etc. Celent then compares each provider by putting them through the proprietary XCelent Methodology, giving awards for technology, functionality, customer base, and servicing.