BFSI BPO Services Market Extends at a Healthy CAGR of 9.52% by 2030

Introduction

Banks and other financial institutions use BPO services, a highly specialized technique for supporting account activities and business acquisition services across the customer's banking lifecycle. Included are financial and internal management reporting, budgets, capital management reporting, and regulatory returns. Banks can save money on high-quality services thanks to outsourcing. Deloitte reports that an increasing number of businesses are using banking BPO services to cut costs and diversify their sources of supply.

Market Dynamics

Increasing Demand for Operational Efficiency and Transparency in Business Process Drives the Global Market

Financial services outsourcing is necessary for banks because it allows them to boost their efficiency by providing numerous features to their customers, such as 24/7 hour support, responding to client inquiries via many channels such as social media, chat, and email, and capitalizing on sales opportunities that are not limited to geographic regions. In addition, BPO modules have changed significantly in the last few years. The market expansion can be attributed to the fact that older BPO methods, like cloud computing and mobile apps, are increasingly being adopted by banks that were early adopters of the practice. The adoption of BPO in the BFSI sector is predicted to rise in the coming years as banks emphasize maximizing the effectiveness of their operational and business processes.

Technological Advancement in BPO Services Creates Tremendous Opportunities

Although traditional BPO services have been in use for decades, the rise of the business may be attributed to the widespread adoption of technology like the Internet of Things, artificial intelligence, and robotic process automation. Increases in technical innovation in Asia-Pacific countries like India, China, Australia, and Singapore are anticipated to open up several promising markets for BFSI BPO service providers. Bank operations are kept on schedule without the need for human intervention thanks to robotic process automation technologies and the automation of procedures. Similarly, various chances for market expansion are presented by integrating advanced technologies such as Ucaas Solutions, AI, and others with BPO services in banking institutions.

Regional Analysis

North America is the most significant shareholder in the BFSI BPO Services Market and is expected to grow at a CAGR of 8.74% during the forecast period. Significant growth in the use of BPO services has been observed in the United States, and this trend is anticipated to continue over the forecast period. In addition, because of the rising interest in cloud computing, BPO firms may offer their customers individualized service. Customers' preference for online services over traditional ones is driving expansion in the regional sector. The increasing rate of digitalization in the region, the growing number of young people familiar with advanced technologies, and the expanding public's familiarity with the products are all fueling the market's expansion.

Europe is expected to grow at a CAGR of 9.18%, generating USD 59.652 billion during the forecast period. The BFSI BPO services market is growing because of the demand for customized services, which forces businesses to focus on their core business and is especially important in the current economic climate. Technology has also led to the replacement of traditional banking service contracts with ones with outsourced service providers. As a result, the market benefits from the widespread adoption of cloud computing, cheap data storage, increased automation, and digital processing platforms.

Several factors contributing to the rapid development of Asia-Pacific include emerging economies, rising interest in business process outsourcing (BPO), and increased use of technology in the business financial services industry. India, China, Japan, Australia, Hong Kong, New Zealand, and Singapore have the highest BFSI BPO services market penetration due to their rapid economic development and increasing standard of living. The expansion of the BFSI BPO services market in the region can be attributed to the increasing popularity of fee-for-service plans and other variable-cost alternatives to fixed-cost structures, as well as the associated tax benefits.

Key Highlights

• The global BFSI BPO services market was valued at USD 93.34 billion in 2021. It is projected to reach USD 216.87 billion by 2030, growing at a CAGR of 9.52% during the forecast period (2022–2030).
• Based on services, the global BFSI BPO services market is bifurcated into customer service, finance and accounting, human resource, KPO, procurement and supply chain, and others. The customer service segment is the highest contributor to the market and is expected to grow at a CAGR of 7.35% during the forecast period.
• Based on end-user, the global BFSI BPO services market is bifurcated into banks, capital markets, insurance companies, and others. The bank segment owns the highest market share and is expected to grow at a CAGR of 8.42% during the forecast period.
• Based on enterprise size, the global BFSI BPO services market is bifurcated into large enterprises and small and medium enterprises. The large enterprise segment is the highest contributor to the market and is expected to grow at a CAGR of 8.93% during the forecast period.
• North America is the most significant shareholder in the global BFSI BPO services market and is expected to grow at a CAGR of 8.74% during the forecast period.

Competitive Players

1. Accenture PLC
2. Cognizant
3. Concentrix Corporation
4. Genpact
5. Infosys Limited
6. Mphasis
7. NTT Data Corporation
8. Tata Consultancy Services Limited
9. Wipro Limited
10. IBM Corp.
11. Capgemini
12. Firstsource
13. Others

Recent Developments

Recent Developments

• October 2022- IBM announced the extension of its embeddable AI software portfolio with the release of three new libraries targeted to assist IBM Ecosystem partners, clients, and developers in building their AI-powered solutions and bringing them to market more efficiently, rapidly, and cost-effectively.
• October 2022- Accenture and Atlassian joined forces to provide businesses with enterprise agility services that help them get more out of their technology investments, provide better experiences for their customers and employees, adapt to changing circumstances, and ultimately, grow.

Segmentation

1. By Services
   1. Customer Service
   2. Finance and Accounting
   3. Human Resource
   4. KPO
   5. Procurement and Supply Chain
   6. Others
2. By End-User
   1. Banks
   2. Capital Markets
   3. Insurance Companies
   4. Others
3. By Enterprise Size
   1. Large Enterprises
   2. Small and Medium Enterprises