India's BPO market could reach $250 billion
India has long been the world’s largest financial services outsourcing market, but how much larger can Indian outsourcing grow?
According to the Everest Group, a global consulting and research firm, India’s global business process outsourcing (BPO) in the financial services has the potential to grow into a $250 billion market.
The financial services BPO sector comprises a market of approximately $18 billion right now, which is nearly half of the world’s $40 billion global outsourcing market.
“India continues to play a key role in the (financial services) BPO space and offer attractive arbitrage opportunities compared to onshore locations in US, UK, and Europe,” Everest Group Partner Vikash Jain told The Hindu.
India’s greatest competitors right now in the financial services BPO industry are the Philippines and China, while Eastern Europe, Central American and South America are showing the fastest growth, according to the Everest Group’s report.
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The report also said that banking BPOs total nearly half of the overall sourcing operations within financial services BPO, with capital markets being the fastest growing sector, having grown 40 percent since 2009-2010.
“Despite challenges, such as constraints in the United States associated with the Troubled Asset Relief Programme and data protection measures in the European Union, the impact on global sourcing has been minimal,” co-author of the report Rajesh Ranjan told The Hindu.
India has long been an attractive market for financial services BPO, as the country boasts an incredibly large workforce that is skilled in the high-end financial services sector.
