24 July 2016
Find out more

IT outsourcing and BPO fastest growing lines in financial services

30 May 2003  |  8523 views  |  0 computers

IT and business process outsourcing (BPO) are the fastest growing lines in the financial services sector, with at least seven 'megadeals' worth an estimated aggregate of more than $20 billion signed in the banking and credit industry in 2002, according to research from Gartner.

Susan Cournoyer, principal analyst for Gartner's IT services group, says many of the mega-outsourcing contracts involve the consolidation and centralisation of IT assets on a global basis, but they also represent planning ahead.

"Outsourcing providers promise to meet IT and business needs through new technology and new business models, particularly the on-demand model that appears to promise relief from fixed costs," says Cournoyer.

Gartner analysts say that while BPO has emerged as one of the fastest growing businesses in the financial services market, it is not a new service area - cheque processing services have been around for decades and payment processing showed steady growth through the 1990s.

But what is different now is that BPO is rapidly expanding into areas that were previously off-limits to outsourcing. This increasing acceptance is also driving expansion in the number and scope of deals, which in turn increases market size.

The reserch shows that strong technical skills and application expertise are the top factors in choosing IT services providers, in financial services and across all vertical markets. However, Gartner says costs are more important to IT buyers in financial services than in other industries.

Cournoyer adds: "Industry knowledge is also more important to financial services IT buyers, which likely accounts for the trend toward more in-depth verticalisation among top-ranked providers."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Deutsche Postbank to offer back office outsourcing

Deutsche Postbank to offer back office outsourcing

28 May 2003  |  4839 views  |  0 comments
Merrill Lynch signs managed security deal with VeriSign

Merrill Lynch signs managed security deal with VeriSign

22 May 2003  |  3237 views  |  0 comments
Banks forecast strong growth in outsourced transaction processing

Banks forecast strong growth in outsourced transaction processing

16 May 2003  |  3502 views  |  0 comments
NFS outsources IT to IBM

NFS outsources IT to IBM

14 May 2003  |  3354 views  |  0 comments
Banque Hervert outsources IT operations to EDS

Banque Hervert outsources IT operations to EDS

12 May 2003  |  3632 views  |  0 comments
Seventy Nordea IT staff to join CSC in Tryg outsourcing deal

Seventy Nordea IT staff to join CSC in Tryg outsourcing deal

08 May 2003  |  4401 views  |  0 comments
North American Savings Bank outsources IT ops to Aurum

North American Savings Bank outsources IT ops to Aurum

07 May 2003  |  3251 views  |  0 comments
Offshore outsourcing set to accelerate

Offshore outsourcing set to accelerate

06 May 2003  |  4036 views  |  0 comments
Bank of America teams with Fidelity for mortgage outsourcing service

Bank of America teams with Fidelity for mortgage outsourcing service

24 April 2003  |  6029 views  |  0 comments
BMO outsources human resources to Exult

BMO outsources human resources to Exult

23 April 2003  |  5115 views  |  0 comments
Bank of Ireland in IT outsourcing talks with HP

Bank of Ireland in IT outsourcing talks with HP

07 April 2003  |  6879 views  |  0 comments
Barclays Bank shelves IBM outsourcing plans

Barclays Bank shelves IBM outsourcing plans

03 April 2003  |  10950 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
Visit VocaLink.comVisit www.abe-eba.euFind out more

Top topics

Most viewed Most shared
MasterCard agrees £700m VocaLink acquisitionMasterCard agrees £700m VocaLink acqu...
8236 views 14 comments | 32 tweets | 37 linkedin
hands typing furiouslyBanking on IoT: Security in the Internet o...
7921 views 3 | 19 tweets | 7 linkedin
hands typing furiouslyWhat Every FinTech CEO Should Know About R...
7908 views 0 | 14 tweets | 8 linkedin
satelliteContactless Bitcoin startup Plutus Tap &am...
7720 views comments | 6 tweets | 3 linkedin
Santander doubles down on fintech fundSantander doubles down on fintech fund
7625 views comments | 22 tweets | 28 linkedin

Featured job


Brussels (Belgium) or Paris (France)

Find your next job