IT Outsourcing in Banking Reaches Five-Year High in Transaction Volume in 2013: Everest Group Report

DALLAS,TX--(Marketwired - Jul 16, 2014) -  The banking, financial services and insurance (BFSI) market -- estimated at US$105-130 billion -- still reigns as the largest adopter of information technology outsourcing (ITO) services. In fact, driven by a resurgence of demand, the BFSI market in 2013 logged a 25 percent increase in number of transactions signed (marking a five-year high in transaction volume) and an 80 percent increase in total contract value.

The resurgence of discretionary spending by global BFSI firms in 2013 was focused on development of specific applications for regulatory compliance, risk management, channel-specific initiatives (social, mobile, etc.) and customer analytics.

These findings and more are discussed in a new Everest Group report, IT Outsourcing in Banking - Annual Report 2014: The Return of the King.

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Webinar Replay Available
A replay of the Everest Group webinar, "Banking and Capital Markets ITO - Trends, Regulations, Technology," is available for viewing on demand.

"In 2013, banks and financial services firms battled against low interest rates, strained revenue growth, the growing pressures of regulatory compliance, and the rise of the digital consumer," said Jimit Arora, vice president at Everest Group. "This translated into a resurgence of IT outsourcing in BFSI, as buyers reinvented their business models, redefined their technical priorities, and reallocated their IT spend. The clearly emerging priorities of buyers include risk management and compliance, industrialization of solutions, IT transformation, data management, and customer analytics."

Download Publication-Quality Graphics
Click here for high-resolution graphics illustrating the report's key takeaways. Include in news coverage with attribution to Everest Group. Graphics include:

• Global IT outsourcing market by service type
• Surge of activity in BFSI ITO in 2013 (25 percent transaction growth)
• Global adoption of BFSI ITO
• Banking ITO trends: Sourcing implications for buyers and providers.

About Everest Group
Everest Group, an advisor to business leaders on the next generation of global services, has a worldwide reputation for helping Global 1000 firms improve performance by optimizing back- and middle-office business services. Through practical consulting, original research and industry resource services, Everest Group helps clients maximize value from delivery strategies, talent and sourcing models, technologies and management approaches. Visit www.everestgrp.com and research.everestgrp.com.