KPO In Financial Services – After the Crash (Analyst Insight)
In the early days of the recession, back in late 2007 and early 2008, many outsourcing industry experts were predicting that the forecast downturn could end up being a good thing for outsourcing vendors. The theory ran that end users looking to cut costs and improve efficiency would choose to outsource both IT and back-office functions.
The reality has proved somewhat different, and nowhere is that more apparent than in the financial services industry. Both the value and volume of IT services deals signed fell significantly in both 2008 and 2009, and there is little sign of a return to growth in the current year. The dreadful market conditions might have put an end to niche KPO vendors focused on the financial services industry, but they have proved far more resilient than many expected
The reality has proved somewhat different, and nowhere is that more apparent than in the financial services industry. Both the value and volume of IT services deals signed fell significantly in both 2008 and 2009, and there is little sign of a return to growth in the current year. The dreadful market conditions might have put an end to niche KPO vendors focused on the financial services industry, but they have proved far more resilient than many expected
SUMMARY
Impact
Ovum view
Key messages
FINANCIAL SERVICES FIRMS ARE OUTSOURCING LESS DUE TO THE CRISIS IN THE INDUSTRY
Value and volume of deals has dropped since 2007
US institutions were in the eye of the storm
FINANCIAL SERVICES IS THE BACKBONE OF THE KPO MARKET
Defining knowledge process outsourcing
FINANCIAL SERVICES REMAINS THE KEY INDUSTRY FOR MANY KPO SPECIALISTS
Financial research is a key focus for many
Surviving the crisis
Reasons for optimism after the crash
APPENDIX
Further reading
Methodology
Impact
Ovum view
Key messages
FINANCIAL SERVICES FIRMS ARE OUTSOURCING LESS DUE TO THE CRISIS IN THE INDUSTRY
Value and volume of deals has dropped since 2007
US institutions were in the eye of the storm
FINANCIAL SERVICES IS THE BACKBONE OF THE KPO MARKET
Defining knowledge process outsourcing
FINANCIAL SERVICES REMAINS THE KEY INDUSTRY FOR MANY KPO SPECIALISTS
Financial research is a key focus for many
Surviving the crisis
Reasons for optimism after the crash
APPENDIX
Further reading
Methodology
LIST OF FIGURES
Figure 1: Total contract value and total number of IT services deals awarded by financial services companies, 2005–09
Figure 1: Total contract value and total number of IT services deals awarded by financial services companies, 2005–09
