BFSI BPO Services Market Expected to Reach $174.94 Billion by 2028-Allied Market Research

According to a recent report published by Allied Market Research, titled, “BFSI BPO Services Market by Service Type, Enterprise Size and End User: Global Opportunity Analysis and Industry Forecast, 2021-2028,” The global BFSI BPO services market size was valued at $85.12 billion in 2020, and is projected to reach $174.94 billion by 2028, growing at a CAGR of 9.7% from 2021 to 2028. 

BPO services is a highly specialized strategy used by banks and other lending institutions to support account activities and business acquisition services associated with the banking lifecycle of a customer. In an increasingly competitive market, many banks and financial institutions are positioning themselves for growth. This is possible for banks only by assigning their non-core activities to offshore providers and become specialized in core activities. These include financial & internal management reporting, budgets, and capital management reporting and regulatory returns. The outsourcing benefits banks in terms of low cost, high-quality services. According to Deloitte, many organizations increasingly leverage banking BPO services as a cost reduction tool and a sourcing strategy. Furthermore, according to KPMG, many investment banks have outsourced more than 50% of their finance services such as accounting, payroll, and human resource management.

Factors such as increase in need for operational efficiency and transparency in business processes and rise in demand for cost saving on infrastructure & technology are expected to fuel the market growth. In addition, surge in adoption of cloud communication based BPO services is expected to drive the growth of the BFSI BPO services market. However, higher investment & maintenance costs and overdependence on the BPO Company are expected to negatively impact the growth of the BFSI BPO services market. On the contrary, increase in demand for BPO services among banks, and financial institutions and technological advancements in BPO services are expected to provide lucrative opportunities for the market growth in the coming years.

Depending on enterprise size, the large enterprises segment dominated the BFSI BPO services market share in 2020, and is expected to continue this trend in the upcoming years. This is attributed to BPO services technology, which enables large-scale enterprises to be safer and smarter by providing business intelligence to reduce risks in its operation. Moreover, risk assessment, remote viewing & management, and streamlined solutions for enhanced security management & reporting fuel the BFSI BPO services market growth. However, the growth of the small enterprises sector is a key contributor to the developing economies. A greater adoption of BPO services among small & medium sized banking & financial industries in the upcoming years is expected to save the cost and carry out the in-house processes within the time interval, limited money, and compact skillset.

The COVID-19 pandemic has led to the decline in BFSI BPO services spending, owing to strict lockdown, business shutdowns and increase in challenges among companies in adopting work-from-home-culture. However, rapid increase in the demand for cloud-based BPO services has supported the banks to sustain during pandemic. Moreover, the pandemic has forced businesses around the globe to shift their physical offices into the remote working set-ups, which is considered opportunistic for BPO services market.

Key Findings Of The Study

• By service type, the customer services generated the highest revenue in 2020. However, the human resource segment is expected to witness highest growth rate in the near future.
• By enterprise size, the large enterprise segment accounted for the highest revenue in 2020, however, SMEs segment is expected to witness highest growth rate during the forecast period.
• By region, the BFSI BPO services market trends was dominated by North America in 2020. 

Some of the key BFSI BPO services players profiled in the report include Accenture PLC, Cognizant, Concentrix Corporation, Genpact, IBM Corporation, Infosys Limited, Mphasis, NTT Data Corporation, Tata Consultancy Services Limited and Wipro Limited. This study includes BFSI BPO services industry, BFSI BPO services market analysis, and future estimations to determine the imminent investment pockets.