BPO/ITO Providers in Banking: An Evolving Landscape of Service Complexity

by Stephen Greer, November 7, 2013
Vendor Reviews

Abstract

Only a short time ago, BPO was much simpler, but Celent’s observation is that the market is seeing a growing interest by banks to engage in more partner-centric deals that touch a wide variety of areas.  This change has driven vendor consolidation as providers see the value in being able to deliver on more than just hand-picked simple processes, but toward value-driven innovation through software, process innovation, and analytics.

In the report, BPO/ITO Providers in Banking: An Evolving Landscape of Service Complexity, Celent covers what’s happening in the outsourcing market, and provides in-depth dives into the capabilities of the featured providers.  The report attempts to provide financial institutions with a good base from which to evaluate providers.

The challenges facing the banking industry are many, and should come as no surprise to Celent’s readers.  The financial industry is growing ever more complex, while regulatory measures are compounding the pressure.  Cost concerns and the age of customer centricity have demanded that banks focus a larger share of energy on their core competencies.  For financial institutions, this means rethinking the commitment to housing resources and non-core processes in-house.

“It’s no surprise that banking is much different today than in the past. Products and services are growing increasingly more complex and numerous. Banks are struggling to deliver on their core competency, which in most cases hinges on customer service,” says Stephen Greer, Analyst with Celent’s Banking Group and author of the report. “Financial institutions want to be all things for their customers, but without third party help, that is increasingly difficult, especially in instances where institutions are unable to leverage scale and deep resources.”

This report is focused on providing in-depth looks at BPO/ITO providers for banks interested in engaging in a BPO deal.  Around that, Celent looks at the market as a whole, highlighting recent trends, barriers, and drivers.  Graphs and charts looks at different comparisons between the providers, such as employees, deal size, business models, etc.  Celent then compares each provider by putting them through the proprietary XCelent Methodology, giving awards for technology, functionality, customer base, and servicing.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

BPO Market Outlook

2

 

Barriers

2

 

Drivers

2

 

Trends

3

Banking BPO Business Processes and Business Models

7

Celent ABCD Analysis and XCelent Awards

12

 

The XCelent Awards

13

 

XCelent Technology and Functionality

13

 

XCelent Customer Base and Service

14

Conclusion

16

Appendix 1A: Vendor Profiles

17

CSC

18

Dell

23

FIS

27

HCL

32

iGate

36

Indra

39

Infosys

44

Polaris

48

TCS

51

Wipro

55

WNS

59

Xerox

64

Appendix 1B: Business Processes Serviced by Vendor

68

Leveraging Celent’s Expertise

76

 

Support for Financial Institutions

76

 

Support for Vendors

76

Related Celent Research

77

Sign in to download reports and access personalized information