BFSI BPO market to hit $175Bn by 2028 — says Allied Market Research

DELAWARE, UNITED STATES — The global market for BFSI (Banking, Financial Services, and Insurance) business process outsourcing (BPO) services is on a trajectory to more than double to $174.94 billion by 2028 from $85.12 billion in 2020.

This growth, at a compound annual growth rate (CAGR) of 9.7% from 2021 to 2028, is driven by the sector’s increasing need for operational efficiency, cost savings, and technological advancements.

Allied Market Research’s recent report revealed that banks and financial institutions are increasingly adopting BFSI BPO services to focus on their core business and operations. The services provided by third-party vendors, either offshore or onshore, range from customer services to finance, accounting, and human resources.

The market’s expansion is also fueled by a surge in cloud communication-based BPO services and a heightened demand for cost-effective infrastructure solutions. The COVID-19 pandemic further accelerated this growth as banks sought faster and better services to cope with the crisis.

Customer services led the market in 2020, a trend expected to continue due to the growing number of customer interactions across various platforms. Meanwhile, the human resource segment is predicted to see the highest growth rate, driven by the demand for skilled middle managers in finance and accounting roles.

Geographically, North America held the largest market share in 2020, thanks to the presence of numerous BPO vendors and an improving economy. 

However, Asia-Pacific is projected to grow at the fastest rate during the forecast period, with countries like China, India, and Singapore leading the way, supported by government initiatives and the establishment of customer service and call centers.

Key players in the BFSI BPO services market include Accenture, Cognizant, Concentrix, Genpact, IBM, Infosys Limited, Mphasis, NTT Data Corporation, Tata Consultancy Services, and Wipro Limited.

Despite the challenges posed by the pandemic, the BFSI BPO services market has adapted, with digitization playing a crucial role in maintaining efficient and trustworthy operations. 

Technological advancements, such as the Internet of Things, artificial intelligence, and robotic process automation, are expected to create new opportunities and drive further growth in this dynamic market.