BFSI outsourcing market to reach $175Bn by 2028
WILMINGTON, UNITED STATES — The global banking, financial services, and insurance (BFSI) business process outsourcing (BPO) market, which was valued at $85.12 billion in 2020, is forecasted to grow at a 9.7% compound annual rate from 2021-2028, potentially reaching $174.94 billion by 2028.
According to a new report by Allied Market Research, key drivers fueling this robust growth include the rising demand for efficient operations, flexible cloud-based services, and cost savings around infrastructure and technology.
Banks dominated the end-user segment in 2020, but capital markets are expected to exhibit an 11.2% compound annual growth rate through 2028 as they focus more on transforming lending and cash management.
Customer service outsourcing captured the greatest market share in 2020 based on service type. However, human resources BPO is predicted to see the fastest growth between 2021 and 2028 at 11.8% as financial institutions seek skilled finance and accounting workers.
By region, North America held the greatest BFSI BPO market share in 2020, thanks to vendor penetration and economic improvements. However, Asia-Pacific is expected to see the quickest growth due to the expanding customer service centers in developing nations and supportive policies.
While strong continued expansion is forecast, Allied Market Research said privacy issues, data security worries, and over-reliance on vendors could hamper the market.
Still, the report noted that adopting advanced technologies and optimizing costs and experiences will likely shape the future landscape of the BFSI BPO industry.
Key players in the BFSI BPO services market include Accenture PLC, Cognizant, Concentrix Corporation, Genpact, IBM Corporation, Infosys Limited, Mphasis, NTT Data Corporation, Tata Consultancy Services Limited, and Wipro Limited.
