The recession in 2008 had left a deep impact on the economy with its effects percolating into almost all possible sectors including banking and financial sector. The financial and banking sector at present is trying to come out of the recession effects and improve on areas like lending.
The banks now are working hard to regain momentum and they undoubtedly need infrastructure and operational services they had earlier, which they were forced to downsize at the time of recession. Banking services certainly require outsourcing help to meet these challenges.
Cost saving is the prime factor that drive outsourcing industries, but now it is time to prove its capabilities to scale up in terms of business volume and efficiency to meet challenges. On the other hand, banking and financial services are not considering outsourcing as a better option to improve on their transform operations or analytics. Outsourcing still remains only as a utility solution for many banking executives.
The year 2013 entails focused action to be taken by the industry
While the banking and financial industry was faced with rough times in the past, it is now time to look forward and move ahead. The year 2013 is considered crucial for the industry and is a year of action. It is in this year the services are trying to upgrade their services. This year is expected to see a number of mergers, launches, global expansion, and system upgrades etc.
A research was conducted by HfS studied the position of banking and financial services at present and also the eagerness of executives to utilize the facilities in outsourcing to bring up their services. The study clearly shows that most of the executives are not ready to bring their work back onshore. The executives are currently looking for sustained partnerships with their service providers.
The report also shows evidence that the service providers are offering their services at low costs even now although they do not support their clients in terms of technology and innovation. The banking and financial services require partners who can offer services of a higher level. The research study has calculated that the outsourcing market will show a growing trend for the next five years. The ITO and professional services are expected to grow at 5 per cent while BPO sector is expected to grow at 7 per cent.