In the next five years, global business process outsourcing by the financial services sector will be worth $ 145-165 billion for India-based services providers, says a study by Everest Research Institute.
The study entitled 'Global Sourcing in Banking, Capital Markets and Insurance' further states that offshore BPO adoption in the insurance sector will grow 12-15 times in the same time period.
The current sub-prime crisis, in the medium-to-long term period, will accelerate global sourcing adoption as financial institutions are exercising the option to cut costs, the report said.
The institute predicts that outsourcing from the financial services sector have the potential to increase 40-45 times the current market size over the next five years, with key drivers of growth coming from cost pressures and the timely advent of more vertical-specific offerings by offshore suppliers.
"The current financial crisis in the US markets is increasing the interest of stakeholders to understand adoption trends and opportunity areas in offshoring, among other cost-curbing measures. Banks and other financial services firms are under significant cost-reduction pressure. So, a large number of firms plan to reduce headcount in the West and move jobs offshore," said Nikhil Rajpal, vice president, global services of Everest Research Institute.