Within the outsourcing industry, one sector that has quietly faded into the background is the financial services outsourcing industry. It has taken a backseat amid healthcare outsourcing troubles early this year and the ever-growing information technology outsourcing industry. By the different firms including TPI and Everest, the subject of the state of the financial services outsourcing sector is still of particular interest and it has been closely monitored. In its TPI Index reports for the 1st and 2nd quarter, they have observed a decline in the outsourcing of the financial services. The everest offering its two cents on the topic, indicated on its report which was released on the 4th of August. The outsourcing among the BFSI or the banking, financial services and insurance sectors have seen the highest volume of activity since 2008 and it has actually had a 41 percent increase in transactions during the second quarter.
On the other hand, the outsourcing provider says that demand does not seem to be lacking. They are expanding their services in order to meet the demand and offer greater flexibility among the financial institutions beyond securities processing and would includes securities clearance and settlement, corporate actions, tax reporting, mutual, funds as well as accounts payable treasury, risk and compliance, similar to other outsourcing providers in the financial services market. The financial services provider State Street Corporation. They would be expanding their partnership with the company. In a relationship that began in 2001, State Street aside from continuing to provide custody, trustee and private equity and hedge fund services to Babson will also provide other global operation services allowing Babson to further focus on core processes.
The outsourcing company Accenture released its report of their fourth quarter results and FY 2010 results. Taking the company’s results as an indicator, the company saw substantial business in the financial services sector even as compared to other segments . The financial services sector compared to other segments. The results of the financial services comprised more than 20 percent of the company’s net revenue for the year. It is only the financial services group among the company’s other operating groups saw an increase in revenue. For the company’s fourth quarter results they saw a 10 percent increase in revenues or an increase of almost $100 million dollars in net revenues from financial services.
In the financial services sector is Indian outsourcing provider Firstsource Solutions, the another company with substancial business in the financial services sector is Indian outsourcing provider. The five year agreement would make Barclaycard UK one of its top five clients based ion the financial aspects of the deal. The firstsource attributes about 24 percent of its revenue to the BFSI sectors. While the financial services outsourcing still remains behind its more controversial counterparts healthcare and Information Technology it is certainly seems that 2010 that will be the year that it resumes growth after previous years decline.
REFERENCE:
http://www.blog.infinit-o.com/financial-services-outsourcing-alive/
