Latest News- Outsourcing In BFSI Sector Market: ITO is expected to lead the Type segment during 2025-2029

The Outsourcing In BFSI Sector Market is being driven by Increasing need for adherence to regulatory compliance

The Outsourcing In BFSI Sector Market is expected to grow at a CAGR of 4.9% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 32.2 billion. In the BFSI sector, outsourcing industries have leveraged emerging technologies to drive cost reduction and growth. Cloud computing, social media, artificial intelligence (AI), and process automation are key technologies extensively utilized. AI software streamlines operations by performing tasks faster and increasing efficiency. Cloud storage eliminates the need for excessive physical storage, reducing energy consumption and estimated to house 83% of enterprise workloads by 2025. Through cloud products and Software-as-a-Service (SaaS), companies can access the latest technologies, leading to significant efficiency gains and cost savings, thereby propelling the global outsourcing market in the BFSI sector. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Type
  • ITO
  • BPO
• Delivery Mode
  • Offshore outsourcing
  • Onshore outsourcing
  • Nearshore outsourcing
• End-user
  • Large enterprises
  • SMEs
• Geography
  • North America
    • Canada
    • Mexico
    • US
  • Europe
    • Germany
    • UK
    • France
  • APAC
    • China
    • India
    • Japan
  • Middle East and Africa
  • South America
    • Brazil

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Increasing need for adherence to regulatory compliance
• Increasing adoption of BPO in BFSI sector
• Increasing focus on reducing operational costs in BFSI sector

However, the market also witnesses some limitations, which are as follows:

• Growing concerns regarding data breaches
• Increasing costs for BPOs
• Language barrier and goodwill risks

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Market Scope in Outsourcing In BFSI Sector Market Research Report

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Research Analysis Overview

In the BFSI sector, outsourcing offers Financial Services companies a competitive edge through operational efficiency, cost savings, and regulatory compliance. Advanced technologies like Gen AI and analytics drive digital transformation, enhancing customer experience and transaction processing. Back-office operations, including CRM and compliance risks, are streamlined, reducing costs and improving efficiency. Specialized expertise ensures error reduction and threat detection. Core competencies are focused on, enabling superior customer service.

Market Research Overview

The Business Process Outsourcing (BPO) market in the Banking, Financial Services, and Insurance (BFSI) sector is experiencing significant growth due to the competitive advantage gained through operational efficiency and cost savings. This trend is driven by the increasing demand for regulatory compliance and the need to focus on core business functions. Technavio's market analysis reveals that the global IT consulting and other services market, which includes Business Process Outsourcing, will be propelled by government investments in IT infrastructure. These investments aim to address the skills gap in public sector IT departments and provide opportunities for IT consulting and information management firms. The resulting growth in the IT consulting and other services market will be substantial, with revenue expansion driven by the execution of IT service contracts.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
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