Global Financial Services Outsourcing Market is expected to reach $US 51.5 billion, by the year end of 2027, and is expected to reach a CAGR of 4.9% over the forecast period of the year 2020-2027

October 08, 2021, New York, USA -

Financial services are an integral part of the organization, whether big, small or medium. It usually refers to several back office tasks such as financial services, financial analysis, book keeping, and risk management.

These are primarily the top factors which rest on the basis of several outsourcing of the market.

The above services are called financial services and outsourcing refers to the process of handling over the services to a third party in order to manage these services.

Most of the companies outsource their services to outdoor companies for several reasons-

Any kind of financial processes are usually very complex; they require an accurate analysis. It also requires expertise and experience. Hence normally this is the reason why most of the companies outsource their financial services to the third party source.

It helps keep with the latest technology-

The outsourcing of the services has the latest technology for performing the most complex financial function. It helps the companies to benefit from the latest infrastructure and benefit from the complex financial process.

Improved level of efficiency-

Outsourcing of the complex financial tasks helps you dedicate the time and resources to the other complex tasks which are involved in an organization. This can improve operational efficiency to a great extent in an organization.

Another major advantage of outsourcing the financial tasks is that it cuts the hiring and financial costs. An in house finance department can be extremely costly and it can lead to large amount of operational costs. By outsourcing these services, the organization can significantly reduce these costs.

Outsourcing the financial service lets you streamline the accounting services, along with various multi lingual services. There are some of the functions which cannot be performed by the internal staff in an organization and this is the reason why it makes sense to outsource these financial services.

Let’s you access Global talent and services-

Outsourcing your financial services helps you work with the best in the sector and gain a lot of expertise and get to know about the financial services sector.

The Global Financial Services outsourcing market-

This market is expected to reach $US 51.5 billion, by the year end of 2027, and is expected to reach a CAGR of 4.9% over the forecast period of the year 2020-2027.

The top companies leading in this domain are-

Accenture

Capgemini

Cognizant

Genpact

IBM

Hewalt Packard

Tata Consultancy

Wipro

WNS

North America holds the largest share for this market and is expected to rise significantly during the forecast period. Also the highest level of CAGR for this period is expected to be for the region of the Asia Pacific. Canada and Mexico are the top countries in North America who are leading in the Global Financial Services Sector.

The rise in the North American market is due to the increase in the adoption of the various outsourcing business opportunities. Also North America is a very huge market for the cloud computing and various option for the virtual services.

The United States is a top ground for the financial services sector as the country plays a significant role in bringing the new and improved technological advancements on the global scale. Also the outsourcing industry in the recent years has expanded drastically over the recent years as there have a number of skilled people have been employed in the market, however at the senior level there have been a shortage of skilled manpower for the management of the outsourcing of the financial services sector.

The back office market in the Asia Pacific market is expected to expand at a rapid pace due to the increasing investments by the banks and other top financial institutions. India is also one of the top markets especially in the BFSI domain which will lead in the Global Financial Services. The strength of this country lies in the high level of population and extremely robust and skilled people who know the intricacies of the market and the knowhow of the market. With the demand for high and skilled financial experts especially after the pandemic on the rise the Asian markets is going to see an upward rise and is expected to bolster the demand for the financial services outsourcing market.

The competitive landscape of the Global Financial Services market-

In the year of March 2021, the Cambridge Management Consulting expanded its business operations with the expansion of Straxia. The company mainly focuses on the financial planning, infrastructure management and development of the rest of the organization.

Some of the details of the Key players include-

Infosys-

Infosys is building a digital and financial consulting service and the company has over 13 subsidiaries and the presence in over 45 countries.  The company is in service of almost all the domains such as the AI, Automation, Analytics, and Data Analytics, Block chain, engineering services and the Internet of Things.

Hex aware Technologies-

Hex aware provides services globally and is skilled in the domain of consulting, business process management, software development, business intelligence and top analytical solutions.

The impact of the Covid 19 pandemic on the Global Financial Services Market-

The significant impact of the pandemic has had a very strong impact on this market as there have been lockdowns worldwide. This has a major impact in markets such as the United States and Europe.

Demand for the outsourcing of the services reached an all-time low during the pandemic as the banks and the top financial institutions were not able to invest as a result of the lockdowns in the market.

However, the situation is slowly improving and is expected to gather the momentum after the 2^nd quarter of the year of 2021. The increasing demand for the back office outsourcing is expected to increase soon and this will lead to the outsourcing of the Financial Services Outsourcing.