In 2012 and 2013, BFSI buyers continued to remain under pressure to increase revenue, enhance customer experience, reduce costs, replace legacy systems, and meet regulatory requirements. To address these challenges, most banks focused on transforming themselves and increasing investments in technologies such as social media, mobility, big data & analytics, and cloud computing. This enabled them to enhance customer experience while simultaneously reducing their operational costs, better managing risk, and improving shareholder returns.
As financial institutions gear up for these changes, they are looking to identify strategic partners who can help them develop solutions that drive efficiency and sustain the pace of technological advancement in this rapidly-evolving industry. In addition, with the continued trend towards consolidation, financial institutions are signing larger and more strategic AO contracts with a fewer number of service providers, a phenomenon that is expected to meaningfully alter the AO services landscape in the BFSI segment.
The Everest Group recently investigated the current trends and the future outlook for large, multi-year application outsourcing relationships for the global insurance sector. Their analysts focused on:
Trends in AO in the BFSI segment
Market trends and activities for large AO relationships in insurance
Emerging priorities of buyers and key investment themes in insurance AO
Outlook for 2014
The research also captures key movements in volume/value of insurance AO transactions, evolving trends, market dynamics, and emerging priorities of buyers in the last 12 months.
Industry: Insurance (life, annuities, and pensions; property and casualty insurance); excludes banking, capital markets, and healthcare payers
Services: Large (TCV > US$25 million), multi-year (>three years), and annuity-based application outsourcing
Geography: Global
Sourcing model: Third-party AO transactions; excludes shared services or Global In-house Centers (GICs)
The BFSI IT market overview:
Insurance AO overview:
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