Monday, May 14, 2012
The global outsourcing market continues to grow, although the pace was modest in the first quarter of 2012. According to a press release by Everest Group, a leading research provider in the global services industry, 441 outsourcing deals were recorded and transaction volume increased 11 percent from the previous quarter, to about $3 billion. Further, the market saw a 9 percent increase in business process outsourcing (BPO) transactions.
The banking, financial services and insurance (BFSI) sector led the market in transaction volume, with an increase of 12 percent. In the BFSI sector, companies mainly rely on outsourcing providers for core lending and back-office operations, collateral tracking, customer relationship management, and records management solutions.
One area that has caused an increase in demand for outsourcing services in the BFSI is the 2010 Dodd-Frank regulation. The regulation requires documentation and processing reform that will affect nearly every sub-sector of the BFSI industry. This reform has resulted in increased administrative demands, creating a need for outsourcing providers who can service this documentation so companies can continue to function without a gap in service.
