Introduction

This report examines the global third-party capital markets BPO industry. It focuses on market size and growth trends in capital markets BPO, market potential, key drivers and challenges. It also looks at  BPO maturity by LoB, trade-lifecycle, and asset classes, solution characteristics including scope and contract term, technology models, pricing structures, performance metrics, and global sourcing. It also provides an assessment of the global third-party service provider landscape by scale, scope, delivery footprint, and investments.

In this research, we analyze the current trends and the future outlook for third-party BPO services for the global capital markets industry. We focus on:

• Market size and growth trends in capital markets BPO, market potential, and key drivers and challenges
• BPO maturity by LoB, trade-lifecycle, and asset classes
• Solution characteristics including scope and contract term, technology models, pricing structures, performance metrics, and global sourcing
• Assessment of global third-party service provider landscape by scale, scope, delivery footprint, and investments 

Scope

• Third-party BPO deals; does not include shared services or captives
• From a scope perspective, this report provides coverage of the non-voice and industry specific BPO in capital markets across the back, middle, and front office. It does not include horizontal business processes, such as  horizontal F&A, HR, and procurement
• This report provides across 11 capital markets BPO service providers, including Capgemini, eClerx, EXL Service, Genpact, HP , HCL, Infosys, Syntel, TCS, Wipro, and WNS 

Content

This report will help key stakeholders (buyers, service providers, financial institutions, and market regulators) understand the changing dynamics of the capital markets BPO landscape. This report provides comprehensive coverage of the global capital markets BPO landscape including detailed analysis on market size and potential, key drivers and challenges, solution characteristics, and service provider assessments. The report also profiles the increasing convergence of people-centric and utility-centric service providers.  

Some of the findings of this report, among others, are:

• Capital markets BPO is a US$4-6 billion market growing at 25 percent annually, making it the fastest growing BFSI BPO segment, albeit at a smaller base
• The current penetration levels for capital markets BPO are extremely low, implying significant value creation potential
• Role of technology in capital markets BPO is limited – services are primarily delivered using existing client technology. However, demand for integrated technology and operations is increasing
• While input / FTE-based pricing continues to be dominant, adoption of output-based pricing is showing a rising trend in capital markets BPO contracts
• The service provider landscape for capital markets BPO is fragmented and includes players with a FTE-centric delivery model (ITO-centric players, BPO-centric players, and KPO specialists) and technology-centric model (diversified financial institutions and platform-based providers)
• The people-centric and technology-centric delivery models are also starting to converge, with most BPO providers investing in building holistic people-process-technology solutions