Introduction

The market for third-party BPO in capital markets reached US$1.7 billion mark in 2014, growing at a CAGR of 18-20% over last four years. North America and United Kingdom are the major growth drivers with their substantially-sized markets and above average growth rates. Regulatory landscape, risk management solutions, analytics offerings, and legacy systems are some of the key factors impacting how buyers and services providers shape the outsourcing relationships. Going forward, it would be interesting to observe what new regulations come into effect, especially in Europe, as they are likely to have an all-round impact on how financial institutions look at their outsourcing landscape.

In this study we analyzed the performance of the global capital markets BPO space in 2014. We focused on:

• Market size and buyer adoption
• Solution characteristics across LoB adoption, technology model, automation leverage, pricing structures, and global sourcing
• Service provider landscape, covering service providers’ market share and presence in various geographies

Scope of analysis

• Third-party capital markets BPO contracts. It does not include shared services or Global In-House centers (GICs)
• Over 300 capital markets BPO contracts signed as of 2014
• Coverage across 18 capital markets BPO service providers including Avaloq, Broadridge, Cognizant, eClerx, EXL, Genpact, HCL, Hexaware, IGATE, Infosys, Mphasis, NIIT Technologies, Syntel, TCS, Viteos, Wipro, WNS, and Xchanging

Content

This report assists key stakeholders (buyers, service providers, and technology providers) in understanding the changing dynamics of the capital markets BPO space and helps them identify the recent trends and future outlook. In this backdrop, the report provides comprehensive coverage of the global capital markets BPO space including detailed analysis of market size & growth, buyer adoption trends, solution characteristics, and service provider landscape. Some of the findings in this report are:

• The market for third-party BPO in capital markets reached US$1.7 billion in 2014, growing at a CAGR of 18-20% over the last four years
• Investment banking continued to be the largest segment within capital markets BPO and is also growing the fastest
• Leverage of technology solutions, including platforms, has started seeing an uptick especially from small-sized buyers
• Among the service providers covered by Everest Group, Avaloq, Cognizant, Syntel, TCS, and Xchanging come very close to each other, in terms of market share by revenue, but each have separate areas of focus and strengths