Dallas — In the medium-to-long term, the sub-prime crisis will accelerate global sourcing adoption as financial institutions push the envelope on offshoring to cut costs, according to Dallas-based Everest Research Institute. The Institute predicts business process outsourcing (BPO) from the financial services sector will increase 40 to 45 times the current market size over the next five years, with key drivers of growth coming from cost pressures and the timely advent of more vertical-specific offerings by offshore suppliers, according to Everest Research’s study, “Global Sourcing in Banking, Capital Markets and Insurance.”
Within five years, the firm projects spending for global BPO by the financial services sector will reach US$145-$165 billion for India-based services, the hub of global sourcing for financial services. The report also projects offshore BPO adoption in the insurance sector will grow 12 to 15 times during the same time period.
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