"BPO: Potential in Financial Services Sector" by Deepa Dubey

Finance @ Knowledge Zone

"BPO: Potential in Financial Services Sector"

- by Deepa Dubey *

Part - IV

Process Spectrum

Weighing the Benefits and Challenges of BPO

Financial service providers (FSPs) facing an environment of increased competition and an economy that is only slowly mending are seeking IT services that helps them to realize service improvement and cost containment goals. An increasing number of FSPs are choosing business process outsourcing (BPO) to meet these goals, particularly to gain service level improvements. Cost containment is an important goal that FSPs perceive is not yet being met, particularly in today's cost-conscious environment. Building and delivering on a value proposition that combines improved service levels with strong cost management is critical to ensure the ongoing viability of BPO in the finance sector.

Top Drivers to Back-Office BPO in Financial Services

Note: Drivers are rated on a scale of 1 to 7, 1=not at all important and 7=extremely important.
Source: Gartner Dataquest (June 2002).

Various researches conducted on back-office BPO in financial services with financial service providers (FSPs) indicate that the primary drivers to outsourcing in financial institutions are as follows: -

Improve service levels

Migrate to new technologies

Focus on core business

Next

*Contributed by -
Deepa Dubey,
PGDIM IXth Batch,
NITIE Mumbai.