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'Outsourcing will grow in banking and financial sector'

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DQI Bureau
New Update

Q.Banking and financial services has been a hot spot in outsourcing traditionally. How is the sector responding to global uncertainties? Will we see an increased appetite for outsourced services in this space?

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In our view, outsourcing will grow in the banking and financial sector in Europe. Market leaders will set the standard as they outsource more activities. However, customers are looking for outsource partners to base their operations in Europe. The challenge and opportunity is to move from BPO to real partnering and co-sourcing.

Q.What are the expected trends for the global banking sector in 2013- in terms of technology adoption, innovation, servicing challenges and so on?

Challenges for the banking industry in Europe include more regulation, compliance, and the adoption of SEPA. Along with it, it would be important to adapt to servicing/reaching their customers through new mediums such as online, social media which present lots of opportunities and challenges for the financial sector. For example the use data analytics to understand and predict customer behavior and purchasing trends.

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Q.The economic climate in Europe has been affecting businesses a lot. Are there any visible signs of a recovery and renewal of customer interest?

The euro area economy is in recession. GDP fell in both the second and third quarters of 2012 and is likely to fall again in the final quarter of the year. The economy is expected to remain weak in the opening months of 2013 with a gradual recovery setting in from the middle of next year.

Among the factors expected to support this recovery are:

  • Growth in the global economy is forecast to strengthen next year, which will support demand for Euro area exports.
  • Interest rates are very low, which should contribute to some pick up in economic activity
  • Measures being taken by governments to strengthen Economic and Monetary Union (EMU) should result to an improvement in consumer and business confidence and a gradual recovery in spending and investment.
  • Structural reforms (of labour and product markets etc) currently being undertaken in many Euro area countries should result in higher potential growth rates over the medium term.
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