US sub-prime crisis may be a boon to the Indian business process outsourcing (BPO) units, which provide financial services, with the sector expected to grow 40-45 times the current market size over the next five years, according to a global consultancy firm.
"The key drivers of growth will come from cost pressure and the timely advent of more vertical-specific offerings by offshore suppliers," a study from Everest Research Institute pointed out.
The study says that within five years, the addressable opportunity for global BPO by the financial services sector will reach USD 145-165 billion for India-based services. It further added that offshore BPO adoption in the insurance sector will grow 12-15 times during the same time period.
"Banks and other financial services firms are under significant cost-reduction pressure and that's why a large number of firms plan to reduce headcount in West geographies and move job offshore," Everest Research Institute Global Services Vice President Nikhil Rajpal said.
The financial services industry comprising banking, capital markets and insurance accounts for 40-45 per cent of worldwide global outsourcing.
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