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Middleoffice BPO Services Market Segmentation by Service Type which Insurance BPO, Banking BPO, Government, Knowledge Process Outsourcing services
Middleoffice BPO services are services outsourced to the BPO companies. These services include managing risk, calculating profits & losses of a financial services company. The group of employees in middleoffice are usually in charge of the information technology.
With robust expansion of data, compliance requirements, cost pressure, and demand from external as well as internal stakeholders, the middleoffice is undergoing an unprecedented transformation. The phenomenon of outsourcing, earlier reserved for back-office functions, has therefore extended to middle-office functions. Data privacy & regulation are key aspects of success for middleoffice BPO services.
The middleoffice BPO services have gained immense popularity among asset managers, who maximize the investments returns for their clients. As the middleoffice BPO services involve multiple stakeholders, including custodians, brokers, and several other third parties, they are experiencing an increased manual intervention. This further results into demand for automating the workflow process, which can be fulfilled with the help of middleoffice BPO services.
Increasing investments worldwide have fuelled demand for the middleoffice BPO services, for managing the rapid flow of data coming from the functions of middleoffice. Any error in the data might lead towards wrong investment decisions, or delays in reporting, affecting the asset manager’s reputation. On the back of operating compulsions, and demand for asset managers to concentrate on investment management’s core competency, the middleoffice BPO services are gaining momentum across the globe.
Asset managers can gain several operational benefits through the middleoffice BPO services, including higher predictability in costing, and cost savings. For asset managers and administrators, establishing a single data source with a seamless process flow is imperative. This necessitates the middleoffice administrator to communicate effectively with front office, and make specialist staff expertise and robust workflow technology a high priority.
According to a latest study by Persistence Market Research (PMR), the global middleoffice BPO services market is projected to exhibit a high single-digit CAGR throughout the forecast period (2017-2022). The global market for middleoffice BPO services is estimated to account for nearly US$ 437,000 Mn revenues by 2022-end.
North America is anticipated to remain the largest market for middleoffice BPO services, in terms of revenues. The market in North America will register a robust expansion to reach approximately US$ 160,000 Mn in revenues by 2022-end. In contrast, Middle East & Africa (MEA) and Japan will remain the least lucrative regions for growth of the middleoffice BPO services market.
On the basis of service type, insurance BPO and Government segments are expected to witness the fastest expansion in the market through 2022. These two service type segments are projected to register approximately similar CAGRs, to collectively account for over one-fourth share of the market during the forecast period. Knowledge process outsourcing service segment will continue to witness a sluggish expansion in the global middleoffice BPO services market.
Based on vertical, retail & consumer goods and healthcare & pharmaceuticals segments are projected to register the highest and nearly equal CAGRs in the global middleoffice BPO services market through 2022. Aerospace & defense and Education are expected to remain the least lucrative verticals for the middleoffice BPO services across the globe.
Leading players in the global middleoffice BPO services market are now focusing on replacement of unscalable & offline solutions, and development of a highly advanced middle-to-back office platform. Key companies actively contributing to growth of the global middleoffice BPO services market are Accenture PLC, International Business Machines Corporation, Capgemini, Cognizant Technology Solutions Corp, Mphasis Ltd., Capita PLC, Hewlett Packard Enterprise Company, HCL Technologies, State Street Corporation, and ADP LLC.
The report has analyzed key segments that encompass the global middleoffice BPO services market. The global market for middleoffice BPO services has been segmented into vertical, service type, and region. Through country-wise forecast & analysis and cross-sectional data, additional information has been provided across every segment and its sub-segments.