Every industry undergoes periodic changes and in that context the financial services outsourcing industry is certainly not an exception. The only exception is that changes in the financial services outsourcing industry have occurred more rapidly as compared to other industries, the most probable reason being its dynamic nature. Emerging trends in the financial services outsourcing industry provide a definitive clue to the ongoing changes and here’s some of those to help you get a better understanding:
With rapid advancements in Information Technology and allied systems and processes, the financial services outsourcing industry has witnessed increased automation over the years. Outsourced financial projects are still managed under the watchful eyes of highly qualified professionals, but the actual processing and transacting is being done by automated software systems. It is certainly a positive development because automated systems eliminate the chances of human errors and inaccuracies and also allow outsourcing firms to handle large financial projects with veritable ease.
Diminishing size limitations
At the beginning, financial services outsourcing was embraced mostly by business heavyweights such as Goldman Sachs, Lehman Brothers, Morgan Stanley, Citi Group etc. Things however have changed over the years as can be seen from the dramatic increase in the number of Small & Medium Enterprises (SMEs) hiring financial outsourcing services. Business size is no longer a criterion for choosing financial services outsourcing, something that is good news for both SMEs and small outsourcing service providers that cater to niche market segments.
Rapidly expanding global presence
There was a time when financial services outsourcing was limited to a few advantageous geographical locations such as India. However, due to rising demand for financial services, other countries such as Brazil, Russia, Indonesia and China have also started offering financial services outsourcing. It signifies that financial services outsourcing now enjoys a global presence and is not limited to a few regional pockets. And that is good because businesses now have a lot more options to choose from.