News: 'India set to garner huge offshoring pie'
(BL 03/04/2006) Thiruvananthapuram - The banking, financial services and insurance (BFSI) vertical will continue to witness some of the largest offshore spending, and India stands to get at least 30 per cent of the $400-billion pie being thrown up for grabs by the US industry by year 2010.
Surveys have estimated that the US BFSI industry would outsource as much as 20 per cent of its cost base (amounting to $400 billion) to offshore locations over the next four years.
BFSI customers have been one of the earliest adapters of offshoring, lured by significant business and cost advantages. India would surely play a big part from a location attractiveness perspective, says Sajan Pillai, Chief Operating Officer, US Technology. The Technopark-based company is an emerging player in the BFSI vertical.
"But one needs to remember that business would be moved to various offshore locations on multiple vehicles and one of the preferred models of operations is going to be captive units servicing," he told Business Line here.
Still, there is always space for small and medium companies provided they are adequately differentiated in their value proposition. Any service provider offering a niche service offering would have an assured large market to cater, Pillai said.
BFSI is definitely attractive on account of the size and growth of opportunities. But more than the competence of Indian BPO companies, it is the readiness of clients to identify and bring in processes amenable to outsourcing that has helped the business sustain here.
The real challenge will line in how a single transaction can be completed through multiple touch points operating from multiple locations even while ensuring highest standards of service and quality.
US Technology has been providing IT services to various financial services organisations in the US ranging from a leading tax services provider to one of the biggest title insurance players, apart from large retail and corporate banks. But Pillai refused to give names citing a confidentiality clause.
The company couples "best of breed" domain consulting skills with effective technology solutions to provide better "bang for the buck." It has on its payrolls senior industry veterans who understand complex business processes with the ability to engage at very strategic level with customer and their needs.
Surveys have estimated that the US BFSI industry would outsource as much as 20 per cent of its cost base (amounting to $400 billion) to offshore locations over the next four years.
BFSI customers have been one of the earliest adapters of offshoring, lured by significant business and cost advantages. India would surely play a big part from a location attractiveness perspective, says Sajan Pillai, Chief Operating Officer, US Technology. The Technopark-based company is an emerging player in the BFSI vertical.
"But one needs to remember that business would be moved to various offshore locations on multiple vehicles and one of the preferred models of operations is going to be captive units servicing," he told Business Line here.
Still, there is always space for small and medium companies provided they are adequately differentiated in their value proposition. Any service provider offering a niche service offering would have an assured large market to cater, Pillai said.
BFSI is definitely attractive on account of the size and growth of opportunities. But more than the competence of Indian BPO companies, it is the readiness of clients to identify and bring in processes amenable to outsourcing that has helped the business sustain here.
The real challenge will line in how a single transaction can be completed through multiple touch points operating from multiple locations even while ensuring highest standards of service and quality.
US Technology has been providing IT services to various financial services organisations in the US ranging from a leading tax services provider to one of the biggest title insurance players, apart from large retail and corporate banks. But Pillai refused to give names citing a confidentiality clause.
The company couples "best of breed" domain consulting skills with effective technology solutions to provide better "bang for the buck." It has on its payrolls senior industry veterans who understand complex business processes with the ability to engage at very strategic level with customer and their needs.
posted by InCar Group Press Room at 11:13
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