Everest Group research analysts will provide a comprehensive view on mature and emerging delivery locations across the globe as well as analyze the prevalent sourcing models, drivers, and challenges for global sourcing in FS BPO.

1. Today’s Webinar is brought to you by Everest Group
Today’s Webinar
Role of Global Sourcing in Financial Services BPO (FS BPO)
Synopsis: Everest Group research analysts will provide a comprehensive view on mature
and emerging delivery locations across the globe as well as analyze the prevalent
sourcing models, drivers, and challenges for global sourcing in FS BPO.
About Everest Group
Everest Group is an advisor to business leaders on global services with a worldwide reputation for helping
Global 1000 firms dramatically improve their performance by optimizing their back- and middle-office business
services. With a fact-based approach driving outcomes, Everest Group counsels organizations with complex
challenges related to the use and delivery of global services in their pursuits to balance short-term needs with
long-term goals. Through its practical consulting, original research and industry resource services, Everest
Group helps clients maximize value from internal transformations, shared services, outsourcing and blended
model strategies. Established in 1991, Everest Group serves users of global services, providers of services,
country organizations and private equity firms, in six continents across all industry categories. For more
information, please visit www.everestgrp.com and www.everestresearchinstitute.com.
For more information, contact Mark Williamson at mark.williamson@everestgrp.com
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2. Q&A
To ask a question during the Q&A session
 Click the question mark (Q&A) button located on the floating tool bar in the bottom right
of your screen – this will open the Q&A Panel
 Be sure to keep the default set to “send to a Panelist”
 Then, type your question in the rectangular field at the bottom of the Q&A box and click
the send button to submit
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3. Role of Global Sourcing in Financial
Services BPO (FS BPO)
Webinar
April 19, 2011

4. Introductions
Saurabh Gupta
Vice President
Everest Group
saurabh.gupta@everestgrp.com
Abhishek Menon
Senior Research Analyst
Everest Group
abhishek.menon@everestgrp.com
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5. In today’s session, we will cover four key aspects of
global sourcing in FS BPO
Process maturity
 Maturity of functions and
processes represented as being
mature, credible, and emerging
Global sourcing models and trends Location landscape
 Global sourcing models Global  Scale and growth of global
 Global sourcing market size, sourcing in sourcing in key locations over time
growth, and potential FS BPO  Key cities in each country with
 Drivers and challenges to global global sourcing footprint
sourcing
Service provider landscape
 Assessment of global sourcing
capabilities of service providers
across scale, growth, global
sourcing leverage, and delivery
footprint
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6. Everest Group’s definition of financial services
includes the following three segments
Financial
services
Banking Capital markets Insurance
 Retail financial services  Investment banking  Life and pensions
(B2C1)
 Retail banking  Asset management  Property and casualty
 Lending
 Cards  Custody  Health insurance (payers)
 Commercial banking (B2B2)  Fund administration
Note: This session covers global sourcing in vertical-specific FS BPO across banking, capital
markets, and insurance. It does not include coverage of horizontal business processes like F&A,
HR, procurement and contact centers
1 Business-to-consumer relationships
2 Business-to-business relationships
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7. Today’s session is focused on global sourcing in FS
BPO – sourcing services from a global market across
geopolitical boundaries Onshore-source geographies
Offshore global sourcing geographies
Nearshore global sourcing geographies
North UK
Eastern
America
Europe
Western
Europe China Japan
India South East
Asia
Central &
South America
Australia
Source: Everest Group (2011)
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8. Financial Services account for 40% of the fast growing
US$40 billion+ global sourcing BPO market
Global sourcing market size for BPO
2004-2010; US$ billion
2010 global sourcing BPO market share
by industry
40-42
Percentage of total market
100% = US$40-42 billion
Financial
10-12 40% services
Other
60%
industries
2004 2010
1 Compounded Annual Growth Rate
2 Non-voice includes horizontal ( e.g., HR, F&A, procurement, etc.) as well as FS vertical-specific processes
Source: Everest Group (2011)
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9. The potential for growth of global sourcing in FS BPO
is significant – nearly 15 times or ~US$250 billion
Offshore Financial Services BPO market opportunity
US$
3.7 trillion Current and potential offshore FS BPO
market
US$ billion
245-265
450-500
billion
US$245-265
billion
16-18
Current Addressable
offshore FS offshore FS
Total cost Non- Total BPO Addressable
BPO market BPO market
base of FS offshorable offshore market not offshore FS
size (2010) opportunity
companies cost base FS BPO amenable BPO market
in source opportunity to capture opportunity
markets
Source: Everest Group (2011)
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10. There are multiple operating-model alternatives that
provide different forms of value and risks, and can be
onshore, nearshore, or offshore
Operating model alternatives
Retained, optimized models Alliance based models Outsource (third-party) models
Shared services model Build operate transfer (BOT) Outsourcing
Captive model Joint venture (JV) Offshore outsourcing
Most large financial services companies choose a “value-added hybrid” approach – adopting a combination of internal
and third-party based model
The session today focuses on offshore outsourcing in third-party sourcing models. It does not provide detailed coverage
of captives and internal shared services
Source: Everest Group (2011)
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11. Third-party global sourcing in FS BPO is growing at
20%+ annually
Scale of offshore and nearshore operations in FS BPO
Based on number of FTEs of 25+ third-party service  Banking BPO is the largest FS
providers BPO segment accounting for
nearly 50% of the overall scale of
87,000 global sourcing operations within
73,500 FS BPO
60,000
 Capital markets represent the
fastest growing segment within
FS BPO. Scale of offshore and
nearshore operations of capital
markets BPO witnessed a YoY
2008 2009 2010
growth of ~40% in 2009-2010
Sample size: Based on information on 25+ service providers including Accenture, ACS, Amba, Capgemini, Copal Partners, CSC, eClerx,
Evalueserve, EXL Service, Firstsource, FIS, Genpact, HCL, HP, IBM, Infosys BPO, Intelenet, Irevna, Polaris BPO, TCS, TSYS,
Wipro, WNS, Xchanging, and Zenta
Source: Everest Group (2011)
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12. There are multiple drivers to global sourcing in FS
BPO. Despite the recent economic turmoil, impact on
adoption of global sourcing has been minimal
Beyond arbitrage-led savings, Stakeholders have adapted
there are multiple other drivers and managed new and
to global sourcing in FS BPO emerging challenges around
global sourcing in FS BPO
Legislative
Cost arbitrage
Access to
talent pool
challenges in FS BPO
sourcing in FS BPO
Operational
Drivers of global
Risk
Global sourcing
diversification
Improving
service levels
People related
Operational
flexibility
Source: Everest Group (2011)
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13. Banking and insurance are the most mature while
capital markets is the least mature FS BPO segment
from a global sourcing standpoint
Global sourcing market maturity of ITO and BPO markets
Phase 1 Phase 2 Phase 3
Pioneer Rapid growth Reaching maturity
Market value creation
IO ADM
Banking BPO
FAO
Insurance BPO
HRO
PO Capital markets BPO
Stage of market evolution
Source: Everest Group (2011)
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14. Banking and insurance are the most mature while
capital markets is the least mature FS BPO segment
from a global sourcing standpoint
Global sourcing process maturity in banking BPO Mature Credible Emerging
Product Channel Business Account Transaction Treasury Control/ Institutional Merchant
Marketing
development management acquisitions servicing processing operations compliance relationships services
Knowledge services
Global sourcing process maturity in capital markets BPO
Product Channel Business Account Registrar/ Investment Fund Control/
Marketing
development Management acquisitions servicing transfer agency operations administration compliance
Knowledge services
Global sourcing process maturity in insurance BPO
Product development
Policy servicing
and business New business Claims processing
and reporting
acquisition
Knowledge services
Source: Everest Group (2011)
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15. India, Philippines, and China are mature locations for
FS BPO
NOT EXHAUSTIVE
Maturity of delivery location for FS BPO services
Based on scale of operations of 25+ third-party service providers Nascent
Emerging
Mature
Central &
Eastern Europe
Poland
Hungary Romania
China
Central & South America
Mexico India
Jamaica
Guatemala
Costa Rica Ghana Sri Lanka Philippines
Ecuador
Brazil
South Africa
Chile
Argentina
Sample size: Based on information on 25+ service providers active in the FS BPO space including Accenture, ACS, Amba, Capgemini, Copal
Partners, CSC, eClerx, Evalueserve, EXL Service, Firstsource, FIS, Genpact, HCL, HP, IBM, Infosys BPO, Intelenet, Irevna, Polaris
BPO, Syntel, TCS, TSYS, Wipro, WNS, Xchanging, and Zenta
Source: Everest Group (2011)
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16. Central & South America along with Eastern Europe are
witnessing the fastest growth, although on a lower base
2008
Global sourcing in FS BPO locations over time
2010
Based on number of FTEs for 25+ third-party service providers
XX% 2008-10 growth
71,000
48,000
7,000 8,500 7,300
4,700
150 250 100 150
India China & South East Central & South Eastern Europe Africa
Asia America
Sample size: Based on information on 25+ service providers active in the FS BPO space including Accenture, ACS, Amba, Capgemini, Copal
Partners, CSC, eClerx, Evalueserve, EXL Service, Firstsource, FIS, Genpact, HCL, HP, IBM, Infosys BPO, Intelenet, Irevna, Polaris
BPO, Syntel, TCS, TSYS, Wipro, WNS, Xchanging, and Zenta
Source: Everest Group (2011)
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17. Everest analyzed the global sourcing leverage for FS
BPO of 15 service providers for each business segment
Service providers assessed Leading service providers based on
global sourcing capability in FS BPO
Assessment
criteria
Banking BPO
Capital markets BPO
Insurance BPO
 Global sourcing scale
 Global sourcing growth
 Global sourcing leverage
 Global delivery footprint
Source: Everest Group (2011)
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18. Key takeaways
 FS BPO accounts for 40% of the US$40 billion global sourcing market – but there is still huge
untapped potential
 Despite the various challenges post the economic turmoil, third-party global sourcing in FS BPO has
experienced over 20% growth from 2008-2010
 Banking BPO represents the largest FS BPO segment. Despite a slowdown in business acquisition
related activity during the last few years, third-party global sourcing in banking BPO continues to
increase at ~20% annually
 Insurance BPO represents the most mature FS BPO segment from a global sourcing perspective
with high degree of process penetration, mature offerings, and high degree of process
standardization
 Capital markets BPO is relatively less mature but represents the fastest growing segment within FS
BPO
 There are multiple global sourcing operating models (internal and third-party). Most large financial
services companies adopt a value-added hybrid model for BPO
 India, Philippines, and China are mature locations for FS BPO, while Eastern Europe and Central &
South America are witnessing the fastest growth, although on a lower base
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19. Forthcoming and published research in FS BPO
Published
Title Release Date
 The Growing Maturity of Offshore Research and Analytics in  July 2010
Financial Services
 Global Lending BPO Across Credit Cards, Consumer Loans, and  January 2011
Commercial Loans
 Financial Services BPO (FS BPO) Service Provider Profile  March 2011
Compendium
 Role of Global Sourcing in FS BPO - Significant Traction, Yet  April 2011
Tremendous Potential
 Insurance BPO market overview  Q2 2011
 Global third party BPO supplier landscape in Capital Markets  Q3 2011
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20. Q&A
Please use the Q&A toolbar at the bottom right corner of your screen
Upcoming Webinar
RPO Market Undergoes Explosive Growth
Opportunities and Challenges Ahead
Date: Thursday, April 28, 2011
Time: 9:00 a.m. CDT; 10:00 a.m. EDT; 2:00 p.m. GMT
Presenters: Rajesh Ranjan – Research Director, Everest Group
Sayan Chatterjee – Senior Research Analyst, Everest Group
More Information: Visit www.everestgrp.com/category/webinars
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21. For more information
 Attendees will receive an email with a link to download today’s webinar presentation.
To access a recorded audio version of this webinar, please contact Mark Williamson,
mark.williamson@everestgrp.com
 For more information related to today’s topic, please contact:
 Saurabh Gupta, Vice President, saurabh.gupta@everestgrp.com
 Rajesh Ranjan, Research Director, rajesh.ranjan@everestgrp.com
 Abhishek Menon, Senior Research Analyst, abhishek.menon@everestgrp.com
 FS BPO Team, FSBPOResearch@everestgrp.com
 For background information on Everest Group, please visit:
 www.everestgrp.com
 www.everestresearchinstitute.com
 Thank you for attending today’s presentation
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