BANGALORE: Although the overall benefit perception of BPO in the financial services has improved considerably, most of the UK based FSIs (financial services institutes) are not too keen to outsource to other countries such as India said Anders Maehre, Senior Analyst, Financial Services Technology & Outsourcing services, Datamonitor, addressing a session on “Next Generation BPO”, at the ninth NASSCOM ITES-BPO India strategy summit in Bangalore.

In the past FSIs have outsourced in order to cut costs, but going forward FSI will increasingly look at vendors to deliver transformation, help create a global sourcing platform and enable internal focus on core competencies, he said.

Speaking on Insurance BPOs, he said processing is one of the most frequently considered areas for BPO. Supplier management is another area of great interest, drive by the need to improve efficiency of the claims value chain, especially as profitability in the general insurance sector deteriorates, he said.

According some of the key findings of UK based FSA (Financial Services Authority), half of UK customers are concerned by offshore call center usage. The main risk is seen as the difficulty of distance management and gaining a true operational overview. However, the FSA finding concludes that risks are most often firm specific and that individual effort and investments can offset the inherent risks of offshoring.

“The Indian players have barely scratched the surface of the BPO market opportunity and may be less that 2 per cent of the market share. To retain India competitiveness and its pre-eminent place, the companies need to look from global perspective as in benchmark against the global players. However, for it to happen, the industry needs to address infrastructure issues such as bandwidth to drive business growth,” said Pawan Vaish, COO, IBM Daksh Business Process Services and chairperson for the session.

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