APAC-BFSI-Outlook-2017

Emergence of Asian o§shoring hubs: India leads the way Over the past decade, major players in the Banking, Financial Services & Insurance (BFSI) sector have increasingly moved their operations to o¥shore locations in Asia, led by India and the Philippines, which o¥er compelling advantages in terms of operational eŸciencies and cost savings. Asia continues to be the world’s preeminent o¥shoring destination, with Asian economies taking 6 of the 10 spots in A.T. Kearney’s Global Services Location Index (2016). India leads the way, accounting for more than half (56%) of the world’s share of the global Information Technology – Business Process Outsourcing³ (IT-BPO) industry in 2015, followed by China, Malaysia, Indonesia, Thailand and the Philippines on the top 10 list.

India’s competitive edge From its debut at the bottom of the value chain in the late 1970s, to its current preeminence in o¥ering cutting- edge software solutions to Western markets at a competitive cost, the Indian Information Technology-Business Process Management (IT-BPM) industry has had a long and fruitful journey, with many multinational companies (MNCs) shifting their operations to India or expanding their footprint across the country. Opportunities for significant cost savings, availability of skilled and suŸcient English-speaking manpower at cheaper rates, and competent upper-level management coupled with other benefits, have supported India’s stronghold as the premier outsourcing destination in the world. Over 16,000 Indian companies ranging from large firms to start-ups have created a global presence in terms of onshore, o¥shore, and near-shore operations

³ India and the Philippines refer to the BPO industry as Business Process Management (BPM) services to denote their greater competence in diversifying and working closely with clients to understand the intricacies, as well as to innovate and increase the eŸciency of processes, thereby creating a strategic partnership.

53