Released on = July 20, 2006, 2:04 am

Press Release Author = ValueNotes

Industry = Financial

Press Release Summary = According to estimates by Pune-based outsourcing research
firm ValueNotes, India is the preferred BPO destination for offshoring banking and
financial services (BFS), earning $1.83 billion in revenues and employing 125,000
persons in 2005-06

Press Release Body = With growth rates of 30 to 35%, India's revenue is likely to
reach $6.5 billion by FY2011, but this is still a fraction of the "offshoreable"
market potential. Arun Jethmalani, CEO of ValueNotes says, "Growth in Indian
offshore revenues from the BFS vertical will outpace overall BPO growth, driven by
expansion into higher value services, especially research and analytics".

Almost 50% of the world's biggest banks in terms of asset size already have
significant presence in India. The smaller, regional banks are also expected to take
to offshoring in a big way in future. The need to manage increasingly complex global
operations in a cost-effective manner, and added workload due to regulatory
compliance such as SOX, Spitzer's Settlement ruling and Basel II norms are major
offshoring drivers.

The offshore vendor landscape is made up of:
- Captives of MNC banks and financial institutions such as Morgan Stanley, JP
Morgan, Goldman Sachs, Lehman Brothers, TSB Lloyds, Scope International
- Among third party players are:
o Large multi-service companies like Genpact, EXL Service, WNS;
o Multi-service BPOs with IT parents such as Wipro BPO, Progeon, MphasiS BPO and
iGate;
o Large KPOs such as Evalueserve, OPI and Integreon
Large players and niche specialists are best positioned to exploit the large
opportunity.

Other findings indicate that
- Companies are able to achieve overall cost savings in the range of 30-40%.
- The employee strength of India-based banking and financial services vendors is
expected to cross 400,000 by FY2011.
- Within the BFS vertical, the highest growth will be seen in "Research &
Analytics", though on a small base.
- The Indian vendor space is set to witness aggressive M&A activity; niche players
in the research and analytics segment will be attractive acquisition targets.

Ribhu Ranjan, ValueNotes analyst and co-author of the report "Banking and Financial
Services Offshoring: From Transaction Processing To Analytics", expects that going
forward, regional and mid-tier financial firms the world over will adopt a
multi-location, multi-vendor offshoring model, signaling a preference for global
sourcing.


About ValueNotes

ValueNotes Database is a leading provider of business intelligence and research,
with expertise across selected domains and types of customer needs. Working with
clients across the globe we have significant understanding of international markets.



About ValueNotes Outsourcing Practice

The ValueNotes Outsourcing Practice is one of the largest information providers on
the outsourcing industry. Our Outsourcing Practice uses a comprehensive, analytical
framework providing fresh insights into the fast emerging and yet, complex
outsourcing space. We extensively track the outsourcing space in-depth through a
regular analysis of news and events and continuous primary research and contact with
the industry.

To learn more about the ValueNotes Outsourcing Practice, see samples, order reports,
or provide us with your feedback on this research, please go to www.valuenotes.biz
or write to bporesearch@valuenotes.com. You can also call us at 91 20 6601 0423 /
6601 0424


Web Site = http://www.valuenotes.biz

Contact Details = Arpita Bedekar
ValueNotes Database Private Limited,
Venus Point, F.C. Road, Pune 411004
India
Tel: +91 20 66010423