The changing landscape of banks, insurance companies and financial institutions leads to the rise of demand of BPO services across the globe.
Many banks now opt to create fresh strategies to be more cost efficient. According to Inquirer.net, some factors that contribute to this are change in consumer behavior, continued macro volatility, the emergence of financial technology companies, rising costs, and new regulations.
Cushman and Wakefield’s latest 2017 report entitled “Winds of change”, global financial giants are increasingly opting for more cost-efficient locations to house their backend operations. Most institutions is turning to offshoring and outsourcing to help minimize costs.
“The banking and financial services industry is under intense pressure following the global financial crisis. Amid all the regulations and increased oversight, banks are increasingly shutting down non-core activities with lower margins,” the global real estate advisor said.
“Accordingly, many global banks are rightsizing their operations or shifting back office operations to non-core locations or lower-cost emerging markets, such as India and the Philippines,” it added.
The Philippines have catered an expanding BPO industry. Aside from Metro Manila, Cebu has become a strong alternative or secondary expansion site for BPM operations.
“While Cebu is anchored by IT-BPM firms, it has also shown potential as a hub for banking operations. Global banks such as JP Morgan Chase and Co. and Standard Chartered already have a presence in the area while Manulife Business Processing Services is opening a site in Lapu-Lapu City that will handle higher-value functions such as actuarial and underwriting operations,” the report stated.
“The presence of comparable facilities and good quality of labor (the province of Cebu is considered to be the educational hub of Central and Visayas) that can compete with Metro Manila provides a solid incentive for firms to relocate to the region,”
Increasing demand of BPO services in countries like the Philippines and India gives a chance to urban locations to boost local economy and employment.