Top 10 Report

HfS Industry Blueprint: Banking and Financial Services Operations 2018

April 20, 2018


  • We are ten years on from the global financial crisis and Banking and Financial Services (BFS) firms across the globe are still struggling to drive growth and profit.
  • BFS firms are ripe for digital transformation and there are numerous change agents that offer massive promise for reinvention and disruption.
  • The 2018 Industry Blueprint Banking & Financial Services Operations examines the state of the BFS industry and investigates the service provider landscape in terms of how they are supporting and enabling the digital transformation of BFS firms.



  • Introduction and Definitions
  • Executive Summary
  • State of the Banking and Financial Services Industry
  • Research Methodology
  • Service Provider Analysis
  • Market Direction and Recommendation



  • A detailed understanding of the health of the BFS market and supporting trends through the HfS Industry Health Rating
  • BFS buyer perceptions on the why, what and how of digital transformation
  • Perspective on the BFS market size and forecast for IT and business process services
  • Knowledge of emerging use cases in BFS for various change agents (RPA, AI, and blockchain)
  • Insight into trends in BFS outsourcing contracts
  • An understanding of provider capabilities across the BFS value chain via heatmaps
  • Knowledge of recent provider developments that impact their ability to support BFS clients
  • Clarity on the BFS capabilities of 26 service providers across execution and innovation criteria
  • Recommendations for service providers and service buyers on how to work together to achieve desired outcomes



  • The HfS Health Rating for the BFS industry shows the sector as lagging based on growth metrics in the low single digits. The rating takes into account revenue and profit data, M&A growth for BFS overall and for fintechs, VC funding growth in fintechs, IPO growth over the past three years, and bankruptcy trends.
  • Don’t believe the hype. Despite BFS being a leader in innovation adoption, HfS data shows that the majority of hyped change agents are still in planning or pilot stages.
  • IT and BPO deal convergence – Many business process deals are starting to include elements of IT such as intelligent automation, smart analytics and other digital change agents. And many IT deals are starting to require business process expertise in order to automate manual functions and build effective internal and external user experiences. We identify these as combined deals when we can, but increasingly deals identified as IT or business process will include elements of the other.
  • Leading players of BFS-focused IT and business process services have a continued track record of investment in new technologies such as elements of AI, automation and blockchain; establishment of onshore development and innovation centers to enable customer co-innovation; acquisitions to fuel digital design and consulting capabilities; innovation partnerships with fintechs and ecosystem partners
  • Providers have a strong concentration of mature capabilities across the BFS value chain. Cross-functional BFS services such as Risk Management and Compliance were offered by most providers, with the greatest depth of mature offerings in the Compliance services. Banking had the next greatest depth of providers with mature offerings, with services for Retail Banking as the most mature segment; Capital Markets has less concentration of mature offerings, with Back Office services having the greatest depth of capability. For horizontal business services, F&A ranked as the most mature offering.
  • Through 2022, BFS firms and their service partners will pivot from targeted technology-specific digital transformation initiatives to broader, end-to-end initiatives. The outcomes, too, will shift from bottom line impact to topline impact as the industry overall gains confidence with emerging technologies and methods used in ever-increasing combinations.



  • Banking and Financial Services buyers focused on optimizing operations and driving digital transformation including executive leadership, business unit leaders, technology and Center of Excellence leadership
  • Service providers focused on supporting the Banking and Financial Services ecosystem
  • Advisors supporting BFS constituents



Accenture, Arvato , Capgemini, Capita, Cognizant, Concentrix, Conduent, DXC, EPAM, EXL, Firstsource, Genpact, HCL, Hexaware, IBM, Infosys, Intelenet, Mphasis, NIIT, NTT Data, Sutherland, Syntel, TCS, Tech Mahindra, Wipro, WNS

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