Client insourcing hits BFSI revenues of big IT services companies

'Despite the insourcing by banking clients, we have found a balance in North America'

IT services companies are starting to see moderation in growth in the BFSI (banking, financial services and insurance) segment with more financial services clients intensifying insourcing by setting up their own captive units. This is also resulting in large IT outsourcing contracts in this space breaking into smaller deals.

For example, Switzerland-headquartered UBS has reduced its outsourcing exposure to Cognizant and HCL Technologies sharply this year after setting up its captive centres in Pune, Hyderabad, and Mumbai.

Sources also say Deutsche Bank, which invests close to $6 billion in technology, has insourced part of the outsourcing works from IT services