Table of Contents
The industry research publication titled ‘India ATM Managed Services and Outsourcing Market Outlook to 2019 - Spurred by Expansion of the ATM Network’ presents a comprehensive analysis of market size by value of the ATM Managed Services and Outsourcing Market in India, market segmentation by number of ATMs existing in the country by different models and by value, Outsourced ATMs in India by different banks. The report entails the market share analysis and company profiles of major players in the market and market dynamics. Comprehensive analysis on growth drivers, issues and challenges in the market, recent trends and developments and cost components and services rendered to banks by the service providers and recent investments in the sector has been presented in the report along with the future analysis.
The ATM industry in India is rapidly transitioning from the traditional methods of ATM operations into the internationally accepted ones. Companies operating in other sectors in India as well as abroad are eyeing the Indian ATM managed service and outsourcing market since the market offers immense potential.
While during 2008 and 2009, the transaction based model gained momentum, the revenue of the managed service market grew robustly till 2011. In the year 2012, bids for the deployment of ATMs for Public Sector Banks (PSBs) were invited. This period dampened the growth of the market since service providers quoted very low fee per transaction. Out of the 63,000 ATMs that were to be deployed, only 30,000 were actually deployed since it became difficult for companies to make the contract possible after bidding low. The ATM managed services and outsourcing market is as of now witnessing decent growth, which is expected to continue, at least in the short run.
It is estimated that INR ~ million was generated by service providers under the ATM managed services model, while INR ~ million under the brown label ATM model in FY’2014, which increased to INR ~ million and INR ~ million respectively during the period April 2014 to October 2014. The ATM managed services market can be further sub-divided on the basis on fixed pay model and variable pricing model. Although the fixed pay model has traditionally dominated the market, transaction based pricing is increasingly being resorted to by banks. Reasons behind the same being more quality service delivery on part of the service provider and overall cost benefit to the bank. In terms of revenue, INR ~ million was generated by service providers from the fixed pay model, while INR ~ million from variable pricing of ATM managed services from April 2014 to October 2014.
The cash management market in India is concentrated with the top four players capturing nearly ~% of the market. CMS Info Systems has been the clear leader in the cash management market since several years and commanded ~% share in FY’2014 with revenue of INR ~ million. The market size of ATM cash management system in India was estimated to be INR ~ million in FY’2011 which inclined to INR ~ million in FY’2014, thus showcasing a CAGR of ~% from FY’2011-FY’2014.
The business of ATM outsourcing has been growing exponentially in India as the ATM industry continues to move from banks’ managed ATMs to end to end deployment by service vendors. Managed services companies are increasingly venturing into the ATM deployment space, backed by private equity funding from investors. The managed services and outsourcing market is characterized by high level of competition. Market presence of the players tends to fluctuate as contracts for ATM management are entered into and expire within an average of 4-5 years.
Major players operating in the ATM managed services and outsourcing business include Prizm Payments, Tata Communications Payment Solutions, AGS Transact Technologies, Financial Software and Systems (FSS), Fidelity National Information Services (FIS) and Others.
From the period FY’2015-FY’2019, it is anticipated that the complete outsourcing ATM market will grow robustly at a CAGR of 34.3% and contribute ~% to the overall revenue of the ATM managed services and outsourcing market by FY’2019. Furthermore, it is believed that in the long run, completely outsourced ATMs will take over the ones under managed services, since cost benefit to the bank under this model is greater as compared to the managed services model.
Key Topics Covered
in the report
- India ATM Managed Services and Outsourcing Market Size by Value
- India ATM Managed Services Market Segmentation by Fixed Fee Model and Variable Fee Model
- India ATM Outsourcing Market Segmentation by ATMs Outsourced by Major Banks in India
- Major services rendered to banks
- Growth Drivers and Issues in India ATM Managed Services and Outsourcing Market
- Trends and Developments in India ATM Managed Services and Outsourcing Market
- ATM cost components and Services Rendered to Banks
- Company Profiles of Major Players
- Investments in the Sector
- India ATM Managed Services and Outsourcing Market Future Outlook and Projections
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