Outsourcing analysts say the bank is more likely to outsource BPO work such as processes related to finance & accounting, procurement and collections . “Large banks have been using IT outsourcing for a longer time. About 25-30 % of their IT requirements would be typically outsourced, while it’s true for only about 10% of their BPO work,” said sourcing advisory firm Everest Group principal Nikhil Rajpal.

With UBS planning to outsource more work, its existing vendors are likely to have a better shot at grabbing more business. “Wipro and Infosys have worked with UBS for a long time. That means a higher chance for them to win new business from it,” a Mumbai-based equities analyst said, asking not to be identified.

In line with its focus on cost-cutting , UBS had appointed Ulrich Körner , a former Credit Suisse CEO and McKinsey management consultant, as its group COO in April. Known to be pro-outsourcing , Mr Körner is overseeing the company’s cost-cutting plans and leading a restructuring of its business processes including the centralisation of functions such as IT, HR, procurement and facilities management.

Europe, with the exception of the UK, has been a conservative market when it comes to outsourcing and lags behind mature markets such as the US. The region has emerged as the fastest growing market for IT-BPO outsourcing as companies affected by the global economic downturn aggressively explore ways to cut costs.