The Capital Markets BPO is the smallest sub-segment of the BFSI BPO segment. Its service providers support some of the leading financial institutions and custodians in the world. Many asset management firms that deal in hedge funds, private equities, and exchange-traded funds choose BPO services for many of their functions in an effort to cut costs through labor arbitrage. A lack of resources to support the operations of these functions and increasing pressures on these firms to deliver in a short time frame are some of the reasons for choosing BPO.