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Copyright © 2017 Everest Global, Inc.
This document has been licensed for exclusive use and distribution by DXC Technology
EGR-2017-11-E-2363
Everest Group PEAK Matrix™ for Life & Pensions (L&P)
Insurance AO Service Providers
Focus on DXC Technology
October 2017
2Copyright © 2017, Everest Global, Inc.
EGR-2017-11-E-2363
Background and scope of the research
Background of the research
The insurance sector is operating in an increasingly challenging macroeconomic and financial environment, characterized by weak global
demand, low inflation rates, very low to partially negative interest rates, increasing regulatory compliance demands, and bursts of financial
market volatility. Pervasiveness of digital technologies, rise of non-traditional competitors, and growing popularity of intermediated distribution
networks is challenging the long-established traditional business model of insurers, and is probing them to innovate in order to respond to the
evolving customer demands
With the insurers establishing efficient/agile operations and increasingly adopting digital technology themes, IT service providers are pivoting
their portfolio around next-generation technologies, as well as investing in strategic alliances with leading product/platform providers to
strengthen their value proposition. As insurers evolve their product development ideology from a “one-size-fits-all” approach to an “on-demand
hyper-personalized” approach, service providers that can indulge in more consulting-led problem solving and partner with these enterprises on
their business transformation journey, will see more success in the marketplace
In this research, we analyze the capabilities of 19 leading AO service providers, specific to the global life & pensions (L&P) insurance sector.
These providers were mapped on the Everest Group PEAK Matrix, which is a composite index of a range of distinct metrics related to each
provider’s capability and market success. In this report, we focus on:
– The landscape of service providers in L&P insurance AO sector
– Assessment of the service providers on a number of capability-related dimensions
– Characteristics of Leaders, Major Contenders, and Aspirants on the Everest Group insurance AO PEAK MatrixTM
– Implications for insurance buyers and service providers
This document focuses on DXC Technology’s life & pensions (L&P) insurance AO experience and includes:
Overview of the L&P insurance AO service provider landscape
Everest Group’s assessment of DXC Technology’s delivery capability and market success on the PEAK Matrix
Detailed insurance AO profile for DXC Technology
3Copyright © 2017, Everest Global, Inc.
EGR-2017-11-E-2363
This report examines the service provider landscape for large
(TCV > US$25 million), annuity-based, multi-year (>3 years)
application services relationships in the insurance sector
1 Business-to-consumer relationships
2 Business-to-business relationships
3 Includes other capital markets functions such as structured finance, treasury, FX, and horizontal functions including risk management
Retail banking (B2C1) Lending
Cards and payments
Commercial banking (B2B2)
Banking
Investment banking Asset management
Custody and funds administration
Brokerage Others3
Capital markets
Life and pensions Property and casualty
Others (includes reinsurance and
takaful Islamic insurance)
Insurance
BFSI
Traditional IO Remote Infrastructure
Management (RIM)
Infrastructure Management Services (IMS)
Cloud
IT Infrastructure Outsourcing (IO)
Application development Application maintenance
Independent testing
Package implementation ERP services
Business intelligence / data
warehousing
IT Application Outsourcing (AO)
BFSI-specific BPO HRO
FAO
PO Contact center
Knowledge services
Business Process Outsourcing (BPO)
IT strategy / operations consulting
Business consulting
Infrastructure consulting Infrastructure rollouts
Consulting
Services in next-generation technologies leveraged by enterprises to enable transformation including social, mobility, analytics, cloud, and others (Artificial Intelligence (AI), Robotics Process Automation (RPA), internet of Things (IOT), machine-to-machine, etc.)
Digital services
NOT EXHAUSTIVEFocus of report
Services industry
4Copyright © 2017, Everest Global, Inc.
EGR-2017-11-E-2363
Everest Group’s insurance research is based on two key
sources of proprietary information
Everest Group’s proprietary database of 400+ large, active, multi-year AO contracts within insurance (updated annually). The database tracks the following
elements of each large AO relationship:
– Buyer details including industry, size, and signing region– Contract details including TCV, ACV, term, start date, service provider FTEs,
and pricing structure
– Activity broken down separately by Lines of Business (LOB) – L&P insurance, P&C insurance, others (including reinsurance and Takaful)
– Scope includes coverage of buyer’s geography as well as functional activities
– Global sourcing including delivery locations and level of offshoring
1
Everest Group’s proprietary database of operational capability of 25+ insurance AO service providers (updated annually)
The database tracks the following capability elements for each service provider:
– Major insurance AO clients and recent wins – Overall revenue
– Recent insurance-related developments
– Insurance AO delivery locations– Insurance AO service suite
– Domain capabilities, proprietary solutions, and intellectual property
investments
2
Service providers covered in the analysis
1
1 Assessment for Accenture, DXC Technology, and IBM excludes service provider inputs, and is based on Everest Group’s proprieta ry Transaction
Intelligence (TI) database, service provider public disclosures, and Everest Group’s interactions with insurance buyers
2 Analysis for DXC Technology includes combined capabilities of CSC and HPE Services
3 Analysis for NTT DATA includes capabilities post integration with Dell Services
Note: We continuously monitor market developments and track additional service providers beyond those included in the analysis
Confidentiality: Everest Group takes its confidentiality pledge very seriously. Any information, that is contract-specific, will be presented back to the industry only in an
aggregated fashion
1, 2
3
1
5Copyright © 2017, Everest Global, Inc.
EGR-2017-11-E-2363
DXC Technology is positioned as a Leader on Everest
Group PEAK Matrix™ for L&P insurance AO – 2017
Everest Group PEAK Matrix™ for large life & pensions (L&P) insurance AO relationships1,2
Ma
rket su
cc
ess
(L&
P in
su
ran
ce A
O reve
nu
e,
gro
wth
, an
d n
um
ber of
larg
e
active
deals
)
High
Low
Low High
75th percentile
LeadersMajor ContendersLeaders
Major Contenders
1 PEAK Matrix™ specific to large (>US$25 million TCV), multi-year (>3 years) application outsourcing relationships for the L&P insurance sector (excludes property & casualty,
reinsurance, and Takaful Islamic insurance); excludes banking and capital markets
2 As this is the inaugural PEAK Matrix™ assessment focusing on L&P insurance business segment, Star Performers analysis has not been done in 2017
Note: Assessment for Accenture, DXC Technology, and IBM excludes service provider inputs, and is based on Everest Group’s proprietary Transaction Intelligence (TI) database, service
provider public disclosures, and Everest Group’s interactions with insurance buyers
Source: Everest Group (2017)
Delivery capability
(Scale, scope, domain expertise & innovation, delivery footprint, and buyer satisfaction)
25
thp
erc
en
tile
CognizantTCS
AccentureInfosys
DXC Technology
IBMCapgemini
HCL TechnologiesWipro
CGINTT DATAAtos
NIIT Technologies
Syntel
LTI
Hexaware
75
thp
erc
en
tile
Aspirants
25th percentile
Aspirants
Tech Mahindra
VirtusaMphasis
6Copyright © 2017, Everest Global, Inc.
EGR-2017-11-E-2363
DXC Technology | Insurance AO profile (page 1 of 3)
Insurance AO services overview
CSC and HP Enterprise services combined forces, resulting in DXC Technology, with a focus on driving technology-led business transformation for clients. Combined
synergies across the two organizations have enabled DXC Technology to become a strong contender for large-scale engagements that require an integrated application
and infrastructure services play. Industry-wide recognition for “run-the-business” services on legacy systems and strong positioning for cloud, cybersecurity, and analytics
offerings have made DXC Technology a Leader in the insurance marketplace.
AO services revenue by buyer size1
Small (annual revenue < US$5 billion)
Medium (annual revenue = US$5-10 billion)
Large (annual revenue = US$10-50 billion)
Mega (annual revenue > US$50 billion)
Strengths
CSC and HP ES merger has helped the new entity gain large delivery scale with
presence across key onshore and nearshore locations
Strong reputation for insurance-focused proprietary solutions/platforms and robust
capabilities across all insurance LOBs
Wide horizontal portfolio comprising converged hybrid infrastructure, analytics, and
cybersecurity offerings
Areas of improvement
Ability to cross-sell and capitalize on the growing demand for modernization
services for its large installed base of insurance-focused proprietary
solutions/platforms
Lags behind the other global majors across market messaging and vision to
assist clients leverage technology convergence for business transformation
Application services scope1
Development Maintenance Testing SI/Consulting
Adoption by value chain1
Product
development
Sales & distribution
channel management
Claims
management
Underwriting &
policy administration
Adoption by geographic focus1
North America EMEA Latin America APAC
(>20%) (10-20%) (<10%)Revenue contribution
>US$1 billionUS$200-
US$500 million<US$200 million
US$500 million-
US$1 billion
Insurance AO revenue1
Others (includes
reinsurance and Takaful)
Property & Casualty
(P&C)
Life & Pensions
(L&P)
AO services revenue by line of business1
(>40%) (10-40%) (<10%)Revenue contribution
1 As per Everest Group estimates
Source: Everest Group (2017)
7Copyright © 2017, Everest Global, Inc.
EGR-2017-11-E-2363
DXC Technology | Insurance AO profile (page 2 of 3)
Insurance AO services offerings
Key proprietary solutions
Domain Details
L&P insurance specific ● CyberLife – Web-enabled, real-time system that supports both traditional and non-traditional North American life and annuity products. It
offers full processing, regulatory support, correspondence, billing & collections, commissions, and financial reporting
● Ingenium – Core life, annuity, and disability policy administration system
● Graphtalk A.I.A. – A global insurance administration software solution for life, pensions, health and general insurance
● Radience – A model-driven, core policy administration system for life & annuity insurers that allows them to control costs, integrate agile
methodologies to shorten time-to-market, improve customer service, and manage risk
● Colossus – Assists adjusters in the evaluation of bodily injury claims by providing them access to the insuring company’s claims data
within a defined business process management framework
P&C insurance specific ● POINT IN – An end-to-end insurance administration system to handle policy, billing, and claims for P&C/general insurers
● UBI Data Exchange – At the point of quote, the solution provides insurers with driving data from automotive OEMs, insurers with UBI
programs, and telematics service providers
● Usage-Based Insurance (UBI) – Delivers an end-to-end UBI program, leveraged as-a-service or implemented on-premises, together with
partners Scope Technology and Milliman
Other key solution ● Digital Insurance-as-a-Service (DIaaS) – An integrated, end-to-end solution to accelerate business transformation for insurers
● Integral – A comprehensive administration suite for L&P and P&C insurers that provides end-to-end policy/group management, product
configuration and business analytics capabilities
● ProductXpress – Graphical, collaborative product design & calculation environment used by marketing, actuarial, business, and IT teams
● Xuber Exposure – An exposure management platform that delivers a single, independent database of an organization's exposures as a
system of record
● SICS – An end-to-end reinsurance solution supporting the assumed and retrocession administration needs for all lines of businesses for
both P&C and L&P reinsurers
Partnerships with leading industry-specific product/platform vendors
Domain Details
L&P insurance specificNo insurance-specific partnerships with third-party product/platform vendors
P&C insurance specific
NOT EXHAUSTIVE
Source: Everest Group (2017)
8Copyright © 2017, Everest Global, Inc.
EGR-2017-11-E-2363
DXC Technology | Insurance AO profile (page 3 of 3)
Insurance AO services offerings
Key alliances/partnerships/M&As
Investment name Type of investment Details
Xchanging Acquisition (2016) To expand capabilities in providing technology-enabled business solutions across commercial insurance
and wealth management segments
Fruition Partners Acquisition (2016) Acquisition to offer enterprise clients an expanded range of cloud-based service-management solutions
Aspedians Acquisition (2016) Acquisition to add capabilities in ServiceNow platform integration for European clients
UXC Acquisition (2015) To enhance enterprise application capabilities, including Microsoft Dynamics, SAP, Oracle, and
ServiceNow implementations
Mphasis Partnership (2017) To transform and modernize enterprise applications for public, private, and hybrid cloud
IBM Partnership (2016) Expanded partnership to enable clients across multiple industries, including healthcare, insurance, and
finance, to leverage benefits of the hybrid cloud and deploy some 10,000 applications that deliver rapid
proof of value
Hitachi Data Systems Partnership (2016) Partnership to enable Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Storage-as-a-
Service (STaaS) IT delivery across hybrid cloud environments for financial services, manufacturing, and
aerospace sectors
HCL Partnership (2015) Partnership for platform modernization and product functionality enhancement of retail banking products
Other key investments
Development Details
Equity stake in 360Globalnet To leverage 360Globalnet’s cloud-based claim solutions that offer unique capabilities in self-service, intelligent systems, smart
mobile devices, live-streaming video, data analytics, and fraud detection
New center Set up an innovation center in Sydney, Australia, (November 2016) to focus on the development of technology solutions in areas
such as blockchain, artificial intelligence, machine learning, and virtual & augmented reality
NOT EXHAUSTIVE
Source: Everest Group (2017)
9Copyright © 2017, Everest Global, Inc.
EGR-2017-11-E-2363
Appendix
10Copyright © 2017, Everest Global, Inc.
EGR-2017-11-E-2363
The service providers were mapped on Everest
Group’s PEAK Matrix
2nd or 3rd quartile performance across market success and capability
Top quartile performance across market success and capability
AO capability(Scale, scope, domain expertise & innovation, delivery footprint, and buyer satisfaction)
25th percentile
25
thp
erc
en
tile
75th percentile
75
thp
erc
en
tile
High
Low
Low High
Leaders
Major Contenders
Aspirants
Mark
et
su
ccess
(Segm
ent’s A
O revenue,
gro
wth
, and
num
ber
of la
rge a
ctive d
eals
)
4th quartile performance across market success and capability
Everest Group’s PEAK MatrixTM is a composite index of a range of distinct metrics related to a service provider’s scale, scope, technology/domain expertise & innovation, delivery footprint, buyer satisfaction, and resultant market success in the contextof a
given outsourcing function
Everest Group PEAK Matrix™ for Application Outsourcing
11Copyright © 2017, Everest Global, Inc.
EGR-2017-11-E-2363
Dimensions of service providers’ capability and
market success underlying the PEAK Matrix™ for L&P
insurance AO services
Total company revenue
Contribution of L&P
insurance specific AO
revenue to the total
company revenue
Scale
AO sub-functions served
Geographies served
Scope
Innovation / IP /
proprietary solutions
M&A, alliances, and other
investments
Domain expertise
& innovation
Delivery mix
Number of delivery
centers and regions
covered
Delivery footprint
Buyer perception score
Buyer satisfaction
Delivery capability
Measures success, which is captured
through yearly L&P insurance specific
AO revenue growth, L&P insurance
AO revenue in CY2016 and number of
large, active AO dealsM
ark
et su
cc
ess Major Contenders
Leaders
Aspirants
12Copyright © 2017, Everest Global, Inc.
EGR-2017-11-E-2363
FAQs (page 1 of 2)
Does the PEAK Matrix™ assessment incorporate any subjective criteria?
Everest Group’s PEAK Matrix™ assessment adopts an objective and fact-based approach (leveraging service provider RFIs and
Everest Group’s proprietary databases containing providers’ deals and operational capability information). In addition, these
results are validated / fine-tuned based on our market experience, buyer interaction, and provider briefings
Is being a “Major Contender” or “Aspirant” on the PEAK Matrix, an unfavorable outcome?
No. PEAK Matrix™ highlights and positions only the best-in-class service providers in a particular functional/vertical services
area. There are a number of providers from the broader universe that are assessed and do not make it to the PEAK Matrix™ at
all. Therefore, being represented on the PEAK Matrix™ is itself a favorable recognition
What other aspects of PEAK Matrix™ assessment are relevant to buyers and providers besides the “PEAK Matrix™
position”?
PEAK Matrix™ position is only one aspect of Everest Group’s overall assessment. In addition to assigning a “Leader”,
“Major Contender” or “Aspirant” title, Everest Group highlights the distinctive capabilities and unique attributes of all the
PEAK Matrix™ providers assessed in its report. The detailed metric level assessment and associated commentary is helpful for
buyers in selecting particular providers for their specific requirements. It also helps providers showcase their strengths in specific
areas
What are the incentives for buyers and providers to participate/provide input to PEAK Matrix™ research?
Participation incentives for buyers include a summary of key findings from the PEAK Matrix™ assessment
Participation incentives for providers include adequate representation and recognition of their capabilities/success in the
market place, and a copy of their own “profile” that is published by Everest Group as part of the “compendium of
PEAK Matrix™ providers” profiles
13Copyright © 2017, Everest Global, Inc.
EGR-2017-11-E-2363
FAQs (page 2 of 2)
What is the process for a service provider to leverage their PEAK Matrix™ positioning status ?
Providers can use their PEAK positioning rating in multiple ways including:
Issue a press release declaring their positioning/rating
Customized PEAK profile for circulation (with clients, prospects, etc.)
Quotes from Everest Group analysts could be disseminated to the media
Leverage PEAK branding across communications (e-mail signatures, marketing brochures, credential packs, client
presentations, etc.)
The provider must obtain the requisite licensing and distribution rights for the above activities through an agreement
with the designated POC at Everest Group
About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business
services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational
and financial performance through a hands-on process that supports them in
making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empower clients to improve
organizational efficiency, effectiveness, agility, and responsiveness. What sets
Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at
www.everestgrp.com.
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