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Banking, Financial Services, and Insurance (BFSI) Outsourcing Report: January 2012 – Preview Deck
Topic: Application Outsourcing (AO) in Capital Markets – Service Provider Profiles Compendium
Copyright © 2012, Everest Global, Inc. EGR-2012-11-PD-0635
Copyright © 2011, Everest Global, Inc. EGR-2012-11-PD-0635
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Our research offerings for global services
Market Vista Global services tracking across functions, sourcing models, locations, and service providers – industry tracking reports also available
Custom research capabilities Benchmarking | Pricing, delivery model, skill portfolio Peer analysis | Scope, sourcing models, locations Locations | Cost, skills, sustainability, portfolio Tracking services | Service providers, locations, risk Other | Market intelligence, service provider capabilities, technologies
Finance & accounting
Human resources
Procurement
Information technology
Banking, financial services, insurance
Transaction Intelligence
Recruitment process
Global sourcing Service provider Intelligence
Subscription information
The full report is included in the following subscription(s) – Banking, financial
services, insurance
In addition to published research, a subscription may include analyst inquiry, data cuts, and other services
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Copyright © 2011, Everest Global, Inc. EGR-2012-11-PD-0635
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Background and scope of the research
Background of the research The BFSI industry is one of the largest adopters of IT AO services. To cater to this large market segment, a number and variety of service providers have developed capabilities to deliver AO services to BFSI companies. As mature BFSI buyers seek to optimize their portfolio of AO services, they are signing larger contracts with a fewer number of service providers. Further, as BFSI buyers drive further consolidation in response to their business requirements, the capability of service providers to undertake and deliver large-sized AO engagements becomes a factor of prime importance. Everest Group has assessed this capability of 21 AO service providers and has mapped them on the Everest Group’s Performance | Experience | Ability | Knowledge (PEAK) Matrix, which is a composite index of a range of distinct metrics related to a provider’s capability and market success. In this research, we present the detailed profiles of the 21 service providers featured on the capital markets AO PEAK matrix. Each 5-7 page service provider profile provides a comprehensive picture of their service suite, scale of operations, domain investments, and delivery locations. Scope of this report: This report includes detailed profiles of the following 21 service providers: Capital markets AO PEAK Leaders: Accenture, Cognizant, IBM GS, Infosys, TCS, and Wipro Capital markets AO PEAK Major Contenders: Capgemini, CGI, CSC, HCL, Headstrong, HP ES, L&T
Infotech, MphasiS, and Polaris Capital markets AO PEAK Emerging Players: Atos, Dell Services, EPAM, Hexaware, Luxoft, and Ness
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Table of contents (page 1 of 2)
Introduction and overview 5 The Everest Group capital markets AO PEAK Matrix 11
Section I: Profiles of capital markets AO Leaders 17 Accenture 18
Cognizant 24
IBM Global Services 30
Infosys 36
TCS 42
Wipro 49
Section II: Profiles of capital markets AO Major Contenders 54 Capgemini 55
CGI 61
CSC 67
Topic Page no.
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Table of contents (page 2 of 2)
Section II: Profiles of capital markets AO Major Contenders (continued) HCL Technologies 72
Headstrong 77
HP Enterprise Services 82
L&T Infotech 87
MphasiS 92
Polaris 97
Section III: Profiles of capital markets AO Emerging Players 103 Atos 104
Dell Services 109
EPAM 114
Hexaware 120
Luxoft 125
Ness Technologies 130
Appendix 135
Topic Page no.
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This Everest Group report is a compendium of detailed profiles of 21 service providers featured on the Everest Group’s capital markets AO PEAK Matrix
Retail financial services (B2C1) – Retail banking – Lending – Cards
Commercial banking (B2B2)
Banking
Investment banking Asset management Custody and fund administration Brokerage Others3
Capital markets
Life and pensions Property and casualty Others
Insurance
BFSI
Services industry
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 roll-outs
Consulting
This report analyzes capabilities of service providers for IT application outsourcing in the capital markets sub-vertical with a focus on large (TCV >US$25 million), annuity-based multi-year (>three years) relationships
NOT EXHAUSTIVE Focus of report
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, etc.
Copyright © 2011, Everest Global, Inc. EGR-2012-11-PD-0635
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This report is a part of the Everest Group’s series of nine reports focused on application outsourcing in BFSI in 2011
Banking
Capital markets
Insurance
Banking
Capital markets
Insurance
Banking
Capital markets
Insurance
Market Trends in IT Application Outsourcing Services
Each report provides an overview of the application outsourcing market for the specific banking/capital markets/insurance subvertical
The report analyzes key trends in market size and growth, demand drivers, adoption and scope trends, emerging themes, key areas of investment, and implications for key stakeholders
Service Providers’ Profiles Compendium: IT Application Outsourcing Services
Capability profiles of service providers capturing their AO services experience in specific sub-verticals. Each service provider profile includes: Service provider overview: Details of AO services capabilities, key
investments, proprietary solutions, and technological expertise Functional/Line of Business (LoB) focus Transactions overview for application services offerings Delivery footprint
Service Provider Landscape: IT Application Outsourcing Services
Each report provides: Mapping of service providers on Everest Group’s Performance |
Experience | Ability | Knowledge (PEAK) matrix for the specific subvertical Assessment of service providers based on delivery capability and market
success in establishing large AO contracts with financial institutions
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Everest Group’s BFSI research is based on two key sources of proprietary information
Proprietary Everest Group database of 375+ large, multi-year AO contracts within BFSI (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 for banking, capital markets, and
insurance, and by line of business (for example, asset management, investment banking, brokerage, etc.)
– Scope includes coverage of buyer geography as well as functional activities
– Global sourcing, including delivery locations and level of offshoring
1
Proprietary Everest Group database of operational capability of 20+ BFSI AO service providers (updated annually)
The database tracks the following capability elements for each service provider: – Major BFSI AO clients and recent wins – Overall revenues, total employees, and BFSI employees – Recent BFSI-related developments – BFSI AO delivery locations – BFSI AO service suite – Domain capabilities, proprietary solutions, and intellectual property
investments
2
1 Atos’ acquisition of Siemens IT Services is excluded from the current capital markets AO PEAK analysis 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
Service providers covered in the analysis
1
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xx%
xx%
xx%
xx% xx%
xx%
xx%
xx%
Service mix FY 2010; US$ million
Geographical mix FY 2010; US$ million
100% = xx 100% = xx
Company description: Company X is a global provider of IT and BPO services. Its IT offerings span technology consulting, application development and maintenance, systems integration, software products and IT infrastructure services. It primarily serves BFSI, telecom, retail and manufacturing verticals Headquarters: xxx Website: www.companyx.com
Company X | Capital markets AO profile (page 1 of 5) Corporate and BFSI overview
U.S.
Europe
Latin America
APAC
ADM
Infrastructure services
BPO
Consulting
Key financial parameters Revenue in US$ million
Services offered for healthcare vertical: ADM and testing; CRM and multi-channel banking solutions; credit risk management; trading platform solutions; treasury/ forex services; brokerage services; policy and claims administration software solutions
Major BFSI clients: Bank A, Bank B, Insurer C, Insurer D, Trading Services Firm E, Investment Bank F
xx xx xx
xx xx xx
FY 2008 FY 2009 FY 2010
XX XX XX
1 FY ends on December 31 Source: Everest Group (2011)
Scale of BFSI sub-verticals: Banking Capital markets Insurance
>US$500 million US$100-500 million <US$100 million
Revenue1 from BFSI vertical Revenue1 from other verticals Operating margin
XX% XX% XX%
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Scope Services all Lines of Business including asset management,
brokerage and investment banking Key strength in application development and testing Most contracts have multi-country scope
Delivery footprint AO delivery presence in xx countries Key offshore delivery locations include India, Malaysia, Brazil
and Bulgaria Moderate offshore leverage of yy%
Company X | Capital markets AO profile (page 2 of 5) Capital markets AO capability assessment and market success
Domain investments Proprietary solution ‘ABC’ with deployments across xx countries Joint marketing alliance with yy for xyz solutions Acquired three brokerage IT products companies in the last two
years
Headline assessment Company X is a leading player in capital markets applications and has strong relationships with large U.S. financial services firms
Scale Derives over xx% of its revenues from BFSI (US$yy million) Over xx FTEs delivering capital markets AO services xx active capital markets clients
Transaction success Has over xx large active capital markets AO contracts; added yy
new clients in last three years High average TCV of US$xx million Major capital markets AO clients: Firm A, Firm B, Firm C
Measure of capability: Very high High Low Medium
Everest PEAK Matrix for capital markets AO
Mar
ket s
ucce
ss
(Tra
nsac
tion
activ
ity)
Low High Delivery capability
(Scale, scope, domain investments, and delivery footprint)
High
25th
per
cent
ile
25th percentile
75th percentile
75th
per
cent
ile Leaders
Major Contenders
Emerging Players
Company X
Leaders Major Contenders
I-Banking Brokerage
Asset Mgmt
North America EMEA
Latin America APAC
Geographic scope: Capital Market lines of business:
High Medium Low Success dashboard1
Custody, Fund admn
1 Transaction success for large-sized deals; assessment relative across service providers Source: Everest Group (2011)
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Proprietary solutions (representative list)
Line of Business Solutions
Overall BFSI Data management tools: Tools for data cleansing, data generation, data migration solutions, and data-masking tool
‘XYZ’: Financial services CRM solution
Capital markets Front office tool for asset allocation and portfolio optimization XYZ Tool: Solution for investment fund distribution processing, order management and
recordkeeping
Company X | Capital markets AO profile (page 3 of 5) AO domain investments
Key alliances (representative list)
Alliance partner Purpose of alliance
Partner A Joint marketing alliance for asset management solutions
Partner B Co-development of trade reconciliation software
Acquisitions (representative list)
Target Date Capabilities added
Target A 2009 Brokerage software solution
Source: Everest Group (2011)
Copyright © 2011, Everest Global, Inc. EGR-2012-11-PD-0635
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1 Publicly announced capital markets AO transactions during 2008-2011 Source: Everest Group (2011)
Recent transaction activity1
Buyer’s name Announcement date TCV estimate (US$ million)
Duration (years) Contract details and services
Firm A Jan 2011 xx xx Maintenance of applications and provision of desktop services
Firm B Mar 2009 xx xx Trading data reconciliation solution; network maintenance
Firm C Dec 2008 xx xx Implementation of ‘ABC’ asset management solution; maintenance services
Company X | Capital markets AO profile (page 4 of 5) Capital markets AO transactions activity
NOT EXHAUSTIVE
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Company X | Capital markets AO profile (page 5 of 5) Key offshore AO delivery locations
India
Poland
Malaysia
Mexico
Brazil
China
Vietnam
Thailand
Czech Republic
Bulgaria Slovakia
Chile
Source: Everest Group (2011)
NOT EXHAUSTIVE
Confirmed location for capital markets AO 500-1000 AO FTEs
>5000 AO FTEs 100-500 AO FTEs
1000-5000 AO FTEs <100 AO FTEs
Copyright © 2011, Everest Global, Inc. EGR-2012-11-PD-0635
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Everest Group BFSI outsourcing research calendar (page 1 of 4)
Topic
The market size and potential of the global lending BPO by business segment and function. Adoption trends measured across buyer size and geography. Maturity of lending BPO sub-functions across business segments. Prevalence of various sourcing models. The lending BPO service provider landscape across business segments
January-2011
Snapshots of 14 service providers playing in the FS BPO segment. Each four to five page service provider profile provides a comprehensive picture of their service suite, scale of operations, technology landscape, recent developments, and delivery locations across all financial services segments including banking, capital markets, and insurance
March-2011
Coverage across retail banking, capital markets, and insurance. Offshore leverage through shared services and third-party outsourcing by financial services organizations. Potential offshorability and current offshore adoption of value chain elements for each business segment. Mature and emerging delivery locations and associated value proposition
April-2011
Provides an overview of the application services market for the banking vertical, capturing key trends in market size, growth, drivers and inhibitors, adoption trends, regional/functional break-outs of the market, emerging themes and key areas of investment, and implications for key stakeholders
June-2011
Goals of the research Published Upcoming Current
Global lending BPO across credit cards, consumer loans, and commercial loans
FS BPO service provider profiles compendium
Global sourcing in FS BPO – Significant traction, yet tremendous potential
Market trends for IT application services in Banking
Release date
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Everest Group BFSI outsourcing research calendar (page 2 of 4)
This report explores the market size, growth, adoption trends, value drivers, process scope, technology landscape, delivery locations, and service provider landscape in the insurance BPO market
August-2011
Provides a comprehensive assessment of the service provider landscape in AO services for banking and maps various service providers on Everest Group’s capability matrix
June-2011
Profiles of service providers capturing their IT AO capability in banking
July-2011
Topic
Provides an overview of the application services market for the insurance vertical, capturing key trends in market size, growth, drivers and inhibitors, adoption trends, regional/functional break-outs of the market, emerging themes and key areas of investment, and implications for key stakeholders
August-2011
Insurance BPO – Rising demand, increasing competition
Service provider landscape for IT application services in Banking
Service providers’ capability assessment (profiles compendium) for IT application services in Banking
Market trends for IT application services in Insurance
Release date Goals of the research Published Upcoming Current
Copyright © 2011, Everest Global, Inc. EGR-2012-11-PD-0635
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Everest Group BFSI outsourcing research calendar (page 3 of 4)
Provides a comprehensive assessment of the service provider landscape in AO services for capital markets, and maps various service providers on Everest Group’s capability matrix
December-2011
Topic Release date Goals of the research
Provides an overview of the application services market for the capital markets vertical, capturing key trends in market size, growth, drivers and inhibitors, adoption trends, regional/functional break-outs of the market, emerging themes and key areas of investment, and implications for key stakeholders
December-2011
December-2011 Profiles of service providers capturing their IT AO capability in insurance
November-2011 Provides a comprehensive assessment of the service provider landscape in AO services for insurance and maps various service providers on Everest Group’s capability matrix
Service provider landscape for IT application services in Insurance
Service providers’ capability assessment (profiles compendium) for IT application services in Insurance
Market Trends for IT application services in Capital Markets
Service provider landscape for IT application services in Capital Markets
Published Upcoming Current
Copyright © 2011, Everest Global, Inc. EGR-2012-11-PD-0635
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Everest Group BFSI outsourcing research calendar (page 4 of 4)
Profiles of service providers capturing their IT AO capability in capital markets
January -2012
Coverage across investment banking, asset management, and custody and fund administration. Service provider segments and assessment of scale and scope of offerings. Role of global sourcing and technology. Segmentation of functions by front office, mid office, and back office along with drivers and challenges for capital markets BPO
January -2012
Topic
Service providers’ capability assessment (profiles compendium) for IT application services in Capital Markets
Capital markets BPO overview
Release date Goals of the research Published Upcoming Current
Copyright © 2011, Everest Global, Inc. EGR-2012-11-PD-0635
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Additional research references
The following documents are recommended for additional insight into the topic covered in this research report. The recommended documents either provide additional details on the topic or complementary content that may be of interest
For more information on this and other research published by the Everest Group, please contact us: Amneet Singh, VP – Global Sourcing: Jimit Arora, Research Director: Rajat Juneja, Research Director: Kiranjeet Kaur, Senior Research Analyst: Mridul Gupta, Senior Research Analyst:
1. IT Application Outsourcing in Capital Markets – Trends and Future Outlook (EGR-2011-11-R-0621): This report provides an overview of the application outsourcing (AO) market for the capital markets industry, through an in-depth analysis of large-sized AO contracts (i.e., contracts over US$25 million in TCV and over three years in duration). The report analyzes key trends in market size and growth, demand drivers, adoption and scope trends, emerging themes, key areas of investment, and implications for key stakeholders, with regard to such large AO deals
2. Application Outsourcing in Capital Markets – PEAK Into the Evolving Service Provider Landscape (EGR-2011-11-R-0623): The report provides a comprehensive assessment of the service provider landscape in AO services for capital markets, and maps 21 capital markets AO providers on the Everest Group's PEAK Matrix. The report further examines the distinctive characteristics of the Leaders, Major Contenders, and Emerging Players, and recognizes key implications for banking buyers and service providers
3. IT Application Outsourcing in Banking – Trends and Future Outlook (ERI-2011-11-R-0566): This report provides an overview of the application outsourcing (AO) market for the banking industry, through an in-depth analysis of large-sized AO contracts (i.e., contracts over US$25 million in TCV and over three years in duration). The report analyzes key trends in market size and growth, demand drivers, adoption and scope trends, emerging themes, key areas of investment, and implications for key stakeholders, with regard to such large banking AO transactions
4. Application Outsourcing in Banking – PEAK Into the Evolving Service Provider Landscape (ERI-2011-11-R-0567): The report provides a comprehensive assessment of the service provider landscape in AO services for banking, and maps 22 banking AO providers on the Everest Group's PEAK Matrix. The report further examines the distinctive characteristics of the Leaders, Major Contenders, and Emerging Players, and recognizes key implications for banking buyers and service providers
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About Everest Group
Everest Group is an advisor to business leaders on the next generation of global services with a worldwide reputation for helping Global 1000 firms dramatically improve their performance by optimizing their back- and middle-office business services. With a fact-based approach driving outcomes, Everest Group counsels organizations with complex challenges related to the use and delivery of global services in their pursuits to balance short-term needs with long-term goals. Through its practical consulting, original research, and industry resource services, Everest Group helps clients maximize value from delivery strategies, talent and sourcing models, technologies, and management approaches. Established in 1991, Everest Group serves users of global services, providers of services, country organizations, and private equity firms, in six continents across all industry categories. For more information, please visit www.everestgrp.com and research.everestgrp.com.
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