Topic: BFSI AO Service Provider Profile Compendium – Capital Markets AO
Copyright © 2013, Everest Global, Inc. EGR-2013-11-PD-0837
Banking, Financial Services, and Insurance (BFSI) Outsourcing Report: January 2013 – Preview Deck
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Background and scope of the research
Background of the research BFSI industry continues to be the largest adopter of the IT Application Outsourcing (AO) services. However,
the industry dynamics changed significantly over the last 12 to 24 months. BFSI buyers are facing increasing pressure to drive top-line growth, manage complexity arising out of wide-scale regulatory reforms, and improve profitability by driving greater cost efficiencies. In order to achieve this, buyers are focusing on optimizing their portfolio of AO service providers
At the same time, service providers in the BFSI AO space are also ramping up their capabilities, building up scale, and investing in developing and acquiring IP/proprietary solutions. They are also forming alliances, which allow them to undertake and deliver on large-sized, annuity AO engagements. The competitive intensity in the BFSI AO services space is at an all-time high. As a result, it is becoming difficult to differentiate among service providers based purely on delivery capabilities. It is, therefore, critical to have a comprehensive, well-rounded, and fact-based assessment of service providers’ BFSI AO value proposition
In this research, we present detailed profiles of the 20 service providers featured on the capital markets AO PEAK Matrix. Each profile provides a comprehensive picture of the service provider’s service suite, scale of operations, domain investments, and delivery locations
Scope of this report
This report includes detailed profiles of the following 20 service providers1: Capital markets AO PEAK Leaders: Accenture, Cognizant, IBM GS, Infosys, and TCS Capital markets AO PEAK Major Contenders: Capgemini, CGI, CSC, EPAM, HCL, Headstrong, HPES,
iGATE, L&T Infotech, Polaris, and Wipro Capital markets AO PEAK Emerging Players: Dell Services, Luxoft, MphasiS, and Syntel
1 The scope of the report covers service provider information up to December 2011
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Table of contents (page 1 of 2)
Introduction and overview 5 Everest Group capital markets AO PEAK Matrix 11 Section I: Profiles of capital markets AO Leaders 17 Accenture 18 Cognizant 24 IBM 30 Infosys 36 TCS 42 Section II: Profiles of capital markets AO Major Contenders 49 Capgemini 50 CGI 56 CSC 62 EPAM 67 HCL Technologies 73 Headstrong 79 HP Enterprise Services 84
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Table of contents (page 2 of 2)
Section II: Profiles of capital markets AO Major Contenders (continued) iGATE 89 L&T Infotech 94 Polaris 100 Wipro 106
Section III: Profiles of capital markets AO Emerging Players 112 Dell Services 113 Luxoft 119 MphasiS 124 Syntel 130 Appendix 136 Glossary of key terms 137 2012 BFSI research agenda 139 Additional BFSI research references 141
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This Everest Group report is a compendium of detailed profiles of 20 service providers featured on 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 subvertical with a focus on large (TCV >US$25 million), annuity-based multi-year (more than three years) relationships
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.
Focus of report
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This report is a part of the Everest Group’s series of nine reports focused on AO in BFSI in 2012
Banking
Capital Market
Insurance
Banking
Capital Markets
Insurance
Banking
Capital Markets
Insurance
Service Provider Profiles Compendium: IT Application Outsourcing Services
Capability profiles of service providers capturing their AO services experience in specific subverticals. 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: Assessment of service provider landscape in AO services and mapping of providers on
Everest Group’s PEAK Matrix – as Leaders, Major Contenders, and Emerging Players Comparative evaluation of BFSI-AO capabilities of provider categories such as global
majors, offshore majors, regional players, and tier-2 specialists. Benchmarking scale, scope, domain investments, and delivery footprint of each provider’s BFSI-AO practice
The 2012 BFSI-AO PEAK analyses focus on identifying the “Star Performers”, i.e., providers with strongest forward movement over time – both in terms of market success and capability advancements
Market Trends in IT Application Outsourcing Services
Each report provides: An overview of the application services market for the BFSI verticals, capturing key trends
in market size, growth, drivers and inhibitors, adoption trends, regional/functional break-outs of the market, emerging themes, key areas of investment, and implications for key stakeholders
Key movements in volumes/values of AO transactions, evolving trends, market dynamics, and emerging priorities of buyers in the last 12 months
Focus of report
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Everest Group’s BFSI research is based on two key sources of proprietary information
Everest Group’s proprietary database of more than 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
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Everest Group’s proprietary database of operational capability of more than 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 revenue, 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
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Service providers covered in the 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
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Service mix FY 2011; US$ million
Geographical mix FY 2011; 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: XX XX Website: www.companya.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 BFSI vertical Application services for money transfer, credit cards, loans, wealth management, anti-money laundering, and mobile banking; ERP solutions; IT infrastructure support; product licensing and reselling
Major BFSI clients Bank A, Bank B, Financial Services Firm C, Insurer D, Trading Services Firm E, Investment Bank F
FY 2009 FY 2010 FY 2011
XX
Scale of BFSI subverticals Banking Capital Markets Insurance
>US$500 million US$100-500 million <US$100 million
Revenue1 from BFSI vertical Revenue1 from other verticals Operating margin
1 FY ends on December 31 Source: Everest Group (2013)
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Company X | Capital markets AO profile (page 2 of 5) Capital markets AO capability assessment and market success
Scope Offers solutions in the areas of XX, XX, XX Covers all capital markets subverticals with major focus on XX Equal mix of revenue from large and small deals in capital markets AO
Delivery footprint Over XX delivery centers across multiple countries such as XX,
XX, XX, XX, XX for capital markets AO services High degree of offshore leverage with over XX% resources employed at
low cost locations, especially India
Transaction success Over XX capital markets AO clients, including global accounts, which are
served in multiple geographies Over XX large active capital markets AO deals with average TCV of
US$XX million and average contract duration of XX years Major capital markets AO clients: XX, XX, XX
Domain investments Proprietary solutions and frameworks: XX Acquired XX in 2011 to strengthen its existing P&C, component-based
software platforms Multiple alliances in the capital markets vertical: XX
Headline assessment Targeted solutions for capital markets, combined with strong revenue growth and client wins, enabled Company A to further strengthen its leadership position in the capital markets AO marketplace
Scale Derives XX% of its total revenue from the BFSI vertical, with
~US$XX million from capital markets AO services Registered a strong growth of XX% in its capital markets AO revenue in
2011
Measure of capability: Very high High Low Medium
Everest Group PEAK Matrix for capital markets AO
1 Transaction success for large-sized deals; assessment relative across service providers Source: Everest Group (2013)
I-Banking Brokerage
Asset Mgmt
North America EMEA
Latin America APAC
Geographic scope Capital Market lines of business
High Medium Low Success dashboard1
Custody, Fund admn
Emerging Players
Leaders Company A
High
Low Low High Delivery capability
Mar
ket s
ucce
ss Major Contenders
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Proprietary solutions (representative list)
Line of Business Solutions
Overall BFSI Data management tools: tools for data cleansing, data generation, data migration solutions, and data-masking tool
“AAA”: financial services CRM solution
capital markets “XYZ”: Policy software for P&C capital markets carriers, which includes modules such as policy administration, rating, rules, product definition and configuration as well as product templates
“ABC”: Software to manage core business functions, including policy processing, billing, and claims
Company X | Capital markets AO profile (page 3 of 5) AO domain investments
Key alliances (representative list)
Alliance partner Purpose of alliance
Partner A Implementation partner for P&C suite
Partner B Co-development of software for claims
Acquisitions (representative list)
Target Date Capabilities added
Target A 2009 Software testing capabilities for capital markets industry
Source: Everest Group (2013)
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Recent transaction activity1
Buyer’s name Announcement date TCV estimate (US$ million)
Duration (years) Contract details and services
Firm A January 2011 XX XX Maintenance of applications and provision of desktop services
Firm B March 2009 XX XX Maintenance and support of capital markets administration systems
Firm C December 2008 XX XX Implementation of ‘ABC’ capital markets solution; maintenance services
Company X | Capital markets AO profile (page 4 of 5) Capital markets AO transactions activity
NOT EXHAUSTIVE
1 Publicly-announced capital markets AO transactions during 2009 to 2012 Source: Everest Group (2013)
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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
NOT EXHAUSTIVE
Confirmed location for capital markets AO 500-1,000 AO FTEs
>5,000 AO FTEs 100-500 AO FTEs
1,000-5,000 AO FTEs <100 AO FTEs
Source: Everest Group (2013)
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BFSI Outsourcing research agenda (page 1 of 2)
Topic Release date
Published Current
August-2012 Application Outsourcing (AO) in Banking: PEAK Matrix Provider Landscape – Evolution at Play
September-2012 IT Application Outsourcing (AO) in Insurance – Navigating Business Challenges through Technology
Applications Outsourcing in Banking – Service Provider Profiles Compendium October 2012
October 2012 A PEAK into the Leaders, Major Contenders, and Emerging Players of the Banking BPO Market
October 2012 Webinar Deck: PEAK into the BFSI Outsourcing Market
July-2012 BFS BPO Annual Report 2012 – Strong Growth Post the Downturn
October 2012 IT Application Outsourcing (AO) in Capital Markets Annual Report – Change is the only constant
November-2012 Insurance Business Process Outsourcing (BPO) Market 2011-2012 – Annual Report
October 2012 Application Outsourcing (AO) in Insurance: PEAK Provider Landscape – Policies for Growth and Differentiation
November-2012 Banking BPO Service Provider Profiles Compendium
November-2012 A PEAK into the Leaders, Major Contenders, and Emerging Players of Capital Markets BPO
December-2012 A PEAK into the Leaders, Major Contenders, and Emerging Players of Insurance BPO
December 2012 Capital Markets BPO Service Provider Profile Compendium
January 2013 Insurance BPO Service Provider Profile Compendium
December 2012 AO in Capital Markets: PEAK Provider Landscape – Need for Speed: Capturing the Capital Markets Momentum
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BFSI Outsourcing research agenda (page 2 of 2)
Topic
Published Current
Release date
February-2013 BFSI AO Service Provider Profile Compendium – Capital Markets AO
January-2013 IT Application Outsourcing (AO) in Insurance – Service Provider Profiles Compendium
Q2-2013 IT Applications Outsourcing (AO) in Banking – Trends and Future Outlook – 2013
Q2-2013 Application Outsourcing in Banking – PEAK Into the Evolving Service Provider Landscape – 2013
Q2-2013 IT Applications Outsourcing in Banking – Service Provider Profiles Compendium – 2013
Q2-2013 BFS BPO Annual Report
Q2-2013 BFSI BPO Service Provider Landscape – Banking BPO
Q3-2013 BFSI BPO Service Provider Profile Compendium – Banking BPO
Q3-2013 BFSI BPO Service Provider Landscape – Capital Markets BPO
Q3-2013 IT Applications Outsourcing (AO) in Insurance – Trends and Future Outlook – 2013
Q3-2013 Application Outsourcing in Insurance – PEAK Into the Evolving Service Provider Landscape – 2013
Q3-2013 IT Applications Outsourcing in Insurance – Service Provider Profiles Compendium – 2013
Q3-2013 BFSI BPO Service Provider Profile Compendium – Capital Markets BPO
Q3-2013 Insurance Business Process Outsourcing (BPO) Market – Annual Report
Q4-2013 BFSI BPO Service Provider Profile Landscape – Insurance BPO
Q4-2013 BFSI BPO Service Provider Profile Compendium – Insurance BPO
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The following documents are recommended for additional insight into the topic covered in this report. The recommended documents either provide additional details on the topic or complementary content that may be of interest 1. IT Application Outsourcing (AO) in Capital Markets Annual Report – Change is the only constant (EGR-2012-11-R-0766): 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 priorities of buyers, key investment themes, and future outlook for 2012, with regards to such large capital markets AO deals
2. Application Outsourcing (AO) in Capital Markets: PEAK Provider Landscape – Need for Speed: Capturing the Capital Markets Momentum (EGR-2012-11-R-0804): The report provides a comprehensive assessment of the service provider landscape in AO services for capital markets, and maps 20 capital markets AO providers on Everest Group’s PEAK Matrix. It also benchmarks the scale, scope, domain investments, and delivery footprint of each provider's capital markets AO practice. Finally, the 2012 capital markets AO PEAK analysis focuses on identifying the "Star Performers", the providers with the strongest forward movement over time in terms of market success and capability advancements
3. IT Application Outsourcing (AO) in Insurance – Service Provider Profile Compendium (EGR-2013-11-R-0811): The insurance AO service provider profile compendium provides comprehensive and fact-based snapshots of 20 service providers featured on Everest Group Insurance AO PEAK Matrix. Each more than 5 pages service provider profile provides a comprehensive assessment of their service suite, scale of operations, domain investments, and delivery locations specific to insurance AO services.
For more information on this and other research published by the Everest Group, please contact us: Jimit Arora, Vice President: Rajat Juneja, Practice Director: Kiranjeet Kaur, Senior Analyst: Pallavi Saxena, Analyst: S. Sivaram, Analyst:
[email protected] [email protected] [email protected] [email protected] [email protected]
Additional research references
Phone: +1-214-451-3110 Email: [email protected]
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