Banking, Financial Services, and Insurance (BFSI ...s3.amazonaws.com/zanran_storage/... · Banking, Financial Services and Insurance (BFSI) ... Merchant acquisition evaluation Account

Banking, Financial Services, and Insurance (BFSI) Outsourcing Research Offering

2011

Proprietary & Confidential. © 2011, Everest Global, Inc.2

Banking, Financial Services and Insurance (BFSI) industry is one of the largest and most mature users of outsourcing and global sourcing of services

The BFSI vertical represents the largest buyer segment in the outsourcing and offshoring industry with significant spend across IT and business processes. This segment was instrumental in leading the recovery for the outsourcing market in 2010 as the effects of global economic downturn subsided

Over the past three years, Everest Group’s research has covered this important market through both published research and custom projects for end-users, captives, and third-party service providers. We have now launched an ongoing service coverage of the market to comprehensively cover the key dynamics of the market based on our unique fact-based research approach

Given the high large market opportunity in the BFSI sector, we believe that our coverage will help provide the facts and insights to navigate the opportunities and challenges ahead

BFSI IT services: BFSI % contribution to global IT outsourcing and off-shoring, 2010

BFSI BP Services: BFSI % contribution to global BPO transactions, and off-shoring market, 2010

BFSI IT spending remained strong in 2010 across different towers

including AO, IO, SI etc.

BFSI remains the largest BPO segment globally, but still poised

to grow more than other less mature segments

1 Based on Everest Group’s proprietary Transactions Intelligence (TI) database

~15%1

~ 35%~30%1

~40%

IT outsourcing contribution IT offshoring contribution BP outsourcing contribution BP offshoring contribution


Everest Group defines and examines the BFSI industry as three distinct segments in order to provide specialized research on each sub-vertical of this market

Retail financial services (B2C1) Retail banking Lending Cards

Commercial banking (B2B2)

Banking Investment banking

Asset management

Custody

Fund administration

Capital markets Life & pensions

Property and casualty

Insurance

BFSI

1 Business-to-consumer relationships2 Business-to-business relationships


All market stakeholders are perceiving the need for this research as they seek to achieve growth and manage risks Buyer organizations

What are current sourcing trends in the market?

What are the right sourcing models (shared services/captives, outsourcing) to realize value?

What are the service provider options and their capabilities specific to my business?

What can I learn from the sourcing approaches of my peers?

Service providers How is the competitive landscape

changing? How do I effectively articulate my

capabilities to the market? What are opportunities due to market

consolidation?

Investors Are there attractive investment

opportunities in different market segments?

Are my existing investments winning or losing market share?

Technology providers What is the changing role of technology

within BFSI BPO-ITO? Can market leaders act as a growth channel

for technology offerings? What should be my alliance and partnership

strategy in emerging segments?

BFSI market stakeholders


Everest Group’s new research program provides coverage of industry dynamics across both IT and business processes

Everest Group’s BFSI research subscription provides focused and up-to-date insights on BFSI sourcing landscape based on our unique fact-based research approach

BFSI ITO coverage: Access to all BFSI ITO

research providing specific insights on trends in banking, capital markets and insurance sub-verticals

Focused on regularly tracking adoption trends and the rapidly evolving service provider landscape in BFSI IT

Detailed segmentation of the service provider landscape in one of the largest sub-functions within BFSI IT i.e., Application Outsourcing (AO)

BFSI BPO coverage: Access to all BFSI BPO

research covering multiple segments of BFSI BPO across the banking, capital markets and insurance value chains

Expansive research scope encompassing all key elements of BFSI BPO including value chain specific analysis, market overview and buyer behaviour, captive activity, trends in global sourcing etc.

Everest Group’s BFSI research subscription:


Everest Group’s BFSI outsourcing research examines the most relevant issues for market stakeholders and provides analyses to aid strategic decision making

BFSI market overview and trends analysis

Provides coverage on key market metrics including market size, growth, drivers and inhibitors, market maturity analysis etc.

Trends analysis captures key developments in BFSI services including changing regional, functional profile of the market, emerging themes and key areas of investments

Value chain based analysis

Specific coverage on different processes within the banking, capital markets and insurance value chains

Targeted research on key trends and developments across various value chain segments including adoption activity, changing buyer preferences, movements over time – especially relevant for BFSI BPO

Everest Group PEAK matrices for BFSI service providers

Everest Group’s PEAK framework measures service providers’ capabilities across two dimensions: Delivery capability: Based on

service providers’ scale and scope of services offered for target sub-verticals

Market success: Based on active value of contracts with BFSI clients

Identifies market leaders, major contenders and emerging providers across various functions of BFSI outsourcing

BFSI service provider landscape & profiles

Updates on service provider market share, capabilities, and performance

Service provider profiles, including data on: Transactions Location footprint M&A activity Key investments ,

proprietary solutions, technological expertise etc.

Pro

cesses

Functio

ns

Customer interaction and support

Initial policy creation

Underwriting

Premium collection and accounting

Policy issuance

Actuarial data processing

Actuarial analysis and review

Proposals, illustrations

Agent and broker management

Regulatory and compliance management

Product testing

Policy servicing –f inancial

Policy records management

Initial claims processing

Claims management

Claims review and investigation (adjudication)

Claims adjustment and disbursements

Fraud detection and management

Claims litigation, recovery/ subrogation

Product development and business acquisition New business Policy servicing

and reporting Claims processing

Member enrollment and management

Eligibility requirement and verif ication

Technology

Pro

cess

esFu

nctio

ns


Product development Marketing Channel

ManagementBusiness acquisitions

Account servicing

Registrar/ transfer agency

Investment operations

Fund administration

Control/ compliance

Broker/ advisor/sub-custodian license mgmt. and compensation

NAV calculations

Cash allocation to funds

Trade allocation to funds

Fund accounting

Monitoring portfolio performance

Regulatory reporting

Investment strategy

Account opening, set-up and customer on-boarding

Application processing

Payment processing

Customer master maintenance

Product design and pilot

Product set-up on the accounts

Advertisement Shareholder records maintenance

Account closure

Fund cash in/out flow mgmt.

Investment and service fee calculation

Auditing and exception tracking

Reference data management

Trading, investment and market making

Order management and processing

Affirmation with broker/ custodian

Trade reconciliation and settlement

Reconciliations

Exception mgmt.

Risk mgmt.

Alliance network & mgmt. (Agents, banks, FIs)

Investigations

Fraud management

Claims management

Corporate actions (mandatory, voluntary, proxy)

Margin and collateral processing

Securities pay-in and pay-out

Instruction processing

Credit evaluation and approval

Collateral evaluation

Syndication/ Origination

Loan underwriting

Advisory servicesSecurities lending and borrowing

Balance sheet management

Taxes and fees computation

Technology

Proc

esse

sFu

nctio

ns

Branch banking – lead generation

Sales agencies/ partners

ATM manage-ment/ POPs

Regulatory reporting

KYC

Credit bureau mgmt.

Investigations

Fraud mgmt.

Claims mgmt.

Alliance planning (funds, insurance, utilities

Alliance set up on systems (IT, internet)

Payment, collection tracking, and follow up

International banking relationships

Treasury strategy

Transfer pricing set up & mgmt.

Risk mgmt.

FX mgmt.

Loan book management

Exception handling and analysis

Reconciliation and position tracking (MIS)

Asset liability management

Order management & processing

Credit evaluation

Verification –telephonic and field

Collateral evaluation

Credit approval

Account opening, set-up and customer on-boarding

Funding evaluation and analysis

Underwriting

Application processing

Payment processing

Product renewals

Statement processing and mailroom

Collateral review

Field collections

Recoveries

Loan tracking – bad loan management

Account closure

Foreclosure, bankruptcy

FX services

Product design and pilot

Product set-up on the accounts

Advertisement

Loyalty program management

Marcomm development and campaign management

Merchant acquisition

Credit evaluation

Account setup

Terminal installation and maintenance

Transaction posting

Merchant billing and reporting

Claims mgmt.

Position and fee calculation

Check processing

Clearing and settlement

Loan disbursement

Cash handling

Vault/safe deposit mgmt.

Trade finance /LC

Lock-box services

Origination/syndication

Records mgmt.

Lease mgmt.

Plant, Equipment management

Remittances


Product development Marketing Channel

ManagementBusiness acquisitions

Account servicing

Transaction processing

Treasury operations

Control/ compliance

Institutional relationships

Merchant services

Skip tracingDocument preparation

Technology


Consistent with other research areas, our BFSI coverage is based on four pillars of strength to produce actionable and insightful research

Service enablers

SuppliersBuyersFAO

market

Service enablers

SuppliersBuyersFAO

market

Market thought leadership Actionable and insightful research

Syndicated and custom research deliverables

Round the year tracking of all the service providers across ITO and BPO in BFSI Dedicated team for ITO-BPO research, spread over two continents 20+ years of advising clients on IT-BPO related decisions Executive-level relationships with buyers, service providers, technology providers, and industry associations

Robust definitions and frameworks

1 Primary sources of information

2 Diverse set of market touch-points

3 Fact-based research4

Service enablers

SuppliersBuyersFAO

market

Service enablers

SuppliersBuyersFAO

market

Annualized Contract ValueUS$ billion Projected for

Apr-Dec 2006Data up to April 2006

XXXX XX XX

XX XXXX

XX XX

XX-XX

1998 1999 2000 2001 2002 2003 2004 2005 2006E

Annualized Contract ValueUS$ billion Projected for

Apr-Dec 2006Data up to April 2006

Projected for Apr-Dec 2006Data up to April 2006

XXXX XX XX

XX XXXX

XX XX

XX-XX

1998 1999 2000 2001 2002 2003 2004 2005 2006E


Our subscription offerings provide deep insights on BFSI outsourcing market to support the client’s decision-making processSubscription research offerings Description

Analyst inquiry Ongoing analyst discussions for additional perspectives clarifications in 30 or 60 minutes increments

Research reports Access to all BFSI ITO-BPO research reports covering each segment of the market (at least 5 a year for BFSI BPO, at least 9 a year for BFSI ITO)

Strategy workshop Analyst-facilitated working session with the subscriber’s team around their strategic imperatives

Custom data cuts Additional custom data cuts from the materials presented in the research

Breaking viewpoint Flash reports highlighting breaking news in the service provider landscape and expert perspectives on key implications

We welcome the opportunity to discuss options to tailor the subscription specific to your requirements


BFSI Outsourcing Publishing Agenda 2011 (page 1 of 4)

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

Global sourcing in FS BPO – Significant Traction, Yet Tremendous Potential

April-2011

Topic Goals of the research

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

Global lending BPO across credit cards, consumer loans, and commercial loans

Jan -2011

FS BPO Service provider profile compendium

Snapshots of 14 service providers playing in the FS BPO segment. Each 4-5 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

Mar -2011

Published Forthcoming research

Release date



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

Insurance BPO market overview

Q2-2011

Topic Goals of the research

Provide 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

Market Trends for IT application services in Banking

Q2 -2011

Provide a comprehensive assessment of the service provider landscape in AO services for banking and map various suppliers on Everest Group’s capability matrix.

Service provider landscape for IT application services in Banking

Q2-2011

Published Forthcoming research

Release date

Profiles of service providers capturing their IT AO capability in banking

Service providers’ capability assessment (profiles compendium) for IT application services in Banking

Q2-2011



Topic Goals of the researchPublished Forthcoming research

Release date

Provide 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

Market Trends for IT application services in Insurance

Q3 -2011

Provide a comprehensive assessment of the service provider landscape in AO services for insurance and map various suppliers on Everest Group’s capability matrix.

Service provider landscape for IT application services in Insurance

Q3-2011

Profiles of service providers capturing their IT AO capability in insurance

Service providers’ capability assessment (profiles compendium) for IT application services in Insurance

Q3-2011

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. Individual service provider profiles

Global third-party BPO service provider landscape in Capital Markets

Q3-2011



Topic Goals of the researchPublished Forthcoming research

Release date

Provide 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

Market Trends for IT application services in Capital Markets

Q3 -2011

Provide a comprehensive assessment of the service provider landscape in AO services for capital markets, and map various suppliers on Everest Group’s capability matrix.

Service provider landscape for IT application services in Capital Markets

Q3-2011

Profiles of service providers capturing their IT AO capability in capital markets

Service providers’ capability assessment (profiles compendium) for IT application services in Capital Markets

Q3-2011


In addition to our ongoing research, we help clients through customized efforts to meet their objectives

Add-on research offering Description

Speaking engagements

Analyst in-person presentation on pre-determined topic during various internal or external events

Other Custom research

Focused research to provide answers to client’s specific businessissues: Competitive benchmarking Market entry and opportunity assessment Partnership/acquisition support Location analysis

Service provider short listing

Offer customized service provider selection process through fact-based, multi-dimensional analyses

Examine risks associated with the service provider portfolio and develop risk dashboards including parameters such as financial / operational / legal risks

Service provider risk tracking

Appendix


We have supported multiple stakeholders in the BFSI ITO domain through custom research engagements

Client Everest Group engagement overviewA leading BFSI ITO service provider

Determining the relative magnitude of IT investments made byleading European banking institutions, and identifying the key areas of IT investments / type of IT initiatives taken by these banks

A leading IT service provider

Service provider competitive intelligence in BFSI sector: Benchmarking financial performance and market success for select service providers in the BFSI domain

Leading Canadian bank

BFSI captives’ research: Determine scale of IT operations, IT services delivery capability, IT employee metrics, etc. for select BFSI captives in India

Top 10 Australian bank

Transform IT infrastructure environment for the bank to drive greater operational efficiency, and identify and manage risks of the transformation program

Top-5 US bank Location viability assessment for a banking institution to set up captive operations in IT services space. Comparative analysis across locations based on scalability, sustainability, and cost of operations

PARTIAL LIST


We have also helped several buyers and service providers of BFSI BPO in their strategic initiatives

Client Everest Group engagement overviewA leading FS BPO service provider

Identification of business opportunities pertaining to end-to-end credit lifecycle management in the U.S. market, across different lending segments – credit cards, consumer loans, and commercial loans

A leading BPO service provider

Assessment of mortgage services platform strategy for a new market

South Africa BPO sector

Assessment of South Africa’s capabilities in FS BPO

Leading Canadian bank

Supplier assessment and short-listing for business process services

Top-5 investment bank

Benchmarking of scope, scale and delivery costs for services offshored to captive relative to key competitors

Top-5 US bank Assessment of current scale, scope and maturity of services offshoring for credit cards and mortgages

Framework and toolkit to determine extent of services to be retained within associate delivery model

Availability and sustainability of multiple skill-sets in five offshore geographies across business processes and knowledge services

PARTIAL LIST


We have published multiple research reports to highlight key dynamics of the financial services market place BFSI Industry Trends (ERI-2010-8-R-0466): This report focuses on trends in the BFSI vertical across three areas – outsourcing transactions,

captive market analysis, and service provider activity and deals

The Growing Maturity of Offshore Research and Analytics in Financial Services (ERI-2010-5-R-0445). This report analyzes the evolution and maturity of the largest segment in the knowledge services market – research and analytics for financial services

Impact of Regulatory Changes on Offshoring in Financial Services (ERI-2009-8-R-0349). This report provides a fact-based view of the implications of the regulatory and legal provisions on offshoring by U.S. financial services companies. Specifically, the report focuses on the impact of the Troubled Asset Relief Program (TARP) and related regulations on offshoring activities. In addition, the report also provides a forward-looking perspective on potential regulations and associated implications for the offshoring industry

PO in Financial Services: From Wall Street to Martin Place – Unlocking Value from the Savings Goldmine (ERI-2009-1-R-0348). This research takes a look at the impact of the current financial turmoil on adoption of PO services by financial services and provides Everest Group’s outlook for the market

NASSCOM-Everest India BPO Study: Roadmap 2012 – Capitalizing on the Expanding BPO Landscape. This one-of-a-kind unprecedented, comprehensive report on India’s BPO industry maps out the industry’s next wave of growth and paints a vision for the future. The report also takes a deep-dive on Banking & Capital Markets and Insurance

Global Sourcing in Banking, Capital Markets and Insurance (ERI-2008-2-R-0267). This research examines the fundamentals of offshoringby financial institutions and provides adoption trends, market maturity and future opportunities in each of the three key financial services segments

Ready to Compete - South Africa's BPO Capabilities in the Financial Services Sector. This report presents a deep, fact-based view of South Africa’s current BPO capabilities and potential for growth in the Financial Services sector

Trends in Indian Insurance BPO market (ERI-2008-2-B-0243). Offshore insurance BPO has grown into a significant industry in India with revenues close to two billion, with a potential to grow by as much as 12-15 times in the next five years. This report looks at the future state for insurance companies leveraging offshore delivery

Bank of the Future: The Emerging Operating Model (ERI-2007-2-R-0169). This report will assist companies in understanding the changes in the banking operating model in order to better anticipate the emerging trends and responses required to manage the increased complexities and risks


Everest Group leads clients from insight to action

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www.everestgrp.com | www.everestresearchinstitute.com

Contact us for more information about our consulting, research, and industry resources.

Documents

Banking, Financial Services, and Insurance (BFSI ...s3.amazonaws.com/zanran_storage/... · Banking, Financial Services and Insurance (BFSI) ... Merchant acquisition evaluation Account