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Copyright © 2017 Everest Global, Inc.
This document has been licensed for exclusive use and distribution by TCS
EGR-2017-11-E-2262
Everest Group PEAK Matrix™ for Capital
Markets AO Service Providers
Focus on TCS
July 2017
Copyright © 2017, Everest Global, Inc.
EGR-2017-11-E-22622
Background and scope of the research
Background of the research
Uncertainty in the geopolitical and macroeconomic environment, changing regulatory landscape, sluggish growth, and threat from next-
generation financial technology firms (FinTech’s) revolutionizing customer experience and offering differentiated services are the key
challenges being faced by capital markets enterprises. These challenges have forced them to revisit their business model and redefine the
way they leverage technology and interact with their customers. Capital markets enterprises worldwide are exploring/experimenting with
the latest technologies, such as robotic process automation, blockchain, machine learning, cloud, and robo-advisory, to offset some of the
above mentioned challenges and simultaneously bring in efficiencies and drive down cost of operations
To cater to the contemporary needs of the capital markets industry, IT service providers are also realigning their value proposition through
investments in building IPs, solutions, frameworks, and accelerators, helping clients to swiftly adapt to risk and regulatory changes, take
products faster to market (by implementing agile and DevOps methodology), and drive cost reduction by leveraging cutting-edge
technologies. They have shown strong propensity to build consulting capabilities and act as strategic partners to capital markets
enterprises
In this research, we analyze the capabilities of 27 leading AO service providers, specific to the global capital markets 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 capital markets AO
– Assessment of the service providers on a number of capability-related dimensions
– Characteristics of Leaders, Major Contenders, and Aspirants on the Everest Group capital markets AO PEAK MatrixTM
– “Star Performers” of 2017, providers with the strongest forward movement over time – in terms of both market success and capability
advancements
– Implications for capital markets buyers and service providers
This document focuses on TCS’ capital markets AO experience and includes:
Overview of the capital markets AO service provider landscape
Everest Group’s assessment of TCS’ delivery capability and market success on PEAK Matrix
Detailed capital markets AO profile for TCS
Copyright © 2017, Everest Global, Inc.
EGR-2017-11-E-22623
This report examines the service provider landscape for large
(TCV > US$25 million), annuity-based, multi-year (>3 years)
application services relationships in the global capital markets 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
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
Focus of report
Services industry
Services in next-generation technologies leveraged by enterprises to enable transformation including social, mobility, analytics, cloud, and others
(Artificial Intelligence (AI), Robotic Process Automation (RPA), Internet of Things (IOT), Machine-to-Machine (M2M), etc.)
Digital services
NOT EXHAUSTIVE
Copyright © 2017, Everest Global, Inc.
EGR-2017-11-E-22624
Everest Group’s capital markets research is based on two key
sources of proprietary information
Everest Group’s proprietary database of 400+ large, active, multi-year AO
contracts within capital markets (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, insurance, and by
line of business (for example, investment banking, asset management, custody,
fund administration, and brokerage)
– 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+ capital
markets AO service providers (updated annually)
The database tracks the following capability elements for each service provider:
– Major capital markets AO clients and recent wins
– Overall revenue
– Recent capital markets-related developments
– Capital markets AO delivery locations
– Capital markets AO service suite
– Domain capabilities, proprietary solutions, and intellectual property investments
2
Service providers covered in the analysis
1 Assessment for Accenture, Synechron, and Quinnox 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 capital markets buyers
2 Analysis for DXC 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
1 1
1
3
2
Copyright © 2017, Everest Global, Inc.
EGR-2017-11-E-22625
Aspirants
Accenture
TCSCognizant
Infosys
IBMWipro
Capgemini
HCLNTT DATA CGIExcelian,Luxoft FS2
EPAM DXC
TechnologyVirtusaPolaris
LTI
Genpact
Atos
Hexaware
Synechron
GFT
Tech MahindraMphasis
NIIT Technologies
SyntelBirlasoftQuinnox
ITC Infotech
LeadersMajor Contenders
Everest Group PEAK Matrix™ for large capital markets AO relationships1
Leaders
Major Contenders
Aspirants
Star Performers
1 PEAK Matrix specific to large (>US$25 million TCV), multi-year (>3 years) application outsourcing relationships for the capital markets sector (investment banking, asset
management, custody & fund administration, and brokerage); excludes banking and insurance
2 Excelian, Luxoft Financial Services
Note: Assessment for Accenture, Synechron, and Quinnox 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 capital markets buyers
Source: Everest Group (2017)
Capital markets AO delivery capability
(Scale, scope, domain expertise & innovation, delivery footprint, and buyer satisfaction)
High
High
25
thp
erc
en
tile
25th percentile
Ma
rket
su
ccess
(Ca
pital m
ark
ets
AO
re
ve
nue, g
row
th, a
nd n
um
ber
of la
rge
active
de
als
)
Low
Low
75th percentile
75
thp
erc
en
tile
Everest Group PEAK Matrix™ for capital markets AO –
2017
TCS positioned as Star Performer and Leader
Copyright © 2017, Everest Global, Inc.
EGR-2017-11-E-22626
Application services scope1
Development Maintenance Testing SI/Consulting
Adoption by lines-of-business1
Investment
banking
Asset
management
Custody & fund
administration Brokerage
Adoption by geographic focus1
North America EMEA Latin America APAC
Digital services scope1
Big data / analytics Cloud Mobility Social
TCS | Capital markets AO services profile (page 1 of 2)
Overview
In 2016, TCS demonstrated robust growth in its capital markets application outsourcing revenue leveraging its wide global delivery network, breadth and depth of
products, solutions and services offerings, and deep domain expertise. It made incremental investments in building solutions and capabilities in areas such as blockchain,
analytics, robo-advisory, and risk and regulatory compliance frameworks. Robust growth rate combined with incremental investments in emerging technology helped TCS
to be positioned as a Star Performer on CM AO PEAK Matrix in 2017.
1 Based on Everest Group estimates
Source: Everest Group (2017)
(>20%) (10-20%) (<10)Revenue contribution
Strengths
A strong suite of products, solutions, and accelerators catering to drive cost
efficiencies and process improvements
A trusted partner to enterprises for large deals leveraging its global delivery
footprint and wide portfolio of services for capital markets
Demonstrated strong propensity to co-innovate with partners on next generation
technology themes
Areas of improvement
Improve client intimacy through concentrated efforts on reducing attrition in
onshore locations
Realign market messaging to showcase its capabilities in emerging
technologies to drive incremental revenues and win transformational deals
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)
>US$1 billionUS$200-
US$500 million<US$200 million
US$500 million-
US$1 billion
Capital markets AO revenue1
Copyright © 2017, Everest Global, Inc.
EGR-2017-11-E-22627
Source: Everest Group (2017)
TCS | Capital markets AO services profile (page 2 of 2)
Offerings
Key investments (alliances/partnerships/M&As)
Investment name Type of investment Details
Nordea Partnership (2016) Provide FinTech start-ups with external entrepreneurs, international technology specialists, Nordea experts, and key
decision-makers
Calypso Partnership (2015) TCS is a strategic partner for GTM and to provide system integration and implementation services
Mulesoft Partnership (2016) Partnered to leverage integration platform for connecting SaaS & enterprise applications in the cloud and on-premise
Sernova Partnership (2016)● Bank/Fis are enabled to do self-clearing without having overheads of being clearing member. Bank/Fis work on an opex
model rather than capex
Co-Innovation partners Advisor software, Airbitz, Appboy, Appknox, CallVU, Chango, Dataguise, Flamingo, Factom, Eris, Zfin, and Zcash
Key proprietary solutions
Solution Details
Reporting services framework (2016) Provide web framework to centrally administer the diverse platform reports and other administrative requirements. It can
integrate with open-source and/or commercial reporting tools (API integration) to create reports and supports document
management capabilities such as scheduling, archiving, and purging
TCS Blockchain platform (2016) ● Platform that enables reimagining complex hierarchical transaction processing between participants with more
comprehensive, peer-to-peer, and disintermediated interactions
Synthetic financing (2015) ● Offering for prime brokers based on Calypso platform
Mifid II transaction reporting (2015) Transaction reporting offering for Mifid II regulation
TCS wealth advisory solution (2015) Analyzes large volumes of (structured & unstructured) information and provides financial advisors with custom
investment recommendations for each client through a tablet-based application
Integrated Collateral Management Collateral inventory management by providing single view and support simulation, real-time margining, and optimized
collateral
Recent activities
Development Details
Digital studio and innovation center Opened its digital reimagination studio in Santa Clara, United States, and a new office in Toronto, Canada, for technical
innovation, partner collaboration, and client service
NOT EXHAUSTIVE
Copyright © 2017, Everest Global, Inc.
EGR-2017-11-E-22628
Appendix
Copyright © 2017, Everest Global, Inc.
EGR-2017-11-E-22629
The service providers were mapped on Everest Group’s
PEAK Matrix™
Everest Group PEAK Matrix™ for capital markets AO
2nd or 3rd quartile performance across
market success and capability
Top quartile performance across
market success and capability
Capital markets 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
cces
s
(Capital m
ark
ets
AO
revenue, gro
wth
, and
num
be
r of la
rge
active d
ea
ls)
4th quartile performance across
market success and capability
Everest Group’s PEAK Matrix 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 context of a given
outsourcing function.
Copyright © 2017, Everest Global, Inc.
EGR-2017-11-E-226210
Dimensions of service providers’ capability and market
success underlying the PEAK Matrix™ for capital markets
AO services
Lines of Business (LOBs)
served
AO sub-functions served
Geographies served
Innovation / IP /
proprietary solutions
M&A, alliances, and
other investments
Delivery mix
Number of delivery
centers and regions
covered
Total company revenue
Contribution of capital
markets specific AO
revenue to the total
company revenue
Scale Scope
Technology solutions
and innovation Delivery footprint
Buyer perception score
Buyer satisfaction
Delivery capability
Measures success, which is captured
through Yearly capital markets
specific AO revenue growth, Capital
markets AO revenue in CY2016 and
Number of large, active capital
markets AO deals Ma
rket
su
ccess Major Contenders
Leaders
Aspirants
Copyright © 2017, Everest Global, Inc.
EGR-2017-11-E-226211
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. The PEAK Matrix highlights and positions only the best-in-class service providers in a particular function/vertical.
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 in itself a favorable recognition
What other aspects of the PEAK Matrix assessment are relevant to buyers and providers besides the “PEAK
Matrix position”?
The 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 assists 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 in /provide inputs to the 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
Copyright © 2017, Everest Global, Inc.
EGR-2017-11-E-226212
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 Matrix positioning in multiple ways:
Issue a press release declaring their positioning/rating
Circulate a customized PEAK Matrix profile (with clients, prospects, etc.)
Quotes from Everest Group’s analysts could be disseminated to the media
Leverage the PEAK Matrix 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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