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Copyright © 2015 Everest Global, Inc.
This document has been licensed for exclusive use and distribution by HCL Technologies
Topic: Everest Group’s PEAK MatrixTM for Banking AO
Service Providers
Focus on HCL Technologies
July 2015
2Copyright © 2015, Everest Global, Inc.
Background and scope of the research
Background of the research
Rise of digital consumers, need for business agility, growing costs of regulatory compliance, and threat from non-banking
competitors in areas such as payments were the key challenges faced by banks in 2014. Banks are aligning their technology
priorities around cost containment, efficiency, risk & compliance management, and transformation. Banks continued to invest
in development of specific applications for regulatory compliance, risk management, channel-specific initiatives (social, mobile,
etc.), and customer analytics
The service provider landscape is intensifying as providers ramp up their capabilities, invest in innovative technologies, form
alliances, and acquire strategic targets to address the growing and complex application services needs of banks and financial
institutions
In this research, we analyze the capabilities of 30 leading AO service providers, specific to the global banking sector. These
providers were mapped on the Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix, which is a
composite index of a range of distinct metrics related to each provider’s capability and market success. Additionally, Everest
Group has also profiled the capabilities of these 30 service providers in detail including a comprehensive picture of their
service suite, scale of operations, domain investments, delivery locations, and buyer satisfaction specific to banking AO
services
This document focuses on HCL Technologies’ banking AO experience and includes:
Overview of the banking AO service provider landscape
Everest Group’s assessment of HCL Technologies’ delivery capability and market success on PEAK matrix
Detailed banking AO profile for HCL Technologies
3Copyright © 2015, Everest Global, Inc.
This Everest Group report is a compendium of detailed
profiles of 30 service providers featured on Everest Group’s
banking AO PEAK Matrix
Retail financial services (B2C1)
Retail banking
Lending
Cards
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
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
Digital Services
Services industry
Services in next-generation technologies leveraged by enterprises to enable transformation including social, mobility, analytics, cloud, and
others (artificial intelligence, robotics process automation, internet of things, machine-to-machine, etc.)
4Copyright © 2015, Everest Global, Inc.
Everest Group’s BFSI research is based on two key sources of
proprietary information
Everest Group’s proprietary database of 500+ large, active, multi-year AO
contracts within BFSI (updated annually through primary data collection via
service provider RFIs)1
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, credit cards, lending, retail banking, and
commercial banking)
– Scope includes coverage of buyer geography as well as functional activities
– Global sourcing including delivery locations and level of offshoring
Everest Group’s proprietary database of operational capability of 20+ BFSI AO
service providers (updated annually through primary data collection via service
provider RFIs)
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
1
2
1 Assessment for Accenture, Capgemini, CSC, Endava, Hexaware, HPES (HP Enterprise Services), IBM, and Mphasis 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
banking buyers
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 1
1
1
1
1
1
1
5Copyright © 2015, Everest Global, Inc.
HCL Technologies is positioned as Star Performer and
Leader on Everest Group PEAK Matrix for banking AO -
2015
Leaders
Major Contenders
Aspirants
Star Performers
Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for large banking AO relationships1
1 PEAK Matrix specific to large (>US$25 million TCV), multi-year (>3 years) application outsourcing relationships for the banking sector (retail banking, wholesale
banking, credit cards, loans, and mortgages); excludes capital markets and insurance
Note: Assessment for Accenture, Capgemini, CSC, Endava, Hexaware, HPES, IBM, and Mphasis excludes service provider inputs and is based on Everest Group’s
proprietary Transaction Intelligence (TI) database, service provider public disclosures, and Everest Group’s interactions with banking buyers
Source: Everest Group (2015)
Banking AO delivery capability
(Scale, scope, domain investments, delivery footprint, innovation, and buyer satisfaction)
Cognizant
IBMWipro
Accenture
HCL
Infosys
CGIHPES
CapgeminiMphasis
Dell ServicesVirtusa
L&T Infotech
CSC
SofttekLuxoft
Unisys Mindtree
Hexaware
EPAM
Attra Infotech
EndavaITC Infotech
Syntel
High
Low
75th percentile
Low High
25
thp
erc
en
tile
25th percentile
Mark
et
su
ccess
Major Contenders
BirlasoftGenpact
Tech Mahindra
75
thp
erc
en
tile
Polaris
Aspirants
Leaders
IGATE
TCS
6Copyright © 2015, Everest Global, Inc.
HCL Technologies | Banking ITO profile (page 1 of 8)
Corporate and BFSI overview
Key financial parameters
Revenue in US$ million
Service mix
FY 2014; US$ million
Geographical mix
FY 2014; US$ million
Services offered for the BFSI vertical: ADM, application
maintenance, independent testing, SI, enterprise transformation
services, product engineering, enterprise application services,
infrastructure services, digital transformation services (mobile,
cloud, and analytics), and business services
Domains – channels, payments, cards, lending, core banking,
trade finance, and cash management
Major BFSI clients: Deutsche Bank, Commonwealth Bank of
Australia, Lloyd's Banking group, DNB Bank, and Standard Bank
of South Africa
Scale of BFSI subverticals
1 FY ends on June 30
Source: Everest Group (2015)
>US$500 million US$100-500 million <US$100 million
Revenue1 from the BFSI vertical
Revenue1 from other verticals
Operating margin
Company description: Established in 1991, HCL Technologies is a
global provider of IT solutions, product engineering, custom & package
applications, BPO, IT infrastructure services, IT hardware, systems
integration, and distribution of ICT products across select industry
verticals. HCL Technologies is the services business arm of the
US$6.5 billion HCL Enterprise, which also includes the hardware
business unit, HCL Infosystems. The HCL team consists of over 105,000
professionals who operate from 31 countries, including over 500
locations in India
Headquarters: Noida, India
Website: www.hcltech.com
56%32%
12%
34%
28%
17%
16%5%
100% = 5,360 100% = 5,360
Americas
Europe
RoW
Enterprise
application
services
Infrastructure
services
Engineering and
R&D services
BPO services
Custom
application
3,133 3,510 3,9241,019 1176 1,436
FY 2012 FY 2013 FY 2014
16.3%20.1%
24.2%
4,1524,686
5,360
Banking Capital markets Insurance
7Copyright © 2015, Everest Global, Inc.
HCL Technologies | Banking ITO profile (page 2 of 8)
Banking AO capability assessment and market success
Capability dashboard
Needs to expand its delivery footprint in nearshore locations to better serve clients
Improve visibility outside the existing client base
Needs to enhance its offering in digital transformation for banking clients
Areas of improvement
Strong portfolio of solutions across various banking domains including consumer lending, commercial
and corporate lending, cards & payments, trade finance, treasury, cash management, and core banking
Maintains a strong reputation for proactive investments in technology, innovation, customer intimacy,
and focus on service delivery quality
Banking AO services delivered from nearly 30 delivery centers; expanded presence in Europe and
United States
Significant focus on vertical systems Integration with specific focus on core banking, customer
experience management, and payments; partnered with CSC to establish a delivery network to enable
enterprises to shift from legacy technologies to a cloud-enabled platform
Strengths
High Low
Source: Everest Group (2015)
Everest Group PEAK Matrix for Banking AO
Retail Lending
Commercial
North America EMEA
Latin America APAC
Geographic scopeBanking lines of business
Cards/payments
PEAK Matrix dimensions assessment
Dimension Rating
Market success
Scale
Scope
Domain investments
Delivery footprint
Innovation
Buyer satisfaction
Banking AO delivery capability
(Scale, scope, domain investments, delivery footprint, innovation, and buyer satisfaction)
Cognizant
IBMWipro
Accenture
HCL
Infosys
CGIHPES
CapgeminiMphasis
Dell ServicesVirtusaL&T Infotech
CSC
Softtek LuxoftUnisys Mindtree
HexawareEPAM
Attra Infotech
Endava ITC Infotech
Syntel
High
Low
75th percentile
Low High
25
thp
erc
en
tile
25th percentile
Mark
et
su
ccess
Major Contenders
Birlasoft Genpact
Tech Mahindra
75
thp
erc
en
tile
Polaris
Aspirants
Leaders
IGATE
TCS
Key technology
spend areas
Mobility Analytics
Social Cloud
Risk & regulatory
compliance
Market share by active ACV Market share by number of contracts
3% 3%
Established: Mature capabilities with high adoption
Emerging: Nascent capabilities with limited adoption
Credible: Strong capabilities
with rising adoption
8Copyright © 2015, Everest Global, Inc.
Proprietary solutions (representative list)
Line of business Solutions
Banking CCAR: Comprehensive capital analysis and review (CCAR) framework for stress testing and capital
assessment (launched in 2014):
Managed mobility: Mobile payment engine (launched in 2013)
FATCA framework: Framework to assist banks in amending IT architecture to comply with FATCA
regulations (launched in 2013)
HCL PEAK (process enhancement automation Kit): Testing accelerator for functional and regression
testing across HCL’s partner products like Misys Summit, Loan IQ, etc.
Test data management workbench: Solution for mining of test data (launched in 2013)
HCL TOSCANA - automated paperless solution for business services: Banking operations workflow
methodology to improve efficiency through automation (launched in 2012)
Offers a Web 2.0-based commercial customer onboarding solution
Iphone-based mortgage origination solution
Mortgage/Loan self service: Helps customer/stakeholder perform loan related transactions on "self service
mode”
Loans Loan Syndication Portal: Portal that facilitates origination of syndicated loans across multiple lenders and
agent bank (launched in 2012)
Digital system integration Digital transformation services including:
Justification and prioritization of digitalization
Creation of a digitalization blue print for its strategic view
Focus on transforming processes which create the maximum value
Legacy modernization and cloud enablement
Creation of a seamless data fabric
System integration approach
HCL Technologies | Banking ITO profile (page 3 of 8)
AO domain investments
Source: Everest Group (2015)
9Copyright © 2015, Everest Global, Inc.
Proprietary solutions (representative list) (continued)
Line of business Solutions
Trade finance SCF portal – Framework for end-to-end supply chain finance portal
Overall BFSI Finedge: Financial services CRM solution
Offers solutions for risk and compliance leveraging assets such as the HCL BRICS framework, and the
Oracle Financial Services Analytical Applications (OFSAA) CoE, a factory operating model for regulatory
reporting and alliances with partners providing risk and compliance services
Customer experience
management
HCL’s CEM solution framework can be used across the following areas
– Customer experience blueprinting and measurement
– Behavior and experience analytics
– Channel optimization and innovation
– Business process integration and operations
– Integrated view of the customer
– Self-service enablement
– Workforce productivity improvement
– Customer-centric application reengineering
HCL Technologies | Banking ITO profile (page 4 of 8)
AO domain investments
Acquisitions (representative list)
Target Date Capabilities added
Axon (United Kingdom) 2008 Expansion of HCL SAP practice to provide the full lifecycle suite of services
Source: Everest Group (2015)
10Copyright © 2015, Everest Global, Inc.
HCL Technologies | Banking ITO profile (page 5 of 8)
AO domain investments
Key alliances (representative list)
Alliance partner Purpose of alliance
CSC Strategic partnership formed in 2013 for application modernization and transitioning to cloud
KOFAX Implementation partnership formed in 2013
COREFILING Alliance formed in 2013 for reporting solutions
AXIOM Alliance formed in 2013 for AXIOM ControllerView, a regulatory reporting tool
Misys Strategic partnership for offering Misys products in the areas of banking and capital markets
Fundtech System integration and go-to-market partner for Fundtech in the area of payments and cash management
Oracle End-to-end partnership leveraging Oracle’s suite of products including Oracle Flexcube and OFSAA
Avaloq Strategic partnership formed augmenting HCL’s experience in wealth management IT services
SIMCORP Alliance formed to provide customers with automated client reporting and communications solutions
Microstrategy Channel partnership
Mulberry consulting Channel partnership
LineData Partnership for lending stream
Callatay&Wouters(Thaler) Core banking partnership
Flexcube Core banking partnership
Source: Everest Group (2015)
11Copyright © 2015, Everest Global, Inc.
HCL Technologies | Banking ITO profile (page 6 of 8)
AO domain investments
Key alliances (representative list) (continued)
Alliance partner Purpose of alliance
Kony Partnership leveraging Kony’s mobile application development platform and solutions
Accumulate Partnership leveraging Accumulate’s mobile payments solutions
SAS Partnership leveraging SAS’ business analytics solutions
SAP Strategic partnership leveraging SAP’s suite of products
Microsoft Gold certified 360-degree partnership
Pega Alliance leveraging Pega’s BPM and CRM solutions
EMC Global SI partner for the suite of EMC products including EMC Documentum
IBM Global partnership across products such as FileNet and Cognos
Source: Everest Group (2015)
12Copyright © 2015, Everest Global, Inc.
HCL Technologies | Banking ITO profile (page 7 of 8)
Banking ITO transactions activity
NOT EXHAUSTIVE
1 Publicly-announced banking ITO transactions during 2012 to 2015
Source: Everest Group (2015), Transaction Intelligence database
Recent transaction activity1
Buyer’s
name
Announcement
date
TCV
estimate
(US$ million)
Duration
(years) AO/IO/Both Contract details and services
DnB May 2014 107.66 N/A AO Manage the IT infrastructure services and application
operations; also includes running the online banking
application
Citibank July 2012 200 N/A N/A Setting up back-end processes for loans, financial products
and customer service
UBS March 2012 300 N/A N/A Large multi-year outsourcing contract with Union Bank of
Switzerland
13Copyright © 2015, Everest Global, Inc.
HCL Technologies | Banking ITO profile (page 8 of 8)
Key offshore AO delivery locations
NOT EXHAUSTIVE
Confirmed location for banking AO 500-1,000 AO FTEs
>5,000 AO FTEs 100-500 AO FTEs
1,000-5,000 AO FTEs <100 AO FTEs
Note: FTE strength represents the total number of AO FTEs across different industries for the particular country
Source: Everest Group (2015)
South Africa
India
Poland
Indonesia
Malaysia
Mexico Philippines
SingaporeBrazil
Puerto Rico
14Copyright © 2015, Everest Global, Inc.
Appendix
15Copyright © 2015, Everest Global, Inc.
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 investments, delivery footprint, innovation, buyer satisfaction, and resultant market success in the context of a given
outsourcing function
Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for Application Outsourcing
Top quartile performance
across market success and
capability2nd or 3rd quartile performance
across market success and
capability
4th quartile performance
across market success and
capability
High
Low
25
thp
erc
en
tile
75
thp
erc
en
tile
75th percentile
Low High25th percentile
Ma
rke
t su
ccess
AO capability
(Scale, scope, domain investments, delivery footprint, innovation, and buyer satisfaction)
Aspirants
Leaders
Major Contenders
The service providers were mapped on Everest
Group’s Performance | Experience | Ability |
Knowledge (PEAK) Matrix
16Copyright © 2015, Everest Global, Inc.
Dimensions of service providers’ capability and
market success underlying the PEAK Matrix
ACV of large active AO
deals
Yearly vertical specific AO
revenue growth
Scale
Total company
revenue
Contribution of
vertical specific
AO revenue to
the total company
revenue
Innovation
Ma
rke
t s
uc
ce
ss
Delivery capability
Everest Group PEAK Matrix
Aspirants
Leaders
Major Contenders
Domain
investmentsDelivery footprintScope
Lines of Business
(LoBs) served
AO subfunctions
Proprietary
solutions
Certifications
Onshore,
nearshore, and
offshore
capabilities
Number of
delivery centers
and regions
covered
Innovative
solutions
Innovative
engagement
models
Geographies
served
M&A and
alliances
Buyer satisfaction
Customer
experiences with
service providers
for vertical
specific AO
services
Client renewal
activity
Number of large, active
AO deals
17Copyright © 2015, Everest Global, Inc.
Does the PEAK Matrix assessment incorporate any subjective criteria?
The Everest Group’s PEAK Matrix assessment adopts an objective and fact-based approach (leveraging
service provider RFIs and the 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. 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 the 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 to the buyers in selecting particular
providers for their specific requirements. It also helps providers showcase their strengths in specific areas
FAQs (page 1 of 2)
18Copyright © 2015, Everest Global, Inc.
What are the incentives for buyers and providers to participate / provide input 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
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 including:
– Issue a press release declaring their positioning/rating
– Customized PEAK Matrix profile for circulation (with clients, prospects, etc.)
– Quotes from the 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
FAQs (page 2 of 2)
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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
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Everest Group apart is the integration of deep sourcing knowledge, problem-
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