IT Application Outsourcing (AO) in Capital Markets - Service Provider Profile Compendium

7/29/2019 IT Application Outsourcing (AO) in Capital Markets - Service Provider Profile Compendium

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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) OutsourcingReport: 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 facingincreasing pressure to drive top-line growth, manage complexity arising out of wide-scale regulatoryreforms, and improve profitability by driving greater cost efficiencies. In order to achieve this, buyers arefocusing 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 upscale, 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 competitiveintensity in the BFSI AO services space is at an all-time high. As a result, it is becoming difficult todifferentiate among service providers based purely on delivery capabilities. It is, therefore, critical to have acomprehensive, 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 AOPEAK Matrix. Each profile provides a comprehensive picture of the service providers service suite, scale ofoperations, 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

Topic Page no.


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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

Topic Page no.


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This Everest Group report is a compendium of detailed

profiles of 20 service providers featured on Everest Groups

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 ManagementServices (IMS) Cloud

IT infrastructureoutsourcing (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 processoutsourcing (BPO)

IT strategy/operationsconsulting

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 relationships2 Business-to-business relationships3 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 Groups 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 specificsubverticals. 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 Groups 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 providers 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 successand 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 keystakeholders

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 Groups BFSI research is based on two key sources of

proprietary information

Everest Groups proprietary database of more than 375 large, multi-yearAO 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 functionalactivities Global sourcing, including delivery locations and level of offshoring

1

Everest Groups 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

2

Service providers covered in the analysis

Note: We continuously monitor market developments and track additional service providers beyond those included in the analysisConfidentiality: 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$ millionGeographical mix

FY 2011; US$ million

100% = xx 100% = xx

Company descriptionCompany X is a global provider of IT and BPO services. Its IT offeringsspan technology consulting, application development and maintenance,systems integration, software products and IT infrastructure services. Itprimarily 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

APACADM

Infrastructureservices

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 mobilebanking; ERP solutions; IT infrastructure support; productlicensing and reselling

Major BFSI clientsBank A, Bank B, Financial Services Firm C, Insurer D, TradingServices 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


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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 atlow 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 assessmentTargeted 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 in2011

Measure of capability: Very high High LowMedium

Everest Group PEAK Matrix for capital markets AO

1 Transaction success for large-sized deals; assessment relative across service providersSource: Everest Group (2013)

I-Banking Brokerage

Asset Mgmt

North America EMEA

Latin America APAC

Geographic scopeCapital Market lines of business

High Medium LowSuccess dashboard1

Custody, Fund admn

Emerging Players

Leaders

Company A

High

LowLow HighDelivery capability

Marketsuccess

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, anddata-masking tool

AAA: financial services CRM solution

capital markets XYZ: Policy software for P&C capital markets carriers, which includes modules such as policyadministration, 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

Buyers name Announcement date

TCV estimate

(US$ million)Duration

(years) Contract details and services

Firm A January 2011 XX XX Maintenance of applications and provision ofdesktop services

Firm B March 2009 XX XX Maintenance and support of capital marketsadministration systems

Firm C December 2008 XX XX Implementation of ABC capital marketssolution; 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 2012Source: 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

BulgariaSlovakia

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


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BFSI Outsourcing research agenda (page 1 of 2)

Topic Release date

Published Current

August-2012Application Outsourcing (AO) in Banking: PEAK Matrix Provider Landscape Evolution at Play

September-2012IT Application Outsourcing (AO) in Insurance Navigating Business Challenges through Technology

Applications Outsourcing in Banking Service Provider Profiles Compendium October 2012

October 2012A PEAK into the Leaders, Major Contenders, and Emerging Players of the Banking BPO Market

October 2012Webinar Deck: PEAK into the BFSI Outsourcing Market

July-2012BFS BPO Annual Report 2012 Strong Growth Post the Downturn

October 2012IT Application Outsourcing (AO) in Capital Markets Annual Report Change is the only constant

November-2012Insurance Business Process Outsourcing (BPO) Market 2011-2012 Annual Report

October 2012Application Outsourcing (AO) in Insurance: PEAK Provider Landscape Policies for Growth and Differentiation

November-2012Banking BPO Service Provider Profiles Compendium

November-2012A PEAK into the Leaders, Major Contenders, and Emerging Players of Capital Markets BPO

December-2012A PEAK into the Leaders, Major Contenders, and Emerging Players of Insurance BPO

December 2012Capital Markets BPO Service Provider Profile Compendium

January 2013Insurance BPO Service Provider Profile Compendium

December 2012AO 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-2013BFSI AO Service Provider Profile Compendium Capital Markets AO

January-2013IT Application Outsourcing (AO) in Insurance Service Provider Profiles Compendium

Q2-2013IT Applications Outsourcing (AO) in Banking Trends and Future Outlook 2013

Q2-2013Application Outsourcing in Banking PEAK Into the Evolving Service Provider Landscape 2013

Q2-2013IT Applications Outsourcing in Banking Service Provider Profiles Compendium 2013

Q2-2013BFS BPO Annual Report

Q2-2013BFSI BPO Service Provider Landscape Banking BPO

Q3-2013BFSI BPO Service Provider Profile Compendium Banking BPO

Q3-2013BFSI BPO Service Provider Landscape Capital Markets BPO

Q3-2013IT Applications Outsourcing (AO) in Insurance Trends and Future Outlook 2013

Q3-2013Application Outsourcing in Insurance PEAK Into the Evolving Service Provider Landscape 2013

Q3-2013IT Applications Outsourcing in Insurance Service Provider Profiles Compendium 2013

Q3-2013BFSI BPO Service Provider Profile Compendium Capital Markets BPO

Q3-2013Insurance Business Process Outsourcing (BPO) Market Annual Report

Q4-2013BFSI BPO Service Provider Profile Landscape Insurance BPO

Q4-2013BFSI 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 providesan 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 capitalmarkets 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, andmaps 20 capital markets AO providers on Everest Groups 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 "StarPerformers", 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 serviceprovider profile compendium provides comprehensive and fact-based snapshots of 20 service providers featured on Everest Group Insurance AOPEAK 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]

Additional research references

Phone: +1-214-451-3110Email: [email protected]

Everest Group

Two Galleria Tower13455 Noel Road, Suite 2100Dallas, TX 75240
https://research.everestgrp.com/Product/11859https://research.everestgrp.com/Product/11952https://research.everestgrp.com/Product/11975mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://research.everestgrp.com/Product/11975https://research.everestgrp.com/Product/11975https://research.everestgrp.com/Product/11975https://research.everestgrp.com/Product/11975https://research.everestgrp.com/Product/11975https://research.everestgrp.com/Product/11975https://research.everestgrp.com/Product/11975https://research.everestgrp.com/Product/11975https://research.everestgrp.com/Product/11975https://research.everestgrp.com/Product/11952https://research.everestgrp.com/Product/11952https://research.everestgrp.com/Product/11952https://research.everestgrp.com/Product/11952https://research.everestgrp.com/Product/11952https://research.everestgrp.com/Product/11952https://research.everestgrp.com/Product/11952https://research.everestgrp.com/Product/11952https://research.everestgrp.com/Product/11952https://research.everestgrp.com/Product/11859https://research.everestgrp.com/Product/11859https://research.everestgrp.com/Product/11859https://research.everestgrp.com/Product/11859https://research.everestgrp.com/Product/11859https://research.everestgrp.com/Product/11859https://research.everestgrp.com/Product/11859https://research.everestgrp.com/Product/11859https://research.everestgrp.com/Product/11859


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Copyright 2013, Everest Global, Inc.EGR 2013 11 PD 0837

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IT Application Outsourcing (AO) in Capital Markets - Service Provider Profile Compendium