Topic: Application Outsourcing (AO) in Capital Markets – Service … · 2016. 6. 13. · The BFSI industry is one of the largest adopters of IT AO services. To cater to this large

Banking, Financial Services, and Insurance (BFSI) Outsourcing Report: January 2012 – Preview Deck

Topic: Application Outsourcing (AO) in Capital Markets – Service Provider Profiles Compendium

Copyright © 2012, Everest Global, Inc. EGR-2012-11-PD-0635


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Background and scope of the research

Background of the research The BFSI industry is one of the largest adopters of IT AO services. To cater to this large market segment, a number and variety of service providers have developed capabilities to deliver AO services to BFSI companies. As mature BFSI buyers seek to optimize their portfolio of AO services, they are signing larger contracts with a fewer number of service providers. Further, as BFSI buyers drive further consolidation in response to their business requirements, the capability of service providers to undertake and deliver large-sized AO engagements becomes a factor of prime importance. Everest Group has assessed this capability of 21 AO service providers and has mapped them on the Everest Group’s Performance | Experience | Ability | Knowledge (PEAK) Matrix, which is a composite index of a range of distinct metrics related to a provider’s capability and market success. In this research, we present the detailed profiles of the 21 service providers featured on the capital markets AO PEAK matrix. Each 5-7 page service provider profile provides a comprehensive picture of their service suite, scale of operations, domain investments, and delivery locations. Scope of this report: This report includes detailed profiles of the following 21 service providers: Capital markets AO PEAK Leaders: Accenture, Cognizant, IBM GS, Infosys, TCS, and Wipro Capital markets AO PEAK Major Contenders: Capgemini, CGI, CSC, HCL, Headstrong, HP ES, L&T

Infotech, MphasiS, and Polaris Capital markets AO PEAK Emerging Players: Atos, Dell Services, EPAM, Hexaware, Luxoft, and Ness


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Table of contents (page 1 of 2)

Introduction and overview 5 The Everest Group capital markets AO PEAK Matrix 11

Section I: Profiles of capital markets AO Leaders 17 Accenture 18

Cognizant 24

IBM Global Services 30

Infosys 36

TCS 42

Wipro 49

Section II: Profiles of capital markets AO Major Contenders 54 Capgemini 55

CGI 61

CSC 67

Topic Page no.


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Table of contents (page 2 of 2)

Section II: Profiles of capital markets AO Major Contenders (continued) HCL Technologies 72

Headstrong 77

HP Enterprise Services 82

L&T Infotech 87

MphasiS 92

Polaris 97

Section III: Profiles of capital markets AO Emerging Players 103 Atos 104

Dell Services 109

EPAM 114

Hexaware 120

Luxoft 125

Ness Technologies 130

Appendix 135

Topic Page no.


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This Everest Group report is a compendium of detailed profiles of 21 service providers featured on the 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 sub-vertical with a focus on large (TCV >US$25 million), annuity-based multi-year (>three years) relationships

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, etc.


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This report is a part of the Everest Group’s series of nine reports focused on application outsourcing in BFSI in 2011

Banking

Capital markets

Insurance

Banking

Capital markets

Insurance

Banking

Capital markets

Insurance

Market Trends in IT Application Outsourcing Services

Each report provides an overview of the application outsourcing market for the specific banking/capital markets/insurance subvertical

The report analyzes key trends in market size and growth, demand drivers, adoption and scope trends, emerging themes, key areas of investment, and implications for key stakeholders

Service Providers’ Profiles Compendium: IT Application Outsourcing Services

Capability profiles of service providers capturing their AO services experience in specific sub-verticals. 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: Mapping of service providers on Everest Group’s Performance |

Experience | Ability | Knowledge (PEAK) matrix for the specific subvertical Assessment of service providers based on delivery capability and market

success in establishing large AO contracts with financial institutions


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Everest Group’s BFSI research is based on two key sources of proprietary information

Proprietary Everest Group database of 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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Proprietary Everest Group database of operational capability of 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 revenues, 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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1 Atos’ acquisition of Siemens IT Services is excluded from the current capital markets AO PEAK 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

Service providers covered in the analysis

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xx%

xx%

xx%

xx% xx%

xx%

xx%

xx%

Service mix FY 2010; US$ million

Geographical mix FY 2010; 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: xxx Website: www.companyx.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 healthcare vertical: ADM and testing; CRM and multi-channel banking solutions; credit risk management; trading platform solutions; treasury/ forex services; brokerage services; policy and claims administration software solutions

Major BFSI clients: Bank A, Bank B, Insurer C, Insurer D, Trading Services Firm E, Investment Bank F

xx xx xx

xx xx xx

FY 2008 FY 2009 FY 2010

XX XX XX

1 FY ends on December 31 Source: Everest Group (2011)

Scale of BFSI sub-verticals: Banking Capital markets Insurance

>US$500 million US$100-500 million <US$100 million

Revenue1 from BFSI vertical Revenue1 from other verticals Operating margin

XX% XX% XX%

http://www.companyx.com/


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Scope Services all Lines of Business including asset management,

brokerage and investment banking Key strength in application development and testing Most contracts have multi-country scope

Delivery footprint AO delivery presence in xx countries Key offshore delivery locations include India, Malaysia, Brazil

and Bulgaria Moderate offshore leverage of yy%

Company X | Capital markets AO profile (page 2 of 5) Capital markets AO capability assessment and market success

Domain investments Proprietary solution ‘ABC’ with deployments across xx countries Joint marketing alliance with yy for xyz solutions Acquired three brokerage IT products companies in the last two

years

Headline assessment Company X is a leading player in capital markets applications and has strong relationships with large U.S. financial services firms

Scale Derives over xx% of its revenues from BFSI (US$yy million) Over xx FTEs delivering capital markets AO services xx active capital markets clients

Transaction success Has over xx large active capital markets AO contracts; added yy

new clients in last three years High average TCV of US$xx million Major capital markets AO clients: Firm A, Firm B, Firm C

Measure of capability: Very high High Low Medium

Everest PEAK Matrix for capital markets AO

Mar

ket s

ucce

ss

(Tra

nsac

tion

activ

ity)

Low High Delivery capability

(Scale, scope, domain investments, and delivery footprint)

High

25th

per

cent

ile

25th percentile

75th percentile

75th

per

cent

ile Leaders

Major Contenders

Emerging Players

Company X

Leaders Major Contenders

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

1 Transaction success for large-sized deals; assessment relative across service providers Source: Everest Group (2011)


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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

‘XYZ’: Financial services CRM solution

Capital markets Front office tool for asset allocation and portfolio optimization XYZ Tool: Solution for investment fund distribution processing, order management and

recordkeeping

Company X | Capital markets AO profile (page 3 of 5) AO domain investments

Key alliances (representative list)

Alliance partner Purpose of alliance

Partner A Joint marketing alliance for asset management solutions

Partner B Co-development of trade reconciliation software

Acquisitions (representative list)

Target Date Capabilities added

Target A 2009 Brokerage software solution

Source: Everest Group (2011)


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1 Publicly announced capital markets AO transactions during 2008-2011 Source: Everest Group (2011)

Recent transaction activity1

Buyer’s name Announcement date TCV estimate (US$ million)

Duration (years) Contract details and services

Firm A Jan 2011 xx xx Maintenance of applications and provision of desktop services

Firm B Mar 2009 xx xx Trading data reconciliation solution; network maintenance

Firm C Dec 2008 xx xx Implementation of ‘ABC’ asset management solution; maintenance services

Company X | Capital markets AO profile (page 4 of 5) Capital markets AO transactions activity

NOT EXHAUSTIVE


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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

Source: Everest Group (2011)

NOT EXHAUSTIVE

Confirmed location for capital markets AO 500-1000 AO FTEs

>5000 AO FTEs 100-500 AO FTEs

1000-5000 AO FTEs <100 AO FTEs


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Everest Group BFSI outsourcing research calendar (page 1 of 4)

Topic

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

January-2011

Snapshots of 14 service providers playing in the FS BPO segment. Each four to five 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

March-2011

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

April-2011

Provides 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

June-2011

Goals of the research Published Upcoming Current

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

FS BPO service provider profiles compendium

Global sourcing in FS BPO – Significant traction, yet tremendous potential

Market trends for IT application services in Banking

Release date

http://www.everestresearchinstitute.com/Product/11338





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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

August-2011

Provides a comprehensive assessment of the service provider landscape in AO services for banking and maps various service providers on Everest Group’s capability matrix

June-2011

Profiles of service providers capturing their IT AO capability in banking

July-2011

Topic

Provides 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

August-2011

Insurance BPO – Rising demand, increasing competition

Service provider landscape for IT application services in Banking

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

Market trends for IT application services in Insurance

Release date Goals of the research Published Upcoming Current



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Provides a comprehensive assessment of the service provider landscape in AO services for capital markets, and maps various service providers on Everest Group’s capability matrix

December-2011

Topic Release date Goals of the research

Provides 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

December-2011

December-2011 Profiles of service providers capturing their IT AO capability in insurance

November-2011 Provides a comprehensive assessment of the service provider landscape in AO services for insurance and maps various service providers on Everest Group’s capability matrix

Service provider landscape for IT application services in Insurance

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

Market Trends for IT application services in Capital Markets

Service provider landscape for IT application services in Capital Markets

Published Upcoming Current



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

January -2012

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. Segmentation of functions by front office, mid office, and back office along with drivers and challenges for capital markets BPO

January -2012

Topic

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

Capital markets BPO overview

Release date Goals of the research Published Upcoming Current


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Additional research references

The following documents are recommended for additional insight into the topic covered in this research report. The recommended documents either provide additional details on the topic or complementary content that may be of interest

For more information on this and other research published by the Everest Group, please contact us: Amneet Singh, VP – Global Sourcing: Jimit Arora, Research Director: Rajat Juneja, Research Director: Kiranjeet Kaur, Senior Research Analyst: Mridul Gupta, Senior Research Analyst:

1. IT Application Outsourcing in Capital Markets – Trends and Future Outlook (EGR-2011-11-R-0621): 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 themes, key areas of investment, and implications for key stakeholders, with regard to such large AO deals

2. Application Outsourcing in Capital Markets – PEAK Into the Evolving Service Provider Landscape (EGR-2011-11-R-0623): The report provides a comprehensive assessment of the service provider landscape in AO services for capital markets, and maps 21 capital markets AO providers on the Everest Group's PEAK Matrix. The report further examines the distinctive characteristics of the Leaders, Major Contenders, and Emerging Players, and recognizes key implications for banking buyers and service providers

3. IT Application Outsourcing in Banking – Trends and Future Outlook (ERI-2011-11-R-0566): This report provides an overview of the application outsourcing (AO) market for the banking 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 themes, key areas of investment, and implications for key stakeholders, with regard to such large banking AO transactions

4. Application Outsourcing in Banking – PEAK Into the Evolving Service Provider Landscape (ERI-2011-11-R-0567): The report provides a comprehensive assessment of the service provider landscape in AO services for banking, and maps 22 banking AO providers on the Everest Group's PEAK Matrix. The report further examines the distinctive characteristics of the Leaders, Major Contenders, and Emerging Players, and recognizes key implications for banking buyers and service providers

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About Everest Group

Everest Group is an advisor to business leaders on the next generation of global services with a worldwide reputation for helping Global 1000 firms dramatically improve their performance by optimizing their back- and middle-office business services. With a fact-based approach driving outcomes, Everest Group counsels organizations with complex challenges related to the use and delivery of global services in their pursuits to balance short-term needs with long-term goals. Through its practical consulting, original research, and industry resource services, Everest Group helps clients maximize value from delivery strategies, talent and sourcing models, technologies, and management approaches. Established in 1991, Everest Group serves users of global services, providers of services, country organizations, and private equity firms, in six continents across all industry categories. For more information, please visit www.everestgrp.com and research.everestgrp.com.

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Documents

Topic: Application Outsourcing (AO) in Capital Markets – Service … · 2016. 6. 13. · The BFSI industry is one of the largest adopters of IT AO services. To cater to this large