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Topic: BFSI AO Service Provider Profile Compendium – Capital Markets AO Banking, Financial Services, and Insurance (BFSI) Outsourcing Report: January 2013 – Preview Deck

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


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

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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 facing increasing pressure to drive top-line growth, manage complexity arising out of wide-scale regulatory reforms, and improve profitability by driving greater cost efficiencies. In order to achieve this, buyers are focusing 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 up scale, 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 competitive intensity in the BFSI AO services space is at an all-time high. As a result, it is becoming difficult to differentiate among service providers based purely on delivery capabilities. It is, therefore, critical to have a comprehensive, 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 AO PEAK Matrix. Each profile provides a comprehensive picture of the service provider’s service suite, scale of operations, 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 Copyright © 2013, Everest Global, Inc. EGR-2013-11-PD-0837

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Table of contents

(page 1 of 2)

Topic

Page no.

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

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Table of contents

(page 2 of 2)

Topic

Page no.

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

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

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This Everest Group report is a compendium of detailed profiles of 20 service providers featured on Everest Group’s Capital Markets AO PEAK Matrix BFSI Focus of report

Banking 

Capital markets

Retail financial services (B2C1) – Retail banking – Lending – Cards Commercial banking (B2B2)

    

Insurance

Investment banking Asset management Custody and fund administration Brokerage Others3

  

Life and pensions Property and casualty Others

Services industry

IT infrastructure outsourcing (IO)    

Traditional IO Remote Infrastructure Management (RIM) Infrastructure Management Services (IMS) Cloud

IT application outsourcing (AO)      

Application development Application maintenance Independent testing Package implementation ERP services Business intelligence/data warehousing

Business process outsourcing (BPO)      

BFSI-specific BPO HRO FAO PO Contact center Knowledge services

Consulting    

IT strategy/operations consulting Business consulting Infrastructure consulting Infrastructure roll-outs

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 2 3

Business-to-consumer relationships Business-to-business relationships Includes other capital markets functions such as structured finance, treasury, FX, and horizontal functions including risk management, etc. Copyright © 2013, Everest Global, Inc. EGR-2013-11-PD-0837

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This report is a part of the Everest Group’s series of nine reports focused on AO in BFSI in 2012 Focus of report

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 breakouts of the market, emerging themes, key areas of investment, and implications for key stakeholders  Key movements in volumes/values of AO transactions, evolving trends, market dynamics, and emerging priorities of buyers in the last 12 months

Banking

Capital Market

Insurance

Service Provider Landscape: IT Application Outsourcing Services Each report provides:  Assessment of service provider landscape in AO services and mapping of providers on Everest Group’s 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 provider’s 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 success and capability advancements

Banking

Capital Markets

Insurance

Service Provider Profiles Compendium: IT Application Outsourcing Services Capability profiles of service providers capturing their AO services experience in specific subverticals. 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 Copyright © 2013, Everest Global, Inc. EGR-2013-11-PD-0837

Banking

Capital Markets

Insurance 7


Everest Group’s BFSI research is based on two key sources of proprietary information 1  

Everest Group’s proprietary database of more than 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

Service providers covered in the analysis

2  

Everest Group’s 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

Note: Confidentiality:

We continuously monitor market developments and track additional service providers beyond those included in the analysis 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 Copyright © 2013, Everest Global, Inc. EGR-2013-11-PD-0837

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Company X | Capital markets AO profile Corporate and BFSI overview

(page 1 of 5)

>US$500 million

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

US$100-500 million

<US$100 million

Scale of BFSI subverticals Banking

Capital Markets

Insurance

Revenue1 from BFSI vertical

Key financial parameters Revenue in US$ million

Revenue1 from other verticals Operating margin

Headquarters: XX XX XX

Website: www.companya.com Geographical mix FY 2011; US$ million

Service mix FY 2011; US$ million

100% = xx

100% = xx Consulting

Latin America U.S. APAC

Europe

1 Source:

FY 2009

BPO

Infrastructure services

ADM

FY 2010

FY 2011

Services offered for BFSI vertical Application services for money transfer, credit cards, loans, wealth management, anti-money laundering, and mobile banking; ERP solutions; IT infrastructure support; product licensing and reselling Major BFSI clients Bank A, Bank B, Financial Services Firm C, Insurer D, Trading Services Firm E, Investment Bank F

FY ends on December 31 Everest Group (2013) Copyright Š 2013, Everest Global, Inc. EGR-2013-11-PD-0837

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

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 Success dashboard1

High

Capital Market lines of business

Geographic scope

Medium

Low

I-Banking

Brokerage

North America

EMEA

Asset Mgmt

Custody, Fund admn

Latin America

APAC

Measure of capability:

Very high

High

Medium

Low

Everest Group PEAK Matrix for capital markets AO High

Leaders Major Contenders

Company A

Market success

Headline assessment Targeted 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

Emerging Players Low Low

Delivery capability

High

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 in 2011

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

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

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 at low cost locations, especially India

1 Source:

Transaction success for large-sized deals; assessment relative across service providers Everest Group (2013) Copyright © 2013, Everest Global, Inc. EGR-2013-11-PD-0837

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Company X | Capital markets AO profile AO domain investments

(page 3 of 5)

Proprietary solutions (representative list) Line of Business

Solutions

Overall BFSI

 

capital markets

 

Data management tools: tools for data cleansing, data generation, data migration solutions, and data-masking tool “AAA”: financial services CRM solution “XYZ”: Policy software for P&C capital markets carriers, which includes modules such as policy administration, rating, rules, product definition and configuration as well as product templates “ABC”: Software to manage core business functions, including policy processing, billing, and claims

Acquisitions (representative list) Target

Date

Capabilities added

Target A

2009

Software testing capabilities for capital markets industry

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

Source:

Everest Group (2013) Copyright © 2013, Everest Global, Inc. EGR-2013-11-PD-0837

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Company X | Capital markets AO profile Capital markets AO transactions activity

(page 4 of 5)

NOT EXHAUSTIVE Recent transaction activity1 Buyer’s name

TCV estimate Announcement date (US$ million)

Duration (years)

Firm A

January 2011

XX

XX

Maintenance of applications and provision of desktop services

Firm B

March 2009

XX

XX

Maintenance and support of capital markets administration systems

Firm C

December 2008

XX

XX

Implementation of ‘ABC’ capital markets solution; maintenance services

1 Source:

Contract details and services

Publicly-announced capital markets AO transactions during 2009 to 2012 Everest Group (2013) Copyright © 2013, Everest Global, Inc. EGR-2013-11-PD-0837

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Company X | Capital markets AO profile Key offshore AO delivery locations

(page 5 of 5)

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

<100 AO FTEs

Czech Republic Poland Slovakia

Bulgaria China

Mexico

Vietnam India Thailand Brazil Malaysia Chile

Source:

Everest Group (2013) Copyright Š 2013, Everest Global, Inc. EGR-2013-11-PD-0837

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BFSI Outsourcing research agenda

(page 1 of 2)

Published

Topic

Current

Release date

BFS BPO Annual Report 2012 – Strong Growth Post the Downturn Application Outsourcing (AO) in Banking: PEAK Matrix Provider Landscape – Evolution at Play IT Application Outsourcing (AO) in Insurance – Navigating Business Challenges through Technology

July-2012 August-2012 September-2012

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

October 2012

Applications Outsourcing in Banking – Service Provider Profiles Compendium

October 2012

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

October 2012

Webinar Deck: PEAK into the BFSI Outsourcing Market

October 2012

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

October 2012

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

November-2012

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

November-2012

Banking BPO Service Provider Profiles Compendium

November-2012

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

December-2012

Capital Markets BPO Service Provider Profile Compendium

December 2012

AO in Capital Markets: PEAK Provider Landscape – Need for Speed: Capturing the Capital Markets Momentum

December 2012

Insurance BPO Service Provider Profile Compendium

January 2013 Copyright © 2013, Everest Global, Inc. EGR-2013-11-PD-0837

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BFSI Outsourcing research agenda

(page 2 of 2)

Published

Current

Topic

Release date

IT Application Outsourcing (AO) in Insurance – Service Provider Profiles Compendium

January-2013

BFSI AO Service Provider Profile Compendium – Capital Markets AO

February-2013

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

Q2-2013

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

Q2-2013

IT Applications Outsourcing in Banking – Service Provider Profiles Compendium – 2013

Q2-2013

BFS BPO Annual Report

Q2-2013

BFSI BPO Service Provider Landscape – Banking BPO

Q2-2013

BFSI BPO Service Provider Profile Compendium – Banking BPO

Q3-2013

BFSI BPO Service Provider Landscape – Capital Markets BPO

Q3-2013

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

Q3-2013

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

Q3-2013

IT Applications Outsourcing in Insurance – Service Provider Profiles Compendium – 2013

Q3-2013

BFSI BPO Service Provider Profile Compendium – Capital Markets BPO

Q3-2013

Insurance Business Process Outsourcing (BPO) Market – Annual Report

Q3-2013

BFSI BPO Service Provider Profile Landscape – Insurance BPO

Q4-2013

BFSI BPO Service Provider Profile Compendium – Insurance BPO

Q4-2013

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

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Additional research references

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 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 priorities of buyers, key investment themes, and future outlook for 2012, with regards to such large capital markets 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, and maps 20 capital markets AO providers on Everest Group’s 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 "Star Performers", 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 service provider profile compendium provides comprehensive and fact-based snapshots of 20 service providers featured on Everest Group Insurance AO PEAK 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: Everest Group Two Galleria Tower 13455 Noel Road, Suite 2100 Dallas, TX 75240 Copyright © 2013, Everest Global, Inc. EGR-2013-11-PD-0837

jimit.arora@everestgrp.com rajat.juneja@everestgrp.com kiranjeet.kaur@everestgrp.com pallavi.saxena@everestgrp.com Sivaram.s@everestgrp.com

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