Everest Group’s PEAK Matrix for Banking AO Service · PDF filemanagement and insurance,...

Copyright © 2016 Everest Global, Inc.

This document has been licensed for exclusive use and distribution by TCS

Everest Group’s PEAK MatrixTM for Insurance AO Service

Providers

Focus on TCS

January 2016

2Copyright © 2016, Everest Global, Inc.

Background and scope of the research

Background of the research

The insurance industry is grappling with increasing customer expectations, eroding margins & downward pricing pressure, an

uncertain economy, and increasing regulatory requirements. To address these challenges, insurance firms are investing in

technology solutions and adopting disruptive business models to enhance customer experience, contain cost, improve

profitability, and avoid penalties

As the insurance industry is evolving with new business priorities, IT service providers are looking to capitalize on the

opportunity by tailoring their offerings with next-generation technologies, developing in-house solution

frameworks/accelerators, collaborating with buyers to invest in innovation, setting up labs and CoEs to demonstrate and

evaluate proof-of-concepts, as well as forming alliances with leading insurance-specific product and platform vendors

In this research, we present detailed profiles of 21 service providers featured on the Insurance Application Outsourcing (AO)

PEAK MatrixTM. Each service provider profile captures a comprehensive picture of their service suite, scale of operations,

domain investments, and delivery locations

This document focuses on TCS’ insurance AO experience and includes:

Overview of the insurance AO service provider landscape

Everest Group’s assessment of TCS’ delivery capability and market success on PEAK Matrix

Detailed insurance AO profile for TCS


This Everest Group report is a compendium of detailed

profiles of 21 service providers featured on Everest Group’s

global insurance AO PEAK Matrix

Retail financial services (B2C1)

Retail banking

Lending

Cards

Commercial banking (B2B2)

Banking

Investment banking

Asset management

Custody and funds administration

Brokerage

Others

Capital markets

Life and pensions

Property and casualty

Others3

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

1 Business-to-consumer relationships

2 Business-to-business relationships

3 Includes other insurance functions such as takaful and reinsurance

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.).

NOT EXHAUSTIVE


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, investment banking, asset management,

custody, fund administration, and brokerage)

– 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, CSC, Hexaware, HP, 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 insurance buyers

2 Capgemini acquired IGATE in April 2015; the combined business unit has been analyzed as part of this assessment

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 analysis1

2

+


TCS is positioned as a Leader on Everest Group PEAK

Matrix for global insurance AO relationships - 2015

Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for large insurance 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 insurance sector (life & pensions, property

& casualty, reinsurance, etc.); excludes banking, capital markets, and healthcare

Note: Assessment for Accenture, CSC, Hexaware, HP, 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 insurance buyers

Source: Everest Group (2015)

High

75

thp

erc

en

tile

75th percentile

25th percentile High

Insurance AO delivery capability

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

Low

Leaders

25

thp

erc

en

tile

Low

Mark

et

su

ccess

Major Contenders

Aspirants

AccentureIBM

Infosys

HCL

Wipro

CGICSC

HP

MphasisTech Mahindra

Mindtree

Zensar

Syntel

Hexaware

Birlasoft

Dell Services

CognizantTCS

Capgemini + IGATE

L&T Infotech

Virtusa


6,582 7,675 9,1804,986 5,767 6,274

FY 2013 FY 2014 FY 2015

27.0%

11,56813,442 15,454

29.1% 26.9%

TCS | Insurance ITO profile (page 1 of 11)

Corporate and BFSI overview

Services offered for the BFSI vertical: IT ADM/infrastructure

services, BPO, consulting services, CRM solutions for wealth

management and insurance, services for cards, payments, risk

management & regulatory compliance, digital and data services, and

TCS BaNCS (solutions for core banking, corporate actions, channels,

custody, payments, core life & annuity, and property & casualty

insurance platform)

Major BFSI clients: ABN AMRO, Allianz Life, Aviva, AXA UK, BNP

Paribas, Citigroup, Friends Life Management Services Limited, RBS,

Bank of America, SBI, Standard Life, and JPMC

Scale of BFSI subverticals

Banking Capital markets Insurance

>US$500 million US$100-500 million <US$100 millionCompany description: Tata Consultancy Services (TCS) offers a range of IT

and consultancy services across various industries. TCS customers in the BFSI

vertical include global/universal banks, regional/local banks, market

infrastructure providers, insurance/reinsurance companies, brokerages, and

investment banks. TCS offerings include digital banking, core banking,

payments, corporate actions, custody, governance, risk management,

compliance, and analytics.

Headquarters: Mumbai, India

Website: www.tcs.com

Revenue1 from the BFSI vertical

Revenue1 from other verticals

Operating margin

Key financial parameters

Revenue in US$ million

Service mix

FY 2015; US$ million

Geographical mix

FY 2015; US$ million

100% = 15,454 100% = 15,454

North

America

Continental

Europe

India

ADM

Other APAC

BPO

Assurance

services

Enterprise solutions

including BI

Infrastructure

services

Engineering &

industrial services

(4.5%) Asset

leverage

solutions

(2.5%)

UK

Latin

America (2.10%)

MEA

(2%)

51.90%

16.7%

11.6%

9.3%

6%

40.2%

13.8%15.6%

11.7%

8.5%

Consulting

(3%)

1 FY ends on March 31; total may have minor variation owing to rounding-off adjustments


http://www.tcs.com/


PEAK Matrix dimensions assessment

Dimension Rating

Market success

Scale

Scope

Domain investments

Delivery footprint

Innovation

Buyer satisfaction


Insurance AO capability assessment and market success

Capability dashboard

Geographic scopeInsurance lines of business

Life & pensions Property & casualty North America EMEA

Others Latin America APAC

Social Cloud

Established: Mature capabilities with high adoption

Emerging: Nascent capabilities with limited adoption

Credible: Strong capabilities

with rising adoption

Mobility AnalyticsKey technology spend areas

Strengths

Extensive breadth and depth of insurance expertise across lines of business, geographies, and technologies with a

global delivery presence

Large client base, with long-term relationships with global insurance and reinsurance firms

Broad portfolio of products/platforms for the insurance industry that includes a comprehensive insurance platform with

customized modules across LoBs (TCS BanCS)

Strong focus on innovation and leverage of digital themes to launch targeted solutions; portfolio augmented by

multiple solutions and accelerators launched recently in the areas of predictive analytics, telematics, risk assessment,

connected ecosystem, and agent/broker network empowerment

Deep domain expertise, ability to source the right mix and quality of resources, agile delivery model, and strong

leadership are some of the key strengths cited by clients

Areas of improvement

Clients cite efficient collaboration between onshore and offshore leads as lagging that of global majors

Needs to work on demonstrating industry thought leadership as well as increase its focus on adopting a consultative

approach, especially while working on greenfield engagements

Risk & regulatory compliance

LowHigh

Market share by active ACV (Est.) Market share by number of contracts (Est.)

>15% >15%


Everest Group PEAK Matrix for Insurance AO

Leaders

Major Contenders

Star Performers

High

75

thp

erc

en

tile

75th percentile

25th percentile High

Insurance AO delivery capability

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

Low

Leaders

25

thp

erc

en

tile

Low

Mark

et

su

ccess

Major Contenders

Aspirants

AccentureIBM

Infosys

HCL

Wipro

CGI

CSCHP

Mphasis

Tech Mahindra

MindtreeZensar

Syntel

Hexaware

Birlasoft

Dell Services

Cognizant

TCS

Capgemini + IGATE

Virtusa

L&T Infotech

Aspirants


Proprietary solutions (representative list)

Line of business Solutions

Insurance Proprietary solutions

Connected Auto: Enables insurers to transform customer experience as well as gather data for accurately

pricing risk by tapping into the advancements of the connected car ecosystem

Contact Centre Modernization Using Salesforce: Helps insurers to initiate transformation towards a

consolidated desktop

Connected Wellness: A platform solution that empowers and encourages individuals to adopt, improve, and

maintain a healthy lifestyle by facilitating continuous engagement. It harmonizes the competitive, crowded

world of wearables, devices, and apps and enables collaboration tailored to the needs of the individual

Data Strategy for Insurance: Enables insurers to leverage data as a strategic asset in driving business

growth and achieving operational efficiencies.

Digital Marketing Solution: Integrates data with marketing and channel development, in order to improve

digital customer experience, productivity, and Return on Marketing Investment (ROMI)

Forms Modernization: Enables insurers to derive more from their legacy modernization initiatives, in line

with the legacy modernization strategies

Insurance API platform: A cloud-based platform to integrate digital channels with enterprise IT systems. The

platform provides a developer portal which acts as a vital link for internal and third – party developers to

access and consume the APIs provided by insurance carriers

Integrated Multi-Channel Design for Insurers: Uses TCS proprietary Dynamic UI engine to integrate various

media channels to target customers providing benefits such as better management of quote for policy

conversion and customer intimacy. The solution enables interaction with existing/prospective customers on

multiple channels such as mobile, social media, retail location, website, and promotional event

Internet of Things: End-to-end IoT consulting, solutions, and delivery services, providing customized,

business –oriented technology products and offerings, enabling enterprises to gain a competitive edge in

the IoT ecosystem


AO domain investments



Proprietary solutions (representative list) (continued)


Insurance (continued) Proprietary solutions

IT IS Managed Services: Offers flexibility to focus on core business rather than handling day-to-day

operations and technology issues

Rules Extraction Services: Business rules repository to manage, govern, and analyze the insurance

business rules

TCS BaNCS: A comprehensive web-based, flexible, and functionally rich solution catering to end-to end

insurance operations starting from product configuration, new business, underwriting, policy administration,

claims administration, intermediary, and commission management. Modules include:

– Product Workbench: Helps to configure and personalize product offerings through a guided and

simulated approach, which helps in bringing out products faster to the market

– Extended Warranty: Helps in increasing efficiency of agreements and claims processing for extended

warranty providers

– Workers' Compensation: Facilitates optimized cost of operations, better integration with partners, and

comes with an agents’ portal

– Property and Casualty: A flexible platform for P&C insurers catering to different insurance processing

needs such as quotations, policy management, and claims

– Life, Annuity, and Pensions: An end-to-end policy administration solution suite that supports customer

management, product definition, new business, underwriting, quote, payouts, insurance accounting, and

reinsurance

– Reinsurance: Offered for assumed and ceded reinsurance in the P&C and life domains

– Agent's workbench: An easy-to-use, portable solution for agents that facilitates all customer

management and new business functions







Insurance (continued) Proprietary solutions

TCS digital insurance agent solution: A tablet-based application available both in native iOS and in hybrid

version (powered by PhoneGap framework). It operationalizes all the day-to-day activities of insurance

agents on a mobile tablet, enabling them to be more effective at both sales and customer service

TCS digital insurance telematics analytics and insights solution: A big data-based solution to gather and

analyze the mass of telematics data (petabytes) and develop business insights from the same

TCS digital insurance virtual advisor solution: A humanized computer interface that aims to provide self-

service to the web user. The solution automatically senses user’s need for assistance on a web page and

pops up an animated character prompting help. Users can interact with the animated character either by

speaking to the character or by using a web chat

TCS Varcy: A D2C Retirement platform combined with Pega software, that delivers an integrated and

consistent view of retirement planning, as well as enables insurers to better support customer needs – such

as customer engagement, service, propositions, and underwriting

Virtual retirement counselor: A digital pre- / post-retirement proposition to encourage saving, increase

customer advocacy, and reduce operating cost







Insurance (continued) Frameworks

iBIDS: Business intelligence and decision support framework built on TCS’ proprietary BIDS framework

SynQuanOnto: Collaborative domain knowledge framework for insurance

Solution accelerators

720 degree customer view: Offers a unified view of customer by integrating internal data and leveraging big

data analytics

Guidewire Integration: TCS’s Transformation Delivery Group (TDG) has launched a Guidewire CoE, which

is engaged in developing solutions for supporting insurance companies in their policy administration

transformation

Predictive Underwriting Framework for Life Insurance: A framework for using predictive analytics in complex

scenarios to help underwriters get insights into factors – such as claim history, previous decisions, and

social information – for making analytical underwriting decisions

Rite Rate: A tool to test premium calculations and rate changes

Telematics-based underwriting: Helps in collating and drawing analytical inferences for underwriting using

telematics and traditional factors for auto insurance

Text Analytics for UW workbench: Helps to get key information from loss report, without needing the

underwriter to go through the whole document

TCS NextGen Underwriting Workbench: Caters to risk underwriting for commercial property, general

liability, and commercial package lines of business





Acquisitions (representative list)

Target Date Capabilities added

IT Frontier Corporation

(ITF) – a Mitsubishi

Corporation subsidiary

2014 Strengthened capabilities to service a number of leading Japanese corporations across

financial services, insurance, retail, hi-tech, and manufacturing verticals.

ALTI SA (France) 2013 Strengthened capabilities to service customers in France and other regions in Europe.

Citigroup Global Services

Limited

2008 Enhanced ability to offer an end-to-end, domain-led third-party solution for business

operations to TCS’ large financial services clients. The acquisition also enables TCS to

create platforms for the future and integrate TCS’ strong domain expertise in

operations, along with its suite of products for the financial services sector.

TKS-Teknosoft

(Switzerland)

2006 Expansion of TCS’ portfolio of products for the banking and financial services market.

Comicrom (Chile) 2005 Enhancement of BPO capabilities for the BFSI space, thus, enabling TCS to offer

integrated solutions.

Phoenix Global Solutions

(U.S.)

2004 IT, BPO, and customer care services for the insurance industry.







Key alliances (representative list)

Alliance partner Purpose of alliance

Adobe Go-to-market strategy for the insurance industry in North America.

Informatica Joint service model including pre-sales and post-sales services.

Microsoft System integration and implementation partner.

Pega Strengthen TCS’ BPM practice and provide BPM solutions and services.

Pitney Bowes Partnership in consulting and implementing customer communication technologies and solutions.

Salesforce.com Premier consulting and implementation partner.

SAS Consulting and IT implementation partner.

TIBCO Mutual support for marketing, sales, and technology enhancement initiatives.

(Several) General enterprise-level alliances with vendors such as Adobe, Attensity, Attivio, Bian, BlinkMobile, Boxtone,

Checkmarx, Cisco, Clarabridge, EMC Isilon, HP, IBM, Liferay, Microsoft, Microstrategy, Neospeech, Oracle,

Pentaho, Perfecto, Perpetuuiti, SAP, Seclore, Sun, Teradata, Testplant, Ymedia Labs, Veryday, and for

solutions across BFSI and other verticals.




Insurance ITO transactions activityNOT EXHAUSTIVE

Recent transaction activity1

Buyer’s name Announcement date

TCV estimate

(US$ million)

Duration

(years) AO/IO/both Contract details and services

A North American leading

P&C insurer

January 2015 N/A N/A AO Modernization, rationalization, and

simplification of application portfolio

supporting several business capabilities.

Nedgroup Insurance

Company

November 2014 N/A N/A AO Implementation of TCS BaNCS insurance

for policy administration system.

Friends Life August 2014 N/A N/A AO Configuration and implementation of TCS

BaNCS to deliver seamless service for

customers across Asia Pacific and Middle

East.

A North American

insurance company

July 2014 N/A N/A AO Support and enhancement of core IT

applications.

A leading global insurance

major

July 2014 N/A N/A AO To develop customer-centric sales

applications using digital technologies.

Reaal NV June 2014 N/A 5 AO Modernization of mainframe applications to

build a scalable technology platform for the

company’s life insurance portfolio.

Tryg December 2013 N/A 4 AO Infrastructure services including Financial

Service Agency-compliant private cloud .

1 Publicly-announced insurance ITO transactions during 2012-2015




Insurance ITO transactions activityNOT EXHAUSTIVE

Recent transaction activity1 (continued)

Buyer’s name Announcement date

TCV estimate

(US$ million)

Duration

(years) AO/IO/both Contract details and services

A British multinational

insurance company

April 2013 N/A N/A AO Application development, maintenance,

and assurance services across multiple

lines of business.

Friends Life March 2012 2,200 15 Both Policy migration from the company's legacy

mainframe systems onto Diligenta's in-

house and proprietary database, and

content management system, BaNCS.

Nedgroup Insurance

Company

February 2012 N/A N/A AO Implementation of TCS BaNCS platform to

serve as the new policy administration

system.

1 Publicly-announced insurance ITO transactions during 2012-2015



India

Philippines

China

Thailand

Indonesia

Singapore

Malaysia

South Africa

Hungary

Mexico

Brazil

Chile

Peru

Ecuador

Colombia

Uruguay

Argentina

NOT EXHAUSTIVE

Confirmed location for

insurance AO

500-1,000 AO FTEs

>5,000 AO FTEs

100-500 AO FTEs

1,000-5,000 AO FTEs

<100 AO FTEs

1 FTE strength represents the total number of AO FTEs across the BFSI vertical for that particular country



Key BFSI offshore AO delivery locations


Appendix


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


capability

4th quartile performance


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


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

LeadersMajor 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


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)


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

sustained value. Our insight and guidance empowers 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 and research.everestgrp.com.

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Everest Group’s PEAK Matrix for Banking AO Service · PDF filemanagement and insurance,...

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