IT Outsourcing in Banking – Service Provider Profile Compendium 2013
IT Application Outsourcing (AO) in Insurance - Service Provider Profile Compendium
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Transcript of IT Application Outsourcing (AO) in Insurance - Service Provider Profile Compendium
Topic: Application Outsourcing (AO) in Insurance – Service Provider Profile Compendium
Copyright © 2013, Everest Global, Inc.EGR-2013-11-PD-0811
Banking, Financial Services, and Insurance (BFSI) Outsourcing Report: January 2013 – Preview Deck
Copyright © 2013, Everest Global, Inc.EGR-2013-11-PD-0811
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service providers – industry tracking reports also available
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Background and scope of the research
Background of the research The 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 insurance AO PEAK Matrix. Each service provider profile provides a comprehensive picture of their service suite, scale of operations, domain investments, and delivery locations
Scope of this reportThis report includes detailed profiles of the following 20 service providers1: Insurance AO PEAK Leaders: Accenture, Cognizant, CSC, IBM GS, and TCS Insurance AO PEAK Major Contenders: Capgemini, CGI, HCL, HPES, iGate, Infosys, L&T Infotech,
MindTree, MphasiS, Syntel, and Wipro Insurance AO PEAK Emerging Players: Hexaware, Mahindra Satyam, Softtek, and Unisys
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
The Everest Group insurance AO PEAK Matrix 11
Section I: Profiles of insurance AO Leaders 17
Accenture
18
Cognizant
25
CSC
33
IBM Global Services
41
TCS
49
Section II: Profiles of insurance AO Major Contenders 58
Capgemini
59
CGI
65
HCL Technologies
73
HPES
80
iGATE
87
Infosys
93
Topic Page no.
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Table of contents (page 2 of 2)
Section II: Profiles of insurance AO Major Contenders (continued)
L&T Infotech
100
Mindtree
107
MphasiS
113
Syntel
120
Wipro
126
Section III: Profiles of insurance AO Emerging Players 133
Hexaware
134
Mahindra Satyam
140
Softtek
146
Unisys
151
Appendix 156
Glossary of key terms
157
2012 BFSI research agenda
159
Additional BFSI research references
161
Topic Page no.
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This Everest Group report is a compendium of detailed profiles of 20 service providers featured on Everest Group’s Insurance AO PEAK Matrix
Retail financial services (B2C1) Retail banking Lending Cards Commercial banking (B2B2)
Banking
Investment banking Asset management Custody & fund administration Brokerage Others
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 insurance subvertical with a focus on large (TCV >US$25 million), annuity-based multi-year (more than three years) relationships
NOT EXHAUSTIVE
Focus of report
1 Business-to-consumer relationships2 Business-to-business relationships
Copyright © 2013, Everest Global, Inc.EGR-2013-11-PD-0811
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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
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 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
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
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 key stakeholders
Key movements in volumes/values of AO transactions, evolving trends, market dynamics, and emerging priorities of buyers in the last 12 months
Copyright © 2013, Everest Global, Inc.EGR-2013-11-PD-0811
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Everest Group’s BFSI research is based on two key sources of proprietary information
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 the 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, life insurance, property and casually (P&C), and reinsurance)
– Scope includes coverage of buyer’s geography as well as functional activities
– Global sourcing, including delivery locations and level of offshoring
1
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
2
Note: We continuously monitor the 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
Service providers assessed
Copyright © 2013, Everest Global, Inc.EGR-2013-11-PD-0811
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Service mixFY 2011; US$ million
Geographical mixFY 2011; US$ million
100% = xx 100% = xx
Company descriptionCompany 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: XX XX
Website: www.companya.com
Company X | Insurance AO profile (page 1 of 5)
Corporate and BFSI overview
U.S.
Europe
Latin America
APACADM
Infrastructure services
BPO
Consulting
Key financial parametersRevenue in US$ million
Services offered for BFSI verticalApplication 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 clientsBank A, Bank B, Financial Services Firm C, Insurer D, Trading Services 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 <US$100 million
Revenue1 from BFSI vertical
Revenue1 from other verticals
Operating margin
1 FY ends on December 31Source: Everest Group (2013)
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Company X | Insurance AO profile (page 2 of 5)
Insurance AO capability assessment and market success
Scope Offers solutions in the areas of XX, XX, XX Covers all insurance subverticals with major focus on XX Equal mix of revenue from large and small deals in insurance AO
Delivery footprint Over XX delivery centers across multiple countries such as XX,
XX, XX, XX, XX for insurance AO services High degree of offshore leverage with over XX% resources employed at
low cost locations, especially India
Transaction success Over XX insurance AO clients, including global accounts, which are
served in multiple geographies Over XX large active insurance AO deals with average TCV of US$XX
million and average contract duration of XX years Major insurance 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 insurance vertical: XX
Headline assessmentTargeted solutions for insurance, combined with strong revenue growth and client wins, enabled Company A to further strengthen its leadership position in the insurance AO marketplace
Scale Derives XX% of its total revenue from the BFSI vertical, with
~US$XX million from insurance AO services Registered a strong growth of XX% in its insurance AO revenue in 2011 Over XX AO FTEs engaged in serving North American insurance clients
Life and pensions Other
Property and casualty
North America EMEA
Latin America APAC
Geographic scopeInsurance lines of business
High Medium LowSuccess dashboard1
Measure of capability: Very high High LowMedium
Everest Group PEAK Matrix for insurance AO
High
LowLow High
Emerging Players
Leaders
Delivery capability
Major Contenders
Mar
ket
succ
ess
Company A
1 Transaction success for large-sized deals; assessment relative across service providersSource: Everest Group (2013)
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Proprietary solutions (representative list)
Line of Business Solutions
Overall BFSI Data management tools: tools for data cleansing, data generation, data migration solutions, and data-masking tool
‘AAA’: financial services CRM solution
Insurance “XYZ”: Policy software for P&C insurance carriers, which includes modules such as policy administration, rating, rules, product definition and configuration as well as product templates
“ABC”: Software to manage core business functions, including policy processing, billing, and claims
Company X | Insurance AO profile (page 3 of 5)
AO domain investments
Key alliances (representative list)
Alliance partner Purpose of alliance
Partner A Implementation partner for P&C suite
Partner B Co-development of software for claims
Acquisitions (representative list)
Target Date Capabilities added
Target A 2009 Software testing capabilities for insurance industry
Source: Everest Group (2013)
Copyright © 2013, Everest Global, Inc.EGR-2013-11-PD-0811
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Recent transaction activity1
Buyer’s name Announcement dateTCV estimate (US$ 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 Maintenance and support of insurance administration systems
Firm C Dec 2008 XX XX Implementation of ‘ABC’ life insurance solution; maintenance services
Company X | Insurance AO profile (page 4 of 5)
Insurance AO transactions activity
NOT EXHAUSTIVE
1 Publicly-announced insurance AO transactions during 2009 to 2012Source: Everest Group (2013)
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Company X | Insurance 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 insurance AO 500-1,000 AO FTEs
>5,000 AO FTEs 100-500 AO FTEs
1,000-5,000 AO FTEs <100 AO FTEs
Source: Everest Group (2013)
Copyright © 2013, Everest Global, Inc.EGR-2013-11-PD-0811
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BFSI Outsourcing research agenda (page 1 of 2)
Topic Release date
Published Current
June-2012IT Application Outsourcing (AO) in Banking – Trends and Future Outlook
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
October 2012
Applications Outsourcing in Banking – Service Provider Profiles Compendium
October 2012Global Sourcing Trends in the U.S. Mortgage Industry
October 2012
A PEAK into the Leaders, Major Contenders, and Emerging Players of the Banking BPO Market
October 2012Webinar Deck: PEAK into the BFSI Outsourcing Market
June-2012Report Card for the Indian IT Majors – Pecking Order Analysis of the "WITCH" Group
July-2012BFS BPO Annual Report 2012 – Strong Growth Post the Downturn
May-2012Trade Reconciliations Business Process Outsourcing (BPO)
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
Copyright © 2013, Everest Global, Inc.EGR-2013-11-PD-0811
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BFSI Outsourcing research agenda (page 2 of 2)
Topic
Published Current
November-2012Banking BPO Service Provider Profiles Compendium
November-2012A PEAK into the Leaders, Major Contenders, and Emerging Players of Capital Markets BPO
Release date
Q1-2013IT Application Services in Capital Markets – Service Provider Profiles Compendium 2012
December 2012Service Provider Landscape for IT application services in Capital Markets – PEAK report 2012
December-2012A PEAK into the Leaders, Major Contenders, and Emerging Players of Insurance BPO
December 2012Capital Markets BPO Service Provider Profile Compendium
January-2013IT Application Outsourcing (AO) in Insurance – Service Provider Profiles Compendium
January 2013BFSI BPO Service Provider Profiles Compendium – Insurance BPO
Copyright © 2013, Everest Global, Inc.EGR-2013-11-PD-0811
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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 Insurance – Navigating Business Challenges through Technology (EGR-2012-11-R-0744): This report 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. The focus in 2012 is also to capture the key movements in volumes/values of insurance-AO transactions, evolving trends, market dynamics and emerging priorities of buyers in the last 12 months
2. Application Outsourcing (AO) in Insurance: PEAK Provider Landscape - Policies for Growth and Differentiation (EGR-2012-11-R-0772): This report provides a comprehensive assessment of the service provider landscape in AO services for insurance and maps them on Everest Group’s PEAK Matrix. It also benchmarks the scale, scope, domain investments, and delivery footprint of each provider’s insurance AO practice. Finally, the 2012 insurance 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 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
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:
[email protected] [email protected]@[email protected]
Additional research references
Phone: +1-214-451-3110Email: [email protected]
Everest GroupTwo Galleria Tower13455 Noel Road, Suite 2100Dallas, TX 75240
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