Application Outsourcing in Insurance – Service Provider Profiles … · MindTree 120 Softtek 125...

Banking, Financial Services, and Insurance (BFSI) Outsourcing Report: December 2011 – Preview Deck

Application Outsourcing in Insurance – Service Provider Profiles Compendium

Copyright © 2011, Everest Global, Inc. EGR-2011-11-PD-0628


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Market Vista Global services tracking across functions, sourcing models, locations, and service providers – industry tracking reports also available

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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 18 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 18 service providers featured on the insurance 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 18 service providers: Insurance AO PEAK Leaders: Accenture, Cognizant, CSC, IBM GS, and TCS Insurance AO PEAK Major Contenders: Capgemini, CGI, HCL, HP ES, Infosys, L&T Infotech, MphasiS, and

Wipro Insurance AO PEAK Emerging Players: Atos, Hexaware, MindTree, Softtek, Syntel


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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 26

CSC 33

IBM Global Services 41

TCS 49

Section II: Profiles of insurance AO Major Contenders 56

Capgemini 57

CGI 62

HCL 68

Topic Page no.


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Table of contents (page 2 of 2)

Section II: Profiles of insurance AO Major Contenders (continued)

HP Enterprise Services 76

Infosys 82

L&T Infotech 88

MphasiS 95

Wipro 101

Section III: Profiles of insurance AO Emerging Players 108

Atos 109

Hexaware 115

MindTree 120

Softtek 125

Syntel 130

Appendix 137

Topic Page no.


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This Everest Group report is a compendium of detailed profiles of 18 service providers featured on the Everest Group insurance AO PEAK Matrix

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

Commercial banking (B2B2)

Banking

Investment banking Asset management Custody Fund administration

Capital markets

Life and pensions Property and casualty Others3

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 sub-vertical with a focus on large (TCV >US$25 million), annuity-based, multi-year (over three years) relationships

NOT EXHAUSTIVE Focus of report

1 Business-to-consumer relationships 2 Business-to-business relationships 3 Includes reinsurance, specialty insurance, etc.


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Banking

Capital markets

Insurance

Banking

Capital markets

Insurance

Banking

Capital markets

Insurance

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

Market Trends in IT Application Outsourcing Services

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

The report analyzes key trends in market size and growth, demand drivers, adoption and 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 service 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 capability matrix i.e.,

Performance | Experience | Ability | Knowledge (PEAK) Matrix for the specific sub-vertical

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

Service providers covered in the analysis 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 – Separate break down of activity for banking, capital markets, and

insurance, and by lines of business (for example, life and pensions, property and casualty)

– 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: – BFSI financial and operational metrics – 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 insurance 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

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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 | Insurance AO profile (page 1 of 5) Corporate and BFSI overview

U.S.

Europe

Latin America

APAC

ADM

Infrastructure Services

xx%

xx%

xx%

xx%

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

xx xx xx

FY 2008 FY 2009 FY 2010

xx xx xx

Revenue1 from BFSI vertical

Revenue1 from other verticals

Operating margin

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

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

Scale of BFSI sub verticals: Banking Capital markets Insurance

http://www.companyx.com/


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Scope Services all Lines of Business including life and pensions,

P&C, and other 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 | Insurance AO profile (page 2 of 5) Insurance AO capability assessment and market success

Domain investments Multiple proprietary solutions for insurance AO such as xxx,

yyy Multiple alliances in the insurance vertical: xxx, yyy, zzz More than xx products for the insurance industry

Headline assessment Company X is a leading player in insurance applications and has strong relationships with large U.S. and UK-based insurance firms

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

Transaction success Has over xx large active insurance AO contracts; added yy new

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

Measure of capability: Very high High Low Medium

Everest PEAK Matrix for insurance AO

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

Mar

ket s

ucce

ss

(Tra

nsac

tion

activ

ity)

Low High Delivery capability

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

Low

High

25th

per

cent

ile

25th percentile

75th percentile

75th

per

cent

ile

Company X

Leaders Major Contenders

Emerging Players

Life and pensions Other

Property and casualty

North America EMEA

Latin America APAC

Geographic scope: Insurance lines of business: High Medium Low Success dashboard1


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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

Insurance XYZ solution: Comprehensive administration suite for life insurance and annuities/pensions, P&C/general insurance, and group insurance

ABC tool: Manages the entire life cycle of documents for North American insurers

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

Key alliances (representative list)

Alliance partner Purpose of alliance

Partner A Joint marketing alliance for P&C solutions

Partner B Implementation partner for insurance solutions

Acquisitions (representative list)

Target Date Capabilities added

Target A 2009 IT services for the insurance vertical

Source: Everest Group (2011)


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1 Publicly announced insurance 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 Implementation of life insurance policy administration solution

Firm C Dec 2008 xx xx Maintenance and support of insurance administration systems

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

NOT EXHAUSTIVE


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India

Poland

Company X | Insurance AO profile (page 5 of 5) Key offshore AO delivery locations

Malaysia

Mexico

Brazil

China

Vietnam

Thailand

Czech Republic

Bulgaria Slovakia

Chile

Source: Everest Group (2011)

NOT EXHAUSTIVE

Confirmed location for insurance 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

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

January-2011

Release date

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

FS BPO service provider profiles compendium

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

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

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

Market trends for IT application services in Banking

June-2011

Goals of the research Published Upcoming Current

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 suppliers on Everest Group’s capability matrix

June-2011

Profiles of service providers capturing their IT AO capability in banking

July-2011

Topic Release date Goals of the research

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

Service provider landscape for IT application services in Banking

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

Insurance BPO – Rising demand, increasing competition

Market trends for IT application services in Insurance

Published Upcoming Current






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Profiles of service providers capturing their IT AO capability in insurance

Dec-2011

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

Dec-2011

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

Nov-2011

Topic Release date

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

Dec-2011

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







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

Dec-2011

Topic Release date

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

Q4-2011

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

Capital markets BPO overview





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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, Senior Research Analyst: Kiranjeet Kaur, Senior Research Analyst:

1. Application Outsourcing in Insurance – PEAK into the Evolving Service Provider Landscape (EGR-2011-11-R-0611): This report provides a comprehensive assessment of the service provider landscape in AO services for insurance, and maps 18 insurance AO providers on 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 insurance AO buyers and service providers

2. IT Application Outsourcing in Insurance – Trends and Future Outlook (EGR-2011-11-R-0594): This report provides an overview of the application outsourcing (AO) market for the insurance 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 regards to such large insurance AO deals

3. Insurance BPO – Rising Demand, Increasing Competition (EGR-2011-11-R-0584): Insurance BPO represents one of the most mature offerings within the BFSI BPO market. In this research, we analyze the third-party insurance BPO market across the Life & Pensions (L&P) and Property & Casualty (P&C) segments. We focus on buyer adoption trends in insurance BPO, market changes (size, growth, and potential), drivers and challenges to Insurance BPO, characteristics of solutions (scope of services, global sourcing, technology, and pricing models), and the assessment of insurance BPO service providers

4. 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 regards to such large banking AO transactions

[email protected] [email protected] [email protected] [email protected]

Everest Group Two Galleria Tower 13455 Noel Road, Suite 2100 Dallas, TX 75240

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

http://research.everestgrp.com/Product/11593











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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.

http://www.everestgrp.com/

http://research.everestgrp.com/


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