Everest Group PEAK Matrix for Banking BPO Focus on TCS · PDF fileand comparative assessment...
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Everest Group PEAK Matrix for Banking BPO Focus on TCS December 2012 Copyright © 2012, Everest Global, Inc.
Transcript of Everest Group PEAK Matrix for Banking BPO Focus on TCS · PDF fileand comparative assessment...
Everest Group PEAK Matrix for Banking BPO
Focus on TCS
December 2012
Copyright © 2012, Everest Global, Inc.
Proprietary & Confidential. © 2012, Everest Global, Inc. 2
Introduction and scope
Everest Group recently released its report titled “A PEAK into the Leaders, Major Contenders, and Emerging
Players of the Banking BPO market”. This report analyzes the changing dynamics of the Banking BPO
landscape and assesses service providers across several key dimensions.
As a part of this report, Everest Group updated its classification of 10+ service providers on the Everest Group
Performance | Experience | Ability | Knowledge (PEAK) Matrix for Banking BPO into Leaders, Major
Contenders, and Emerging Players. The PEAK Matrix is a framework that provides an objective, data-driven,
and comparative assessment of Banking BPO service providers based on their absolute market success and
delivery capability.
Based on the analysis, TCS emerged as a Leader. This document focuses on TCS’s Banking BPO experience
and capabilities and includes:
TCS’s position on the Banking BPO PEAK Matrix
Detailed Banking BPO profile of TCS
Buyers can use the PEAK Matrix to identify and evaluate different service providers. It helps them understand
the service providers’ relative strengths and gaps. However, it is also important to note that while the PEAK
Matrix is a useful starting point, the results from the assessment may not be directly prescriptive for each
buyer. Buyers will have to consider their unique situation and requirements, and match them against service
provider capability for an ideal fit.
Proprietary & Confidential. © 2012, Everest Global, Inc. 3
Everest Group’s definition of BFSI includes
the following three segments
1 Business-to-consumer relationships
2 Business-to-business relationships
Retail financial services
(B2C1)
– Retail banking
– Lending
– Cards
Commercial banking (B2B2)
Banking
Investment banking
Asset management
Custody & fund
administration
Brokerage
Capital markets
Life & pensions
Property & casualty
Insurance
Banking, Financial Services,
and Insurance (BFSI)
Focus of this document
Note: This document relates to vertical-specific BPO within banking space. The document does not include
coverage of horizontal business processes such as F&A, HR, procurement, and contact centers
Copyright © 2012, Everest Global, Inc.
EGR-2012-X-R-XXXX 4
Everest Group PEAK Matrix – 2012 Banking BPO
standing
Performance | Experience | Ability | Knowledge
Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for Banking BPO1
Ma
rke
t s
ucc
es
s
25
th p
erc
en
tile
High
Low
Banking BPO delivery capability
(Scale, scope, technology, and delivery footprint)
25th percentile
75th percentile
Low High
75
th p
erc
en
tile
Leaders
Major Contenders
Emerging Players
1 Service providers scored using Everest Group’s proprietary scoring methodology described in the Appendix
Source: Everest Group (2012)
TCS Genpact
Serco
Infosys
Wipro
Cognizant
iGate EXL Services
WNS
HCL Syntel
Mahindra Satyam
Leaders
Major Contenders
Emerging Players
Copyright © 2012, Everest Global, Inc.
EGR-2012-X-R-XXXX 5
TCS (page 1 of 5)
Banking BPO overview
Recent acquisitions and partnerships
2012 – TCS and Mitsubishi form joint venture to
establish an IT, BPO, and infrastructure services
delivery center in Japan
2012 – TCS BaNCS signed an agreement with
Savvis, a CenturyLink company and global leader in
cloud infrastructure for hosting and cloud-enabled
core banking, payments, and compliance
Safeact licensing for on-shored mortgage originations
Recent developments
FORETM – Transformation model for business
Domain Academy for training resources on domain
and process skills e.g., mortgages and trade
Suite of services
Commercial/wholesale banking
Commercial real estate
Consumer lending
Retail banking and investments / private banking
Cards
Risk management (fraud and AML)
Payment
2009 2010 2011
Revenue (US$ million) 330 390 440
Number of FTEs for
industry services 11,000 12,000 13,200
Number of FTEs for
analytics / SG&A
services
2,300 2,600 2,600
Number of clients 3 6 11
Company overview
TCS offers a range of information technology and consultancy
services. The company’s offerings include application
development, infrastructure management, engineering services,
and BPO services, including analytics & insights. TCS also offers
platform solutions for specific business functions such as the
BaNCS application for banking, payments, reconciliations,
insurance, and finance & accounting
Key leaders
Abid Ali, Global Head, BPO Services, TCS
Dinanath Kholkar, Head – BFS & INS, BPO Services, TCS
R.Ramakrishnan, Head – Banking, BPO Services, TCS
Headquarter: Mumbai, India
Website: www.tcs.com
Source: Everest Group (2012)
Copyright © 2012, Everest Global, Inc.
EGR-2012-X-R-XXXX 6
Cincinnati
Guadalajara
Quito
Santiago
Budapest
Dalian Gurgaon
Mumbai Bangalore Chennai Manila
Kolkata
Midland
TCS (page 2 of 5)
Banking BPO location landscape
Source: Everest Group (2012)
Copyright © 2012, Everest Global, Inc.
EGR-2012-X-R-XXXX 7
Split of FTEs by location
FTEs in numbers
Banking BPO revenue mix by geography
Revenue in US$ million
Banking BPO FTE mix by segment
FTEs in numbers
23%
23%
20%
17%
17%
100% = 15,800
TCS (page 3 of 5)
Banking BPO – capabilities and key clients
Key banking engagements
Client name LoB Region Year since client
Citi Retail banking – consumer lending, account services, cards,
investments, risk management (fraud), recon, bancassurance
commercial banking treasury, payment, trade finance, and
investigations
Global 1998
Banco Pichincha Retail banking, investments, and payments South America 2007
Retail
Commercial
banking
86%
12% 2%
Offshore
40%
26%
17%
14% 3%
North
America Europe
Credit cards
Lending
APAC
South
America
Middle East & Africa
Nearshore
Onshore
100% = 15,800 100% = 440
Analytics &
SG&A
Source: Everest Group (2012)
Copyright © 2012, Everest Global, Inc.
EGR-2012-X-R-XXXX 8
Tools
TCS BαNCS Financial Services
Product Reconciliation platform Collections platform (BPaaS)
Solution
description
Designed to run as a scalable and
robust service, fully integrated with
existing business models, enterprise
infrastructures, and technology
architectures
Offers the ability to examine and
reengineer workflows, discover the
root causes of transaction failures,
and take corrective action to reduce
costs and improve match rates
A comprehensive solution for
the debt collections life cycle
(pre-delinquent to post charge
off / litigation)
Year launched 2006 2008 2011
LoB Across BFSI Across BFSI Retail banking and cards
Number of
clients
>300 (also being sold across industry
beyond BPO engagements)
3 2
TCS (page 4 of 5)
Banking BPO technology tools/solutions
Copyright © 2012, Everest Global, Inc.
EGR-2012-X-R-XXXX 9
TCS (page 5 of 5)
Competitive position and assessment
Market share by region
North
America Europe
South
America Asia Pacific
Middle East
& Africa
21% 15% 57% 31% 30%
Market share by banking BPO line of business
Credit cards Retail Lending
Commercial
banking
27% 27% 12% 63%
Overall market share
By number of
contracts By FTEs By revenue
7% 25% 23%
Delivery capability assessment
Assessment
dimension Rating Remarks
Scale Largest scale in terms of revenue and
FTEs but lower number of clients
Scope Strong presence across geographies and
across LoBs
Technology capability End-to-end platform offering and high
technology capability
Delivery footprint Strong offshore and nearshore presence
Overall remarks
TCS is a Leader in Banking BPO with strong capability in technology
(derived from its IT heritage), strong presence across most
geographies, and high leverage of global sourcing
Covers all lines of business well, with highest traction in commercial
banking, but significant market share across others as well
With a few but big contracts in hand, TCS manages to hold almost a
quarter of the market share in terms of revenue
TCS is expanding to new buyer markets beyond the traditional –
Japan and Asia Pacific are the center of its efforts in new geographies
In order to retain the position of a Leader, however, continued focus is
required to increase the number of clients and broaden the client base
High Low
TCS is a Leader on Everest Group PEAK Matrix for banking BPO
Source: Everest Group (2012)
Mark
et
su
ccess
High
Low
Banking BPO delivery capability Low High
TCS
Leaders
Major Contenders
Emerging Players
Copyright © 2012, Everest Global, Inc. 10
Appendix
Copyright © 2012, Everest Global, Inc. 11
Top quartile performance
across market success
and capability
2nd or 3rd quartile
performance across market
success and capability
4th quartile performance
across market success
and capability
High
Low
25
th p
erc
en
tile
75
th p
erc
en
tile
75th percentile
Ma
rke
t s
ucc
es
s
Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix
Emerging Players
Leaders
Major Contenders
Banking BPO delivery capability
(Scale, scope, technology, and delivery footprint)
Low High 25th percentile
Everest Group classifies banking BPO service providers into Leaders,
Major Contenders, and Emerging Players on the Everest Group
Performance | Experience | Ability | Knowledge (PEAK) Matrix
Copyright © 2012, Everest Global, Inc. 12
Measures the scope of
services provided
across segments,
processes, industries,
geographies, etc.
Measures the capability
and investment in tools
and technologies that
help deliver better
services
Measures the delivery
footprint and the global
sourcing mix through
delivery footprint across
regions and offshore
delivery capability
Measures success
achieved in the market.
Captured through Banking
BPO revenue
Measures ability to deliver services successfully.
Captured through four subdimensions
Measures the scale of
operations (overall
company revenue,
Banking BPO revenue,
number of FTEs, etc.)
Scale Scope Technology capability Delivery footprint
Emerging Players
Leaders
Major Contenders
Ma
rke
t s
ucc
es
s
Delivery capability
Service providers are positioned on the PEAK Matrix
based on evaluation across two key dimensions
Source: Everest Group (2012)
Copyright © 2012, Everest Global, Inc. 13
FAQs (page 1 of 2)
Does the PEAK Matrix assessment incorporate any subjective criteria?
– Everest Group’s PEAK Matrix assessment adopts an objective and fact-based approach (leveraging service
provider RFIs and 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 “Emerging Player” 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
services area. 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 itself a favorable recognition
What other aspects of PEAK Matrix assessment are relevant to buyers and providers besides the “PEAK
Matrix position”?
– PEAK Matrix position is only one aspect of Everest Group’s overall assessment. In addition to assigning a
“Leader”, “Major Contender” or “Emerging Player” 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 for buyers in selecting particular providers for their specific requirements. It also
helps providers showcase their strengths in specific areas
What are the incentives for buyers and providers to participate/provide input to 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
Copyright © 2012, Everest Global, Inc. 14
FAQs (page 2 of 2)
What is the process for a service provider to leverage their PEAK Matrix positioning status ?
– Providers can use their PEAK positioning rating in multiple ways including:
Issue a press release declaring their positioning/rating
Customized PEAK profile for circulation (with clients, prospects, etc.)
Quotes from Everest Group analysts could be disseminated to the media
Leverage PEAK 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
Copyright © 2012, Everest Global, Inc. 15
Everest Group
Leading clients from insight to action
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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