Copyright © 2017 Everest Global, Inc.

This document has been licensed for exclusive use and distribution by DXC Technology

EGR-2017-11-E-2363

Everest Group PEAK Matrix™ for Life & Pensions (L&P)

Insurance AO Service Providers

Focus on DXC Technology

October 2017

2Copyright © 2017, Everest Global, Inc.

EGR-2017-11-E-2363

Background and scope of the research

Background of the research

The insurance sector is operating in an increasingly challenging macroeconomic and financial environment, characterized by weak global

demand, low inflation rates, very low to partially negative interest rates, increasing regulatory compliance demands, and bursts of financial

market volatility. Pervasiveness of digital technologies, rise of non-traditional competitors, and growing popularity of intermediated distribution

networks is challenging the long-established traditional business model of insurers, and is probing them to innovate in order to respond to the

evolving customer demands

With the insurers establishing efficient/agile operations and increasingly adopting digital technology themes, IT service providers are pivoting

their portfolio around next-generation technologies, as well as investing in strategic alliances with leading product/platform providers to

strengthen their value proposition. As insurers evolve their product development ideology from a “one-size-fits-all” approach to an “on-demand

hyper-personalized” approach, service providers that can indulge in more consulting-led problem solving and partner with these enterprises on

their business transformation journey, will see more success in the marketplace

In this research, we analyze the capabilities of 19 leading AO service providers, specific to the global life & pensions (L&P) insurance sector.

These providers were mapped on the Everest Group PEAK Matrix, which is a composite index of a range of distinct metrics related to each

provider’s capability and market success. In this report, we focus on:

– The landscape of service providers in L&P insurance AO sector

– Assessment of the service providers on a number of capability-related dimensions

– Characteristics of Leaders, Major Contenders, and Aspirants on the Everest Group insurance AO PEAK MatrixTM

– Implications for insurance buyers and service providers

This document focuses on DXC Technology’s life & pensions (L&P) insurance AO experience and includes:

Overview of the L&P insurance AO service provider landscape

Everest Group’s assessment of DXC Technology’s delivery capability and market success on the PEAK Matrix

Detailed insurance AO profile for DXC Technology

3Copyright © 2017, Everest Global, Inc.

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This report examines the service provider landscape for large

(TCV > US$25 million), annuity-based, multi-year (>3 years)

application services relationships in the insurance sector

1 Business-to-consumer relationships

2 Business-to-business relationships

3 Includes other capital markets functions such as structured finance, treasury, FX, and horizontal functions including risk management

Retail banking (B2C1) Lending

Cards and payments

Commercial banking (B2B2)

Banking

Investment banking Asset management

Custody and funds administration

Brokerage Others3

Capital markets

Life and pensions Property and casualty

Others (includes reinsurance and

takaful Islamic insurance)

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

Services in next-generation technologies leveraged by enterprises to enable transformation including social, mobility, analytics, cloud, and others (Artificial Intelligence (AI), Robotics Process Automation (RPA), internet of Things (IOT), machine-to-machine, etc.)

Digital services

NOT EXHAUSTIVEFocus of report

Services industry

4Copyright © 2017, Everest Global, Inc.

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Everest Group’s insurance research is based on two key

sources of proprietary information

Everest Group’s proprietary database of 400+ large, active, multi-year AO contracts within insurance (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 by Lines of Business (LOB) – L&P insurance, P&C insurance, others (including reinsurance and Takaful)

– 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 25+ insurance AO service providers (updated annually)

The database tracks the following capability elements for each service provider:

– Major insurance AO clients and recent wins – Overall revenue

– Recent insurance-related developments

– Insurance AO delivery locations– Insurance AO service suite

– Domain capabilities, proprietary solutions, and intellectual property

investments

2

Service providers covered in the analysis

1

1 Assessment for Accenture, DXC Technology, and IBM excludes service provider inputs, and is based on Everest Group’s proprieta ry Transaction

Intelligence (TI) database, service provider public disclosures, and Everest Group’s interactions with insurance buyers

2 Analysis for DXC Technology includes combined capabilities of CSC and HPE Services

3 Analysis for NTT DATA includes capabilities post integration with Dell Services

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

1, 2

3

1

5Copyright © 2017, Everest Global, Inc.

EGR-2017-11-E-2363

DXC Technology is positioned as a Leader on Everest

Group PEAK Matrix™ for L&P insurance AO – 2017

Everest Group PEAK Matrix™ for large life & pensions (L&P) insurance AO relationships1,2

Ma

rket su

cc

ess

(L&

P in

su

ran

ce A

O reve

nu

e,

gro

wth

, an

d n

um

ber of

larg

e

active

deals

)

High

Low

Low High

75th percentile

LeadersMajor ContendersLeaders

Major Contenders

1 PEAK Matrix™ specific to large (>US$25 million TCV), multi-year (>3 years) application outsourcing relationships for the L&P insurance sector (excludes property & casualty,

reinsurance, and Takaful Islamic insurance); excludes banking and capital markets

2 As this is the inaugural PEAK Matrix™ assessment focusing on L&P insurance business segment, Star Performers analysis has not been done in 2017

Note: Assessment for Accenture, DXC Technology, and IBM 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 (2017)

Delivery capability

(Scale, scope, domain expertise & innovation, delivery footprint, and buyer satisfaction)

25

thp

erc

en

tile

CognizantTCS

AccentureInfosys

DXC Technology

IBMCapgemini

HCL TechnologiesWipro

CGINTT DATAAtos

NIIT Technologies

Syntel

LTI

Hexaware

75

thp

erc

en

tile

Aspirants

25th percentile

Aspirants

Tech Mahindra

VirtusaMphasis

6Copyright © 2017, Everest Global, Inc.

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DXC Technology | Insurance AO profile (page 1 of 3)

Insurance AO services overview

CSC and HP Enterprise services combined forces, resulting in DXC Technology, with a focus on driving technology-led business transformation for clients. Combined

synergies across the two organizations have enabled DXC Technology to become a strong contender for large-scale engagements that require an integrated application

and infrastructure services play. Industry-wide recognition for “run-the-business” services on legacy systems and strong positioning for cloud, cybersecurity, and analytics

offerings have made DXC Technology a Leader in the insurance marketplace.

AO services revenue by buyer size1

Small (annual revenue < US$5 billion)

Medium (annual revenue = US$5-10 billion)

Large (annual revenue = US$10-50 billion)

Mega (annual revenue > US$50 billion)

Strengths

CSC and HP ES merger has helped the new entity gain large delivery scale with

presence across key onshore and nearshore locations

Strong reputation for insurance-focused proprietary solutions/platforms and robust

capabilities across all insurance LOBs

Wide horizontal portfolio comprising converged hybrid infrastructure, analytics, and

cybersecurity offerings

Areas of improvement

Ability to cross-sell and capitalize on the growing demand for modernization

services for its large installed base of insurance-focused proprietary

solutions/platforms

Lags behind the other global majors across market messaging and vision to

assist clients leverage technology convergence for business transformation

Application services scope1

Development Maintenance Testing SI/Consulting

Adoption by value chain1

Product

development

Sales & distribution

channel management

Claims

management

Underwriting &

policy administration

Adoption by geographic focus1

North America EMEA Latin America APAC

(>20%) (10-20%) (<10%)Revenue contribution

>US$1 billionUS$200-

US$500 million<US$200 million

US$500 million-

US$1 billion

Insurance AO revenue1

Others (includes

reinsurance and Takaful)

Property & Casualty

(P&C)

Life & Pensions

(L&P)

AO services revenue by line of business1

(>40%) (10-40%) (<10%)Revenue contribution

1 As per Everest Group estimates

Source: Everest Group (2017)

7Copyright © 2017, Everest Global, Inc.

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DXC Technology | Insurance AO profile (page 2 of 3)

Insurance AO services offerings

Key proprietary solutions

Domain Details

L&P insurance specific ● CyberLife – Web-enabled, real-time system that supports both traditional and non-traditional North American life and annuity products. It

offers full processing, regulatory support, correspondence, billing & collections, commissions, and financial reporting

● Ingenium – Core life, annuity, and disability policy administration system

● Graphtalk A.I.A. – A global insurance administration software solution for life, pensions, health and general insurance

● Radience – A model-driven, core policy administration system for life & annuity insurers that allows them to control costs, integrate agile

methodologies to shorten time-to-market, improve customer service, and manage risk

● Colossus – Assists adjusters in the evaluation of bodily injury claims by providing them access to the insuring company’s claims data

within a defined business process management framework

P&C insurance specific ● POINT IN – An end-to-end insurance administration system to handle policy, billing, and claims for P&C/general insurers

● UBI Data Exchange – At the point of quote, the solution provides insurers with driving data from automotive OEMs, insurers with UBI

programs, and telematics service providers

● Usage-Based Insurance (UBI) – Delivers an end-to-end UBI program, leveraged as-a-service or implemented on-premises, together with

partners Scope Technology and Milliman

Other key solution ● Digital Insurance-as-a-Service (DIaaS) – An integrated, end-to-end solution to accelerate business transformation for insurers

● Integral – A comprehensive administration suite for L&P and P&C insurers that provides end-to-end policy/group management, product

configuration and business analytics capabilities

● ProductXpress – Graphical, collaborative product design & calculation environment used by marketing, actuarial, business, and IT teams

● Xuber Exposure – An exposure management platform that delivers a single, independent database of an organization's exposures as a

system of record

● SICS – An end-to-end reinsurance solution supporting the assumed and retrocession administration needs for all lines of businesses for

both P&C and L&P reinsurers

Partnerships with leading industry-specific product/platform vendors

Domain Details

L&P insurance specificNo insurance-specific partnerships with third-party product/platform vendors

P&C insurance specific

NOT EXHAUSTIVE

Source: Everest Group (2017)

8Copyright © 2017, Everest Global, Inc.

EGR-2017-11-E-2363

DXC Technology | Insurance AO profile (page 3 of 3)

Insurance AO services offerings

Key alliances/partnerships/M&As

Investment name Type of investment Details

Xchanging Acquisition (2016) To expand capabilities in providing technology-enabled business solutions across commercial insurance

and wealth management segments

Fruition Partners Acquisition (2016) Acquisition to offer enterprise clients an expanded range of cloud-based service-management solutions

Aspedians Acquisition (2016) Acquisition to add capabilities in ServiceNow platform integration for European clients

UXC Acquisition (2015) To enhance enterprise application capabilities, including Microsoft Dynamics, SAP, Oracle, and

ServiceNow implementations

Mphasis Partnership (2017) To transform and modernize enterprise applications for public, private, and hybrid cloud

IBM Partnership (2016) Expanded partnership to enable clients across multiple industries, including healthcare, insurance, and

finance, to leverage benefits of the hybrid cloud and deploy some 10,000 applications that deliver rapid

proof of value

Hitachi Data Systems Partnership (2016) Partnership to enable Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Storage-as-a-

Service (STaaS) IT delivery across hybrid cloud environments for financial services, manufacturing, and

aerospace sectors

HCL Partnership (2015) Partnership for platform modernization and product functionality enhancement of retail banking products

Other key investments

Development Details

Equity stake in 360Globalnet To leverage 360Globalnet’s cloud-based claim solutions that offer unique capabilities in self-service, intelligent systems, smart

mobile devices, live-streaming video, data analytics, and fraud detection

New center Set up an innovation center in Sydney, Australia, (November 2016) to focus on the development of technology solutions in areas

such as blockchain, artificial intelligence, machine learning, and virtual & augmented reality

NOT EXHAUSTIVE

Source: Everest Group (2017)

9Copyright © 2017, Everest Global, Inc.

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Appendix

10Copyright © 2017, Everest Global, Inc.

EGR-2017-11-E-2363

The service providers were mapped on Everest

Group’s PEAK Matrix

2nd or 3rd quartile performance across market success and capability

Top quartile performance across market success and capability

AO capability(Scale, scope, domain expertise & innovation, delivery footprint, and buyer satisfaction)

25th percentile

25

thp

erc

en

tile

75th percentile

75

thp

erc

en

tile

High

Low

Low High

Leaders

Major Contenders

Aspirants

Mark

et

su

ccess

(Segm

ent’s A

O revenue,

gro

wth

, and

num

ber

of la

rge a

ctive d

eals

)

4th quartile performance across market success and capability

Everest Group’s PEAK MatrixTM is a composite index of a range of distinct metrics related to a service provider’s scale, scope, technology/domain expertise & innovation, delivery footprint, buyer satisfaction, and resultant market success in the contextof a

given outsourcing function

Everest Group PEAK Matrix™ for Application Outsourcing

11Copyright © 2017, Everest Global, Inc.

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Dimensions of service providers’ capability and

market success underlying the PEAK Matrix™ for L&P

insurance AO services

Total company revenue

Contribution of L&P

insurance specific AO

revenue to the total

company revenue

Scale

AO sub-functions served

Geographies served

Scope

Innovation / IP /

proprietary solutions

M&A, alliances, and other

investments

Domain expertise

& innovation

Delivery mix

Number of delivery

centers and regions

covered

Delivery footprint

Buyer perception score

Buyer satisfaction

Delivery capability

Measures success, which is captured

through yearly L&P insurance specific

AO revenue growth, L&P insurance

AO revenue in CY2016 and number of

large, active AO dealsM

ark

et su

cc

ess Major Contenders

Leaders

Aspirants

12Copyright © 2017, Everest Global, Inc.

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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 “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 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 “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 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

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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

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 empower 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.

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