Everest Group PEAK MatrixTM for Banking BPO Service ... Developed a mobile-based loan originations...

Copyright © 2016 Everest Global, Inc.

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

EGR-2016-11-E-1822

Focus on TCS

July 2016

Everest Group PEAK Matrix™ for Banking BPO

Service Providers

2Copyright © 2016, Everest Global, Inc.

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Introduction and scope

Everest Group recently released its report titled “Banking BPO – Service Provider Landscape with

PEAK Matrix™ Assessment 2016”. 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 24 service providers on the Everest Group

Performance | Experience | Ability | Knowledge (PEAK) Matrix for banking BPO into Leaders, Major

Contenders, and Aspirants. 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 and also a Star Performer. This document focuses on

TCS’ banking BPO experience and capabilities. It includes:

TCS’ position on the Everest Group 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.

https://research.everestgrp.com/Product/EGR-2016-11-R-1807/Banking-BPO-Service-Provider-Landscape-with-PEAK-Matrix-Asses


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1 Business-to-Consumer relationships

2 Business-to-Business relationships

Retail financial services

(B2C1)

– Cards

– Retail banking

– Lending

Commercial banking (B2B2)

Banking

Investment banking

Asset management

Custody & fund

administration

Brokerage

Capital markets

Life & pensions

Property & casualty

Reinsurance

Insurance

Banking, Financial Services,

and Insurance (BFSI)

Note: This report covers vertical-specific BPO within the banking space. It does not include coverage of

horizontal business processes such as F&A, HR, procurement, and contact centers

Focus of this document

Everest Group’s definition of BFSI includes the

following three segments


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Everest Group PEAK Matrix – 2016 banking BPO

market standings

Performance | Experience | Ability | Knowledge

1 Service providers scored using Everest Group’s proprietary scoring methodology

Note: Assessment for Accenture, Equiniti, HPE, IBM, Mphasis, NIIT Technologies, and Polaris excludes service provider inputs on this particular study, and is based on

Everest Group’s estimates which leverage Everest Group’s proprietary Transaction Intelligence (TI) database, ongoing coverage, service provider public

disclosures, and interaction with buyers

Source: Everest Group (2016)

Leaders

Major Contenders

Aspirants

Star Performers

Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for Banking BPO1

25

thp

erc

en

tile

High75th percentile

High

75

thp

erc

en

tile

Mark

et

su

cces

s

(Revenue

, nu

mber

of clie

nts

, and

revenu

e g

row

th)

Banking BPO delivery capability

(Scale, scope, technology solutions & innovation, delivery footprint, and buyer satisfaction)

Leaders

Low

Low

Aspirants

25th percentile

Major Contenders Genpact

TCS

WiproMphasis

Accenture

Tech

Mahindra

Syntel

NIIT Technologies

Polaris

CSC

Equiniti

CapgeminiWNS

Avaloq

Cognizant

Sutherland

Global Services

Infosys

Concentrix

EXLIBM

HPE

HCL

Xerox

Intelenet


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TCS is a banking BPO Star Performer based on strong

forward and upward movement over time on the

Everest Group PEAK Matrix

Change in TCS’ positioning on the Everest Group PEAK Matrix for banking BPO

Market success in 2015

Signed several new deals in 2015

As a result, witnessed revenue growth

of more than US$25 million while

making the biggest contribution to the

total number of new clients added by

all service providers over the last year

Capability enhancements in 2015

Improved its depth of coverage across various geographies while

adding new delivery centers

Amplified technology capabilities and enhanced their leverage in

contracts, thus gaining better acceptance from buyers

Mark

et

su

cc

ess

Major Contenders

2014

Leaders

TCS

Delivery capability

2015



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TCS (page 1 of 7)

Everest Group assessment1

1 Based on contractual and operational information as of 2015


Delivery capability

Market successScale Scope

Technology

and innovation

Delivery

footprint

Buyer

satisfaction Overall

Leaders Major Contenders AspirantsMeasure of capability: Best-in-class Not mature

Capitalizing on its remarkable delivery capabilities, and fueled

by a revenue growth of over US$20 million, TCS is a Leader

and a Star Performer on the Everest Group banking BPO

PEAK Matrix

It has a good spread across different buyer geographies and

holds a considerable market share in the Asia Pacific,

Americas, and UK

As it has managed to add several new clients to its portfolio, it

has a well-balanced presence across various banking BPO

LoBs, thus lowering the concentration risk considerably

TCS enjoys high overall buyer satisfaction levels by leveraging

on its strengths in delivery, implementation, and ability to drive

clients to greater success

As some of the rule-based and offshore-

centric processes move towards automation,

TCS can do well to invest in more judgment-

driven processes and build its onshore scale

to support the same

Buyers expect TCS to stretch more in terms

of value addition and to be more proactive

While TCS has strong IT capabilities via its

BaNCS platform, it has traditionally found it

difficult to leverage it in its BPO relationships

Strengths Areas of improvement


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TCS (page 2 of 7)

Banking BPO – overview

Recent acquisitions and partnerships

2015: Partnership on a KYC platform with a Big4 consulting firm

2015: Partnership with a global regulatory reporting leader for a

regulatory reporting solution

Recent developments

2015: Developed banking specific RPA components

2015: Building financial spreading, legal account remediation,

and KYC capability in commercial and retail banking in terms of

people and processes

2015: Developed a digitized decision engine workflow and

operational dashboard

2015: Created a pool of AML, RPA, BPM, and BA resources to

meet clients’ changing requirements

2015: Created collaborative IT-BPS solutions including a web

based debt management solution

2015: Developed web-based self-learning portals enabled by

domain academy for talent development

2015: Developed a mobile-based loan originations platform and

a unique e-KYC solution in the lending domain

2015: Deployed an imaging solution for efficient transaction

processing

Suite of services

Commercial/wholesale banking

Commercial real estate

Consumer lending

Retail banking and investments / private banking

Cards

Risk management (credit, market, liquidity, operations, and regulatory)

Payments

Analytics

2013 2014 2015

Revenue (US$ million) 450 491 515

Number of FTEs 17,000 18,700 19,200

Number of clients 20 28 41

Company overview

Tata Consultancy Services (TCS) is an IT, consulting, and business process

services organization. TCS has a diverse base of BFS clients and extensive, in-

depth domain expertise across all banking products. TCS’ offerings span

consumer banking and corporate businesses that include retail banking, cards,

loans, trade services, cash management, and capital markets (includes wealth &

asset management and investment banking). TCS offers its BaNCS platform

solution for all lines of business. TCS also deploys its FORE simplification

methodology, analytics, and automation to deliver on business outcomes and an

enhanced customer experience

Key leaders

Dinanath Kholkar – Global Head, Business Process Services

Arun Batra – Global Head, BFSI BPS

Headquarter: Mumbai, India

Website: www.tcs.com


http://www.tcs.com/


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TCS (page 3 of 7)

Banking BPO – key delivery locations

Cincinnati

Guadalajara

Quito

Santiago

Gurgaon

MumbaiBengaluru Chennai Manila

Kolkata

Gandhinagar

PuneDoha

Bogota


Mexico City

Lima

Kochi`Hyderabad

Midland


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TCS (page 4 of 7)

Banking BPO – capabilities and key clients

Banking BPO number of

contracts by buyer size1

Number of active contracts

Banking BPO revenue mix by

geography

Revenue in US$ million

Banking BPO FTE mix by

segment

FTEs in numbers

85%

2%

50%

20%

12%

10%5%

82%

15%3%

Key banking BPO engagements

Client name LoB Region Client since

Top three banking and financial services provider Commercial and retail banking United Kingdom 2015

Leading European multinational bank Commercial and retail banking Europe 2014

Largest NBFC in India Commercial banking, lending, and retail banking Asia Pacific 2011

Largest independent mortgage banker in U.S. Lending North America 2012

Large global bank All Global 2008

APAC

LATAM

Offshore

100% = 19,200

37%

26%

23%

14%

Commercial

banking

Retail banking

Cards LendingOnshore

NearshoreMEA

North

America

MediumContinental Europe

100% = 515 100% = 19,200 100% = 41

Small

Large

United

Kingdom3%

13%

1 Buyer size is defined as large (>US$10 billion in revenue), medium (US$5-10 billion in revenue), and small (<US$5 billion in revenue)

Note: Based on contractual and operational information as on December 2015


Banking BPO FTE split by

delivery location

FTEs in numbers


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Application LoB Year launched Description No. of BPO clients

M-Mortgage Lending 2015 TCS’ mobile & online platform for onboarding new retail mortgage

customers

2

Financial advisor

performance

analytics

All 2014 A tool for predicting financial advisor performance, taking into consideration

both quantitative performance aspects as well as qualitative variables such

as depth of relationships and activity

Less than 3

TCS risk &

compliance

solution

Cards,

commercial

banking, and

retail banking

2014 A tool that facilitates testing of transactions against business requirements,

policies, regulations for purposes of quality control, ORM, and quality

assurance/compliance assessment

N/A1

Robotic Process

Automation (RPA)

All 2014 A solution that is a suite of self-learning, non-intrusive robots developed to

address all possible business process scenarios

Less than 10

Reconciliation

platform

Cards and

retail banking

2012 TCS reconciliation/settlement tool for banking and cards Less than 3

TRAPEZE All 2011 A solution that enables transition, delivery, transparency, and value creation

for customers. The solution set includes banking suite, transition manager,

process management suite, governance suite, knowledge management

suite, document manager, business continuity manager, and analytics

platform

More than 20

TCS BaNCS All 2006 A suite of solutions for banks, capital market firms, insurance companies,

and diversified financial institutions. It encompasses an array of pre-

configured, customizable banking products such as digital banking,

universal banking, core banking, payments, compliance, financial inclusion,

Islamic banking, and treasury

Less than 3

TCS (page 5 of 7)

Banking BPO – technology solutions/tools

1 Not available



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TCS (page 6 of 7)

Banking BPO – risk management & regulatory reporting

Risk management support Details No. of BPO clients

Credit risk TCS is engaged in multiple activities to support the following:

Pre- and post-sanction decision-making

Credit operations including, but not limited to, static data maintenance, facility setting up, and

customer hierarchy maintenance

Less than 5

Operations risk • TCS provides consulting and execution services for designing ORM framework and testing

business process controls

• These controls and tests are mapped against business requirements, policies, and regulations

• The services also cover designing and implementation of supplier risk management framework

Less than 10

Market risk TCS supports market risk production activities such as:

• Market data time series sourcing, cleansing and validation. It also supports scenario generation

• Validation and reporting of sensitivities, Value at Risk (VaR), and economic capital reporting

Less than 5

Liquidity risk • Reporting on liquidity position across debt, equity, FX, derivative, loans, and deposits asset

classes

• Computing maximum cash outflows for the business at asset level and performing stress testing

on the same

Less than 3

Regulatory risk Managing regulatory risk by offering best-in-class solutions related to CFPB and FDCPA regulations,

and related to KYC, FATCA, and AML sanctions

Less than 10



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TCS (page 7 of 7)

Banking BPO – risk management & regulatory reporting

Regulatory reporting support List of regulations Description No. of BPO clients

U.S. regulations OCC, DFA and

CCAR

OCC reporting related functions across multiple products

Implements regulatory reporting tool for a large Europe based bank

for their CCAR reporting

More than 3

UK regulations FSA requirements Implements regulatory reporting tool for a large U.S. bank for their FSA

reporting

More than 3

EU regulations EMIR Supports a large European bank in EMIR compliance More than 3

Local regulations SSHR (Netherlands) Offers tools-based support for a European bank in their local regulatory

reporting

More than 3



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Appendix


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Everest Group classifies the banking BPO service

provider landscape into Leaders, Major Contenders,

and Aspirants on the Everest Group PEAK Matrix

1 Service providers scored using Everest Group’s proprietary scoring methodology


Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix1 for banking BPO

Top Quartile performance

across market success

and delivery capability2nd or 3rd quartile

performance across market

success and/or delivery

capability

4th quartile performance

across market success

and delivery capability

High

Low

25

thp

erc

en

tile

75

thp

erc

en

tile

75th percentile

Mark

et

su

ccess

(Revenue, num

ber

of

clie

nts

, and r

evenue g

row

th)

Aspirants

Leaders

Major Contenders

Low High25th percentile

Banking BPO delivery capability

(Scale, scope, technology solutions & innovation, delivery footprint, and buyer satisfaction)


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Service providers are positioned on PEAK Matrix

based on evaluation across two key dimensions

Measures success achieved in

the market. Captured through

banking BPO revenue,

number of clients, and

YoY growth

Mark

et

su

ccess

Measures the scope of

services provided

across LoBs,

geographies, and buyer

sizes

Measures the capability

and investment in

technology solutions

and ability to deliver

value-added services

(innovation) with high

technology leverage

Measures the delivery

footprint across regions

and the global sourcing

mix

Measures ability to deliver services successfully

Captured through five subdimensions

Measures the scale of

operations (overall

company revenue and

relative focus on the

vertical)

Scale ScopeTechnology solutions

and innovationDelivery footprint

Delivery capability

Measures the

satisfaction levels1 of

buyers across:

Business drivers

Implementation

Process expertise

Relationship

management

Buyer satisfaction

1 Measured through responses from referenced buyers for each service provider


Aspirants

Leaders

Major Contenders


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Additionally, Everest Group confers the “Star

Performers” title on the providers that demonstrate

the strongest forward movement over time on the PEAK Matrix

Year 1

Year 0

Service

provider

2016 banking BPO

Star PerformersDelivery capability

Methodology

Everest Group selects Market Star Performers based on the relative YoY movement of

each service provider on the PEAK Matrix

Market success dimension

In order to assess advancements on market

success, we evaluate the performance of each

service provider on the PEAK Matrix across a

number of parameters including:

Yearly ACV growth

Number of new contract signings

Value of new contract signings

Delivery capability dimension

In order to assess advancements on

capability, we evaluate the performance of

each service provider on the PEAK Matrix

across a number of parameters including:

Annual growth in scale

Increase in scope of services

Expansion of delivery footprint

Technology / domain-specific investments

The top quartile performers on each of the

specified parameters are identified and the “Star

Performer” title is awarded to the service

providers with:

The maximum number of top quartile

performances across all of the above

parameters, and

At least one area of top quartile performance

advancement in either of the dimensions

The “Star Performers” title relates to YoY performance for a given service provider and does not

reflect the overall market leadership position. Those identified as “Star Performers” may include

“Leaders”, “Major Contenders”, or “Aspirants”

Mark

et

su

cces

s


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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

Dallas (Headquarters)

[email protected]

+1-214-451-3000

New York

[email protected]

+1-646-805-4000

Toronto

[email protected]

+1-647-557-3475

London

[email protected]

+44-207-129-1318

Delhi

[email protected]

+91-124-284-1000

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 PEAK MatrixTM for Banking BPO Service ... Developed a mobile-based loan originations...

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