Everest Group PEAK MatrixTM for L&P Insurance BPO

Service Providers

Focus on TCS

September 2016

Copyright © 2016 Everest Global, Inc.

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

EGR-2016-1-E-1893

2Copyright © 2016, Everest Global, Inc.

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Everest Group recently released its report titled “Life and Pensions Insurance BPO – Service Provider

Landscape with PEAK Matrix™ Assessment 2016”. This report analyzes the changing dynamics of the L&P insurance BPO landscape and assesses service providers across several key dimensions.

As a part of this report, Everest Group updated its classification of 20 service providers on the Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for L&P insurance BPO into Leaders, Major

Contenders, and Aspirants. The PEAK Matrix is a framework that provides an objective, data-driven, and comparative assessment of L&P insurance 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’ L&P insurance BPO experience and capabilities. It includes: TCS’ position on the Everest Group L&P insurance BPO PEAK Matrix Detailed L&P insurance 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.

Introduction and scope

3Copyright © 2016, Everest Global, Inc.

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Banking, Financial Services, and Insurance (BFSI)

Everest Group’s definition of BFSI includes the

following three segments

1 Business-to-Consumer relationships2 Business-to-Business relationships

Focus of this report

Banking

Retail financial services (B2C1)

– Cards

– Retail banking

– Lending

Commercial banking (B2B2)

L&P insurance

Investment banking

Asset management

Custody & fund administration

Brokerage

Notes

There are multiple operating-model alternatives ranging from internal shared services / Global In-house Centers (GICs) to

third-party outsourcing. This package focuses primarily on third-party models

This package covers vertical-specific BPO within the L&P insurance space. It does not include coverage of horizontal

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

Health insurance BPO is not covered in this package

Insurance

Life & pensions

Property & casualty

Reinsurance

4Copyright © 2016, Everest Global, Inc.

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Everest Group PEAK Matrix – 2015 L&P insurance BPO

market positions

Performance | Experience | Ability | Knowledge

Leaders

Major Contenders

Aspirants

Star Performers

Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for L&P insurance BPO1

1 Service providers scored using Everest Group’s proprietary scoring methodologyNotes: Assessment for Accenture, Capita, Mphasis, and Xerox excludes service provider inputs on this particular study, and is based on Everest Group’s

estimates that leverage Everest Group’s proprietary Transaction Intelligence (TI) database, ongoing coverage of these service providers, their public

disclosures, and interaction with buyers.Source: Everest Group (2016)

Major Contenders

High75th percentile

High25th percentile

Ma

rke

t su

cce

ss

(Reve

nue,

num

ber

of

clie

nts

, and

reve

nue gro

wth

)

L&P insurance BPO delivery capability

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

Leaders

75

thp

erc

en

tile

Xerox

HCLCapgemini

Genpact

WNS

Dell

EXL

Accenture

Infosys

Capita

CSC

SE2

Concentrix Cognizant

TCS

Sutherland

AspirantsLow

Low

25

thp

erc

en

tile

Intelenet

Syntel

NIIT Technologies

Mphasis

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TCS is an L&P insurance 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 L&P insurance BPO

Market success in 2015

Registered healthy revenue growth to maintain its

high market share

Signed new deals and expanded its large client base

Capability enhancements in 2015

Strengthened its delivery footprint by adding another nearshore

center

Made in-house investments and improved its analytics capabilities

Ma

rke

t s

uc

ce

ss

Major Contenders

2014

Leaders

TCS

Delivery capability

2015

Source: Everest Group (2016)

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TCS (page 1 of 6)

Everest Group – assessment1

Delivery capability

Market successScale Scope

Technology and

innovation Delivery footprint Buyer satisfaction Overall

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

Along with being one of the largest players in the L&P insurance

market, TCS posted exceptional growth in 2015 to be positioned as a Leader and a Star Performer on the L&P insurance BPO PEAK

Matrix

It has outstanding buyer satisfaction scores, with its clients highlighting its transformational capability and accessibility of

resources With extensive coverage of onshore, offshore, and nearshore

locations, TCS has an excellent shoring mix

Though it has a good spread of buyers by size,

most of its buyers are UK-based. TCS must continue to build its presence in the United

States and other geographies

There is scope to expand its capabilities, especially for complex processes such as

regulatory compliance Buyers would like to see more proactiveness and

innovative solutions from TCS

Strengths Areas of improvement

1 Based on contractual and operational information as of 2015.Source: Everest Group (2016)

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TCS (page 2 of 6)

L&P insurance BPO – overview

Recent acquisitions and partnerships

2014: Partnered with CII to drive completion of UK insurance certifications

2013: Implementation of web chat platform for customer

services

Recent developments

Improvement in TCS BaNCS platform to expand process automation

Invested in technology such as “digital pre/post retirement

advisor”, “mobile-based dashboard”, and “Microsoft’s dynamics CRM solution”

Development/implementation of varied automated processes including auto identification, desktop automation, reconciliation,

email management, and work allocation

Developed a TCS Risk and Compliance Solution (TRACS) tool for comprehensive operational risk and control assessments in

a unified environment Analytics - Developed solution for data management and

modeling, fraud analytics, and customer lifetime value

People : Investment in talent pool by hiring SMEs in Life and Retirements

Suite of services

New business and underwriting support Policy servicing and claims transformation

Insurance CRM solutions – customer interaction management

Robotic Process Automation (RPA) Analytics and insights

Actuarial services

Company overview

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

process services organization. TCS' offerings include new business,

policy administration, claims administration, regulatory compliance, and distribution channel management services. TCS’ ValueBPSTM

approach helps enterprises achieve business outcomes by leveraging domain expertise and operations redesign methodologies such as

FORETM, robotic process automation (RPA), analytics and insights,

unique IT-BPS synergy, Business Process as a Service (BPaaS) models, and Business Process Management (BPM).

Key leaders

Dinanath Kholkar, Vice President & Global Head, Business Process

Services (BPS) Arun Batra, Global Head, BFSI, BPS

VR Krishnan, Head, Insurance BPS

Headquarters: Mumbai, India

Website: www.tcs.com

2013 2014 2015

Revenue (US$ million) 3751 330 415

Number of FTEs 5,1501 5,100 5990

Number of clients 16 22 26

1 2013 FTEs and revenue includes horizontal services such as F&A, SCM, and HR services.Source: Everest Group (2016)

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TCS (page 3 of 6)

L&P insurance BPO – key delivery locations

Kolkata

BengaluruMumbai

Peterborough

Pune

Liverpool

GurgaonCincinnati

Nagpur

Bristol

Santiago

Chennai

Source: Everest Group (2016)

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Split of FTEs by location

FTEs in numbers

56%41%

3%

TCS (page 4 of 6)

L&P insurance BPO – capabilities and key clients

L&P insurance BPO FTE mix by

processes covered

FTEs in numbers

Insurance BPO revenue mix by

geography

Revenue in US$ million

Insurance BPO revenue mix by

buyer size1

Revenue in US$ million

100% = 5,990New

business

management

Policy

servicing and

reporting

100% = 415

88%

7%4%

Europe

UK

North

America

100% = 5,990

Nearshore

APAC

Offshore

100% = 415

59%

40%

1%

Large

Small

Medium

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.

Source: Everest Group (2016)

Key L&P insurance BPO engagements

Client name Region Client since

Indian operations of a leading UK financial services provider India 2015

Dutch insurance arm of a leading Chinese insurer Europe 2015

Top five superannuation player in Australia Asia Pacific 2013

UK's largest insurance, pensions, and healthcare provider Europe 2012

Fortune 100 annuity and retirals provider North America 2010

Fortune 50 insurer North America 2008

Phoenix Life Europe 2006

Claims

processing

Onshore

47%

29%

17%

6%

Other

1%

10Copyright © 2016, Everest Global, Inc.

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TCS (page 5 of 6)

L&P insurance BPO – technology solutions/tools

Application LoB

Year

launched Description

No. of BPO

clients

Robotic Process

Automation (RPA)

N/A1 2014 TCS RPA solution is a suite of self-learning and non-intrusive robots developed to

address multiple business process scenarios.

<5

TCS digital

insurance agent

solution

N/A 2012 A tablet-based application which that in operationalizing all the day-to-day activities of

insurance agents, enabling them to be more effective at both sales and customer

service.

<7

TCS digital

insurance virtual

advisor solution

N/A 2012 An online virtual companion that aims to provide self-service to the web user, by

automatically sensing user’s need for assistance on a web page and pops up an

animated character prompting for help. It provides a humanized computer interface to

users. Users can interact with the animated character either by speaking to the

character or using a web chat.

<3

TRAPEZETM N/A 2011 TRAPEZE encompasses practices, solution accelerators, and methodologies that

ensures seamless transition, superior delivery, transparency, and value creation for

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

process management suite, governance suite, knowledge management suite,

document manager, business continuity manager, and analytics platform.

<10

1 N/A refers to Not AvailableNote: The above list is only illustrative and not exhaustive

Source: Everest Group (2016)

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TCS (page 6 of 6)

L&P insurance BPO – technology solutions/tools

Application LoB

Year

launched Description

No. of BPO

clients

Claim fraud model N/A1 2015 Predictive modeling for suspicious fraud detection for life insurance at claim

registration and NB stages

N/A

Insurance

collections /

Persistency

modelling

N/A 2015 Set of propensity models to develop effective collections and revival campaign

strategy for insurance customers

<3

Customer

segmentation &

CLTV

N/A 2014 Customer segmentation and CLTV framework for life insurers. A value-based

segmentation can be used to manage all aspects of customer interactions including

campaigns, servicing etc.

<3

TCS BaNCS N/A 2009 TCS BαNCS is a holistic suite of solutions for insurance companies and diversified

financial institutions. Each solution in the TCS BαNCS family has been designed to

run as a scalable and robust service, fully integrated with existing business models,

enterprise infrastructures, and technology architectures. TCS BαNCS insurance

covers multiple lines of business across various geographies - property & casualty,

extended warranty, workers compensation, individual life, group life, and reinsurance.

The breadth of the solution caters end-to end Insurance operations starting from

product configuration, new business, underwriting, policy administration, claims

administration, intermediary & commission management, reinsurance, and

accounting. Additionally, there are separate offerings for product workbench (rule-

engine driven product configurator) and agent workbench (offline quoting tool for the

agents) across different lines of business.

<10

1 N/A refers to Not AvailableNote: The above list is only illustrative and not exhaustive

Source: Everest Group (2016)

12Copyright © 2016, Everest Global, Inc.

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Appendix

13Copyright © 2016, Everest Global, Inc.

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Everest Group classifies the L&P insurance 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 methodologySource: Everest Group (2016)

Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix1 for L&P Insurance 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

Ma

rke

t s

uc

ce

ss

(Re

venue

, num

be

r o

f clie

nts

, a

nd

re

venue

gro

wth

)

Aspirants

Leaders

Major Contenders

Low High25th percentile

L&P insurance 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

L&P insurance BPO revenue,

number of clients, and

YoY growth

Ma

rke

t s

uc

ce

ss

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 providerSource: Everest Group (2016)

Aspirants

Leaders

Major Contenders

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Year 1

Year 0

Service

provider

Additionally, Everest Group confers the “Star

Performers” title on the providers that demonstrate

the strongest forward movement over time on the PEAK Matrix

2016 L&P insurance

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

cce

ss

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Does the PEAK Matrix assessment incorporate any subjective criteria?

The Everest Group’s PEAK Matrix assessment adopts an objective and fact-based approach (leveraging service

provider RFIs and the 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.

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 in itself a favorable recognition

What other aspects of the PEAK Matrix assessment are relevant to buyers and providers besides the “PEAK

Matrix position”?

The PEAK Matrix position is only one aspect of the 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 to the 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 the 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

FAQs (page 1 of 2)

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What is the process for a service provider to leverage their PEAK Matrix positioning status ?

Providers can use their PEAK Matrix positioning in multiple ways including:

– Issue a press release declaring their positioning/rating

– Customized PEAK Matrix profile for circulation (with clients, prospects, etc.)

– Quotes from the Everest Group’s analysts could be disseminated to the media

– Leverage the PEAK Matrix 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

FAQs (page 2 of 2)

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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

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