IT Applications Outsourcing in Banking – Service Provider Profiles Compendium

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

Topic: IT Applications Outsourcing in Banking – Service Provider Profiles Compendium

Background of the research The Banking, Financial Services, and Insurance (BFSI) industry is one of the largest adopters of IT application outsourcing (AO) services. To cater to this large market segment, a number of service providers of varying scales and capabilities 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 has become a factor of prime importance. Everest Group has assessed this capability of 22 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 22 service providers featured on the Banking 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 22 service providers:  Banking AO PEAK Leaders: Accenture, Cognizant, IBM Global Services, Infosys, and TCS  Banking AO PEAK Major Contenders: Atos Origin, Capgemini, CGI, CSC, Dell Services, HCL, HP Enterprise Services, Polaris, Syntel, and Wipro  Banking AO PEAK Emerging Players: Hexaware, ITC Infotech, L&T Infotech, Luxoft, MindTree, Ness, and Softtek

Topic Page number

Introduction and overview 4

The Everest Group Banking AO PEAK Matrix 10

Section I: Profiles of Banking AO Leaders 16  Accenture 17  Cognizant 22  IBM Global Services 28  Infosys 34  TCS 41

Section II: Profiles of Banking AO Major Contenders 49  Atos Origin 50  Capgemini 56  CGI 62  CSC 69  Dell Services 75  HCL 80  HP Enterprise Services 86  Polaris 91  Syntel 97  Wipro 102

Topic Page number

Section III: Profiles of Banking AO Emerging Players 108  Hexaware 109  ITC Infotech 114  L&T Infotech 119  Luxoft 124  MindTree 129  Ness 134  Softtek 139

Appendix 144

4 Copyright © 2011, Everest Global, Inc. EGR-2011-11-PD-0577 This Everest Group report is a compendium of detailed profiles of 22 service providers featured on the Everest Group Banking AO PEAK Matrix NOT EXHAUSTIVE BFSI Focus of report

Banking Capital markets Insurance

 Retail financial services (B2C1)  Investment banking  Life and pensions  Retail banking  Asset management  Property and casualty  Lending  Custody  Cards  Fund administration  Commercial banking (B2B2)

Services industry

IT Infrastructure IT Applications Business Process Outsourcing (IO) Outsourcing (AO) Outsourcing (BPO) Consulting

 Traditional IO  Application development  BFSI-specific BPO  IT strategy/operations  Remote Infrastructure  Application maintenance  HRO consulting Management (RIM)  Independent testing  FAO  Business consulting  Infrastructure Management  Package implementation  PO  Infrastructure consulting Services (IMS)  ERP services  Contact center  Infrastructure roll-outs  Cloud  Business intelligence /  Knowledge services Data warehousing

This report features profiles of service providers actively involved in IT Applications Outsourcing in the banking sub- vertical with a focus on large (TCV >US$25 million), and annuity-based, multi-year (>three years) relationships

1 Business-to-consumer relationships 2 Business-to-business relationships 5 Copyright © 2011, Everest Global, Inc. EGR-2011-11-PD-0577 This report is a part of the Everest Group’s series of nine reports focused on applications outsourcing in BFSI in 2011

Market Trends in IT Applications Outsourcing Services Banking  Each report provides an overview of the applications outsourcing market for the specific banking / capital markets / insurance sub-vertical Capital markets  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 Insurance

Service Providers’ Landscape: IT Applications Outsourcing Services Each report provides: Banking  Mapping of service providers on Everest’s capability matrix i.e., Performance | Experience | Ability | Knowledge (PEAK) Matrix for the specific sub-vertical Capital markets  Assessment of service providers based on delivery capability and market success in establishing large AO contracts with financial institutions Insurance

Service Providers’ Profiles Compendium: IT Applications Outsourcing Services Capability profiles of service providers capturing their AO services Banking experience in specific sub-verticals. Each service provider profile includes:  Service provider overview: Details of AO services capabilities, key Capital markets investments, proprietary solutions, and technological expertise  Functional/Line of Business (LoB) focus  Transactions overview for application services offerings  Delivery footprint Insurance

6 Copyright © 2011, Everest Global, Inc. EGR-2011-11-PD-0577 Everest Group’s BFSI research is based on two key sources of proprietary information 1  Proprietary Everest database of ~345 large, multi-year AO Service providers covered in the analysis 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  Activity broken down separately for banking, capital markets, and insurance, and by line of business (e.g., retail banking, credit cards, and loans and mortgages)  Scope includes coverage of buyer geography as well as functional activities  Global sourcing, including delivery locations and level of offshoring

2  Proprietary Everest Group database of operational metrics of 20+ BFSI AO service providers (updated annually)  The database tracks the following capability elements for each service provider:  Key leaders  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

Note: We continuously monitor market developments and track additional service providers beyond those included in the analysis Confidentiality: The Everest Research Institute takes our confidentiality pledge very seriously. Any information we collect, that is contract specific, will be presented back to the industry only in an aggregated fashion 7 Copyright © 2011, Everest Global, Inc. EGR-2011-11-PD-0577 Company X | Banking AO profile (page 1 of 5) Corporate and BFSI overview

>US$500 million US$100-500 million

Company description: Key financial parameters Revenue1 from BFSI Company X is a global provider of IT and BPO services. Its IT Revenue figures in US$ million vertical offerings span technology consulting, application development and Revenue1 from other maintenance, systems integration, software products and IT verticals infrastructure services. It primarily serves BFSI, telecom, retail and Operating margin manufacturing verticals xx% xx% xx% Headquarters: xxx xx xx xx bb bb bb Website: www.companyx.com aa aa aa

FY 2008 FY 2009 FY 2010

Geographical mix Service mix Services offered for BFSI vertical: 2010; US$ million 2010; US$ million ADM and testing; CRM and multi-channel banking solutions; core banking and insurance solutions; payments and card 100% = xx 100% = xx processing BPO services; M&A integration services; risk D E and compliance solutions C xx% xx% D xx% xx% Major BFSI clients: xx% A Bank A, Bank B, Insurer C, Insurer D, Trading Services Firm C xx% xx% E, Investment Bank F xx% A xx% B Scale of BFSI sub-verticals: B Banking Capital markets Insurance

1 FY ends on December 31 Source: Everest Group (2011) 8 Copyright © 2011, Everest Global, Inc. EGR-2011-11-PD-0577 Company X | Banking AO profile (page 2 of 5) Banking AO capability assessment and market success

Measure of capability: Very high High Medium Low

Headline assessment Everest PEAK Matrix for Banking AO

Company X is a global leader in retail banking applications and 75th percentile has strong relationships with large U.S. banks High Leaders Transaction success Major

 Has over xx large active banking AO contracts; added yy Contenders percentile th

new clients in last three years 75 Emerging  High average TCV of US$xx million Players  Major banking AO clients: Bank A, Bank B, Bank C Market success 1 percentile (Transaction activity) Success dashboard High Medium Low th 25 Banking lines of business: Geographic scope: Low Low 25th percentile High Retail banking Cards North America EMEA Delivery capability Commercial banking Lending Latin America APAC (Scale, scope, domain investments, and delivery footprint)

Scale Scope  Derives over xx% of its revenues from BFSI (US$yy million)  Services all banking Lines of Business including retail,  Over xx FTEs delivering banking AO services commercial, cards, and lending  xx active banking clients  Key strength in application development and testing  Most contracts have multi-country scope

Domain investments Delivery footprint  Proprietary core banking solution ‘ABC’ with deployments  AO deliver presence in xx countries across xx countries  Key offshore delivery locations include India, Argentina and  Joint marketing alliance with yy for payments solutions Poland  Acquired three banking IT products companies in the last two  Moderate offshore leverage of yy% years

1 Transaction success for large-sized deals; assessment relative across service providers Source: Everest Group (2011) 9 Copyright © 2011, Everest Global, Inc. EGR-2011-11-PD-0577 Company X | Banking AO profile (page 3 of 5) AO domain investments

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

Banking  Core banking solution ‘ABC’ with ten different modules  Center of Excellence for mobile payments applications

Other  Risk & compliance frameworks

Acquisitions (representative list) Target Date Capabilities added Target A Nov 2010 Target A’s suite of card solutions and services Target B Jul 2009 Banking IT products for lending

Key alliances (representative list) Alliance partner Purpose of alliance Partner A Joint marketing alliance for payments solutions Partner B Co-development of core banking software

Recent transaction activity1 Buyer’s name Announcement date TCV estimate Duration Contract details and services (US$ million) (years) Bank A Dec 2010 xx xx Maintenance of applications and provision of desktop services Bank B Oct 2010 yy yy Card processing solutions and BPO services Bank C Sep 2010 zz zz Implementation of ‘ABC’ core banking solution; maintenance services

1 Publicly announced banking AO transactions during 2008-2010 Sources: Everest Group (2011); public disclosures 11 Copyright © 2011, Everest Global, Inc. EGR-2011-11-PD-0577 Company X | Banking AO profile (page 5 of 5) Key offshore AO delivery locations NOT EXHAUSTIVE

>5000 AO FTEs 1000-5000 AO FTEs 500-1000 AO FTEs 100-500 AO FTEs <100 AO FTEs

Poland

Morocco Mexico China

India

Argentina

Published Current Upcoming

Topic Goals of the research Release date

The market size and potential of the global lending BPO by January-2011 Global lending BPO business segment and function. Adoption trends measured across across credit cards, buyer size and geography. Maturity of lending BPO sub-functions consumer loans, and across business segments. Prevalence of various sourcing commercial loans models. The lending BPO service provider landscape across business segments

Snapshots of 14 service providers playing in the FS BPO March-2011 FS BPO Service provider segment. Each 4-5 page service provider profile provides a profile compendium 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

Coverage across retail banking, capital markets, and insurance. April-2011 Global sourcing in Offshore leverage through shared services and third-party FS BPO – Significant outsourcing by financial services organizations. Potential Traction, Yet Tremendous offshorability and current offshore adoption of value chain Potential elements for each business segment. Mature and emerging delivery locations and associated value proposition

Provides an overview of the application services market for the June-2011 Market Trends for IT banking vertical, capturing key trends in market size, growth, application services in drivers and inhibitors, adoption trends, regional/functional break- Banking outs of the market, emerging themes and key areas of investment, and implications for key stakeholders

Published Current Upcoming

Topic Goals of the research Release date

Provides a comprehensive assessment of the service provider June-2011 Service provider landscape in AO services for banking and maps various suppliers landscape for IT on Everest’s capability matrix application services in Banking

Profiles of service providers capturing their IT AO July-2011 Service providers’ capability in banking capability assessment (profiles compendium) for IT application services in Banking

This report explores the market size, growth, adoption trends, Q3-2011 Insurance BPO market value drivers, process scope, technology landscape, delivery overview locations, and service provider landscape in the insurance BPO market

Coverage across investment banking, asset management, and Q3-2011 Global third-party BPO custody and fund administration. Service provider segments and service provider assessment of scale and scope of offerings. Role of global landscape in Capital sourcing and technology. Individual service provider profiles Markets

Published Current Upcoming

Topic Goals of the research Release date

Provides an overview of the application services market for the Q3-2011 Market Trends for IT insurance vertical, capturing key trends in market size, growth, application services in drivers and inhibitors, adoption trends, regional/functional break- Insurance outs of the market, emerging themes and key areas of investment, and implications for key stakeholders

Provides a comprehensive assessment of the service provider Q3-2011 Service provider landscape in AO services for insurance and maps various landscape for IT suppliers on Everest’s capability matrix. application services in Insurance

Profiles of service providers capturing their IT AO Q3-2011 Service providers’ capability in insurance capability assessment (profiles compendium) for IT application services in Insurance

Provides an overview of the application services market for the Q3-2011 Market Trends for IT capital markets vertical, capturing key trends in market size, application services in growth, drivers and inhibitors, adoption trends, regional/functional Capital Markets break-outs of the market, emerging themes and key areas of investment, and implications for key stakeholders

Published Current Upcoming

Topic Goals of the research Release date

Profiles of service providers capturing their IT AO Q3-2011 Service providers’ capability in capital markets capability assessment (profiles compendium) for IT application services in Capital Markets

Provides a comprehensive assessment of the service provider Q3-2011 Service provider landscape in AO services for capital markets, and maps various landscape for IT suppliers on Everest’s capability matrix application services in Capital Markets

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

1. IT Applications Outsourcing in Banking – Trends and Future Outlook (ERI-2011-11-R-0566): This report provides an overview of the application outsourcing (AO) market for banking industry, through an in-depth analysis of large-sized AO contracts (i.e., contracts over US$25 million in TCV and over 3 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

2. Application Outsourcing in Banking – PEAK into the Evolving Service Provider Landscape (ERI-2011-11-R-0567): This report provides a comprehensive assessment of the service provider landscape in AO services for banking and maps various providers on Everest’s PEAK Matrix. The report further examines the distinctive characteristics of different service provider clusters i.e., Leaders, Major Contenders, Emerging Players, and recognizes the key implications of the rapidly changing landscape for banking buyers and service providers

3. Role of Global Sourcing in FS BPO – Significant Traction, yet Tremendous Potential (ERI-2011-10-R-0529): Beyond arbitrage, several other factors including access to new talent pools, risk diversification, and operational flexibility are driving financial services organizations to push the global sourcing envelope. This report examines the various global sourcing trends in FS BPO, across banking, capital markets, and insurance

4. Global Lending BPO Across Credit Cards, Consumer Loans, and Commercial Loans (ERI-2011-10-R-0494): As financial services companies come out of one of the most tumultuous periods, this report provides key trends and insights into the global lending BPO across credit cards, consumer loans (including mortgages), and commercial loans across various dimensions such as market size and buyer adoption, prevalent and emerging sourcing models, and changing service provider landscape

For more information on this and other research published by the Everest Research Institute, please contact us:

Amneet Singh, VP – Global Sourcing: [email protected] Jimit Arora, Research Director: [email protected] Rajat Juneja, Senior Research Analyst: [email protected] Mridul Gupta, Senior Research Analyst: [email protected]

Everest Research Institute Two Galleria Tower 13455 Noel Road, Suite 2100 Phone: +1-214-451-3110 Dallas, TX 75240 E-mail: [email protected] 17 Copyright © 2011, Everest Global, Inc. EGR-2011-11-PD-0577 About Everest Group

Everest Group is an advisor to business leaders on next generation 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 www.everestresearchinstitute.com.

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