AO) in Insurance – Service Provider Profile Compendium

Topic: Application Outsourcing (AO) in Insurance – Service Provider Profile Compendium

Banking, Financial Services, and Insurance (BFSI) Outsourcing Report: January 2013 – Preview Deck

Subscription information Market Vista  The full report is included in Global services tracking across functions, sourcing models, locations, and the following subscription(s) service providers – industry tracking reports also available – Banking, financial services, insurance Banking, financial Healthcare Finance & accounting services, insurance  In addition to published research, a subscription may Information Procurement Cloud Vista include analyst inquiry, data technology cuts, and other services

 If you want to learn whether Human resources Recruitment process Global sourcing your organization has a subscription agreement or Service provider Transaction request information on pricing PricePoint and subscription options, Intelligence Intelligence please contact us: – [email protected] Custom research capabilities – +1-214-451-3110  Benchmarking | Pricing, delivery model, skill portfolio  Peer analysis | Scope, sourcing models, locations  Locations | Cost, skills, sustainability, portfolio  Tracking services | Service providers, locations, risk  Other | Market intelligence, service provider capabilities, technologies

Background of the research  The BFSI industry continues to be the largest adopter of the IT Application Outsourcing (AO) services. However, the industry dynamics changed significantly over the last 12 to 24 months. BFSI buyers are facing increasing pressure to drive top-line growth, manage complexity arising out of wide-scale regulatory reforms, and improve profitability by driving greater cost efficiencies. In order to achieve this, buyers are focusing on optimizing their portfolio of AO service providers  At the same time, service providers in the BFSI AO space are also ramping up their capabilities, building up scale, and investing in developing and acquiring IP/proprietary solutions. They are also forming alliances, which allow them to undertake and deliver on large-sized, annuity AO engagements. The competitive intensity in the BFSI-AO services space is at an all-time high. As a result, it is becoming difficult to differentiate among service providers based purely on delivery capabilities. It is, therefore, critical to have a comprehensive, well-rounded, and fact-based assessment of service providers’ BFSI-AO value proposition  In this research, we present detailed profiles of the 20 service providers featured on the insurance AO PEAK Matrix. Each 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 20 service providers1:  Insurance AO PEAK Leaders: Accenture, Cognizant, CSC, IBM GS, and TCS  Insurance AO PEAK Major Contenders: Capgemini, CGI, HCL, HPES, iGate, Infosys, L&T Infotech, MindTree, MphasiS, Syntel, and Wipro  Insurance AO PEAK Emerging Players: Hexaware, Mahindra Satyam, Softtek, and Unisys

1 The scope of the report covers service provider information up to December 2011

Topic Page no.

Introduction and overview 5

The Everest Group insurance AO PEAK Matrix 11

Section I: Profiles of insurance AO Leaders 17  Accenture 18  Cognizant 25  CSC 33  IBM Global Services 41  TCS 49

Section II: Profiles of insurance AO Major Contenders 58  Capgemini 59  CGI 65  HCL Technologies 73  HPES 80  iGATE 87  Infosys 93

Topic Page no.

Section II: Profiles of insurance AO Major Contenders (continued)  L&T Infotech 100  Mindtree 107  MphasiS 113  Syntel 120  Wipro 126

Section III: Profiles of insurance AO Emerging Players 133  Hexaware 134  Mahindra Satyam 140  Softtek 146  Unisys 151

Appendix 156  Glossary of key terms 157  2012 BFSI research agenda 159  Additional BFSI research references 161

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 & fund administration  Others  Cards  Brokerage  Commercial banking (B2B2)  Others

Services industry

IT Infrastructure Outsourcing IT Application Outsourcing Business Process (IO) (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 / data  Knowledge services warehousing

This report analyzes capabilities of service providers for IT application outsourcing in the insurance subvertical with a focus on large (TCV >US$25 million), annuity-based multi-year (more than three years) relationships

1 Business-to-consumer relationships 2 Business-to-business relationships

Market Trends in IT Application Outsourcing Services Each report provides: Banking  An overview of the application services market for the BFSI verticals, capturing key trends in market size, growth, drivers and inhibitors, adoption trends, regional/functional break- outs of the market, emerging themes, key areas of investment, and implications for key Capital Market stakeholders  Key movements in volumes/values of AO transactions, evolving trends, market dynamics, and emerging priorities of buyers in the last 12 months Insurance

Service Provider Landscape: IT Application Outsourcing Services Each report provides: Banking  Assessment of service provider landscape in AO services and mapping of providers on Everest Group’s PEAK Matrix – as Leaders, Major Contenders, and Emerging Players  Comparative evaluation of BFSI-AO capabilities of provider categories such as global majors, offshore majors, regional players, and tier-2 specialists. Benchmarking scale, Capital Markets scope, domain investments, and delivery footprint of each provider’s BFSI-AO practice  The 2012 BFSI-AO PEAK analyses focus on identifying the “Star Performers”, i.e., providers with strongest forward movement over time – both in terms of market success and capability advancements Insurance

Service Provider Profiles Compendium: IT Application Outsourcing Services

Capability profiles of service providers capturing their AO services experience in specific Banking subverticals. Each service provider profile includes:  Service provider overview – details of AO services capabilities, key investments, proprietary solutions, and technological expertise Capital Markets  Functional / Line of Business (LoB) focus  Transactions overview for application services offerings  Delivery footprint Insurance

1  Everest Group’s proprietary database of more than 375 large, multi-year AO Service providers assessed contracts within BFSI (updated annually)  The database tracks the following elements of each large AO relationship: – Buyer details, including industry, size, and the 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 (for example, life insurance, property and casually (P&C), and reinsurance) – Scope includes coverage of buyer’s geography as well as functional activities – Global sourcing, including delivery locations and level of offshoring

2  Everest Group’s proprietary database of operational capability of more than 20 BFSI AO service providers (updated annually)  The database tracks the following capability elements for each service provider: – Major BFSI AO clients and recent wins – Overall revenue, 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 the 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

>US$500 million US$100-500 million

Company description Scale of BFSI subverticals Company X is a global provider of IT and BPO services. Its IT offerings Capital Markets span technology consulting, application development and maintenance, Banking Insurance systems integration, software products and IT infrastructure services. It primarily serves BFSI, telecom, retail and manufacturing verticals Key financial parameters Revenue1 from BFSI vertical Revenue in US$ million Revenue1 from other verticals Operating margin Headquarters: XX XX

XX Website: www.companya.com

Geographical mix Service mix FY 2011; US$ million FY 2011; US$ million

100% = xx 100% = xx FY 2009 FY 2010 FY 2011

Latin America Consulting Services offered for BFSI vertical Application services for money transfer, credit cards, loans, U.S. BPO ADM wealth management, anti-money laundering, and mobile APAC banking; ERP solutions; IT infrastructure support; product licensing and reselling

Europe Infrastructure Major BFSI clients services Bank A, Bank B, Financial Services Firm C, Insurer D, Trading Services Firm E, Investment Bank F 1 FY ends on December 31 Source: Everest Group (2013)

Headline assessment Measure of capability: Very high High Medium Low Targeted solutions for insurance, combined with strong revenue growth and client Everest Group PEAK Matrix for insurance AO wins, enabled Company A to further strengthen its leadership position in the insurance AO marketplace High Leaders Transaction success  Over XX insurance AO clients, including global accounts, which are Major Contenders served in multiple geographies Company A  Over XX large active insurance AO deals with average TCV of US$XX success million and average contract duration of XX years  Major insurance AO clients: XX, XX, XX Market Success dashboard1 High Medium Low

Insurance lines of business Geographic scope Emerging Players Low Life and pensions Other North America EMEA Low High Delivery capability Property and casualty Latin America APAC

Scale Scope  Derives XX% of its total revenue from the BFSI vertical, with  Offers solutions in the areas of XX, XX, XX ~US$XX million from insurance AO services  Covers all insurance subverticals with major focus on XX  Registered a strong growth of XX% in its insurance AO revenue in 2011  Equal mix of revenue from large and small deals in insurance AO  Over XX AO FTEs engaged in serving North American insurance clients

Domain investments Delivery footprint  Proprietary solutions and frameworks: XX  Over XX delivery centers across multiple countries such as XX,  Acquired XX in 2011 to strengthen its existing P&C, component-based XX, XX, XX, XX for insurance AO services software platforms  High degree of offshore leverage with over XX% resources employed at  Multiple alliances in the insurance vertical: XX low cost locations, especially India

1 Transaction success for large-sized deals; assessment relative across service providers Source: Everest Group (2013)

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  ‘AAA’: financial services CRM solution

Insurance  “XYZ”: Policy software for P&C insurance carriers, which includes modules such as policy administration, rating, rules, product definition and configuration as well as product templates  “ABC”: Software to manage core business functions, including policy processing, billing, and claims

Acquisitions (representative list) Target Date Capabilities added Target A 2009 Software testing capabilities for insurance industry

Key alliances (representative list) Alliance partner Purpose of alliance Partner A Implementation partner for P&C suite Partner B Co-development of software for claims

Source: Everest Group (2013)

NOT EXHAUSTIVE

Recent transaction activity1 TCV estimate Duration Buyer’s name Announcement date (US$ million) (years) Contract details and services Firm A Jan 2011 XX XX Maintenance of applications and provision of desktop services

Firm B Mar 2009 XX XX Maintenance and support of insurance administration systems Firm C Dec 2008 XX XX Implementation of ‘ABC’ life insurance solution; maintenance services

1 Publicly-announced insurance AO transactions during 2009 to 2012 Source: Everest Group (2013)

NOT EXHAUSTIVE

Confirmed location for insurance AO 500-1,000 AO FTEs >5,000 AO FTEs 100-500 AO FTEs 1,000-5,000 AO FTEs <100 AO FTEs

Czech Republic Poland

Slovakia Bulgaria

China

Mexico Vietnam India Thailand Brazil Malaysia Chile

Source: Everest Group (2013)

Published Current

Topic Release date

Trade Reconciliations Business Process Outsourcing (BPO) May-2012

Report Card for the Indian IT Majors – Pecking Order Analysis of the "WITCH" Group June-2012

IT Application Outsourcing (AO) in Banking – Trends and Future Outlook June-2012

BFS BPO Annual Report 2012 – Strong Growth Post the Downturn July-2012

Application Outsourcing (AO) in Banking: PEAK Matrix Provider Landscape – Evolution at Play August-2012

IT Application Outsourcing (AO) in Insurance – Navigating Business Challenges through Technology September-2012

A PEAK into the Leaders, Major Contenders, and Emerging Players of the Banking BPO Market October 2012

Applications Outsourcing in Banking – Service Provider Profiles Compendium October 2012

Global Sourcing Trends in the U.S. Mortgage Industry October 2012

IT Application Outsourcing (AO) in Capital Markets Annual Report – Change is the only constant October 2012

Webinar Deck: PEAK into the BFSI Outsourcing Market October 2012

Application Outsourcing (AO) in Insurance: PEAK Provider Landscape – Policies for Growth and Differentiation October 2012

Insurance Business Process Outsourcing (BPO) Market 2011-2012 – Annual Report November-2012

Published Current

Topic Release date

A PEAK into the Leaders, Major Contenders, and Emerging Players of Capital Markets BPO November-2012

Banking BPO Service Provider Profiles Compendium November-2012

A PEAK into the Leaders, Major Contenders, and Emerging Players of Insurance BPO December-2012

Capital Markets BPO Service Provider Profile Compendium December 2012

Service Provider Landscape for IT application services in Capital Markets – PEAK report 2012 December 2012

BFSI BPO Service Provider Profiles Compendium – Insurance BPO January 2013

IT Application Outsourcing (AO) in Insurance – Service Provider Profiles Compendium January-2013

IT Application Services in Capital Markets – Service Provider Profiles Compendium 2012 Q1-2013

The following documents are recommended for additional insight into the topic covered in this report. The recommended documents either provide additional details on the topic or complementary content that may be of interest

1. IT Application Outsourcing (AO) in Insurance – Navigating Business Challenges through Technology (EGR-2012-11-R-0744): This report provides an overview of the application services market for the insurance vertical, capturing key trends in market size, growth, drivers and inhibitors, adoption trends, regional/functional break-outs of the market, emerging themes and key areas of investment, and implications for key stakeholders. The focus in 2012 is also to capture the key movements in volumes/values of insurance-AO transactions, evolving trends, market dynamics and emerging priorities of buyers in the last 12 months

2. Application Outsourcing (AO) in Insurance: PEAK Provider Landscape - Policies for Growth and Differentiation (EGR-2012-11-R-0772): This report provides a comprehensive assessment of the service provider landscape in AO services for insurance and maps them on Everest Group’s PEAK Matrix. It also benchmarks the scale, scope, domain investments, and delivery footprint of each provider’s insurance AO practice. Finally, the 2012 insurance AO PEAK analysis focuses on identifying the “Star Performers”, the providers with the strongest forward movement over time in terms of market success and capability advancements

3. IT Application Outsourcing (AO) in Capital Markets Annual Report - Change is the only constant (EGR-2012-11-R-0766): This report provides an overview of the Application Outsourcing (AO) market for the capital markets industry, through an in-depth analysis of large-sized AO contracts (i.e., contracts over US$25 million in TCV and over three years in duration). The report analyzes key trends in market size and growth, demand drivers, adoption and scope trends, emerging priorities of buyers, key investment themes, and future outlook for 2012, with regards to such large capital markets AO deals

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

Jimit Arora, Vice President: [email protected] Rajat Juneja, Practice Director: [email protected] Kiranjeet Kaur, Senior Analyst: [email protected] Pallavi Saxena, Analyst: [email protected]

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