Banking, Financial Services, and Insurance (BFSI) Outsourcing Report: August 2011 – Preview Deck Topic: IT Applications Outsourcing in Banking – Service Provider Profiles Compendium Copyright © 2011, Everest Global, Inc. EGR-2011-11-PD-0577 Background and scope of the research 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 2 Copyright © 2011, Everest Global, Inc. EGR-2011-11-PD-0577 Table of contents (page 1 of 2) 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 3 Copyright © 2011, Everest Global, Inc. EGR-2011-11-PD-0577 Table of contents (page 2 of 2) 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 <US$100 million Company description: Key financial parameters Revenue1 from BFSI Company X is a global provider of IT and BPO services. Its IT Revenue figures in US$ 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