everest group peak matrix for banking bpo focus on tcs · pdf filekumar srinivasan, head...

Everest Group PEAK Matrix for capital markets BPO

Focus on TCS

December 2012

Copyright © 2012, Everest Global, Inc.

Proprietary & Confidential. © 2012, Everest Global, Inc. 2

Introduction and scope

Everest Group recently released its report titled “A PEAK into the Leaders, Major Contenders, and Emerging

Players of Capital Markets BPO”. This report analyzes the changing dynamics of the Capital Markets BPO

landscape and assesses service providers across several key dimensions.

As a part of this report, Everest Group updated its classification of 14+ service providers on the Everest Group

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

Contenders, and Emerging Players. The PEAK Matrix is a framework that provides an objective, data-driven,

and comparative assessment of Capital Markets BPO service providers based on their absolute market

success and delivery capability.

Based on the analysis, TCS emerged as a Leader. This document focuses on TCS’s Capital Markets BPO

experience and capabilities and includes:

TCS’s position on the Capital Markets BPO PEAK Matrix

Detailed Capital Markets 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/11927

https://research.everestgrp.com/Product/11927


Everest Group’s definition of BFSI includes the

following three segments

1 Business-to-consumer relationships

2 Business-to-business relationships

Retail financial services

(B2C1)

– Retail banking

– Lending

– Cards

Commercial banking (B2B2)

Banking

Investment banking

Asset management

Custody & fund

administration

Brokerage

Capital markets

Life & pensions

Property & casualty

Insurance

Banking, Financial Services,

and Insurance (BFSI)

Focus of this document

Note: This document relates to vertical-specific BPO within the capital markets space. The document does

not include coverage of horizontal business processes such as F&A, HR, procurement, and contact centers


Everest Group PEAK Matrix – 2012 capital markets

BPO standing

Performance | Experience | Ability | Knowledge

Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for capital markets BPO

Capital markets BPO delivery capability1

(Scale, scope, technology, and delivery footprint)

Leaders

Major Contenders

Emerging Players

1 Service providers scored using Everest Group’s proprietary scoring methodology given in the Appendix

Source: Everest Group (2012)

Ma

rke

t s

ucc

es

s

25

th p

erc

en

tile

High

Low 25th percentile

75th percentile

Low High

75

th p

erc

en

tile

Cognizant

eCLERX

TCS Syntel

Wipro Genpact

Infosys

HP

WNS iGate

HCL

Capgemini

EXL Service

Mahindra Satyam


TCS (page 1 of 5)

Capital markets BPO overview

Recent acquisitions and partnerships

2012 – TCS and Mitsubishi form JV to establish an IT,

BPO, and infrastructure services delivery center in Japan

2012 – TCS BaNCS signed an agreement with Savvis, a

CenturyLink company and a global leader in cloud

infrastructure for hosting and cloud-enabled core banking,

payments, and compliance

Recent developments

FORETM – Transformation model for business

Capital Markets Domain Academy equipped with a web

tool “Pedagogue” for competency development

Created best-in-class capital markets process maps for

which patent has been filed

Suite of services

Client and reference data management

Order entry and trade execution

Trade confirmation and settlement

Wealth management and brokerage

Cash management and financing

Stock lending

Asset servicing (including corporate actions)

Transfer agency

Custody and fund administration

Reconciliation

Risk management (market, credit, and liquidity)

Trade analytics

2009 2010 2011

Revenue (US$ million) N/A 75 80

Number of FTEs 440 2,500 2,700

Number of clients N/A 7 10

Company overview

TCS offers a range of information technology and consultancy services.

The company’s offerings include application development, infrastructure

management, engineering services, and business process services

(BPO) including analytics & insights. TCS also offers platform solutions

for specific business functions, such as the TCS BaNCS application for

capital markets, banking, payments, reconciliations, insurance, and

finance & accounting

Key leaders

Abid Ali, Global Head, BPO Services, TCS

Dinanath Kholkar, Head – BFS & INS, BPO Services, TCS

Kumar Srinivasan, Head – Capital markets BPO Services, TCS

Headquarter: Mumbai, India

Website: www.tcs.com


http://www.tcs.com/


TCS (page 2 of 5)

Capital markets BPO location landscape

Chennai Mumbai

Bangalore

Dalian

Gurgaon



TCS (page 3 of 5)

Capital markets BPO – capabilities and key clients

Key capital markets engagements

Client name Line of business Region

Year since

client

Citi Client data management, order entry & trade execution, fund administration, asset

servicing, transfer agency and investment products, private banking, wealth, settlement,

cash management & financing, and recon

North America, Europe, and

Asia Pacific

2008

Fortune 100

investment bank

Settlement operations, stock lending, client & securities reference data management,

wealth management services, operations risk and control, and network & global banking

services

North America, Europe, and

Asia

2010

Global Fortune 150

investment bank

Client reference data management, risk operations (including market and credit &

liquidity risks), reconciliation, and L1 help desk services

North America and Europe 2004

Split of FTEs by location

FTEs in numbers

Capital markets BPO revenue mix by

geography

Revenue in US$ million

Capital markets BPO FTE mix by segment

FTEs in numbers

100%

Offshore

55% 42%

3%

North

America

Europe Asset

management

Investment

banking

Asia Pacific

100% = 2,700 100% = 80

Wealth

management &

Retail brokerage

Custody & fund

administration

44%

40%

11% 5%

100% = 2,700

Note: Based on the contracts signed till December 2011



Tools

TCS BaNCS financial services

product Reconciliation platform

TCS BaNCs-Credit Risk

Management Platform(GCRM) TRAPEZE

Solution

description

TCS BaNCS enables

transformation in financial

services through a superior and

holistic suite of solutions for

banks, capital market firms,

insurance companies, and

diversified financial institutions.

Each solution in the TCS

BaNCS family is designed to

run as a scalable and robust

service, fully integrated with

existing business models,

enterprise infrastructures, and

technology architectures

On-premise trade reconciliation

solution

Back-office credit risk

management system. Holds

exposures, limits, ratings and

credit review information for

counterparties with whom the

bank trades

TCS delivery ecosystem

consisting or governance,

reporting, workflow, document

management, and process

management applications apart

from domain-specific

accelerators

Year launched 2006 2009 N/A 2011

Line of

business

All Investment banking Investment banking All

Number of

clients

>300 5 investment banks 1 investment bank 7

TCS (page 4 of 5)

Capital markets BPO technology solutions


TCS is a Leader on Everest Group PEAK Matrix for capital markets BPO

TCS (page 5 of 5)

Competitive position and assessment

Delivery capability assessment

Assessment

dimension Rating Remarks

Scale More than 2,700 FTEs in capital markets BPO

Scope Significant scale and presence across all lines

of business and most geographies

Technology capability Has a number of sophisticated platforms

besides add-on tools across the capital

markets BPO value chain

Delivery footprint Five delivery centers for capital markets BPO

but no onshore or nearshore capability

High Low

Market share by region

North America Europe South America Asia Pacific

13% 19% - 6%

Market share by capital markets BPO line of business

Investment

banking

Asset

management

Custody & fund

administration Brokerage

13% 32% 3% 11%

Overall market share

By number of contracts By FTEs By revenue

7% 16% 14%

Overall remarks

TCS leverages its IT heritage and delivery capabilities to achieve market

success across lines of business and geographies. With strong delivery

capabilities and market traction, it emerges as a Leader in capital markets

BPO

TCS is investing significantly in developing domain expertise with its own

training academy

Although dominated by its acquisition of Citigroup’s back-office operations

(2008), TCS acquired new clients to widen its client portfolio

Investing in building onshore delivery capabilities and expanding beyond

traditional markets to Asia Pacific (Japan)

Needs to develop greater traction in the South American market, bolster

capabilities in custody & fund administration, and increase the number of

clients further to avoid concentration risk

Capital markets BPO delivery capability

Ma

rke

t s

uc

ce

ss

High

Low Low High

TCS

Leaders

Major Contenders

Emerging Players

Copyright © 2012, Everest Global, Inc. 10

Appendix


Top quartile performance

across market success

and capability

2nd or 3rd quartile

performance across market

success and capability

4th quartile performance

across market success

and capability

High

Low

25

th p

erc

en

tile

75

th p

erc

en

tile

75th percentile

Ma

rke

t s

ucc

es

s

Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix

Emerging Players

Leaders

Major Contenders

Capital markets BPO delivery capability

(Scale, scope, technology, and delivery footprint)

Low High 25th percentile

Everest Group classifies capital markets BPO service providers into

Leaders, Major Contenders, and Emerging Players on the Everest

Group Performance | Experience | Ability | Knowledge (PEAK) Matrix


Measures the scope of

services provided

across segments,

processes, industries,

geographies, etc.

Measures the capability

and investment in tools

and technologies that

help deliver better

services

Measures the delivery

footprint and the global

sourcing mix through

delivery footprint across

regions and offshore

delivery capability

Measures success

achieved in the market.

Captured through capital

markets BPO revenue

Measures ability to deliver services successfully.

Captured through four subdimensions

Measures the scale of

operations (overall

company revenue, capital

markets BPO revenue,

number of FTEs, etc.)

Scale Scope Technology capability Delivery footprint

Emerging Players

Leaders

Major Contenders

Ma

rke

t s

ucc

es

s

Delivery capability

Service providers are positioned on the PEAK Matrix

based on evaluation across two key dimensions



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 “Emerging Player” 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 “Emerging Player” 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


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


Everest Group

Leading clients from insight to action

Everest Group is an advisor to business leaders on the next generation of 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 research.everestgrp.com.

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