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EGR-2018-28-R-2587
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Copyright © 2018 Ev erest Global, Inc.
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Property and Casualty (P&C) Insurance BPO – Service Provider
Landscape with Services PEAK Matrix™ Assessment 2018
SELECT SLIDES
Insurance - Business Process Outsourcing (BPO)
Market Report – March 2018
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Everest Group PEAK Matrix™ is a proprietary
framework for assessment of market impact and
vision & capability
Everest Group PEAK Matrix
Vision & capability
Measures ability to deliver services successfully
High
Low
Low High
Leaders
Aspirants
Ma
rke
t im
pa
ct
Measure
s im
pact
cre
ated in
the
mark
et
Major Contenders
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Services PEAK Matrix™ evaluation dimensions
Measures impact created in the market –
captured through three subdimensions
Market adoption
No. of clients, revenue base, and YOY growth, deal value/volume
Portfolio mix
Diversity of client/revenue base across geos and type of engagements
Value delivered
Value delivered to the client based on customer feedback and transformational impact
Vision and strategy
Vision for the client and itself; future roadmap and strategy
Scope of services offered
Depth and breadth of services portfolio across service sub-segments / processes
Innovation and investments
Innovation and investment in the enabling areas, e.g., technology IP, industry/domain knowledge, innovative commercial constructs, alliances, M&A, etc.
Delivery footprint
Delivery footprint and global sourcing mix
Measures ability to deliver services successfully.
This is captured through four subdimensions
Ma
rke
t im
pact Major Contenders
Leaders
Aspirants
Vision & capability
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Everest Group confers the Star Performers title on
providers that demonstrate the most improvement
over time on the PEAK Matrix™
Star Performers are identified by top quartile performance improvement on the X and Y axes for each segment
Methodology Everest Group selects Star Performers based on the relative YOY improvement on the PEAK Matrix
Year 1
Year 0
Ma
rke
t Im
pa
ct
Vision & capability
We identify the service providers whose improvement ranks in the top quartile and award the Star Performer rating to those service providers with: The maximum number of top-quartile performance
improvements across all of the above parameters AND At least one area of top-quartile improvement
performance in both market success and capability advancement
The Star Performers title relates to YOY performance for a given service provider and does not reflect the overall market leadership position, which is identified as Leader, Major Contender, or Aspirant.
In order to assess advances on market impact, we evaluate each service provider’s performance across a number of parameters including: Yearly ACV/YOY revenue growth # of new contract signings and extensions Value of new contract signings Improvement in portfolio mix Improvement in value delivered
In order to assess advances on vision and capability, we evaluate each service provider’s performance across a number of parameters including: Innovation Increase in scope of services offered Expansion of delivery footprint Technology/domain specific investments
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Everest Group PEAK Matrix™
P&C Insurance BPO Service Provider Landscape with
PEAK Matrix™ Assessment
Everest Group P&C Insurance BPO Service Provider Landscape with Services PEAK Matrix™ Assessment1 2018
1 Assessment for Accenture, Capgemini, Capita, HCL, Intelenet, and Shearwater Health excludes service provider inputs and is based on Everest Group’s proprietary Transaction
Intell igence (TI) database, service provider public disclosures, and Everest Group’s interactions with insurance buyers
Leaders
Major Contenders
Aspirants
Star Performers
Vision & capability (Measures ability to deliver services successfully)
Ma
rke
t im
pact
(Measure
s im
pact c
reate
d in
the m
arket)
High
Low
Low High
Leaders Major Contenders
HCL
Accenture
Capita
Cognizant EXL
Genpact
Syntel Capgemini
Infosys
Shearwater Health
Intelenet
Sutherland Global Services
NIIT Technologies
TCS
Tech Mahindra
Conduent
WNS
DXC Technology
Aspirants
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Service provider
Market impact Vision & capability
Market
adoption
Portfolio
mix
Value
delivered Overall
Scope of
services offered
Innovation
and investments
Delivery
footprint
Vision and
strategy Overall
Cognizant
DXC
Technology
EXL
Genpact
WNS
Summary dashboard | Market impact and vision & capability
assessment of providers for P&C Insurance BPO 2018
Leaders
Measure of capability: Best-in-class Very high High Medium high Medium Medium low Low Not mature
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P&C insurance BPO Star Performers 2018
Distinguishing features
Star Performers 2018
P&C insurance BPO
Star Performers 2018
Distinguishing features in market impact in
2018
Distinguishing features in vision and capability
in 2018
Aggressive expansion of its revenue and client
base through multiple acquisitions such as BrightClaim and National Vendor
Scaled up its operations in markets of North America and Continental Europe
Augmented onshore capabilities to deliver business
process services, especially claims processing Major investments in digital platforms, such as CORA,
that enable analytics and AI for its clients and augmentation solutions such as for automation and
workflow management
Significant top-line increment through scope
expansion, thus contributing to overall market growth
Expanded its scope of operations in the UK and Latin American markets
Invested in various proprietary insurance-specific digital
solutions such as Digital Insurance Hub and Connected Home
Made significant inroads into automation space with its Updater and Extractor solutions
Signed several new contracts; one of the
leading service providers in terms of new contract signings
Registered double-digit revenue growth on a substantial base and contributed significantly
to market expansion
Launched multiple augmentation solutions catering to
various next-generation technology developments such as automation, analytics, and omnichannel experience
Significantly expanded delivery capabilities, especially from onshore and nearshore delivery centers
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The top three service providers account for nearly 60% of the
of the P&C insurance BPO market
5%
2%
10%
15%
Service provider market share in P&C insurance BPO June 2017 (TTM1); By revenue (in US$ billion)
1.3-1.5 100% =
1 Trail ing twelve months
Source: Everest Group (2018)
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Cognizant, Genpact, and TCS accounted for the bulk of
market expansion in P&C insurance BPO
10%
15%
20%
Growth of P&C insurance BPO revenue June 2017 (TTM); Percentage growth in revenue
Source: Everest Group (2018)
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45-50%
10-15%
10-15%
25-30% 25-30%
20-25% 15-20%
10-15%
20-25%
P&C insurance BPO service provider landscape is quite
consolidated in every geography with top two service
providers accounting for more than 50% of the markets
P&C insurance BPO market share by signing regions Revenue in US$ million
North America Europe
100% = 800-900 100% = 30-60
Others
EXL Cognizant
Genpact
DXC Technology
Others
Infosys
Genpact
Cognizant
UK Asia Pacific
100% = 100-150 100% = 350-450
Others
WNS
Genpact
Conduent
DXC Technology Others
DXC Technology
WNS
EXL
25-30%
20-25% 20-25%
10-15%
10-15%
50-55%
10-15%
10-15%
25-30%
Source: Everest Group (2018)
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While DXC Technology has the largest market share in
mid- and large-sized buyers, Genpact leads in small-sized
buyer segment
20-25%
15-20%
10-15%
10-15%
5-10%
25-30%
35-40%
15-20%
10-15%
5-10%
5-10%
15-20%
30-35%
15-20%
15-20%
5-10%
5-10%
20-25%
20-25%
15-20%
10-15% 10-15%
30-35%
Market share by P&C insurance BPO
Number of FTEs in ‘000s
200-250
Others
550-650
Accenture
EXL
Others
100% =
WNS
Others
Cognizant
Genpact
Cognizant Conduent
EXL
TCS
500-600 35-40
Cognizant
WNS
EXL
Genpact
Others
Genpact
WNS
Market share by P&C insurance BPO buyer segments
Revenue in US$ million
Large-sized buyers
(Revenue >US$10 billion)
Mid-sized buyers
(Revenue US$5-10 billion)
Small-sized buyers
(Revenue <US$5 billion)
DXC
Technology
EXL
DXC
Technology
DXC
Technology
Source: Everest Group (2018)
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Market impact Vision & capability
Market adoption
Portfolio mix
Value delivered Overall
Scope of services offered
Innovation and investments
Delivery footprint
Vision and strategy Overall
Genpact
Everest Group assessment – Leader
Strengths Areas of improvement
Genpact’s capabilities in P&C insurance BPO comprise a substantial FTE resource base, a comprehensive coverage of P&C insurance value chain, significant growth in client accounts (powered by their recent acquisitions), a comprehensive delivery model covering large number of centers across onshore, nearshore, and offshore locations, and digital platforms embedded with analytics, lean six sigma, and built on industry expertise
Genpact has had an experience of servicing buyers of all sizes, be it small-, mid-, or large-sized insurers
Its substantial growth has been driven largely by its strategic acquisitions to gain onshore operational capabilities, especially for extensive digital solutions that smoothen claims processing and augment the end-customer experience
Genpact has been able to create significant adoption of its RPA and analytics solutions with its clients. Along with the technology leverage, Genpact also has capabilities for servicing non-core operations such as regulatory reporting and risk management
Although Genpact has a global presence in P&C insurance BPO services, a large part of its revenue is driven by North American buyers. Genpact should target building more traction in the other markets as well, for which it could leverage its existing global capabilities and experience
After the acquisitions, its customer portfolio mostly comprises small-sized buyers. It should continue to target larger client accounts, which will help drive its revenue further
While an inorganic growth strategy would serve Genpact well in quickly acquiring and leveraging capabilities, it still would need to stress the efficient integration of acquired capabilities in its incumbent business models to continue to expand in the future
Genpact would also be required to continue to ramp up their onshore delivery capabilities, which they are already doing through acquisitions, in order to service some of the judgment-intensive processes such as underwriting and claims adjustment for their clients
Measure of capability: Best-in-class Very high High Medium high Medium Medium low Low Not mature