everest group peak matrix™ for capital markets · pdf filep&c insurance not...

Copyright © 2017 Everest Global, Inc.

This document has been licensed for exclusive use and distribution by TCS

EGR-2017-11-E-2389

Everest Group PEAK Matrix™ for Capital markets

BPO Service Providers

Focus on TCS

October 2017

2Copyright © 2017, Everest Global, Inc.

EGR-2017-11-E-2389

Introduction and scope

Everest Group recently released its report titled ““Capital Markets BPO – Service Provider Landscape with PEAK Matrix™

Assessment 2017”. 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 19 service providers on the Everest Group PEAK Matrix for

capital markets BPO into Leaders, Major Contenders, and Aspirants. 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. Everest Group also identified three service providers as the “2017 Capital markets BPO Star

Performers” based on the strongest forward movement demonstrated on the PEAK Matrix™ year-on-year.

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://www2.everestgrp.com/reportaction/EGR-2017-11-R-2349/Toc?SearchTerms=capital markets


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Everest Group’s classification of the BFSI industry

1 Business to consumer

2 Business to business

Note: This report covers vertical-specific BPO within the capital markets space. It does not include coverage of horizontal

business processes such as F&A, HR, procurement, and contact centers

Banking, Financial Services, and Insurance (BFSI)

Retail financial services

(B2C1)

– Retail banking

– Lending

– Cards

Commercial banking

(B2B2)

Banking

Investment banking

Asset management

Custody & fund

administration

Brokerage

Capital markets

Life insurance

Pensions and annuities

Reinsurance

Others

L&P Insurance

Property insurance

Casualty insurance

Reinsurance

Others

P&C Insurance

NOT EXHAUSTIVE

Focus of report


EGR-2017-11-E-2389

Everest Group PEAK Matrix™

Capital markets BPO | TCS positioned as Leader

Everest Group PEAK Matrix™ for capital markets BPO

Capital markets BPO delivery capability

(Scale, scope, technology solutions & innovation, delivery footprint, and buyer satisfaction)

Ma

rket

su

ccess

(Re

ve

nue, n

um

ber

of clie

nts

, a

nd r

eve

nue g

row

th)

High

High

25

thp

erc

en

tile

25th percentile

75th percentile

Low

Major Contenders

75

thp

erc

en

tile

Infosys

Tech Mahindra

HCLViteos

DXC Technology

Leaders Cognizant

Wipro

Syntel

TCS

Genpact

Low Aspirants

Capgemini

Avaloq

Broadridge

WNS

NIIT Technologies

Hexaware

Mphasis

EXL

eClerx

Leaders

Major Contenders

Aspirants

Star Performers

1 Assessment for eClerx, DXC Technology, and Viteos excludes service provider inputs and is based on Everest Group’s proprietary Transaction Intelligence (TI)

database, service provider public disclosures, and Everest Group’s interactions with insurance buyers

2 Service provider assessments are based on data collected through December 31, 2016. Any changes in capabilities due to M&A activity after this date are not

reflected in the current analysis

Source: Everest Group (2017)


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TCS | Capital markets BPO profile (page 1 of 8)

Everest Group assessment1

Measure of capability: Best-in-class Very high High Medium high Medium Medium low Low Not mature

Delivery capability

Market successScale Scope

Technology

and innovation Delivery footprint Buyer satisfaction Overall

Strengths Areas of improvement

With robust capabilities across most dimensions, TCS has emerged as a

Leader on the Everest Group capital markets BPO PEAK Matrix

TCS has a balanced portfolio spanning multiple geographies. While it is

one of the leading providers of capital markets BPO services in North

America and the United Kingdom, it also has a strong presence in

Continental Europe and Asia Pacific

It offers a holistic suite of technology solutions with investments in high

growth areas such as analytics, risk management, regulatory compliance,

automation, and utility-based offerings

It enjoys a high satisfaction rating among most of its buyers, especially in

relationship management, domain expertise, and transition &

implementation management

Its client mix is dominated by large-sized buyers and it lacks traction in

small- and mid-sized buyer segment

While TCS has a presence across all LOBs, the focus is largely on

investment banking

Buyers expect TCS to be more innovative in leveraging their technology

capabilities so as to bring more value addition to the table

1 Based on contractual and operational information as of December 2016



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Overview

Recent acquisitions and partnerships

2015: Partnered with third-party leading innovation and technology service

provider for its automation solutions

2015: Partnered with Axiom SL for regulatory reporting, testing, and other

support services

2015: Partnered with a capital markets technology solution provider for a

utility for derivatives clearing

Recent developments

2016: Developed a framework through an Artificial Intelligence technique

for MiFID II regulation, which is scalable to other regulations as well

2016: An integrated suite of solutions addressing the challenges of current

onboarding process through advisory, process reengineering, platform

enhancements. and automation of operations

2015: Invested in creating new offerings leveraging our Digital 5 forces

2015: Invested in creating a BPaaS offering on asset servicing

2015: Deployed resources in customizing an in-house reconciliation

platform for investment banking reconciliation

Suite of services

Client and securities reference data management services

Trade confirmation and settlement

Wealth management services and brokerage

Financial reporting, cash management, and financing

Stock lending and transfer agency

Asset management and servicing

Custody & fund administration

Reconciliations and derivatives processing

Risk management operations and controls

2014 2015 2016

Revenue (US$ million) 129 152 180

Number of FTEs 4,350 4,960 4,800

Number of clients 16 22 25

Company overview

Tata Consultancy Services (TCS) is an IT, consulting, and business

process services solutions provider. Its offerings span consumer banking

and corporate businesses that include retail banking, cards, loans, trade

services, cash management, and capital markets (including wealth &

asset management and investment banking). TCS offers its BaNCS

platform solution for all lines of business and its ValueBPSTM approach

achieve significant and sustained business outcomes by leveraging deep

domain expertise and operations redesign methodologies such as

FORETM, robotic process automation (RPA), analytics and insights, IT-

BPS synergy, Business Process as a Service (BPaaS) models, and

business process management (BPM).

Key leaders

Arun Batra, Global Head, BFSI BPS

Narayanan Muthuswamy, Head, Capital Markets BPS Practice

Headquarters: Mumbai, India

Website: www.tcs.com


http://www.tcs.com/


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MumbaiPune

Bogota

Dalian

BangaloreChennai

Nagpur

Gurgaon

Guadalajara


Key delivery locations



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Capital markets BPO FTE split by

delivery location

FTEs in numbers

5%

Capital markets BPO revenue mix

by buying geography

Revenue in US$ million

Capital markets BPO FTE mix by

buying segment

FTEs in numbers

Capital markets BPO number of

clients by buyer size1

Number of clients

84%

4%

Medium

Large

Small

40%

30%

16%

13%1%

72%

11%

10%7%

APAC

Asset managers

100% = 4,800

CustodianInvestment banks

North

America

United Kingdom

100% = 180 100% = 4,800 100% = 25

Brokerages

Continental

Europe MEA

Offshore

Onshore

Nearshore

12%

88%

7%

Key capital markets BPO engagements

Client name LoB Region Client since

Premier Canada-based investment management firm Investment banks North America 2016

Largest banking and financial services holding company Asset managers and custodian North America 2015

Top 10 U.S. investment bank Investment banks and brokerage Asia Pacific, North America,

and United Kingdom

2010

Global Fortune 50 retail banking group Investment banks United Kingdom 2010

Large global bank Asset managers, brokerage, and

custodian

Asia Pacific, Europe, North

America, and United Kingdom

2008

Top 10 EU investment bank Investment banks United Kingdom 2004


Capabilities and key clients



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Application LoB

Year

launched Description

No. of

BPO clients

RPA solutions in trade

norms compliance

All 2015 An RPA solution to ensure trade confirms are documented and signed by both

parties and maintained in a SOX compliant documentation system for audit

purposes.

Not disclosed

TCS BaNCS Recon All 2015 TCS BaNCS for reconciliations manages a range of transactions emanating

from a wide range of assets across multiple market segments and is

integrated with the TCS BaNCS suite of solutions. It is platform agnostic,

highly reliable, and scalable

Not disclosed

RPA solutions in Corp.

actions & account

opening

All 2014 Automation of the majority of manual operational work for investment solutions

provided to clients. The main objectives of the solution is to reduce operating

cost, to increase their straight through processing rate, decrease

operational/volume risks as well as reduce dependencies on specialist

knowledge

Not disclosed

TRAPEZE™ Suite of

Products

All 2012 TRAPEZETM delivery excellence framework encompasses practices, solution

accelerators and methodologies that ensure seamless transition, superior

delivery, transparency, and value creation for our customers

>5

TCS BaNCS

Compliance & Wealth

Management

Securities Processing &

Trading

All 2007 TCS BaNCS compliance is a proactive, web-based, enterprise-wide solution

for monitoring money-laundering activities across various banking LoBs:

Portfolio performance management solution

Clearing & settlement for custodian

Brokers’ front office platform for trading in sale side or buy side

Not disclosed


Technology solutions/tools

1 Not available



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Technology solutions/tools

Application LoB

Year

launched Description

No. of

BPO clients

Market analytics Asset managers

and investment

banks

2015 Statistical analytics on market data fluctuation; accuracy of data; regulatory

model development/validation; sensitivity analysis, Greeks monitoring, and

market risk data control

<3

COB analytics Asset managers

and investment

banks

2015 Semantic analytics deployment (algorithms, decision trees, and graph mining)

for client onboarding requirements (data reconciliation, metadata discovery,

and data lineage); KYC analytics and legal entity identifier analytics - entity

resolution

<3

Regulatory analytics Asset managers

and investment

banks

2015 Semantic analytics deployment (algorithms, decision trees, graph mining) to

address regulatory requirements:

FATCA

DODD FRANK

CRS

MMSR

CFTC

<3

Vendor risk assessment Investment

banking

2014 Assessing vendor health by analyzing the credit history and industry/market

performance of vendors and publishing scorecard basis the same<3



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Risk management & regulatory reporting

Risk management

support Details

No. of BPO

clients

Market risk End-to-end market risk calculation & reporting solutions including market data collation, aggregation of risk

positions, sensitivities & risk submissions, Value at Risk (VaR) & economic capital reporting, data quality, and

controls

<5

Liquidity risk Reporting on liquidity position across debt, equity, FX, issuance, derivatives, cash, and stable business asset

classes. Computing maximum cash outflows for the business at asset level and performing global and local

stress testing on the same

<3

Credit risk TCS is engaged in multiple activities to support the following given below:

Pre-sanction & post-sanction decision making

Credit operations including, but not limited to, static data maintenance, facility set up and customer hierarchy

maintenance

Model validations

Senior management & regulatory reporting

<5

Operations risk Independent CoE set up for maintaining the Risk and Control Self Assessment (RCSA) and supporting the

Business Control Office (BCO) for the Corporate & Investment Banking Business, covering the following

activities:

Updating of process, activities, risk, and controls

Drafting of issues and action plans

Tracking and publishing status of action plans

Preparing governance dashboards and reports

<3



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Risk management & regulatory reporting

Regulatory

reporting support List of regulations Description

No. of

BPO clients

U.S. regulations DFA - OTC Derivatives and CFTC

ISDA Un-cleared Margin, CCAR

Regulatory experts are involved in business analysis and business

testing of activities related to OTC D client-on boarding and reporting

for two largest European banks

<5

UK regulations BCBS ISDA Un-cleared Margin EMIR Supporting a large U.S. bank for BCBS ISDA requirement

Business analysis and testing for OTC D reporting for the large

European bank

<3

EU regulations BCBS ISDA Un-cleared Margin EMIR Supporting a large U.S. bank for BCBS ISDA requirement

Business analysis and testing for OTC D reporting for the large

European bank

<3

Local regulations Investment Management Regulation Supporting a large Australian bank in business analysis and testing <3



EGR-2017-11-E-2389

Appendix


EGR-2017-11-E-2389

Everest Group PEAK Matrix™ for capital markets BPO

2nd or 3rd quartile performance across

market success and capability

Top quartile performance across


Capital markets BPO delivery capability

(Scale, scope, technology solutions & innovation, delivery footprint, and buyer satisfaction)

25th percentile

25

thp

erc

en

tile

75th percentile

75

thp

erc

en

tile

High

Low

Low High

Leaders

Major Contenders

Aspirants

Mark

et

su

cces

s

(Revenue

, nu

mber

of clie

nts

, and

revenu

e g

row

th)

4th quartile performance across


Everest Group PEAK Matrix™ is a proprietary framework

for assessment of a service provider’s capability

Everest Group’s PEAK Matrix is a composite index of a range of distinct metrics related to a service provider’s scale, scope,

technology/domain investments, delivery footprint, and resultant market success in the context of a given services function.


EGR-2017-11-E-2389

Service providers are positioned on the Everest Group

PEAK Matrix™ based on the evaluation of two key

dimensions

1 North America, Latin America, Western Europe, Eastern Europe, Australia & New Zealand, India, Philippines, Rest of Asia, and Middle East & Africa

2 Measured through responses from two/three referenced buyers for each service provider

Measures the scale of

operations (overall company

revenue and relative focus

on the vertical)

Scale

Measures the scope of

services provided across

LoBs, geographies, and

buyer size

Scope

Measures the capability and

investment in technology

solutions and the ability to

deliver value-added

services (innovation) with

high technology leverage

Technology solutions

and innovation

Measures the delivery

footprint across regions and

the global sourcing mix

Delivery footprint

Measures the satisfaction

levels1 of buyers across:

Business driver

Implementation

Process expertise

Relationship

management

Buyer satisfaction

Delivery capability

Measures success, which is captured

through CCO revenue, number of

current CCO clients, and YOY

revenue growth

Measures ability to deliver services successfully.

This is captured through five subdimensions

Ma

rket

su

ccess Major Contenders

Leaders

Aspirants


EGR-2017-11-E-2389

Everest Group confers the “Star Performers” title to

providers that demonstrate the strongest forward

movement over time on the PEAK Matrix™

This slide to be used ONLY for “Star Performers” 2017 Capital

markets BPO

“Star Performers”

Methodology

Everest Group selects “Star Performers” based on the relative YOY movement of each service

provider on the PEAK Matrix

Year 1

Year 0

Service

provider

Mark

et

su

cces

s

Capability

The top quartile performers on each of the specified

parameters are identified and the “Star Performer”

rating is awarded to the service providers with:

The maximum number of top quartile performances

across all of the above parameters

At least one area of top quartile 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. Those identified as “Star Performers” may include “Leaders,” “Major Contenders,”

or “Aspirants.”

In order to assess advancements on market success,

we evaluate the performance of each service provider

on the PEAK Matrix across a number of parameters

including:

Yearly revenue growth

Number of new clients added

Number of contract extensions

Value of new contract signings

In order to assess advancements on capability,

we evaluate the performance of each service

provider on the PEAK Matrix across a number of

parameters including:

Annual growth in scale

Increase in scope of services

Expansion of delivery footprint

Technology- / domain-specific investments


EGR-2017-11-E-2389

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 “Aspirant” 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 “Aspirant” 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


EGR-2017-11-E-2389

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

About Everest Group

Everest Group is a consulting and research firm focused on strategic IT, business

services, and sourcing. We are trusted advisors to senior executives of leading

enterprises, providers, and investors. Our firm helps clients improve operational

and financial performance through a hands-on process that supports them in

making well-informed decisions that deliver high-impact results and achieve

sustained value. Our insight and guidance empower clients to improve

organizational efficiency, effectiveness, agility, and responsiveness. What sets

Everest Group apart is the integration of deep sourcing knowledge, problem-

solving skills and original research. Details and in-depth content are available at

www.everestgrp.com.

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