everest group’s peak matrix™ for healthcare provider...
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Copyright © 2016 Everest Global, Inc.
This document has been licensed for exclusive use and distribution by CSC
EGR-2016-12-E-2003
Everest Group’s PEAK Matrix™ for Healthcare
Provider IT Services
Focus on CSC
November 2016
2Copyright © 2016, Everest Global, Inc.
EGR-2016-12-E-2003
Background and scope of the research
Everest Group recently released its report titled “Healthcare Provider IT Services – Service Provider
Landscape with PEAK Matrix™ Assessment 2016”. This report analyzes the changing dynamics of the
healthcare provider IT services landscape and assesses service providers across several key dimensions.
As a part of this report, Everest Group analyzed 22 leading service providers on the Everest Group
Performance | Experience | Ability | Knowledge (PEAK) Matrix, specific to healthcare provider IT services,
categorizing them into Leaders, Major Contenders, and Aspirants. The PEAK Matrix is a composite framework
that provides an objective, data-driven, and comparative assessment of healthcare provider IT service
providers based on their absolute market success and delivery capability.
Based on the analysis, CSC emerged as a Leader. This document focuses on CSC’s healthcare provider IT
services experience and capabilities. It includes:
CSC’s position on the healthcare provider IT services PEAK Matrix
Detailed healthcare provider IT services profile of CSC
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.
3Copyright © 2016, Everest Global, Inc.
EGR-2016-12-E-2003
Background and scope of the research
Background of the research
The Healthcare and Life Sciences (HLS) landscape has been subject to significant turbulence on account of a gamut of factors
including escalating costs, widespread regulatory amendments, changing business models, and evolution of the patient-centric
paradigm (with mobile computing, social media platforms, “anytime-anywhere” information access, and self-service channels).
This combination of disruptive and legacy factors has driven HLS firms to adopt new technologies, while also revamping their
existing systems, processes, and interfaces.
As the technology mandate for HLS enterprises evolves, so do their relationships with IT service providers. This, in turn, is driving
the need for relevant research and market intelligence on demand and supply trends in HLS IT services across the three major
market segments – payer, provider, and life sciences. Everest Group’s HLS IT research program addresses this market
requirement by analyzing outsourcing trends and service provider capabilities specific to IT services in the healthcare and life
sciences vertical.
In this report, we analyze the capabilities of 22 IT service providers specific to the global healthcare provider sector.
These service providers are mapped on the Everest Group 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. We focus on:
Provider IT market trends
The landscape of service providers for provider IT
Assessment of the service providers on a number of capability-related dimensions
Implications for provider IT buyers and service providers
Scope of this report
Industry: Healthcare providers (large health systems, stand-alone hospitals, pharmacists, physician practices, and diagnostic
labs)
Services: Multi-year (>3 years) and annuity-based IT services
Geography: Global (though with a slight skew towards the U.S. provider market, given dominant market activity)
Sourcing model: Third-party IT transactions; excludes shared services or Global In-house Centers (GICs)
4Copyright © 2016, Everest Global, Inc.
EGR-2016-12-E-2003
CSC is positioned as a Leader on Everest Group’s
PEAK Matrix for healthcare provider IT services
Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for provider IT services1,2
75th percentile
Low
Low High
High
25
thp
erc
en
tile
25th percentile
Leaders
Aspirants
75
thp
erc
en
tileMajor Contenders
Delivery capability
(Scale, scope, domain investments, delivery footprint, innovation, and buyer satisfaction)
Mark
et
su
ccess
(Tra
nsa
ctio
n a
ctiv
ity)
Accenture
NTT DATA Services
Cognizant
Optum
CSC
CGI
IBM
HPE
Wipro
Atos
HCL Technologies
BT Global Services
Syntel
CompuCom
Hexaware
EPAM
Unisys
Tech Mahindra
Capgemini
Virtusa
L&T Infotech
GAVS
Leaders
Major Contenders
Aspirants
Star Performers
1 Assessment for Atos, BT Global Services, IBM, Tech Mahindra, and Unisys excludes service provider inputs on this particular study and is based on Everest
Group’s estimates, which leverage Everest Group’s proprietary Transaction Intelligence (TI) database, ongoing coverage of Atos, BT Global Services, IBM, Tech
Mahindra, and Unisys, service provider public disclosures, and interaction with buyers
2 RFI submitted by Dell Services before completion of acquisition by NTT DATA. New entity is known as NTT DATA Services
Source: Everest Group (2016)
5Copyright © 2016, Everest Global, Inc.
EGR-2016-12-E-2003
CSC | Provider IT services profile (page 1 of 2)
Provider IT services overview
Provider IT
services revenueUS$100-300 million >US$500 million
US$300-500 million<US$100 million
Scope and coverage: HIX solutions, clinical surveillance, ICD-10 migration, RCM, clinical
IT infrastructure support, PHM, enterprise management solutions, cybersecurity, and EHR
solutions
CSC’s split and merger with HPE Enterprise Services will allow it to better focus efforts
on the unique nuances, opportunities, and challenges of specific buyer markets
Strong global presence across the payer-provider spectrum allows for significant cross /
up-selling opportunities
Significant presence in the federal healthcare business
Strengths
Guard against regulatory actions / conflict of interest, given merging
portfolio with HPE’s government healthcare play
Use the flexibility afforded by restructuring to build on healthcare legacy
as the key lever of its CEO’s “Get Fit” strategy
Areas of improvement
Provider IT services delivery map1
Provider IT services focus by service scope
Application services
Infrastructure services SI/consulting
HighMediumLow
Provider IT services focus by value-chain
Patient engagement Financial and network management
Care management Compliance
Diagnostics, treatment,
and monitoring
HighMediumLow
Provider IT services
focus by Lines of Business (LoB)
Stand-alone hospitals/clinicsLarge health systems
Pharmacists Diagnostic labs
Physician practices
HighMediumLow
Provider IT services
focus segments
Small (annual revenue < US$1 billion)
Medium (annual revenue = US$1-5 billion)
Large (annual revenue > US$5 billion)
HighMediumLow
>1,000 FTEs500-1,000 FTEs100-500 FTEs<100 FTEs
IndiaMexico
United States
China
EuropeThailand
Malaysia
Vietnam
Brazil
Nordics
Australia
UK
1 Map reflects overall healthcare IT delivery presence
Source: Everest Group (2016)
6Copyright © 2016, Everest Global, Inc.
EGR-2016-12-E-2003
CSC | Provider IT services profile (page 2 of 2)
Offerings and recent developments
Key events (representative list)
Event name Type of event Details
CSC and HPE
Enterprise
Services
M&A May 2016: CSC announced a plan to merge with the Enterprise Services segment of HPE to create a new "pure play" IT services
company. The new entity, which will come into existence no later than March 2017, will have an estimated US$26 billion of annual
revenue in FY20161, making it the third largest IT services company
Xchanging M&A May 2016: Completed the acquisition of Xchanging which provides technology-enabled business solutions to organizations in global
insurance and financial services, healthcare, manufacturing, real estate and the public sector
UXC Limited M&A March 2016: Bought UXC Limited, an Australian IT services company, for US$307.9 million to consolidate position in the ANZ
market. It provides enterprise application capabilities as well as consulting, applications management, professional services,
connect infrastructure, and health services
(several) Alliances Alliances with vendors such as IBM, HCL Technologies, Oracle, Dynatrace, Mulesoft, AWS, Lenovo, Hitachi, Microsoft, and AT&T,
to design and develop cloud-based solutions and applications across HLS and other verticals
Proprietary solutions (representative list)
Solution Details
Population Health
Enablement
PHM suite that establishes new models of care and leverages patient data for better population management. Modules include chronic care
management, application integration services, patient care coordination, and analytics
Health Enterprise
Management
A hospital management solution that provides revenue cycle management, laboratory information solutions, pharmacy management
solutions, front-desk administration, scheduling, and medication management solution
CSC Lorenzo EMR An Electronic Medical Record (EMR) system which helps clinicians and administrators make decisions along the care pathway and across
various care settings integrated across administration and clinical systems
CSC Agility Platform™ Platform for hybrid cloud management, governance, and security for both public and private clouds. It enables firms to adopt cloud-based
operating models to lower costs, speed up delivery, and increase agility
Hospital infrastructure
solutions
Cloud-based agile platform that provides infrastructure solutions for healthcare providers. Modules include cybersecurity, workplace
services, storage as a service, end-user services, and overall cloud management
1 Based on US$18 billion in trailing four quarters of revenue for the Enterprise Services segment, adjusted for Mphasis and Communications and Media Solutions
(CMS), plus US$8 billion in trailing four quarters of revenue for CSC, adjusted for recent acquisitions
Source: Everest Group (2016)
7Copyright © 2016, Everest Global, Inc.
EGR-2016-12-E-2003
Appendix
8Copyright © 2016, Everest Global, Inc.
EGR-2016-12-E-2003
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 IT function.
The service providers were mapped on Everest Group’s
Performance | Experience | Ability | Knowledge (PEAK) Matrix
Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for IT Services
High
Low
Low High
Ma
rke
t s
uc
ce
ss
(Tra
nsa
ctio
n a
ctivity)
75th percentile
Top quartile performance
across market success and
capability2nd or 3rd quartile performance
across market success and
capability
4th quartile performance
across market success and
capability
Aspirants
Leaders
Major Contenders
75
thp
erc
en
tile
25th percentile
25
thp
erc
en
tile
Delivery capability
(Scale, scope, domain investments, delivery footprint, innovation, and buyer satisfaction)
9Copyright © 2016, Everest Global, Inc.
EGR-2016-12-E-2003
Dimensions of service providers’ capability and market
success underlying the PEAK Matrix
Revenue
% contribution of
healthcare payer
revenue to overall
company revenue Proprietary solutions,
M&As and certifications
Lines of business
served
IT subfunctions
Geographies served
Delivery capability
Ma
rke
t s
uc
ce
ss
Everest Group PEAK Matrix
Aspirants
LeadersMajor Contenders
Delivery mix
Delivery regions
covered
Buyer perception score
Growth in renewals
(YoY)
Innovative solutions
Innovative engagement
models
Active ACV of
relevant deals
Relevant deals
LoB growth
NOT EXHAUSTIVE
ScaleInnovation & domain
investmentsScope Delivery footprint Buyer satisfaction
10Copyright © 2016, Everest Global, Inc.
EGR-2016-12-E-2003
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 Everest Group’s 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 in the global scenario that are assessed but 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 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 in / 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
11Copyright © 2016, Everest Global, Inc.
EGR-2016-12-E-2003
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 Matrix positioning rating in multiple ways including:
– Issuing a press release declaring their positioning/rating
– Getting customized PEAK Matrix profile for circulation (with clients, prospects, etc.)
– Quotes from Everest Group analysts could be disseminated to the media
– Leveraging PEAK Matrix 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 empowers 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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