Banking, Financial Services, and Insurance (BFSI) Outsourcing ...
Banking, Financial Services, and Insurance (BFSI) Outsourcing Research Offering
2011
Banking, Financial Services and Insurance (BFSI) industry is one of the largest and most mature users of outsourcing and global sourcing of services BFSI IT services: BFSI % contribution to global IT outsourcing and off-shoring, 2010
BFSI IT spending remained strong in 2010 across different towers including AO, IO, SI etc.
BFSI remains the largest BPO BFSI BP Services: segment globally, but still poised BFSI % contribution to global BPO to grow more than other less transactions, and off-shoring market, mature segments 2010
~ 35%
~40% ~30%1
~15%1
IT outsourcing contribution
IT offshoring contribution
BP outsourcing contribution
BP offshoring contribution
The BFSI vertical represents the largest buyer segment in the outsourcing and offshoring industry with significant spend across IT and business processes. This segment was instrumental in leading the recovery for the outsourcing market in 2010 as the effects of global economic downturn subsided
Over the past three years, Everest Group’s research has covered this important market through both published research and custom projects for end-users, captives, and third-party service providers. We have now launched an ongoing service coverage of the market to comprehensively cover the key dynamics of the market based on our unique fact-based research approach
Given the high large market opportunity in the BFSI sector, we believe that our coverage will help provide the facts and insights to navigate the opportunities and challenges ahead
1 Based on Everest Group’s proprietary Transactions Intelligence (TI) database 2 Proprietary & Confidential. © 2011, Everest Global, Inc.
Everest Group defines and examines the BFSI industry as three distinct segments in order to provide specialized research on each sub-vertical of this market BFSI
Banking
Capital markets
Insurance
Retail financial services (B2C1) Retail banking Lending Cards
Investment banking
Life & pensions
Asset management
Property and casualty
Custody
Commercial banking (B2B2)
Fund administration
1 Business-to-consumer relationships 2 Business-to-business relationships 3 Proprietary & Confidential. © 2011, Everest Global, Inc.
All market stakeholders are perceiving the need for this research as they seek to achieve growth and manage Buyer organizations risks
Service providers How is the competitive landscape changing? How do I effectively articulate my capabilities to the market? What are opportunities due to market consolidation?
What are current sourcing trends in the market? What are the right sourcing models (shared services/captives, outsourcing) to realize value? What are the service provider options and their capabilities specific to my business? What can I learn from the sourcing approaches of my peers?
BFSI market stakeholders
Investors Are there attractive investment opportunities in different market segments? Are my existing investments winning or losing market share?
Technology providers What is the changing role of technology within BFSI BPO-ITO? Can market leaders act as a growth channel for technology offerings? What should be my alliance and partnership strategy in emerging segments? 4 Proprietary & Confidential. © 2011, Everest Global, Inc.
Everest Group’s new research program provides coverage of industry dynamics across both IT and business processes Everest Group’s BFSI research subscription: BFSI ITO coverage: Access to all BFSI ITO research providing specific insights on trends in banking, capital markets and insurance sub-verticals Focused on regularly tracking adoption trends and the rapidly evolving service provider landscape in BFSI IT Detailed segmentation of the service provider landscape in one of the largest subfunctions within BFSI IT i.e., Application Outsourcing (AO)
BFSI BPO coverage: Access to all BFSI BPO research covering multiple segments of BFSI BPO across the banking, capital markets and insurance value chains Expansive research scope encompassing all key elements of BFSI BPO including value chain specific analysis, market overview and buyer behaviour, captive activity, trends in global sourcing etc.
Everest Group’s BFSI research subscription provides focused and up-to-date insights on BFSI sourcing landscape based on our unique fact-based research approach 5 Proprietary & Confidential. © 2011, Everest Global, Inc.
Everest Group’s BFSI outsourcing research examines the most relevant issues for market stakeholders and provides analyses to aid strategic decision making
Everest Group PEAK matrices for BFSI service providers
Everest Group’s PEAK framework measures service providers’ capabilities across two dimensions: Delivery capability: Based on service providers’ scale and scope of services offered for target subverticals Market success: Based on active value of contracts with BFSI clients Identifies market leaders, major contenders and emerging providers across various functions of BFSI outsourcing
Product development and business acquisition Actuarial data processing
New business
Initial policy creation
Policy servicing and reporting Policy servicing – financial
Product testing
Functions
Functions
Underwriting Actuarial analysis and Policy records Business Account Product Channel Marketing Management review development managementservicing Premium collection and acquisitions Product design Advertisement Broker/ Application Payment accounting and pilot advisor/subprocessing processing Proposals, illustrations Eligibility requirement custodian license Credit evaluation Customer Product set-up on mgmt. and and verification Policy issuance master and approval the accounts compensation maintenance Agent and broker Collateral Account management Member enrollment andevaluation closure Syndication/ management Origination Regulatory and Loan underwriting compliance Product Channel management Advisory services Business Marketing
Processes
Specific coverage on different processes within the banking, capital markets and insurance value chains Targeted research on key trends and developments across various value chain segments including adoption activity, changing buyer preferences, movements over time – especially relevant for BFSI BPO
Processes
Provides coverage on key market metrics including market size, growth, drivers and inhibitors, market maturity analysis etc. Trends analysis captures key developments in BFSI services including changing regional, functional profile of the market, emerging themes and key areas of investments
Processes
Functions
Value chain based analysis
BFSI market overview and trends analysis
development
Management acquisitions
Account opening, Product design and pilot
Advertisement set-up Branch and banking on– lead customer generation boarding Marcomm Product set-up development and campaign Sales on the accounts management agencies/ partners Loyalty program ATM managemanagement ment/ POPs
Application processing Credit evaluation
Claims processing
Initial claims processing Claims management Registrar/ Investment transfer operations Claimsagency review and
investigation Investment Shareholder records (adjudication) strategy maintenance Trading, investment and Fund cash in/out marketand making flowClaims mgmt. adjustment
Fund administration
Control/ compliance
NAV calculations Regulatory reporting Cash allocation to Investigations funds
Trade allocation Order Investment and to funds disbursements management and service fee Fund accounting processing calculation
Fraud management
Claims management Fraudanddetection and with Affirmation Auditing exception tracking broker/ custodian Monitoring management portfolio Securities lending Reference Treasury Account data Transaction performanceControl/ Institutional and borrowingoperations management servicing compliance processing relationships Claims litigation, Corporate actions Trade Payment Check Regulatory Alliance reconciliationTreasury and recovery/ subrogation (mandatory, processing processing reporting planning settlement strategy voluntary, proxy) FX services
Margin and Product collateral renewals processing
Clearing and Asset liability KYC Reconciliations settlement management
Exception mgmt.
(funds, insurance, utilities
Loan Transfer Credit bureau Alliance set disbursement Balance sheet mgmt. up on systems (IT, processing Investigations and pay-out internet) and mailroom Trade Risk mgmt. Risk mgmt. finance Fraud mgmt. Instruction /LC Alliance network Payment, Collateral FX mgmt. processing collection review Origination/ & mgmt. (Agents, Order syndication Claims mgmt. tracking, and banks, FIs) Credit Field follow up management approval Lease mgmt. collections Taxes and fees & processing International computation Plant, Funding Recoveries banking Loan book Equipment evaluation and relationships tracking management management Customer interactionLoan and support analysis – bad loan Technology Reconciliation Account management Vault/safe deposit mgmt. and position opening, setForeclosure, tracking (MIS) up and Lock-box customer on- bankruptcy services Exception boarding Account handling and Remittances closure analysis Document Records preparation Skip tracing mgmt. Underwriting
pricing set up – Statement Customer interactionVerification and support management Securities pay-in Cash handling & mgmt. telephonic and field
Technology Collateral
evaluation
Customer interaction and support Technology
BFSI service provider landscape & profiles
Updates on service provider market share, capabilities, and performance Service provider profiles, including data on: Transactions Location footprint M&A activity Key investments , proprietary solutions, technological expertise etc. 6
Proprietary & Confidential. © 2011, Everest Global, Inc.
Merchant services Merchant acquisition Credit evaluation Account setup Terminal installation and maintenance Transaction posting Position and fee calculation Merchant billing and reporting Claims mgmt.
Consistent with other research areas, our BFSI coverage is based on four pillars of strength to produce actionable and insightful research
Market thought leadership Actionable and insightful research Syndicated and custom research deliverables
1
Robust definitions and frameworks
2
Primary sources of information
3
Diverse set of market touch-points
4
Fact-based research
Annualized Contract Value US$ billion
Buyers
Suppliers FAO market
Service enablers
Projected for Apr-Dec 2006 Data up to April 2006
XX-XX
XX XX XX XX XX XX XX XX XX 1998 1999 2000 2001 2002 2003 2004 2005 2006E
Round the year tracking of all the service providers across ITO and BPO in BFSI Dedicated team for ITO-BPO research, spread over two continents 20+ years of advising clients on IT-BPO related decisions Executive-level relationships with buyers, service providers, technology providers, and industry associations
7 Proprietary & Confidential. © 2011, Everest Global, Inc.
Our subscription offerings provide deep insights on BFSI outsourcing market to support the client’s decisionmaking process Subscription research offerings
Description
Research reports
Access to all BFSI ITO-BPO research reports covering each segment of the market (at least 5 a year for BFSI BPO, at least 9 a year for BFSI ITO)
Breaking viewpoint
Flash reports highlighting breaking news in the service provider landscape and expert perspectives on key implications
Analyst inquiry
Ongoing analyst discussions for additional perspectives clarifications in 30 or 60 minutes increments
Additional custom data cuts from the materials presented in the research
Analyst-facilitated working session with the subscriber’s team around their strategic imperatives
Custom data cuts
Strategy workshop
We welcome the opportunity to discuss options to tailor the subscription specific to your requirements
8 Proprietary & Confidential. © 2011, Everest Global, Inc.
BFSI Outsourcing Publishing Agenda 2011 (page 1 of 4) Published
Topic
Forthcoming research
Goals of the research
Release date
Global lending BPO across credit cards, consumer loans, and commercial loans
The market size and potential of the global lending BPO by business segment and function. Adoption trends measured across buyer size and geography. Maturity of lending BPO sub-functions across business segments. Prevalence of various sourcing models. The lending BPO service provider landscape across business segments
Jan -2011
FS BPO Service provider profile compendium
Snapshots of 14 service providers playing in the FS BPO segment. Each 4-5 page service provider profile provides a comprehensive picture of their service suite, scale of operations, technology landscape, recent developments, and delivery locations across all financial services segments including banking, capital markets, and insurance
Mar -2011
Coverage across retail banking, capital markets, and insurance. Offshore leverage through shared services and third-party outsourcing by financial services organizations. Potential offshorability and current offshore adoption of value chain elements for each business segment. Mature and emerging delivery locations and associated value proposition
April-2011
Global sourcing in FS BPO – Significant Traction, Yet Tremendous Potential
9 Proprietary & Confidential. © 2011, Everest Global, Inc.
BFSI Outsourcing Publishing Agenda 2011 (page 2 of 4) Published
Topic
Forthcoming research
Goals of the research
Release date
Insurance BPO market overview
This report explores the market size, growth, adoption trends, value drivers, process scope, technology landscape, delivery locations, and service provider landscape in the insurance BPO market
Q2-2011
Market Trends for IT application services in Banking
Provide an overview of the application services market for the banking vertical , capturing key trends in market size, growth, drivers and inhibitors, adoption trends, regional/functional break-outs of the market, emerging themes and key areas of investment, and implications for key stakeholders
Q2 -2011
Service provider landscape for IT application services in Banking
Provide a comprehensive assessment of the service provider landscape in AO services for banking and map various suppliers on Everest Group’s capability matrix.
Q2-2011
Profiles of service providers capturing their IT AO capability in banking
Q2-2011
Service providers’ capability assessment (profiles compendium) for IT application services in Banking
10 Proprietary & Confidential. © 2011, Everest Global, Inc.
BFSI Outsourcing Publishing Agenda 2011 (page 3 of 4) Published
Topic
Forthcoming research
Goals of the research
Release date
Global third-party BPO service provider landscape in Capital Markets
Coverage across investment banking, asset management, and custody and fund administration. Service provider segments and assessment of scale and scope of offerings. Role of global sourcing and technology. Individual service provider profiles
Q3-2011
Market Trends for IT application services in Insurance
Provide an overview of the application services market for the insurance vertical , capturing key trends in market size, growth, drivers and inhibitors, adoption trends, regional/functional break-outs of the market, emerging themes and key areas of investment, and implications for key stakeholders
Q3 -2011
Service provider landscape for IT application services in Insurance
Provide a comprehensive assessment of the service provider landscape in AO services for insurance and map various suppliers on Everest Group’s capability matrix.
Q3-2011
Profiles of service providers capturing their IT AO capability in insurance
Q3-2011
Service providers’ capability assessment (profiles compendium) for IT application services in Insurance
11 Proprietary & Confidential. © 2011, Everest Global, Inc.
BFSI Outsourcing Publishing Agenda 2011 (page 4 of 4) Published
Topic
Forthcoming research
Goals of the research
Release date
Market Trends for IT application services in Capital Markets
Provide an overview of the application services market for the capital markets vertical , capturing key trends in market size, growth, drivers and inhibitors, adoption trends, regional/functional break-outs of the market, emerging themes and key areas of investment, and implications for key stakeholders
Q3 -2011
Service provider landscape for IT application services in Capital Markets
Provide a comprehensive assessment of the service provider landscape in AO services for capital markets, and map various suppliers on Everest Group’s capability matrix.
Q3-2011
Profiles of service providers capturing their IT AO capability in capital markets
Q3-2011
Service providers’ capability assessment (profiles compendium) for IT application services in Capital Markets
12 Proprietary & Confidential. © 2011, Everest Global, Inc.
In addition to our ongoing research, we help clients through customized efforts to meet their objectives Add-on research offering
Description
Service provider short listing
Offer customized service provider selection process through fact-based, multidimensional analyses
Service provider risk tracking
Examine risks associated with the service provider portfolio and develop risk dashboards including parameters such as financial / operational / legal risks
Speaking engagements
Analyst in-person presentation on pre-determined topic during various internal or external events
Other Custom research
Focused research to provide answers to client’s specific business issues: Competitive benchmarking Market entry and opportunity assessment Partnership/acquisition support Location analysis
13 Proprietary & Confidential. © 2011, Everest Global, Inc.
Appendix
We have supported multiple stakeholders in the BFSI ITO domain through custom research engagements PARTIAL LIST
Client
Everest Group engagement overview
A leading BFSI ITO service provider
Determining the relative magnitude of IT investments made by leading European banking institutions, and identifying the key areas of IT investments / type of IT initiatives taken by these banks
A leading IT service provider
Service provider competitive intelligence in BFSI sector: Benchmarking financial performance and market success for select service providers in the BFSI domain
Leading Canadian bank
BFSI captives’ research: Determine scale of IT operations, IT services delivery capability, IT employee metrics, etc. for select BFSI captives in India
Top 10 Australian bank
Transform IT infrastructure environment for the bank to drive greater operational efficiency, and identify and manage risks of the transformation program
Top-5 US bank
Location viability assessment for a banking institution to set up captive operations in IT services space. Comparative analysis across locations based on scalability, sustainability, and cost of operations
15 Proprietary & Confidential. © 2011, Everest Global, Inc.
We have also helped several buyers and service providers of BFSI BPO in their strategic initiatives PARTIAL LIST
Client
Everest Group engagement overview
A leading FS BPO service provider
Identification of business opportunities pertaining to end-to-end credit lifecycle management in the U.S. market, across different lending segments – credit cards, consumer loans, and commercial loans
A leading BPO service provider
Assessment of mortgage services platform strategy for a new market
South Africa BPO sector
Assessment of South Africa’s capabilities in FS BPO
Leading Canadian bank
Supplier assessment and short-listing for business process services
Top-5 investment bank
Benchmarking of scope, scale and delivery costs for services offshored to captive relative to key competitors
Top-5 US bank
Assessment of current scale, scope and maturity of services offshoring for credit cards and mortgages Framework and toolkit to determine extent of services to be retained within associate delivery model Availability and sustainability of multiple skill-sets in five offshore geographies across business processes and knowledge services
16 Proprietary & Confidential. © 2011, Everest Global, Inc.
We have published multiple research reports to highlight key dynamics of the financial services market place
BFSI Industry Trends (ERI-2010-8-R-0466): This report focuses on trends in the BFSI vertical across three areas – outsourcing transactions, captive market analysis, and service provider activity and deals
The Growing Maturity of Offshore Research and Analytics in Financial Services (ERI-2010-5-R-0445). This report analyzes the evolution and maturity of the largest segment in the knowledge services market – research and analytics for financial services
Impact of Regulatory Changes on Offshoring in Financial Services (ERI-2009-8-R-0349). This report provides a fact-based view of the implications of the regulatory and legal provisions on offshoring by U.S. financial services companies. Specifically, the report focuses on the impact of the Troubled Asset Relief Program (TARP) and related regulations on offshoring activities. In addition, the report also provides a forward-looking perspective on potential regulations and associated implications for the offshoring industry
PO in Financial Services: From Wall Street to Martin Place – Unlocking Value from the Savings Goldmine (ERI-2009-1-R-0348). This research takes a look at the impact of the current financial turmoil on adoption of PO services by financial services and provides Everest Group’s outlook for the market
NASSCOM-Everest India BPO Study: Roadmap 2012 – Capitalizing on the Expanding BPO Landscape. This one-of-a-kind unprecedented, comprehensive report on India’s BPO industry maps out the industry’s next wave of growth and paints a vision for the future. The report also takes a deep-dive on Banking & Capital Markets and Insurance
Global Sourcing in Banking, Capital Markets and Insurance (ERI-2008-2-R-0267). This research examines the fundamentals of offshoring by financial institutions and provides adoption trends, market maturity and future opportunities in each of the three key financial services segments
Ready to Compete - South Africa's BPO Capabilities in the Financial Services Sector. This report presents a deep, fact-based view of South Africa’s current BPO capabilities and potential for growth in the Financial Services sector
Trends in Indian Insurance BPO market (ERI-2008-2-B-0243). Offshore insurance BPO has grown into a significant industry in India with revenues close to two billion, with a potential to grow by as much as 12-15 times in the next five years. This report looks at the future state for insurance companies leveraging offshore delivery
Bank of the Future: The Emerging Operating Model (ERI-2007-2-R-0169). This report will assist companies in understanding the changes in the banking operating model in order to better anticipate the emerging trends and responses required to manage the increased complexities and risks 17 Proprietary & Confidential. © 2011, Everest Global, Inc.
Everest Group leads clients from insight to action
Contact us for more information about our consulting, research, and industry resources. Dallas (Corporate Headquarters) [email protected] [email protected] +1-214-451-3000 +1-214-451-3110
India [email protected] +91-124-496-1000 +91-124-496-1100
Australasia [email protected] +61-3-9509-3933
New York [email protected] +1-646-805-4000
Canada [email protected] +1-416-865-2033
UK [email protected] +44-870-770-0270
Netherlands & Continental Europe [email protected] +31-20-301-2138
www.everestgrp.com | www.everestresearchinstitute.com 18 Proprietary & Confidential. © 2011, Everest Global, Inc.
2011
Banking, Financial Services and Insurance (BFSI) industry is one of the largest and most mature users of outsourcing and global sourcing of services BFSI IT services: BFSI % contribution to global IT outsourcing and off-shoring, 2010
BFSI IT spending remained strong in 2010 across different towers including AO, IO, SI etc.
BFSI remains the largest BPO BFSI BP Services: segment globally, but still poised BFSI % contribution to global BPO to grow more than other less transactions, and off-shoring market, mature segments 2010
~ 35%
~40% ~30%1
~15%1
IT outsourcing contribution
IT offshoring contribution
BP outsourcing contribution
BP offshoring contribution
The BFSI vertical represents the largest buyer segment in the outsourcing and offshoring industry with significant spend across IT and business processes. This segment was instrumental in leading the recovery for the outsourcing market in 2010 as the effects of global economic downturn subsided
Over the past three years, Everest Group’s research has covered this important market through both published research and custom projects for end-users, captives, and third-party service providers. We have now launched an ongoing service coverage of the market to comprehensively cover the key dynamics of the market based on our unique fact-based research approach
Given the high large market opportunity in the BFSI sector, we believe that our coverage will help provide the facts and insights to navigate the opportunities and challenges ahead
1 Based on Everest Group’s proprietary Transactions Intelligence (TI) database 2 Proprietary & Confidential. © 2011, Everest Global, Inc.
Everest Group defines and examines the BFSI industry as three distinct segments in order to provide specialized research on each sub-vertical of this market BFSI
Banking
Capital markets
Insurance
Retail financial services (B2C1) Retail banking Lending Cards
Investment banking
Life & pensions
Asset management
Property and casualty
Custody
Commercial banking (B2B2)
Fund administration
1 Business-to-consumer relationships 2 Business-to-business relationships 3 Proprietary & Confidential. © 2011, Everest Global, Inc.
All market stakeholders are perceiving the need for this research as they seek to achieve growth and manage Buyer organizations risks
Service providers How is the competitive landscape changing? How do I effectively articulate my capabilities to the market? What are opportunities due to market consolidation?
What are current sourcing trends in the market? What are the right sourcing models (shared services/captives, outsourcing) to realize value? What are the service provider options and their capabilities specific to my business? What can I learn from the sourcing approaches of my peers?
BFSI market stakeholders
Investors Are there attractive investment opportunities in different market segments? Are my existing investments winning or losing market share?
Technology providers What is the changing role of technology within BFSI BPO-ITO? Can market leaders act as a growth channel for technology offerings? What should be my alliance and partnership strategy in emerging segments? 4 Proprietary & Confidential. © 2011, Everest Global, Inc.
Everest Group’s new research program provides coverage of industry dynamics across both IT and business processes Everest Group’s BFSI research subscription: BFSI ITO coverage: Access to all BFSI ITO research providing specific insights on trends in banking, capital markets and insurance sub-verticals Focused on regularly tracking adoption trends and the rapidly evolving service provider landscape in BFSI IT Detailed segmentation of the service provider landscape in one of the largest subfunctions within BFSI IT i.e., Application Outsourcing (AO)
BFSI BPO coverage: Access to all BFSI BPO research covering multiple segments of BFSI BPO across the banking, capital markets and insurance value chains Expansive research scope encompassing all key elements of BFSI BPO including value chain specific analysis, market overview and buyer behaviour, captive activity, trends in global sourcing etc.
Everest Group’s BFSI research subscription provides focused and up-to-date insights on BFSI sourcing landscape based on our unique fact-based research approach 5 Proprietary & Confidential. © 2011, Everest Global, Inc.
Everest Group’s BFSI outsourcing research examines the most relevant issues for market stakeholders and provides analyses to aid strategic decision making
Everest Group PEAK matrices for BFSI service providers
Everest Group’s PEAK framework measures service providers’ capabilities across two dimensions: Delivery capability: Based on service providers’ scale and scope of services offered for target subverticals Market success: Based on active value of contracts with BFSI clients Identifies market leaders, major contenders and emerging providers across various functions of BFSI outsourcing
Product development and business acquisition Actuarial data processing
New business
Initial policy creation
Policy servicing and reporting Policy servicing – financial
Product testing
Functions
Functions
Underwriting Actuarial analysis and Policy records Business Account Product Channel Marketing Management review development managementservicing Premium collection and acquisitions Product design Advertisement Broker/ Application Payment accounting and pilot advisor/subprocessing processing Proposals, illustrations Eligibility requirement custodian license Credit evaluation Customer Product set-up on mgmt. and and verification Policy issuance master and approval the accounts compensation maintenance Agent and broker Collateral Account management Member enrollment andevaluation closure Syndication/ management Origination Regulatory and Loan underwriting compliance Product Channel management Advisory services Business Marketing
Processes
Specific coverage on different processes within the banking, capital markets and insurance value chains Targeted research on key trends and developments across various value chain segments including adoption activity, changing buyer preferences, movements over time – especially relevant for BFSI BPO
Processes
Provides coverage on key market metrics including market size, growth, drivers and inhibitors, market maturity analysis etc. Trends analysis captures key developments in BFSI services including changing regional, functional profile of the market, emerging themes and key areas of investments
Processes
Functions
Value chain based analysis
BFSI market overview and trends analysis
development
Management acquisitions
Account opening, Product design and pilot
Advertisement set-up Branch and banking on– lead customer generation boarding Marcomm Product set-up development and campaign Sales on the accounts management agencies/ partners Loyalty program ATM managemanagement ment/ POPs
Application processing Credit evaluation
Claims processing
Initial claims processing Claims management Registrar/ Investment transfer operations Claimsagency review and
investigation Investment Shareholder records (adjudication) strategy maintenance Trading, investment and Fund cash in/out marketand making flowClaims mgmt. adjustment
Fund administration
Control/ compliance
NAV calculations Regulatory reporting Cash allocation to Investigations funds
Trade allocation Order Investment and to funds disbursements management and service fee Fund accounting processing calculation
Fraud management
Claims management Fraudanddetection and with Affirmation Auditing exception tracking broker/ custodian Monitoring management portfolio Securities lending Reference Treasury Account data Transaction performanceControl/ Institutional and borrowingoperations management servicing compliance processing relationships Claims litigation, Corporate actions Trade Payment Check Regulatory Alliance reconciliationTreasury and recovery/ subrogation (mandatory, processing processing reporting planning settlement strategy voluntary, proxy) FX services
Margin and Product collateral renewals processing
Clearing and Asset liability KYC Reconciliations settlement management
Exception mgmt.
(funds, insurance, utilities
Loan Transfer Credit bureau Alliance set disbursement Balance sheet mgmt. up on systems (IT, processing Investigations and pay-out internet) and mailroom Trade Risk mgmt. Risk mgmt. finance Fraud mgmt. Instruction /LC Alliance network Payment, Collateral FX mgmt. processing collection review Origination/ & mgmt. (Agents, Order syndication Claims mgmt. tracking, and banks, FIs) Credit Field follow up management approval Lease mgmt. collections Taxes and fees & processing International computation Plant, Funding Recoveries banking Loan book Equipment evaluation and relationships tracking management management Customer interactionLoan and support analysis – bad loan Technology Reconciliation Account management Vault/safe deposit mgmt. and position opening, setForeclosure, tracking (MIS) up and Lock-box customer on- bankruptcy services Exception boarding Account handling and Remittances closure analysis Document Records preparation Skip tracing mgmt. Underwriting
pricing set up – Statement Customer interactionVerification and support management Securities pay-in Cash handling & mgmt. telephonic and field
Technology Collateral
evaluation
Customer interaction and support Technology
BFSI service provider landscape & profiles
Updates on service provider market share, capabilities, and performance Service provider profiles, including data on: Transactions Location footprint M&A activity Key investments , proprietary solutions, technological expertise etc. 6
Proprietary & Confidential. © 2011, Everest Global, Inc.
Merchant services Merchant acquisition Credit evaluation Account setup Terminal installation and maintenance Transaction posting Position and fee calculation Merchant billing and reporting Claims mgmt.
Consistent with other research areas, our BFSI coverage is based on four pillars of strength to produce actionable and insightful research
Market thought leadership Actionable and insightful research Syndicated and custom research deliverables
1
Robust definitions and frameworks
2
Primary sources of information
3
Diverse set of market touch-points
4
Fact-based research
Annualized Contract Value US$ billion
Buyers
Suppliers FAO market
Service enablers
Projected for Apr-Dec 2006 Data up to April 2006
XX-XX
XX XX XX XX XX XX XX XX XX 1998 1999 2000 2001 2002 2003 2004 2005 2006E
Round the year tracking of all the service providers across ITO and BPO in BFSI Dedicated team for ITO-BPO research, spread over two continents 20+ years of advising clients on IT-BPO related decisions Executive-level relationships with buyers, service providers, technology providers, and industry associations
7 Proprietary & Confidential. © 2011, Everest Global, Inc.
Our subscription offerings provide deep insights on BFSI outsourcing market to support the client’s decisionmaking process Subscription research offerings
Description
Research reports
Access to all BFSI ITO-BPO research reports covering each segment of the market (at least 5 a year for BFSI BPO, at least 9 a year for BFSI ITO)
Breaking viewpoint
Flash reports highlighting breaking news in the service provider landscape and expert perspectives on key implications
Analyst inquiry
Ongoing analyst discussions for additional perspectives clarifications in 30 or 60 minutes increments
Additional custom data cuts from the materials presented in the research
Analyst-facilitated working session with the subscriber’s team around their strategic imperatives
Custom data cuts
Strategy workshop
We welcome the opportunity to discuss options to tailor the subscription specific to your requirements
8 Proprietary & Confidential. © 2011, Everest Global, Inc.
BFSI Outsourcing Publishing Agenda 2011 (page 1 of 4) Published
Topic
Forthcoming research
Goals of the research
Release date
Global lending BPO across credit cards, consumer loans, and commercial loans
The market size and potential of the global lending BPO by business segment and function. Adoption trends measured across buyer size and geography. Maturity of lending BPO sub-functions across business segments. Prevalence of various sourcing models. The lending BPO service provider landscape across business segments
Jan -2011
FS BPO Service provider profile compendium
Snapshots of 14 service providers playing in the FS BPO segment. Each 4-5 page service provider profile provides a comprehensive picture of their service suite, scale of operations, technology landscape, recent developments, and delivery locations across all financial services segments including banking, capital markets, and insurance
Mar -2011
Coverage across retail banking, capital markets, and insurance. Offshore leverage through shared services and third-party outsourcing by financial services organizations. Potential offshorability and current offshore adoption of value chain elements for each business segment. Mature and emerging delivery locations and associated value proposition
April-2011
Global sourcing in FS BPO – Significant Traction, Yet Tremendous Potential
9 Proprietary & Confidential. © 2011, Everest Global, Inc.
BFSI Outsourcing Publishing Agenda 2011 (page 2 of 4) Published
Topic
Forthcoming research
Goals of the research
Release date
Insurance BPO market overview
This report explores the market size, growth, adoption trends, value drivers, process scope, technology landscape, delivery locations, and service provider landscape in the insurance BPO market
Q2-2011
Market Trends for IT application services in Banking
Provide an overview of the application services market for the banking vertical , capturing key trends in market size, growth, drivers and inhibitors, adoption trends, regional/functional break-outs of the market, emerging themes and key areas of investment, and implications for key stakeholders
Q2 -2011
Service provider landscape for IT application services in Banking
Provide a comprehensive assessment of the service provider landscape in AO services for banking and map various suppliers on Everest Group’s capability matrix.
Q2-2011
Profiles of service providers capturing their IT AO capability in banking
Q2-2011
Service providers’ capability assessment (profiles compendium) for IT application services in Banking
10 Proprietary & Confidential. © 2011, Everest Global, Inc.
BFSI Outsourcing Publishing Agenda 2011 (page 3 of 4) Published
Topic
Forthcoming research
Goals of the research
Release date
Global third-party BPO service provider landscape in Capital Markets
Coverage across investment banking, asset management, and custody and fund administration. Service provider segments and assessment of scale and scope of offerings. Role of global sourcing and technology. Individual service provider profiles
Q3-2011
Market Trends for IT application services in Insurance
Provide an overview of the application services market for the insurance vertical , capturing key trends in market size, growth, drivers and inhibitors, adoption trends, regional/functional break-outs of the market, emerging themes and key areas of investment, and implications for key stakeholders
Q3 -2011
Service provider landscape for IT application services in Insurance
Provide a comprehensive assessment of the service provider landscape in AO services for insurance and map various suppliers on Everest Group’s capability matrix.
Q3-2011
Profiles of service providers capturing their IT AO capability in insurance
Q3-2011
Service providers’ capability assessment (profiles compendium) for IT application services in Insurance
11 Proprietary & Confidential. © 2011, Everest Global, Inc.
BFSI Outsourcing Publishing Agenda 2011 (page 4 of 4) Published
Topic
Forthcoming research
Goals of the research
Release date
Market Trends for IT application services in Capital Markets
Provide an overview of the application services market for the capital markets vertical , capturing key trends in market size, growth, drivers and inhibitors, adoption trends, regional/functional break-outs of the market, emerging themes and key areas of investment, and implications for key stakeholders
Q3 -2011
Service provider landscape for IT application services in Capital Markets
Provide a comprehensive assessment of the service provider landscape in AO services for capital markets, and map various suppliers on Everest Group’s capability matrix.
Q3-2011
Profiles of service providers capturing their IT AO capability in capital markets
Q3-2011
Service providers’ capability assessment (profiles compendium) for IT application services in Capital Markets
12 Proprietary & Confidential. © 2011, Everest Global, Inc.
In addition to our ongoing research, we help clients through customized efforts to meet their objectives Add-on research offering
Description
Service provider short listing
Offer customized service provider selection process through fact-based, multidimensional analyses
Service provider risk tracking
Examine risks associated with the service provider portfolio and develop risk dashboards including parameters such as financial / operational / legal risks
Speaking engagements
Analyst in-person presentation on pre-determined topic during various internal or external events
Other Custom research
Focused research to provide answers to client’s specific business issues: Competitive benchmarking Market entry and opportunity assessment Partnership/acquisition support Location analysis
13 Proprietary & Confidential. © 2011, Everest Global, Inc.
Appendix
We have supported multiple stakeholders in the BFSI ITO domain through custom research engagements PARTIAL LIST
Client
Everest Group engagement overview
A leading BFSI ITO service provider
Determining the relative magnitude of IT investments made by leading European banking institutions, and identifying the key areas of IT investments / type of IT initiatives taken by these banks
A leading IT service provider
Service provider competitive intelligence in BFSI sector: Benchmarking financial performance and market success for select service providers in the BFSI domain
Leading Canadian bank
BFSI captives’ research: Determine scale of IT operations, IT services delivery capability, IT employee metrics, etc. for select BFSI captives in India
Top 10 Australian bank
Transform IT infrastructure environment for the bank to drive greater operational efficiency, and identify and manage risks of the transformation program
Top-5 US bank
Location viability assessment for a banking institution to set up captive operations in IT services space. Comparative analysis across locations based on scalability, sustainability, and cost of operations
15 Proprietary & Confidential. © 2011, Everest Global, Inc.
We have also helped several buyers and service providers of BFSI BPO in their strategic initiatives PARTIAL LIST
Client
Everest Group engagement overview
A leading FS BPO service provider
Identification of business opportunities pertaining to end-to-end credit lifecycle management in the U.S. market, across different lending segments – credit cards, consumer loans, and commercial loans
A leading BPO service provider
Assessment of mortgage services platform strategy for a new market
South Africa BPO sector
Assessment of South Africa’s capabilities in FS BPO
Leading Canadian bank
Supplier assessment and short-listing for business process services
Top-5 investment bank
Benchmarking of scope, scale and delivery costs for services offshored to captive relative to key competitors
Top-5 US bank
Assessment of current scale, scope and maturity of services offshoring for credit cards and mortgages Framework and toolkit to determine extent of services to be retained within associate delivery model Availability and sustainability of multiple skill-sets in five offshore geographies across business processes and knowledge services
16 Proprietary & Confidential. © 2011, Everest Global, Inc.
We have published multiple research reports to highlight key dynamics of the financial services market place
BFSI Industry Trends (ERI-2010-8-R-0466): This report focuses on trends in the BFSI vertical across three areas – outsourcing transactions, captive market analysis, and service provider activity and deals
The Growing Maturity of Offshore Research and Analytics in Financial Services (ERI-2010-5-R-0445). This report analyzes the evolution and maturity of the largest segment in the knowledge services market – research and analytics for financial services
Impact of Regulatory Changes on Offshoring in Financial Services (ERI-2009-8-R-0349). This report provides a fact-based view of the implications of the regulatory and legal provisions on offshoring by U.S. financial services companies. Specifically, the report focuses on the impact of the Troubled Asset Relief Program (TARP) and related regulations on offshoring activities. In addition, the report also provides a forward-looking perspective on potential regulations and associated implications for the offshoring industry
PO in Financial Services: From Wall Street to Martin Place – Unlocking Value from the Savings Goldmine (ERI-2009-1-R-0348). This research takes a look at the impact of the current financial turmoil on adoption of PO services by financial services and provides Everest Group’s outlook for the market
NASSCOM-Everest India BPO Study: Roadmap 2012 – Capitalizing on the Expanding BPO Landscape. This one-of-a-kind unprecedented, comprehensive report on India’s BPO industry maps out the industry’s next wave of growth and paints a vision for the future. The report also takes a deep-dive on Banking & Capital Markets and Insurance
Global Sourcing in Banking, Capital Markets and Insurance (ERI-2008-2-R-0267). This research examines the fundamentals of offshoring by financial institutions and provides adoption trends, market maturity and future opportunities in each of the three key financial services segments
Ready to Compete - South Africa's BPO Capabilities in the Financial Services Sector. This report presents a deep, fact-based view of South Africa’s current BPO capabilities and potential for growth in the Financial Services sector
Trends in Indian Insurance BPO market (ERI-2008-2-B-0243). Offshore insurance BPO has grown into a significant industry in India with revenues close to two billion, with a potential to grow by as much as 12-15 times in the next five years. This report looks at the future state for insurance companies leveraging offshore delivery
Bank of the Future: The Emerging Operating Model (ERI-2007-2-R-0169). This report will assist companies in understanding the changes in the banking operating model in order to better anticipate the emerging trends and responses required to manage the increased complexities and risks 17 Proprietary & Confidential. © 2011, Everest Global, Inc.
Everest Group leads clients from insight to action
Contact us for more information about our consulting, research, and industry resources. Dallas (Corporate Headquarters) [email protected] [email protected] +1-214-451-3000 +1-214-451-3110
India [email protected] +91-124-496-1000 +91-124-496-1100
Australasia [email protected] +61-3-9509-3933
New York [email protected] +1-646-805-4000
Canada [email protected] +1-416-865-2033
UK [email protected] +44-870-770-0270
Netherlands & Continental Europe [email protected] +31-20-301-2138
www.everestgrp.com | www.everestresearchinstitute.com 18 Proprietary & Confidential. © 2011, Everest Global, Inc.
