Everest Group PEAK Matrix TM for Banking BPO Service Providers

Transcription

1 Everest Group PEAK Matrix TM for Banking BPO Service Providers Focus on Wipro October 2015 Copyright 2015 Everest Global, Inc. This document has been licensed for exclusive use and distribution by Wipro

2 Introduction and scope Everest Group recently released its report titled Banking BPO Service Provider Landscape with PEAK Matrix TM Assessment This report analyzes the changing dynamics of the banking BPO landscape and assesses service providers across several key dimensions. As a part of this report, Everest Group updated its classification of 23 service providers on the Everest Group Performance Experience Ability Knowledge (PEAK) Matrix for banking BPO into Leaders, Major Contenders, and Aspirants. The PEAK Matrix is a framework that provides an objective, data-driven, and comparative assessment of banking BPO service providers based on their absolute market success and delivery capability. Based on the analysis, Wipro emerged as a Leader and also a Star Performer. This document focuses on Wipro s banking BPO experience and capabilities. It includes: Wipro s position on the Everest Group banking BPO PEAK Matrix Detailed banking BPO profile of Wipro 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. 2

3 Everest Group s definition of BFSI includes the following three segments Banking, Financial Services, and Insurance (BFSI) Focus of this document Banking Retail financial services (B2C 1 ) Cards Retail banking Lending Commercial banking (B2B 2 ) Capital markets Investment banking Asset management Custody & fund administration Brokerage Insurance Life & pensions Property & casualty Reinsurance Note: This report covers vertical-specific BPO within the banking space. It does not include coverage of horizontal business processes such as F&A, HR, procurement, and contact centers 1 Business-to-Consumer relationships 2 Business-to-Business relationships 3

4 25 th percentile Market success 75 th percentile Everest Group PEAK Matrix 2015 banking BPO market standings Performance Experience Ability Knowledge Everest Group Performance Experience Ability Knowledge (PEAK) Matrix for banking BPO 1 High Major Contenders Aspirants CSC Tech Mahindra Equiniti Mphasis Avaloq HP IBM EXL IGATE 75 th percentile Leaders Accenture Wipro Sutherland Global Services Serco Infosys HCL Genpact TCS Syntel Polaris NIIT Technologies Low Low 25 th percentile High Banking BPO delivery capability (Scale, scope, technology solutions & innovation, delivery footprint, and buyer satisfaction) 1 Service providers scored using Everest Group s proprietary scoring methodology Note: Assessment for Accenture, CSC, Equiniti, HP, IBM, NIIT Technologies, and Polaris 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, service provider public disclosures, and interaction with buyers Xerox Cognizant WNS Leaders Major Contenders Aspirants Star Performers 4

5 Market success Wipro is a banking BPO Star Performer based on strong forward and upward movement over time on the Everest Group PEAK Matrix Change in Wipro s positioning on the Everest Group PEAK Matrix for banking BPO Leaders 2013 Wipro 2014 Market success in 2014 Witnessed banking BPO service line growth of over 20%, much higher than the overall market growth Growth was attributed to acquisition of new client logos as well as scope expansion and ramp up in existing accounts Major Contenders Delivery capability Capability enhancements in 2014 Expanded operations across both offshore and nearshore centers Expanded scope by investing in augmenting its capabilities in the retail banking space Amplified technology capabilities as well as their leverage in contracts, and developed capabilities to provide delivery transformation through RPA 5

6 Wipro (page 1 of 7) Everest Group assessment Best-in-class Very high High Medium high Medium Medium low Low Not mature Market success assessment Banking BPO revenue US$ million Banking BPO clients Number of clients Delivery capability assessment Assessment dimension Rating Remarks Wipro Peer set average % % Scale Scope Wipro has an overall company revenue of US$8 billion, and a good banking BPO contribution to it Mainly focused on North America, needs to target other geographies as well YoY Growth % revenue YoY Growth % clients Technology solutions & innovation High technology capabilities including analytics, risk management, and regulatory compliance solutions Wipro 23% 32% Delivery footprint High-cost-centric delivery model, with 40% of FTEs at onshore locations Peer set average 7% 17% Buyer satisfaction A high overall buyer satisfaction score, with good flexibility and relationship management rating Key strengths Areas of improvement On the back of strong growth and market success, Wipro emerged as a Star Performer and a Leader on the banking BPO PEAK Matrix It has strong and differentiating capabilities in the mortgage space on the back of its acquisition of Opus CMC, one of the leading U.S. mortgage due diligence and risk management service providers It has a wide bouquet of technology capabilities, including analytics, risk management, and regulatory compliance solutions, through a mix of in-house as well as acquired solutions, especially in the lending space. It also has the ability to provide delivery transformation using RPA It enjoys healthy overall buyer satisfaction levels with flexibility, talent retention, efficiency, and relationship management highlighted as key strengths Wipro is primarily focused on the lending space, and needs to increase its presence in the cards and retail banking segments and make its mark in delivering commercial banking services Consequently, it is heavily focused on the North American market with some presence in United Kingdom, and needs to invest in developing capabilities and offerings to serve other geographies as well It is operating on an onshore-heavy delivery model (owing to acquisition of Opus CMC), which results in a high cost structure and needs to increase the leverage of low-cost offshore locations By being more proactive in coming up with tailored roadmaps for leveraging innovative technology solutions and improving the digital footprint, it can further improve its buyer satisfaction levels 1 Average based on 16 banking BPO service providers who participated in this particular research 6

7 Wipro (page 2 of 7) Banking BPO overview Company overview Wipro Ltd. is a leading information technology, consulting, and outsourcing company that delivers solutions to enable its clients do business better. Wipro delivers winning business outcomes through its deep industry experience and a 360 degree view of "Business through Technology" helping clients create successful and adaptive businesses. Wipro has a workforce of over 140,000, serving clients in more than 175 cities across six continents. In addition to a wide array of IT services, Wipro also offers business process services through Wipro BPO. Overall, Wipro BPO has more than 27,000 professionals across 33 locations in 13 countries Key leaders Azim H. Premji, Chairman T K Kurien, CEO Nagendra Bandaru, Global Head, BPO Shaji Farooq, Senior Vice President, Finance Solutions Trupti Mukker, Global Head, Banking, Insurance, and Mortgage, BPO Headquarter: Bengaluru, India Website: Suite of services Mortgage Cards & payments Data management Enterprise banking Revenue (US$ million) N/D 1 Number of FTEs 1,061 1,800 2,210 Number of clients Recent acquisitions and partnerships 2013: Wipro acquired Opus CMC, a leading U.S.-based provider of mortgage due diligence and risk management services 2013: Wipro acquired a minority stake in American big data analytics firm Opera Solutions 2012: Wipro acquired Promax, an analytics firm in Australia focusing on trade promotion, management, and optimization solutions 2011: Wipro and Temenos entered into a strategic agreement to jointly deliver core banking ASP Service Recent developments 2014: OpusPanorama proprietary web-based due diligence and risk management software 2014: Loan serve client loan servicing application 2014: Atrium client data system used for mortgage servicing 2013: Wipro, in association with Efma, launched the firstever retail banking digital marketing study 1 Not disclosed 7

8 Wipro (page 3 of 7) Banking BPO key delivery locations Seattle Lincolnshire Sussex Atlanta Jacksonville Ft. Lauderdale Shannon Mumbai Pune Greater Noida Hyderabad Chennai Manila Curitiba Johannesburg 8

9 Wipro (page 4 of 7) Banking BPO capabilities and key clients Key banking BPO engagements Client name LoB Region Client since A leading British multinational banking and financial services company Retail banking United Kingdom 2015 A leading U.S.-based mortgage subservicer Lending North America 2012 A leading American multinational financial services corporation Cards North America 2012 A leading financial institution in South Africa Retail banking Middle East and Africa 2011 Leading subservicing company in the United States Lending North America 2009 A leading U.S. card issuer Cards North America 2003 Banking BPO FTE mix by segment FTEs in numbers Cards 100% = 2,210 38% 47% Lending Banking BPO revenue mix by geography Revenue in US$ million LATAM (2%) United Kingdom 13% MEA (1%) APAC (1%) Banking BPO FTE split by delivery location FTEs in numbers 46% 2% 53% Banking BPO number of contracts by buyer size 1 Number of active contracts 100% = N/D 100% = 2, % = 74 Nearshore Small 11% Medium 12% 15% Retail banking 83% North America Onshore Offshore Large 77% 1 Buyer size is defined as large (>US$10 billion in revenue), medium (US$5-10 billion in revenue), and small (<US$5 billion in revenue) Note: Based on contractual and operational information as on December

10 Wipro (page 5 of 7) Banking BPO technology solutions/tools Application LoB Year launched Description Apollo Retail banking 2015 A new fraud control and anomaly detection platform to help enable financial institutions and banks to address challenges in managing fraud, risk, and compliance. Apollo relies on real-time anomaly detection through surveillance of big data analytics and machine learning Colossus quality tool Collection and recoveries Fraud & AML management Lending 2015 A QA management tool 10 Cards and retail banking 2015 A solution for collection and recoveries that includes various technology levers like robotics, AI, analytics tools, that can be deployed at different stages of the collections lifecycle cycle. It helps reduce manual intervention, improve accountability, and debt recovery especially for processes like Skip tracing efforts where banks spend a lot of money and effort to figure out contactable clients using third-party agencies Retail banking 2015 Enterprise-Know Your Customer (e-kyc), an automation solution developed for global financial institutions and is built on the company s Artificial Intelligence platform Wipro HOLMES. This solution is being offered as Business-Process-asa-Service (BPaaS) Atrium Lending 2014 A data system used for mortgage servicing 1 Loan Serve and LPS Lending 2014 A loan servicing client application 1 ENGAGE Cards 2014 A digital customer experience solution that enables the client to deliver a truly enriched customer experience by leveraging state-of-the-art chat & social media tools ensuring customers are delighted and serviced on the medium and place of their choice No. of BPO clients N/D Not available 10

11 Wipro (page 6 of 7) Banking BPO technology solutions/tools Application LoB Year launched Description OpusPanorama Lending 2014 A proprietary client web application that provides increased transparency and realtime collaboration for due diligence clients RESOLV Cards 2013 RESOLV is a dispute management platform that provides a highly intuitive and customer-centric workflow-based disputes management platform to run dispute operations effectively and efficiently. It is equipped with diagnostics and monitors key business metrics with a smart analytics engine NetOxygen Lending 2008 A proprietary LOS platform with streamlined workflow and paperless processing 28 Opus First Lending 2006 A proprietary due diligence and risk management software 40 Emerging payments support All N/A 1 A Wipro digital framework for mapping new customer journeys with respect to new channels and associated customer demand. Also, addressing newer and enhanced challenges on fraud, operational losses, and risk MI Claims solution All N/A A solution that supports complete claims processing and filing support. The tool covers various activities through the claims processing and filing process with strict compliance to all regulatory requirements Next Generation Customer Experience All N/A A solution that improves end-to-end customer experience engagement by providing 360 view of customer engagements across multiple channels. It covers analytics-based personalized services and actionable recommendations to improve the overall customer experience No. of BPO clients 10 3 N/A N/A N/A 11

12 Wipro (page 7 of 7) Banking BPO risk management & regulatory reporting Risk management support Details Compliance risk Opus CMC performs compliance checks on mortgage loan files and helps customers and investors 45 Operations risk Implements controls towards Information security risks and BCP risks in all accounts as part of contractual obligations Operational risk analyst conducts the operational control testing for the entire insurance and PPI operations Regulatory risk A dedicated risk and compliance team to ensure enough controls to mitigate regulatory risks in BAU N/D No. of BPO clients N/D 12

13 Appendix 13

14 25 th percentile Market success 75 th percentile Everest Group classifies the banking BPO service provider landscape into Leaders, Major Contenders, and Aspirants on the Everest Group PEAK Matrix Everest Group Performance Experience Ability Knowledge (PEAK) Matrix 1 for banking BPO High Major Contenders 2 nd or 3 rd quartile performance across market success and delivery capability 75 th percentile Leaders Top Quartile performance across market success and delivery capability Aspirants 4 th quartile performance across market success and delivery capability Low Low 25 th percentile 1 Service providers scored using Everest Group s proprietary scoring methodology on pages 17 and 18 High Banking BPO delivery capability (Scale, scope, technology solutions & innovation, delivery footprint, and buyer satisfaction) 14

15 Market success Service providers are positioned on PEAK Matrix based on evaluation across two key dimensions Measures success achieved in the market. Captured through banking BPO revenue, number of clients, and Year-on-Year (YoY) growth Major Contenders Aspirants Leaders Delivery capability Measures ability to deliver services successfully Captured through five subdimensions Scale Measures the scale of operations (overall company revenue and relative focus on the vertical) Scope Measures the scope of services provided across LoB, geographies, and buyer size Technology solutions and innovation Measures the capability and investment in technology solutions and ability to deliver value-added services (innovation) with high technology leverage 1 Measured through responses from referenced buyers for each service provider Delivery footprint Measures the delivery footprint across regions and the global sourcing mix Buyer satisfaction Measures the satisfaction levels 1 of buyers across: Business driver Implementation Process expertise Relationship management 15

16 Market success Additionally, Everest Group confers the Star Performers title on the providers that demonstrate the strongest forward movement over time on the PEAK Matrix Methodology Everest Group selects Market Star Performers based on the relative YoY movement of each service provider on the PEAK Matrix Service provider Year 0 Year 1 Market success dimension 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 ACV growth Number of new contract signings Value of new contract signings Delivery capability Delivery capability dimension 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 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, and At least one area of Top Quartile performance advancement in either of the dimensions 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 2015 banking BPO Star Performers Avaloq is not considered for Star Performer analysis due to its first-time participation in the PEAK Matrix analysis. 16

17 FAQs (page 1 of 2) Does the PEAK Matrix assessment incorporate any subjective criteria? The Everest Group s PEAK Matrix assessment adopts an objective and fact-based approach (leveraging service provider RFIs and the 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. 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 in itself a favorable recognition What other aspects of the PEAK Matrix assessment are relevant to buyers and providers besides the PEAK Matrix position? The PEAK Matrix position is only one aspect of the 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 to the 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 the 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 17

18 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 in multiple ways including: Issue a press release declaring their positioning/rating Customized PEAK Matrix profile for circulation (with clients, prospects, etc.) Quotes from the Everest Group s analysts could be disseminated to the media Leverage the PEAK Matrix branding across communications ( 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 18

19 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, problemsolving skills and original research. Details and in-depth content are available at and research.everestgrp.com. Dallas (Headquarters) info@everestgrp.com New York info@everestgrp.com Toronto canada@everestgrp.com London unitedkingdom@everestgrp.com Delhi india@everestgrp.com Stay connected Websites research.everestgrp.com Blog