Everest Group s PEAK Matrix for Global Life Sciences ITO Service Providers

Transcription

1 Everest Group s PEAK Matrix for Global Life Sciences ITO Service Providers Focus on HCL Technologies August 2015 Copyright 2015 Everest Global, Inc. This document has been licensed for exclusive use and distribution by HCL Technologies

2 Introduction and scope Everest Group recently released its report titled IT Outsourcing in Life Sciences Industry Service Provider Landscape with PEAK Matrix Assessment This report analyzes the changing dynamics of the global life sciences ITO landscape and assesses service providers across several key dimensions. As a part of this report, Everest Group analyzed 20 leading service providers on the Everest Group Performance Experience Ability Knowledge (PEAK) Matrix, specific to global life sciences ITO, 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 life sciences ITO service providers based on their absolute market success and delivery capability. Based on the analysis, HCL Technologies emerged as a Leader. This document focuses on HCL s life sciences ITO experience and capabilities in the global life sciences ITO market. It includes: HCL s position on the life sciences ITO PEAK Matrix Detailed life sciences ITO profile of HCL 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 Life sciences ITO service provider landscape: Background and scope of the research Background of the research The healthcare and life sciences 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, and anytime-anywhere information access). This combination of disruptive and legacy factors have driven healthcare and life sciences firms to adopt new technologies, while also revamping their existing systems, processes, and interfaces. As the technology mandate for healthcare and life sciences 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 healthcare and life sciences IT across the three major market segments payer, provider, and life sciences. Everest Group s healthcare and life sciences IT research program addresses this market requirement by analyzing outsourcing trends and service provider capabilities specific to IT in the healthcare and life sciences vertical. In this report, we analyze the capabilities of 20 ITO service providers specific to the global life sciences 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: The landscape of service providers for life sciences ITO Assessment of the service providers on a number of capability-related dimensions Characteristics of Leaders, Major Contenders, and Aspirants on the Everest Group PEAK Matrix Implications for life sciences ITO buyers and service providers Scope of this report Industry: Life sciences (pharmaceuticals, medical devices, biotechnology, and other life sciences 1 ) Services: Large (TCV >US$25 million), multi-year (>3 years), and annuity-based application outsourcing Geography: Global Sourcing model: Third-party ITO transactions; excludes shared services or Global In-house Centers (GICs) 1 Includes healthcare data & information services and medical products distribution 3

4 HCL Technologies is positioned as a Leader on Everest Group s PEAK Matrix for large life sciences ITO relationships Everest Group Performance Experience Ability Knowledge (PEAK) Matrix for large life sciences ITO relationships 1 Market success (Transaction activity) High 25 th percentile Major Contenders L&T Infotech Virtusa Unisys EPAM Hexaware Fujitsu Capgemini CSC HP ES IGATE 75 th percentile CGI Leaders HCL Technologies Infosys IBM Wipro Dell Services Tech Mahindra TCS Cognizant Accenture 75 th percentile Leaders Major Contenders Aspirants Star Performers Low Aspirants Low 25 th percentile High Delivery capability (Scale, scope, domain investments, delivery footprint, innovation, and buyer satisfaction) 1 PEAK Matrix specific to large (>US$25 million TCV), multi-year (>three years) application outsourcing relationships within the life sciences sector; the evaluation this year (2015) is weighted more on Application Outsourcing(AO) as a majority of large deals have application outsourcing in scope Source: Everest Group (2015) 4

5 HCL Technologies Life sciences ITO profile (page 1 of 6) Corporate and healthcare overview >US$500 million US$ million <US$100 million Company description: HCL Technologies is a global service provider with a portfolio of services spanning application development, enterprise application services, engineering and R&D services, infrastructure management, and business process services. HCL leverages its workforce of 106,100 employees spread across locations in 31 countries to provide services in key industry verticals including BFSI, manufacturing, consumer services, public services, and healthcare Headquarters: Noida, India Website: Geographical mix FY 2015; US$ million Europe 100% = 5,952 ROW 11% 31% 58% 1 FY ends on June 30 Source: Everest Group (2015) Americas Service mix FY 2015; US$ million BPO services Engineering Infrastructure and R&D services services 5% 18% 35% Enterprise system integration 100% = 5,952 15% 27% Industry application services Scale of healthcare subverticals Payer Life sciences Provider Key financial parameters Revenue figures in US$ million Revenue 1 from healthcare Revenue 1 from other verticals Enterprise operating margin 22.2% 20.1% 24.2% 5,952 4,686 5, ,642 4,070 5,291 FY 2013 FY 2014 FY 2015 Services offered for the healthcare vertical: IT services across payer, provider, and life sciences segments. Services for the life sciences segment span drug discovery, clinical trials, regulatory compliance, drug safety, pharmacovigilance, manufacturing and plant automation, sales & marketing, LIMS, serialization & e-pedigree, predictive analytics, information asset management, mobility, BI, SaaS, and cloud services Major healthcare clients: Allscripts, AstraZeneca, BCBS, Eli Lilly, GlaxoSmithKline, HCSC, Merck, Novartis, Pfizer, Purdue Pharma, Quest Diagnostics, Shire, and UHG 5

6 HCL Technologies Life sciences ITO profile (page 2 of 6) Life sciences ITO capability assessment and market success Capability dashboard Life sciences subsegments Pharma Medical devices Biotech Others Functional scope IO SI/consulting AO Established: Mature capabilities with high adoption Credible: Strong capabilities with rising adoption Emerging: Nascent capabilities with limited adoption Geographic scope North America Latin America Value chain solutions Drug discovery/ research Clinical and pre-clinical trials Manufacturing operations EMEA APAC Marketing and sales Supply chain and distribution Everest Group PEAK Matrix for life sciences ITO High Leaders HCL Technologies TCS Cognizant Major Contenders Wipro IBM Capgemini Accenture CSC Infosys CGI HP ES L&T Infotech Dell Services Tech Mahindra Virtusa Unisys EPAM IGATE Hexaware Fujitsu Aspirants Low Low Delivery capability High (Scale, scope, domain investments, delivery footprint, innovation, and buyer satisfaction) Market success (Transaction activity) High PEAK Matrix dimensions assessment Dimension Rating Scale Scope Domain investments Delivery footprint Innovation Buyer satisfaction Market success Source: Everest Group (2015) Low Strengths Success in building revenue stream from IO services in life sciences engagements, to top up its already prominent presence in the AO space A strong foothold in pharma and medical devices, with growing traction among biotechnology and contract research organizations Effective project/account management mechanisms with frequent touchpoints and robust communication with clients Strong focus on talent building/grooming via Centers of Excellence (CoEs) dedicated to healthcare and life sciences Areas of improvement Focus on developing dedicated solutions for life sciences, in addition to a mere healthcare wrapper over its broadbased horizontal solutions Create downstream technology implementation opportunities through a consulting-led selling approach Emphasize on identifying incremental/adjacent opportunities for HCL s involvement in incumbent accounts Reinforce offerings in life sciences R&D and supply chain to emerge as an all rounder across the value chain 6

7 HCL Technologies Life sciences ITO profile (page 3 of 6) ITO domain investments Proprietary solutions (representative list) Line of business Solutions Life sciences Discovery and research UCP (Unified Clinical Platform), Drug Safety Utility Model, end-to-end clinical transformation, and trial optimization Clinical Platform as a Service (CPaaS): A solution cum business model that offers control and collaborative environment to sponsors and clinical research organizations LABIMS: HCL's proprietary Laboratory Information Management System (LIMS) Sales and marketing A solution to target geographies according to sales potential and align sales force Sales & marketing / commercial transformation comprises solutions across a global digital enablement platform, next-generation sales force enablement, key opinion leader and payment management, sales and marketing data hub, and next-generation analytics Think Launch: An approach for connecting patient outcomes, service offerings, and potentially available technology to identify a set of Patient Service Archetypes (PSAs) Mobility mtrace is a mobile reporting solution built on MicroStrategy for ipads Sun Safe: A mobile app that displays current UV index and suggests skin care recommendations Mobility Kinect Concept app: This app leverages Kinect for Windows, the Kinect SDK, and Net Framework 4.0 to enable surgeons perform hands free computing for seeking medical documents on a thin-glass wall CoolSAP: A mobile suite for integrating SAP workflows and processes under one umbrella Reporting/Analytics Connected Digital Healthcare (CDH): A solution that leverages patient and devices data to provide ondemand data for proactive usage and adaptive decisions MyDashboard: A unified reporting platform for event and service management data Source: Everest Group (2015) 7

8 HCL Technologies Life sciences ITO profile (page 4 of 6) ITO domain investments Proprietary solutions (representative list) Line of business Solutions Life sciences IT operations Auto LSH Configuration Wizard: Accelerator for integrating SAS and Oracle LSH Workflow (BPM) enabled LSH statistical programming life cycle is an accelerator for LSH Validation Event Triggering Workflow (BPM): LSH event/signal monitoring and alert tool Lean ASM is a pharma framework which provides predictable services across business processes of value chain, and minimizes spend on Run The Business (RTB) programs by improving operational efficiency Enhanced SAS IDE Integration to enable automated save/load SAS code to LSH APSE: Project Management Tool for SAP implementation and package implementation Test Factory in a Box (TFiB): A proprietary framework for implementing testing methodologies, identifying defects, and retesting idpc: A tool that enables testing and data generation for ICD 9 and ICD 10 codes Cloud GIT Cloud is a private cloud solution offering IaaS MyCloud is a flexible, high-performance, pay-as-you-go, and on-demand infrastructure-based offering Compliance Pharmacovigilance, information management, regulatory affairs and compliance officer, Universal Content Manager, LIMS, Information ontology for R&D, and e-pedigree HORIZON is a solution for risk-based monitoring POEM is a task distribution control for virtually monitoring risk-based monitoring Source: Everest Group (2015) 8

9 HCL Technologies Life sciences ITO profile (page 5 of 6) ITO domain investments Key alliances (representative list) Alliance partner Amazon Web Services (AWS) Clinical Data Interchange Standards Consortium (CDISC) Experts systems Oracle Pegasystems Salesforce.com SAS Sentrx Tableau TIBCO SAP Validic Veeva (Several) Purpose of alliance HCL is a certified life sciences competency consulting partner with AWS HCL is a certified platinum member of CDISC Partnership for semantic technology and Optimal Strategix (RWE) Partnership for Oracle Health Sciences product suite implementation and support Gold partner of Pegasystems with strategic relationship. A dedicated PEGA CoE to develop solutions and frameworks to accelerate Pega BPM programs Platinum consulting partner and cloud alliance partner Partnership for data analytics in the payer, provider, and pharma space Partnership in the drug safety and regulatory space Partnership for data analytics visualization of HCL Care Intelligence Platform Partnership for business process management-related offerings Global SAP implementation partner Partnership for real-time integration of personal medical devices to HCL s Care Engine platform Global implementation partner Other alliances with Labtronics, Trviium Health, Foresight, Pharmasol, ACT, Optimal Strategix, and Edetek Source: Everest Group (2015) 9

10 HCL Technologies Life sciences ITO profile (page 6 of 6) Key ITO delivery locations NOT EXHAUSTIVE Confirmed location for life sciences ITO 500-1,000 ITO FTEs >5,000 ITO FTEs ITO FTEs 1,000-5,000 ITO FTEs <100 ITO FTEs Canada UK Europe (multiple locations) Mexico U.S. India Japan China Malaysia Singapore Brazil Australia Argentina Source: Everest Group (2015) 10

11 Appendix 11

12 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 Outsourcing Market success (Transaction activity) High 25 th percentile Major Contenders 2 nd or 3 rd quartile performance across market success and capability Aspirants 4 th quartile performance across market success and capability 75 th percentile Leaders Top quartile performance across market success and capability 75 th percentile Low Low 25 th percentile High Delivery capability (Scale, scope, domain investments, delivery footprint, innovation, and buyer satisfaction) 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 outsourcing function 12

13 Dimensions of service providers capability and market success underlying the PEAK Matrix Everest Group PEAK Matrix Major Contenders Leaders Active ACV of relevant deals Relevant deals Market success Aspirants Delivery capability Scale Scope Domain investments Delivery footprint Innovation Buyer satisfaction Revenue Lines of business served Proprietary solutions Delivery mix Innovative solutions Buyer perception score FTEs ITO subfunctions Geographies served Investments in M&As and certifications Delivery regions covered Innovative engagement models Growth in renewals (Year-on-Year) 13

14 Everest Group employed a combination of qualitative and quantitative parameters to allocate an innovation score to the service providers Innovation Based on the analyst s perception of the steps taken by service providers to align themselves with the changing market dynamics Qualitative Quantitative Percentage of contracts Number of contracts Experience (number of clients) Parameters identified for quantifying innovation in life sciences ITO Social media support Mobility support Analytics support Cloud support Outcome-driven deals 14

15 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 15

16 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 ( 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 16

17 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