Everest Group PEAK Matrix for Healthcare CCO Service Providers

Transcription

1 Everest Group PEAK Matrix for Healthcare CCO Service Providers Focus on Conduent April 2017 Copyright 2017 Everest Global, Inc. This document has been licensed for exclusive use and distribution by Conduent

2 Introduction and scope Everest Group recently released its report titled Contact Center Outsourcing (CCO) Market for the Healthcare Industry Service Provider Landscape with PEAK Matrix Assessment This report analyzes the changing dynamics of the healthcare CCO landscape and assesses service providers across several key dimensions. As a part of this report, Everest Group updated its classification of 30+ service providers on the Everest Group Performance Experience Ability Knowledge (PEAK) Matrix for CCO into Leaders, Major Contenders, and Aspirants. The PEAK Matrix is a framework that offers an objective, data-driven, and comparative assessment of CCO service providers based on their absolute market success and delivery capability. Based on the analysis, Conduent emerged as a Leader. This document focuses on Conduent s healthcare CCO experience & capabilities. It includes: Conduent s position on the healthcare CCO PEAK Matrix Detailed CCO profile of Conduent 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, 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 the CCO market is centered on the delivery aspects of customer interaction Contact center pyramid Strategy Value-added services Operational services Strategy Channel management Customer analytics Customer retention management Performance management & reporting Outbound sales services Inbound sales services Order fulfillment and transaction processing Payment collections Customer service Customer interaction technology Traditional CCO primarily focused on individual operational services Now, value-added services are increasingly being included in CCO Everest Group defines the CCO market to include engagements that primarily support all forms of direct and indirect (or in support of direct) interactions with customers, external and internal to the buyer organization, involving a structured multichannel and remote communication environment CCO does not include contact center services embedded within the scope of outsourcing engagements targeting processes other than customer care, such as IT Outsourcing (ITO) or Human Resources Outsourcing (HRO) 3

4 Market success (Revenue, number of clients, and revenue growth) 25 th percentile 75 th percentile Everest Group PEAK Matrix 2017 CCO healthcare market standings Performance Experience Ability Knowledge Everest Group Performance Experience Ability Knowledge (PEAK) Matrix for CCO healthcare 1* 75 th percentile High Leaders Major Contenders Conduent Alorica Teleperformance Leaders Major Contenders Aspirants Wipro HGS Convergys Conduit Global Concentrix iqor TeleTech NTT Data Sutherland Global Services HPE, Firstsource, Genpact, and Sitel are known to offer services for healthcare vertical within CCO, but have not been covered within this analysis due to lack of quality information for proper positioning Low Aspirants Low Aegis 25 th percentile CCO delivery capability (Scale, scope, technology solutions & innovation, and delivery footprint) * Only service providers having annual healthcare CCO revenue of more than US$10 million were considered for evaluation in this study 1 Service providers scored using Everest Group s proprietary scoring methodology given on page 12 High 4

5 Conduent (page 1 of 5) Healthcare CCO overview Company overview Conduent is a business process services provider with more than 93,000 employees and conducts business in over 40 countries, providing business services for commercial and government organizations. Conduent provides customer care services across a variety of industries including communications, wireless, healthcare, retail, and public sector. Key leaders Ashok Vemuri, Chief Executive Officer Pratap Sarker, Commercial Sector Leader Jeff Hechemy, General Manager, Healthcare Payer Headquarters: Basking Ridge, New Jersey, U.S. Website: Recent developments 2017: Completed the separation into two independent publiclytraded companies the business process outsourcing company named Conduent, Inc. and the document technology company that continues to be called Xerox Corporation 2015: Announced its acquisition of Healthy Communities Institute (HCI), a California-based company with a cloud platform that provides socioeconomic and community health information to hospitals, public health agencies, and community coalitions Healthcare CCO revenue 1 In US$ million Scale of healthcare CCO 1 Number of FTEs Healthcare CCO client base 1 Number of clients ~430 ~ ~12,500 ~12, ~180 ~ Based on Everest Group estimates, which leverage our proprietary Transaction Intelligence (TI) database, service providers ongoing coverage, public disclosures, and interaction with buyers 5

6 Conduent (page 2 of 5) CCO client portfolio Healthcare CCO revenue mix US$ million By geography By segment Pharmaceutical 12% 100% North America 88% Payer Value-added services By process Others 12% 13% 45% Inbound sales services 5% 5% Payment collections 8% Order fulfillment 12% and transaction processing Outbound sales services Customer service By channel 3% Voice 97% Note Based on data up to June

7 Conduent (page 3 of 5) Key healthcare technology investments in recent years NOT EXHAUSTIVE Solution name HealthClarity Program Integrity Conduent Virtual Agent Outcomes Based Healthcare Medication Adherence App Description Data analytics solution to help Medicaid Managed Care Organizations (MCOs) obtain real insights into the programs performance. It assesses the effectiveness of managed care and other Fee-for-service (FFS) providers; provides advanced analytics through interactive visualizations and predictive modelling; ranks and compares providers according to clinical quality management, member experience and plan efficiency; and highlights opportunities for intervention, reinforcement or improvement. Program Integrity helps bring more accountability to all phases of claims management, from prior authorization to past-pay recoveries. Solution includes: automated provider verification and validation with ongoing monitoring; predictive modeling tools that identify potential fraudulent or abusive activities; member eligibility data verification and risk identification for medical and social factors; fraud abuse & detection systems that analyze claim data throughout your program and service verification systems with GPS technology support Aligned to the omnichannel is a Conduent Virtual Agent solution that uses machine learning and Conduent Case Management to provide a self-service tool via a responsive web app Health Outcome Solutions (HOS) takes a new, holistic approach to population health management and preventative care. By utilizing Conduent s current capacity in technology and analytics, it can properly leverage administrative, para clinical, and clinical capabilities to influence all aspects of the healthcare ecosystem Conduent is developing a software-enabled service to help people improve their medication adherence by quickly identifying the major barriers they face and delivering highly personalized support via the communication channel that the member finds most convenient and persuasive 7

8 Conduent (page 4 of 5) Healthcare CCO location landscape Healthcare CCO delivery location U.S. Mexico Guatemala Jamaica Philippines 8

9 Conduent (page 5 of 5) Everest Group assessment Measure of capability: Best-in-class Very high High Medium high Medium Medium low Low Not mature Delivery capability Scale Scope Technology and innovation Delivery footprint Overall Market success Strengths Areas of improvement Conduent is a U.S.-based business process services provider that has appreciable capabilities within the healthcare CCO space in the North American market. Its clients include major healthcare payers and pharmaceutical companies With robust capabilities across most dimensions and high market success, it has been positioned as a Leader on the CCO PEAK Matrix for healthcare To offer the right shoring mix as per its client needs, not only has it built strong delivery capability in the U.S., but has also invested in building a significant delivery presence in nearshore locations in Latin America and offshore delivery locations in the Philippines Through internal investments and partnerships, Conduent has developed technology capability for the healthcare market including care management, virtual agents, telemedicine support, self service, and automation Conduent derives its revenue entirely from North America. To further drive growth, it can look at expanding its client base in emerging geographies such as Asia Pacific and Latin America, and reduce its dependence on just one market It can also leverage its capabilities in non-voice channels, to offer omnichannel solutions to its clients, that are contributing to the high growth of the market To expand its business and capabilities further, it can consider targeting other segments in the market such as healthcare providers and medical devices manufacturers 9

10 Appendix 10

11 Market success (Revenue, number of clients, and revenue growth) 25 th percentile 75 th percentile Everest Group classifies the CCO service provider landscape for healthcare based on its PEAK Matrix Performance Experience Ability Knowledge (PEAK) Matrix Everest Group Performance Experience Ability Knowledge (PEAK) Matrix for CCO healthcare 1 High Major Contenders 2 nd or 3 rd quartile performance across market success and capability 75 th percentile Leaders Top quartile performance across market success and capability Low Aspirants 4 th quartile performance across market success and capability Low 25 th percentile CCO delivery capability (Scale, scope, technology solutions & innovation, and delivery footprint) High 1 Service providers scored using Everest Group s proprietary scoring methodology given on page 12 11

12 Market success Service providers are positioned on the Everest Group PEAK Matrix based on the evaluation of two key dimensions Leaders Major Contenders Measures success, which is captured through CCO healthcare revenue, number of current CCO healthcare clients, and YOY revenue growth Aspirants Delivery capability Measures ability to deliver services successfully. This is captured through four subdimensions Scale Scope Technology solutions & innovation Delivery footprint Measures the scale of operations through: Firm-wide revenue Contribution of healthcare CCO revenue to the total CCO revenue Measures the scope of services provided through: Process coverage Channel coverage Geographic scope Healthcare segment distribution Language coverage Buyer size Measures the extent of capability in innovation and technology, as evidenced through investments in contact center-related technology and in areas such as analytics, social media, and process automation, as well as investments pertaining to healthcare market specifically Measures the global sourcing mix through: Delivery footprint across nine regions 1 Balanced shoring capability 1 North America, Latin America, Western Europe, Eastern Europe, Australia & New Zealand, India, Philippines, Rest of Asia, and Middle East & Africa 12

13 FAQs (page 1 of 2) Does the PEAK Matrix assessment incorporate any subjective criteria? Everest Group s PEAK Matrix assessment adopts an objective and fact-based approach (leveraging service provider RFIs and Everest Group s proprietary databases containing providers deals and operational capability information). In addition, these results are validated / fine-tuned based on our market experience, buyer interaction, and provider briefings Is being a Major Contender or Aspirant on the PEAK Matrix, an unfavorable outcome? No. PEAK Matrix highlights and positions only the best-in-class service providers in a particular functional/vertical services area. There are a number of providers from the broader universe that are assessed and do not make it to the PEAK Matrix at all. Therefore, being represented on the PEAK Matrix is itself a favorable recognition What other aspects of PEAK Matrix assessment are relevant to buyers and providers besides the PEAK Matrix position? PEAK Matrix position is only one aspect of Everest Group s overall assessment. In addition to assigning a Leader, Major Contender, or Aspirant title, Everest Group highlights the distinctive capabilities and unique attributes of all the PEAK Matrix providers assessed in its report. The detailed metric level assessment and associated commentary is helpful for buyers in selecting particular providers for their specific requirements. It also helps providers showcase their strengths in specific areas 13

14 FAQs (page 2 of 2) What are the incentives for buyers and providers to participate/provide input to PEAK Matrix research? Participation incentives for buyers include a summary of key findings from the PEAK Matrix assessment Participation incentives for providers include adequate representation and recognition of their capabilities/success in the market place, and a copy of their own profile that is published by Everest Group as part of the compendium of PEAK Matrix providers profiles What is the process for a service provider to leverage their PEAK Matrix positioning status? Providers can use their PEAK positioning rating in multiple ways including: Issue a press release declaring their positioning/rating Customized PEAK profile for circulation (with clients, prospects, etc.) Quotes from Everest Group analysts could be disseminated to the media Leverage PEAK branding across communications ( 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 14

15 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 Dallas (Headquarters) info@everestgrp.com Bangalore india@everestgrp.com Delhi india@everestgrp.com London unitedkingdom@everestgrp.com Stay connected Website Group New York info@everestgrp.com Blog Sherpas In Blue Shirts Toronto canada@everestgrp.com