Everest Group PEAK Matrix for L&P Insurance BPO Service Providers

Transcription

1 Everest Group PEAK Matrix for L&P Insurance BPO Service Providers Focus on DXC Technology September 2017 Copyright 2017 Everest Global, Inc. This document has been licensed for exclusive use and distribution by DXC Technology

2 Introduction and scope Everest Group recently released its report titled Life and Pensions Insurance BPO Service Provider Landscape with PEAK Matrix TM Assessment This report analyzes the changing dynamics of the L&P insurance BPO landscape and assesses service providers across several key dimensions. As a part of this report, Everest Group updated its classification of 17 service providers on the Everest Group Performance Experience Ability Knowledge (PEAK) Matrix for L&P insurance BPO into Leaders, Major Contenders, and Aspirants. The PEAK Matrix is a framework that provides an objective, data-driven, and comparative assessment of L&P insurance BPO service providers based on their absolute market success and delivery capability. Everest Group also identified four service providers as the 2017 L&P insurance BPO Market Star Performers based on the strongest forward movement demonstrated on the PEAK Matrix year-on-year. Based on the analysis, DXC emerged as a Leader. This document focuses on DXC s L&P insurance BPO experience and capabilities and includes: DXC s position on the L&P insurance BPO PEAK Matrix DXC s year-on-year movement on the L&P insurance BPO PEAK Matrix Detailed L&P insurance BPO profile of DXC 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 situations and requirements, and match them against service provider capability for an ideal fit. 2

3 Everest Group s definition of insurance includes the following three segments Insurance Focus of this report P&C insurance L&P insurance Reinsurance Property Life insurance Property & casualty Casualty Specialty insurance Annuities and pensions Life insurance with accelerated benefits (Life+) Life & pensions Notes There are multiple operating-model alternatives, ranging from internal shared services / Global In-house Centers (GICs) to third-party outsourcing. This report focuses primarily on third-party models This report covers the vertical-specific BPO within the L&P insurance space. It does not include coverage of horizontal business processes such as F&A, HR, procurement, and contact centers Health insurance BPO is not covered in this report 3

4 Market success (Parameters used to define the service provider position, revenue, number of clients, and YoY revenue growth) 25 th percentile 75 th percentile Everest Group PEAK Matrix Life and Pensions Insurance BPO Service Provider Landscape with PEAK Matrix TM Assessment 2017 DXC positioned as Leader Everest Group PEAK Matrix for L&P insurance BPO 1 High Major Contenders Capgemini Accenture Infosys Capita NTT DATA Genpact 75 th percentile Leaders TCS SE2 DXC Cognizant EXL Concentrix WNS Leaders Major Contenders Aspirants Star Performers Aspirants Intelenet Low Low Syntel Tech Mahindra NIIT Technologies 25 th percentile Delivery capability (Scale, scope, domain expertise & innovation, delivery footprint, and buyer satisfaction) High Notes: Assessment for Accenture, Capita, Intelenet, NTT DATA, Syntel, and Tech Mahindra excludes service provider inputs on this particular study and is based on Everest Group s estimates that leverage Everest Group s proprietary Transaction Intelligence (TI) database, ongoing coverage of these service providers, their public disclosures, and interaction with buyers. Source: Everest Group (2017) 4

5 DXC Technology L&P insurance BPO profile (page 1 of 5) Everest Group assessment Leader 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 Buyer satisfaction Overall Market success Strengths Areas of improvement With its large revenue, substantial client base, and top-line growth, DXC is marked high on market success as defined by Everest Group, and has emerged as a Leader on the PEAK Matrix It has a comprehensive coverage of multiple processes within L&P insurance BPO It services clients with a wide range of end-to-end platform and augmentation solutions, while also having welldeveloped capabilities in cognitive automation, analytics, regulatory reporting, and risk management DXC is entirely dependent on North America for its revenue. It is thus losing out to opportunities in other attractive markets, such as the United Kingdom and Europe, while also aggravating concentration risk It should also diversify its customer portfolio and reduce dependency on large buyers by servicing small and medium clients as well, while adopting greater leverage of low-cost offshore resources It has significant headroom to drive adoption of its RPA solutions among existing clients, as they too are looking for better cost efficiency from implemented solutions Source: Everest Group (2017) 5

6 DXC Technology L&P insurance BPO profile (page 2 of 5) Overview Company overview DXC is a leading provider in next-generation IT services, solutions, and BPO services. As a leading independent, end-to-end IT services company, it is well-positioned to lead digital transformations creating greater value for clients, partners, and shareholders. It has 170,000 employees in more than 70 countries, serving nearly 6,000 clients. It taps into global talent, next-generation IT solutions and extensive partner relationships to help clients transform digitally and seize opportunities. Its extensive partner network helps it drive collaboration and leverage technology independence. It has established more than 250 industry-leading global partner network relationships, including 14 strategic partners Amazon Web Services, AT&T, Dell / EMC, HCL, HPE, HP, IBM, Lenovo, Micro Focus, Microsoft, Oracle, PwC, SAP, and ServiceNow. Key leaders Mike Lawrie, President & Chief Executive Officer Michael Risley, VP, Global Industry Sales Leader Phil Ratcliff, Vice President and General Manager Headquarter: Tysons, Virginia, United States Website: Suite of services Policy administration New business underwriting Claims management Customer services Business analytics Incentive management Reinsurance Revenue (US$ million) Not disclosed Number of FTEs 1,118 2,286 3,433 Number of clients Recent acquisitions and partnerships DXC Technology was created by the merger of CSC and the Enterprise Services business of Hewlett Packard Enterprise on in April 2017 Recent developments Enhancement and upgradation of BPS infrastructure, productivity tools, and software Established a new low-cost center in Manila, Philippines, for call center and back-office processing Acquisition of Xchanging Implementation of robotics Implemented IBM Watson with IVR and telephony to automate authentication, anticipate caller questions, and call documentation Upgrade of telephony platform to AT&T s InContact Source: Everest Group (2017) 6

7 DXC Technology L&P insurance BPO profile (page 3 of 5) Key delivery locations Jacksonville Irving East Hartford Nashville Blythewood Vadodara Noida Indore Manila Cape Town Source: Everest Group (2017) 7

8 DXC Technology L&P insurance BPO profile (page 4 of 5) Capabilities and key clients Key L&P insurance BPO engagements Client name Region Client since Leading insurer A North America 2015 MetLife (direct) North America 2013 Leading insurer B North America 2007 MetLife (closed block) North America 2016 Swiss Re North America 1995 L&P insurance BPO FTE mix by processes covered FTEs in numbers L&P insurance BPO revenue mix by geography Revenue in US$ million L&P insurance BPO FTE split by delivery location FTEs in numbers L&P insurance BPO revenue mix by buyer size 1 Revenue in US$ million 100% = 3, % = Not disclosed 100% = 3, % = Not disclosed Small Nearshore 9% 5% Medium 15% 23% 72% Offshore 76% Onshore Large 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) 8

9 DXC Technology L&P insurance BPO profile (page 5 of 5) Technology solutions / tools Application Wealth Management Accelerator Customer Service Accelerator (CSA) New Business Accelerator Processes served Claims processing, policy servicing & reporting, and product development & business acquisition Claims processing and policy servicing & reporting New business management and product development & business acquisition Year launched Description No. of BPO clients 2006 A comprehensive life and annuity administration system that manages both asset accumulation and asset disbursement in a single system 2005 A software application that manages diverse communication channels for consistent service regardless of the method of contact. Interactions such as s, phone calls, web chats, correspondence, and interactive voice response are centralized and displayed in a single view 2002 A platform that streamlines new business capture & submission, speed risk assessment, and automates underwriting decisions CyberLife All 1996 A web-enabled, real-time system that supports both traditional and non-traditional North American life and annuity products. It offers full processing, regulatory support, correspondence, billing & collections, commissions, and financial reporting Performance Plus Product development and business acquisition 2000 PerformancePlus manages broker arrangements, agent sales channels and hierarchy complexities, as well as the full range of product offerings. It gives insurers the ability to accurately and efficiently calculate commissions, offer easy adjustment processing and provide full audit trails documenting all transactions

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11 Market success (Revenue, number of clients, and revenue growth) 25 th percentile 75 th percentile Everest Group PEAK Matrix is a proprietary framework for assessment of a service provider s capability Everest Group PEAK Matrix for L&P insurance BPO 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 High L&P insurance BPO delivery capability (Scale, scope, technology solutions & innovation, delivery footprint, 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 services function. 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 L&P insurance BPO revenue, number of current clients, and YOY revenue growth Aspirants Delivery capability Measures ability to deliver services successfully. This is captured through five subdimensions Scale Scope Technology solutions and innovation Delivery footprint Buyer satisfaction Measures the scale of operations through: Firm-wide revenue Contribution of L&P insurance BPO revenue to the firm-wide revenue Measures the scope of services provided through: Process coverage Channel coverage Geographic scope Industry distribution Language coverage Buyer size Measures the extent of capability in innovation and technology, as evidenced through investments in L&P insurance BPO-related technology and in areas such as analytics, social media, and process automation Measures the global sourcing mix through: Delivery footprint across nine regions 1 Balanced shoring capability Measures the satisfaction levels 2 of buyers across: Goal realization Process delivery Implementation Relationship management Proactiveness Innovation Responsiveness 1 North America, Latin America, Western Europe, Eastern Europe, Australia & New Zealand, India, Philippines, Rest of Asia, and Middle East & Africa 2 Measured through responses from two/three referenced buyers for each service provider 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 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 13

14 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 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 empower 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