Everest Group PEAK Matrix TM for Supply Chain Management (SCM) BPO Focus on OnProcess Technology February 2015 Copyright 2015 Everest Global, Inc. This document has been licensed for exclusive use and distribution by OnProcess Technology
Introduction and scope Everest Group recently released its report titled Supply Chain Management (SCM) BPO Service Provider Landscape with PEAK Matrix Assessment 2014. This report focuses on classification of the service providers into Leaders, Major Contenders, and Emerging Players on the Everest Group PEAK Matrix TM. It focuses on market overview, service provider landscape, and comments on the capability of each of the service providers individually. The PEAK Matrix analysis presented in this report gauges the relative performance of service providers in the SCM BPO space. As a part of this report, Everest Group classified 11 service providers on the Everest Group Performance Experience Ability Knowledge (PEAK) Matrix for SCM BPO into Leaders, Major Contenders, and Emerging Players. The PEAK Matrix is a framework that provides an objective, data-driven, and comparative assessment of SCM BPO service providers based on their absolute market success and delivery capability. Based on the analysis, OnProcess Technology emerged as a Major Contender for SCM BPO. This document focuses on OnProcess Technology s SCM BPO experience and capabilities and includes: OnProcess Technology s position on the PEAK Matrix for SCM BPO Everest Group s assessment of OnProcess Technology s capabilities 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
Everest Group s research is guided by a framework that clearly distinguishes supply chain from F&A and procurement processes Demand Strategic sourcing Category Finance and accounting Production and testing Asset Packaging and staging Make/ manufacture Spend analytics Source and procure Supply chain Deliver Lead and quote After sales services Returns Service contract Claims/warranty Vendor and contract Requisition to purchase order Invoice processing Accounts payable and T&E Accounts receivable Aging and collections Dispute & deductions Inventory Management reporting and analysis Budgeting and forecasting Fixed assets General accounting Regulatory compliance and taxation Treasury and risk Internal audit F&A operations analytics Order Order fulfillment Logistics administration Master data (vendor/client/item) Reporting, Analytics, and Compliance (RAC) support 3
The service provider landscape of SCM BPO can be divided into supply chain managers and operators. This study is focused on the former group SCM BPO service provider landscape Supply chain Broad-based BPO service providers and specialists Supply chain operations Typical third-party logistics (3PL) and warehousing service providers Focus of this study 4
Everest Group PEAK Matrix 2014 SCM BPO market standing Performance Experience Ability Knowledge Everest Group Performance Experience Ability Knowledge (PEAK) Matrix for SCM BPO 75 th percentile High Leaders Major Contenders TCS Accenture Genpact OnProcess Infosys Market success 25 th percentile WNS HCL Capgemini EXL Aegis Wipro Emerging Players 75 th percentile Leaders Major Contenders Emerging Players Low Low 25 th percentile High SCM BPO delivery capability (Scale, scope, technology, and delivery footprint) Source: Everest Group (2015) 5
OnProcess Technology (page 1 of 2) SCM BPO service capabilities SCM BPO delivery scale Number FTEs by processes SCM BPO delivery footprint <100 FTEs 100-500 FTEs >500 FTEs Offshore (India, China, and Southeast Asia) 44% 37% Onshore (North America, Western Europe, and ANZ) Manufacture Deliver Aftersales Other services 19% Nearshore (Latin America and Eastern Europe) SCM BPO service suite Established offering Emerging offering Not a focus area Manufacture Production Quality and product testing Asset Packaging and staging Deliver Lead/quote Order and fulfillment Logistics & inventory Aftersales Installation/activation Customer support/ entitlement Service parts & technician dispatch logistics Reverse logistics returns & repair logistics Spare parts Other services Master data Reporting and compliance Supply chain analytics Key supply chain related technology tools Triage360: Platform for handling incidents, increases accuracy of dispatches Dispatch360: Platform for managing the entire dispatch process, including full communications, analysis and reporting with vendors, 3PLs and diverse internal departments RL360: Platform for managing reverse logistics Control tower: Provides end-to-end visibility, enables analytics on data collected, and coordinates execution, automation, and continuous improvement of processes Source: Everest Group (2015) 6
OnProcess Technology (page 2 of 3) SCM BPO delivery centers SCM BPO delivery footprint Ashland Fall River Grenada Bulgaria India Source: Everest Group (2015) 7
OnProcess Technology (page 3 of 3) Everest Group assessment of OnProcess Technology s capabilities Market success assessment 1 SCM BPO market share Percentage 10% ACV Market performance metrics ACV/FTE High 20% Number of active contracts Delivery capability assessment 1 Assessment dimension Rating Remarks Scale Moderate scale comprising around 1,350 FTEs Scope Technology capability Delivery footprint Low Medium Medium-high Focussed on North America-based clientele; industry exposure limited to manufacturing and hi-tech & telecom; process scope concentrated around aftersales Robust technology capabilities; various proprietary tools for SCM BPO Lower than average offshore leverage; delivery locations in North America, Caribbean, Eastern Europe, and India High Overall remarks OnProcess Technology is a niche SCM BPO provider focused on delivering technology-led SCM BPO solutions in the aftersales space, primarily in North America where it has the largest market share It is one of the few service providers adopting a control tower approach in SCM BPO. OnProcess significantly leverages its analytics capabilities to provide actionable insights Having already established a strong footing in North America, OnProcess should diversify its client base and actively seek expansion into other geographies such as APAC and Europe 1: Based on the relative assessment of 11 service providers covered in the PEAK Matrix Source: Everest Group (2015) 8
Appendix 9
Everest Group classifies the SCM BPO service provider landscape into Leaders, Major Contenders, and Emerging Players on the Everest Group PEAK Matrix Everest Group Performance Experience Ability Knowledge (PEAK) Matrix Market success High 25 th percentile Emerging Players 4 th quartile performance across market success and capability 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 75 th percentile Low Low 25 th percentile SCM BPO delivery capability 1 (Scale, scope, technology, and delivery footprint) High 1 Service providers scored using Everest Group s proprietary scoring methodology described on the following page Source: Everest Group (2015) 10
Service providers are positioned on Everest Group PEAK Matrix based on evaluation across two key dimensions Leaders Measures success achieved in the market. Captured through ACV of active contracts in 2013 and clients as of 2013 Market Success Major Contenders Emerging Players Delivery capability Measures ability to deliver subprocess successfully. Captured through five subdimensions Scale Scope Technology Delivery footprint Measures the scale of operations (revenue, number of FTEs, etc.) Measures the scope of services provided across, processes, industries, geographies, etc. Measures the capability and investment in tools and technologies that help deliver better services Measures the delivery footprint across regions and the global sourcing mix Source: Everest Group (2015) 11
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 Emerging Player 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 Emerging Player 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 12
FAQs (page 2 of 2) 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 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 (e-mail 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 13
At a glance With a fact-based approach driving outcomes, Everest Group counsels organizations with complex challenges related to the use and delivery of the next generation of global services Through its practical consulting, original research, and industry resource services, Everest Group helps clients maximize value from delivery strategies, talent and sourcing models, technologies, and approaches Established in 1991, Everest Group serves users of global services, providers of services, country organizations, and private equity firms in six continents across all industry categories Dallas (Headquarters) info@everestgrp.com +1-214-451-3000 New York info@everestgrp.com +1-646-805-4000 Toronto canada@everestgrp.com +1-647-557-3475 London unitedkingdom@everestgrp.com +44-207-129-1318 Delhi india@everestgrp.com +91-124-284-1000 Stay connected Websites www.everestgrp.com research.everestgrp.com Twitter @EverestGroup @Everest_Cloud Blogs www.sherpasinblueshirts.com