Banking, Financial Services, and Insurance (BFSI) Outsourcing Research Offering

Transcription

1 Banking, Financial Services, and Insurance (BFSI) Outsourcing Research Offering 2011

2 Banking, Financial Services and Insurance (BFSI) industry is one of the largest and most mature users of outsourcing and global sourcing of services BFSI IT services: BFSI % contribution to global IT outsourcing and off-shoring, 2010 BFSI IT spending remained strong in 2010 across different towers including AO, IO, SI etc. ~ 35% BFSI BP Services: BFSI % contribution to global BPO transactions, and off-shoring market, 2010 BFSI remains the largest BPO segment globally, but still poised to grow more than other less mature segments ~30% 1 ~40% ~15% 1 IT outsourcing contribution IT offshoring contribution BP outsourcing contribution BP offshoring contribution The BFSI vertical represents the largest buyer segment in the outsourcing and offshoring industry with significant spend across IT and business processes. This segment was instrumental in leading the recovery for the outsourcing market in 2010 as the effects of global economic downturn subsided Over the past three years, Everest Group s research has covered this important market through both published research and custom projects for end-users, captives, and third-party service providers. We have now launched an ongoing service coverage of the market to comprehensively cover the key dynamics of the market based on our unique fact-based research approach Given the high large market opportunity in the BFSI sector, we believe that our coverage will help provide the facts and insights to navigate the opportunities and challenges ahead 1 Based on Everest Group s proprietary Transactions Intelligence (TI) database 2

3 Everest Group defines and examines the BFSI industry as three distinct segments in order to provide specialized research on each sub-vertical of this market BFSI Banking Retail financial services (B2C 1 ) Retail banking Lending Cards Commercial banking (B2B 2 ) Capital markets Investment banking Asset management Custody Fund administration Insurance Life & pensions Property and casualty 1 Business-to-consumer relationships 2 Business-to-business relationships 3

4 All market stakeholders are perceiving the need for this research as they seek to achieve growth and manage risks Buyer organizations What are current sourcing trends in the market? What are the right sourcing models (shared services/captives, outsourcing) to realize value? What are the service provider options and their capabilities specific to my business? What can I learn from the sourcing approaches of my peers? Service providers How is the competitive landscape changing? How do I effectively articulate my capabilities to the market? What are opportunities due to market consolidation? BFSI market stakeholders Investors Are there attractive investment opportunities in different market segments? Are my existing investments winning or losing market share? Technology providers What is the changing role of technology within BFSI BPO-ITO? Can market leaders act as a growth channel for technology offerings? What should be my alliance and partnership strategy in emerging segments? 4

5 Everest Group s new research program provides coverage of industry dynamics across both IT and business processes Everest Group s BFSI research subscription: BFSI ITO coverage: Access to all BFSI ITO research providing specific insights on trends in banking, capital markets and insurance sub-verticals Focused on regularly tracking adoption trends and the rapidly evolving service provider landscape in BFSI IT Detailed segmentation of the service provider landscape in one of the largest subfunctions within BFSI IT i.e., Application Outsourcing (AO) BFSI BPO coverage: Access to all BFSI BPO research covering multiple segments of BFSI BPO across the banking, capital markets and insurance value chains Expansive research scope encompassing all key elements of BFSI BPO including value chain specific analysis, market overview and buyer behaviour, captive activity, trends in global sourcing etc. Everest Group s BFSI research subscription provides focused and up-to-date insights on BFSI sourcing landscape based on our unique fact-based research approach 5

6 Product Channel Business Account Transaction Treasury Control/ Marketing Institutional Merchant development Management acquisitions servicing processing operations compliance relationships services Product Advertisement Branch Application Payment Check Treasury Regulatory Alliance Merchant design and banking lead processing processing processing strategy reporting planning acquisition pilot generation (funds, Marcomm Credit FX services Clearing and Asset liability KYC insurance, Credit Product set-up development evaluation settlement management utilities evaluation on the and campaign Sales Product agencies/ Underwriting renewals Loan accounts management Transfer Credit bureau Alliance set Account setup disbursement partners Verification pricing set up mgmt. Loyalty Statement up on & mgmt. Terminal systems (IT, ATM management/ POPs telephonic processing Cash handling program Investigations installation management and field and mailroom Trade finance Risk mgmt. internet) and Fraud mgmt. Collateral Collateral /LC Payment, maintenance FX mgmt. evaluation review Origination/ collection Transaction Order Claims mgmt. tracking, and Credit syndication Field posting management follow up approval collections Lease mgmt. & processing International Position and Funding Recoveries Plant, Loan book banking fee calculation evaluation and Equipment management relationships analysis Loan tracking management Merchant bad loan billing and Account management Vault/safe Reconciliation reporting opening, setup and Foreclosure, tracking (MIS) Claims mgmt. deposit mgmt. and position customer onboarding Account bankruptcy Lock-box services Exception Remittances handling and Document closure analysis preparation Records Skip tracing mgmt. Customer interaction and support Technology Everest Group s BFSI outsourcing research examines the most relevant issues for market stakeholders and provides analyses to aid strategic decision making BFSI market overview and trends analysis Value chain based analysis Provides coverage on key market metrics including market size, growth, drivers and inhibitors, market maturity analysis etc. Trends analysis captures key developments in BFSI services including changing regional, functional profile of the market, emerging themes and key areas of investments Specific coverage on different processes within the banking, capital markets and insurance value chains Targeted research on key trends and developments across various value chain segments including adoption activity, changing buyer preferences, movements over time especially relevant for BFSI BPO Processes Functions Product development and Policy servicing New business business acquisition and reporting Actuarial data Initial policy creation Policy servicing processing financial Underwriting Actuarial Product analysis and Channel Business Policy records Account Marketing reviewdevelopment Premium collection Management and acquisitions managementservicing Product design Advertisement accounting Broker/ Application Payment and pilot advisor/subcustodian license Eligibility requirement processing processing Proposals, illustrations Product set-up on Credit evaluation Customer Policy issuance mgmt. and and verification the accounts and approval master compensation Agent and broker maintenance Collateral management evaluation Account Member enrollment and closure Syndication/ management Origination Regulatory and Loan underwriting compliance management Advisory services Processes Functions Product testing Processes Functions Account opening, set-up and customer onboarding Customer interaction and support Technology Customer interaction and support Technology Claims processing Initial claims processing Claims management Registrar/ Investment transfer Claims agency review and operations Shareholder investigation Investment records strategy (adjudication) maintenance Trading, Fund cash in/out investment and flow Claims mgmt. adjustment market and making Investment disbursements and Order service fee management and calculation processing Auditing Fraud and detection Affirmation and with exception management tracking broker/ custodian Reference data Securities lending management and borrowing Claims litigation, Corporate actions Trade (mandatory, recovery/ subrogation reconciliation and voluntary, proxy) settlement Reconciliations Margin and collateral Exception mgmt. processing Balance sheet Securities pay-in management and pay-out Risk mgmt. Instruction Alliance network processing & mgmt. (Agents, banks, FIs) Taxes and fees computation Fund Control/ administration compliance NAV calculations Regulatory reporting Cash allocation to Investigations funds Trade allocation Fraud to funds management Fund accounting Claims management Monitoring portfolio performance Everest Group PEAK matrices for BFSI service providers Everest Group s PEAK framework measures service providers capabilities across two dimensions: Delivery capability: Based on service providers scale and scope of services offered for target subverticals Market success: Based on active value of contracts with BFSI clients Identifies market leaders, major contenders and emerging providers across various functions of BFSI outsourcing BFSI service provider landscape & profiles Updates on service provider market share, capabilities, and performance Service provider profiles, including data on: Transactions Location footprint M&A activity Key investments, proprietary solutions, technological expertise etc. 6

7 Consistent with other research areas, our BFSI coverage is based on four pillars of strength to produce actionable and insightful research Market thought leadership Actionable and insightful research Syndicated and custom research deliverables 1 Robust definitions and frameworks 2 Primary sources of information 3 Diverse set of market touch-points 4 Fact-based research Buyers FAO market Suppliers Annualized Contract Value US$ billion Projected for Apr-Dec 2006 Data up to April 2006 XX-XX Service enablers XX XX XX XX XX XX XX XX XX E Round the year tracking of all the service providers across ITO and BPO in BFSI Dedicated team for ITO-BPO research, spread over two continents 20+ years of advising clients on IT-BPO related decisions Executive-level relationships with buyers, service providers, technology providers, and industry associations 7

8 Our subscription offerings provide deep insights on BFSI outsourcing market to support the client s decisionmaking process Subscription research offerings Research reports Description Access to all BFSI ITO-BPO research reports covering each segment of the market (at least 5 a year for BFSI BPO, at least 9 a year for BFSI ITO) Breaking viewpoint Flash reports highlighting breaking news in the service provider landscape and expert perspectives on key implications Analyst inquiry Ongoing analyst discussions for additional perspectives clarifications in 30 or 60 minutes increments Custom data cuts Additional custom data cuts from the materials presented in the research Strategy workshop Analyst-facilitated working session with the subscriber s team around their strategic imperatives We welcome the opportunity to discuss options to tailor the subscription specific to your requirements 8

9 BFSI Outsourcing Publishing Agenda 2011 (page 1 of 4) Topic Goals of the research Published Forthcoming research Release date Global lending BPO across credit cards, consumer loans, and commercial loans The market size and potential of the global lending BPO by business segment and function. Adoption trends measured across buyer size and geography. Maturity of lending BPO sub-functions across business segments. Prevalence of various sourcing models. The lending BPO service provider landscape across business segments Jan FS BPO Service provider profile compendium Snapshots of 14 service providers playing in the FS BPO segment. Each 4-5 page service provider profile provides a comprehensive picture of their service suite, scale of operations, technology landscape, recent developments, and delivery locations across all financial services segments including banking, capital markets, and insurance Mar Global sourcing in FS BPO Significant Traction, Yet Tremendous Potential Coverage across retail banking, capital markets, and insurance. Offshore leverage through shared services and third-party outsourcing by financial services organizations. Potential offshorability and current offshore adoption of value chain elements for each business segment. Mature and emerging delivery locations and associated value proposition April

10 BFSI Outsourcing Publishing Agenda 2011 (page 2 of 4) Topic Goals of the research Published Forthcoming research Release date Insurance BPO market overview This report explores the market size, growth, adoption trends, value drivers, process scope, technology landscape, delivery locations, and service provider landscape in the insurance BPO market Q Market Trends for IT application services in Banking Provide an overview of the application services market for the banking vertical, capturing key trends in market size, growth, drivers and inhibitors, adoption trends, regional/functional break-outs of the market, emerging themes and key areas of investment, and implications for key stakeholders Q Service provider landscape for IT application services in Banking Provide a comprehensive assessment of the service provider landscape in AO services for banking and map various suppliers on Everest Group s capability matrix. Q Service providers capability assessment (profiles compendium) for IT application services in Banking Profiles of service providers capturing their IT AO capability in banking Q

11 BFSI Outsourcing Publishing Agenda 2011 (page 3 of 4) Topic Goals of the research Published Forthcoming research Release date Global third-party BPO service provider landscape in Capital Markets Coverage across investment banking, asset management, and custody and fund administration. Service provider segments and assessment of scale and scope of offerings. Role of global sourcing and technology. Individual service provider profiles Q Market Trends for IT application services in Insurance Provide an overview of the application services market for the insurance vertical, capturing key trends in market size, growth, drivers and inhibitors, adoption trends, regional/functional break-outs of the market, emerging themes and key areas of investment, and implications for key stakeholders Q Service provider landscape for IT application services in Insurance Provide a comprehensive assessment of the service provider landscape in AO services for insurance and map various suppliers on Everest Group s capability matrix. Q Service providers capability assessment (profiles compendium) for IT application services in Insurance Profiles of service providers capturing their IT AO capability in insurance Q

12 BFSI Outsourcing Publishing Agenda 2011 (page 4 of 4) Topic Goals of the research Published Forthcoming research Release date Market Trends for IT application services in Capital Markets Provide an overview of the application services market for the capital markets vertical, capturing key trends in market size, growth, drivers and inhibitors, adoption trends, regional/functional break-outs of the market, emerging themes and key areas of investment, and implications for key stakeholders Q Service provider landscape for IT application services in Capital Markets Provide a comprehensive assessment of the service provider landscape in AO services for capital markets, and map various suppliers on Everest Group s capability matrix. Q Service providers capability assessment (profiles compendium) for IT application services in Capital Markets Profiles of service providers capturing their IT AO capability in capital markets Q

13 In addition to our ongoing research, we help clients through customized efforts to meet their objectives Add-on research offering Service provider short listing Description Offer customized service provider selection process through fact-based, multidimensional analyses Service provider risk tracking Examine risks associated with the service provider portfolio and develop risk dashboards including parameters such as financial / operational / legal risks Speaking engagements Analyst in-person presentation on pre-determined topic during various internal or external events Other Custom research Focused research to provide answers to client s specific business issues: Competitive benchmarking Market entry and opportunity assessment Partnership/acquisition support Location analysis 13

14 Appendix

15 We have supported multiple stakeholders in the BFSI ITO domain through custom research engagements Client A leading BFSI ITO service provider A leading IT service provider Leading Canadian bank Top 10 Australian bank Everest Group engagement overview PARTIAL LIST Determining the relative magnitude of IT investments made by leading European banking institutions, and identifying the key areas of IT investments / type of IT initiatives taken by these banks Service provider competitive intelligence in BFSI sector: Benchmarking financial performance and market success for select service providers in the BFSI domain BFSI captives research: Determine scale of IT operations, IT services delivery capability, IT employee metrics, etc. for select BFSI captives in India Transform IT infrastructure environment for the bank to drive greater operational efficiency, and identify and manage risks of the transformation program Top-5 US bank Location viability assessment for a banking institution to set up captive operations in IT services space. Comparative analysis across locations based on scalability, sustainability, and cost of operations 15

16 We have also helped several buyers and service providers of BFSI BPO in their strategic initiatives Client A leading FS BPO service provider A leading BPO service provider South Africa BPO sector Leading Canadian bank Top-5 investment bank Everest Group engagement overview Identification of business opportunities pertaining to end-to-end credit lifecycle management in the U.S. market, across different lending segments credit cards, consumer loans, and commercial loans Assessment of mortgage services platform strategy for a new market Assessment of South Africa s capabilities in FS BPO PARTIAL LIST Supplier assessment and short-listing for business process services Benchmarking of scope, scale and delivery costs for services offshored to captive relative to key competitors Top-5 US bank Assessment of current scale, scope and maturity of services offshoring for credit cards and mortgages Framework and toolkit to determine extent of services to be retained within associate delivery model Availability and sustainability of multiple skill-sets in five offshore geographies across business processes and knowledge services 16

17 We have published multiple research reports to highlight key dynamics of the financial services market place BFSI Industry Trends (ERI R-0466): This report focuses on trends in the BFSI vertical across three areas outsourcing transactions, captive market analysis, and service provider activity and deals The Growing Maturity of Offshore Research and Analytics in Financial Services (ERI R-0445). This report analyzes the evolution and maturity of the largest segment in the knowledge services market research and analytics for financial services Impact of Regulatory Changes on Offshoring in Financial Services (ERI R-0349). This report provides a fact-based view of the implications of the regulatory and legal provisions on offshoring by U.S. financial services companies. Specifically, the report focuses on the impact of the Troubled Asset Relief Program (TARP) and related regulations on offshoring activities. In addition, the report also provides a forward-looking perspective on potential regulations and associated implications for the offshoring industry PO in Financial Services: From Wall Street to Martin Place Unlocking Value from the Savings Goldmine (ERI R-0348). This research takes a look at the impact of the current financial turmoil on adoption of PO services by financial services and provides Everest Group s outlook for the market NASSCOM-Everest India BPO Study: Roadmap 2012 Capitalizing on the Expanding BPO Landscape. This one-of-a-kind unprecedented, comprehensive report on India s BPO industry maps out the industry s next wave of growth and paints a vision for the future. The report also takes a deep-dive on Banking & Capital Markets and Insurance Global Sourcing in Banking, Capital Markets and Insurance (ERI R-0267). This research examines the fundamentals of offshoring by financial institutions and provides adoption trends, market maturity and future opportunities in each of the three key financial services segments Ready to Compete - South Africa's BPO Capabilities in the Financial Services Sector. This report presents a deep, fact-based view of South Africa s current BPO capabilities and potential for growth in the Financial Services sector Trends in Indian Insurance BPO market (ERI B-0243). Offshore insurance BPO has grown into a significant industry in India with revenues close to two billion, with a potential to grow by as much as times in the next five years. This report looks at the future state for insurance companies leveraging offshore delivery Bank of the Future: The Emerging Operating Model (ERI R-0169). This report will assist companies in understanding the changes in the banking operating model in order to better anticipate the emerging trends and responses required to manage the increased complexities and risks 17

18 Everest Group leads clients from insight to action Contact us for more information about our consulting, research, and industry resources. Dallas (Corporate Headquarters) India New York Australasia Canada UK Netherlands & Continental Europe