Topic: Everest Group s PEAK Matrix TM for European Capital Markets AO Service Providers

Transcription

1 Topic: Everest Group s PEAK Matrix TM for European Capital Markets AO Service Providers Focus on TCS November 2015 Copyright 2015 Everest Global, Inc. This document has been licensed for exclusive use and distribution by TCS

2 Background and scope of the research Background of the research Globally, BFSI is the largest vertical constituting 22-26% of the total share in ITO spending. Europe remained the largest source geography in terms of number of BFSI IT outsourcing transactions in 2014 with 54% of transactions sourced from this region The European banking and capital markets industry is undergoing an evolution. Despite positive outlook in Europe, BFS firms are still holding onto a recession mentality as they continue to operate in an uncertain regulatory environment. Firms have cost reduction and efficiency improvement on top of their agenda. Demand for AO services is the highest in UK and is on the rise in Nordics and few parts of Continental Europe. Firms are moving towards digitization which constitutes majority of their IT investments. Service provider landscape in Europe has been dominated by large-sized providers and is witnessing an emergence of mid-sized regional players with expertise in niche segments. Service providers in Europe are investing in increasing their delivery footprint in the region and building portfolio of offerings in areas such as risk & regulatory compliance, payments, mobility, big data, social media, and cloud. In order to succeed in the market, it is essential for service providers to understand specific challenges in the market environment as well as buyers preferences and devise an effective approach In this research, we analyze the capabilities of 18 leading AO service providers, specific to the European capital markets sector. These providers were mapped on the Everest Group Performance Experience Ability Knowledge (PEAK) Matrix, which is a composite index of a range of distinct metrics related to each provider s capability and market success This document focuses on TCS capital markets AO experience in Europe and includes: Overview of the European capital markets AO service provider landscape Everest Group s assessment of TCS delivery capability and market success on PEAK matrix Detailed European capital markets AO profile for TCS 2

3 This Everest Group report is a compendium of detailed profiles of 18 service providers featured on Everest Group s European capital markets AO PEAK Matrix Banking Retail financial services (B2C1) Retail banking Lending Cards Commercial banking (B2B2) Capital markets BFSI Investment banking Asset management Custody and funds administration Brokerage Others3 Services industry Insurance Life and pensions Property and casualty Others NOT EXHAUSTIVE Focus of report IT Infrastructure Outsourcing (IO) IT Application Outsourcing (AO) Business Process Outsourcing (BPO) Consulting Traditional IO Remote Infrastructure Management (RIM) Infrastructure Management Services (IMS) Cloud Application development Application maintenance Independent testing Package implementation ERP services Business intelligence / data warehousing BFSI-specific BPO HRO FAO PO Contact center Knowledge services IT strategy / operations consulting Business consulting Infrastructure consulting Infrastructure rollouts Digital Services Services in next-generation technologies leveraged by enterprises to enable transformation including social, mobility, analytics, cloud, and others (artificial intelligence, robotics process automation, internet of things, machine-to-machine, etc.) 1 Business-to-consumer relationships 2 Business-to-business relationships 3 Includes other capital markets functions such as structured finance, treasury, FX, and horizontal functions including risk management 3

4 This report is a part of the Everest Group s series of reports focused on ITO in BFSI in 2015 IT Outsourcing in BFSI Annual Report Each report provides: An overview of the application services market for the BFSI verticals, capturing key trends in market size, growth, drivers and inhibitors, adoption trends, regional/functional break-outs of the market, emerging themes, key areas of investment, and implications Key movements in volumes/values of AO transactions, evolving trends, market dynamics, and emerging priorities of buyers in the last 12 months IT Outsourcing in BFSI Service Provider Landscape Each report provides: Assessment of service provider landscape in AO services and mapping of providers on Everest Group s PEAK Matrix as Leaders, Major Contenders, and Aspirants Benchmarking scale, scope, domain investments, and delivery footprint of each provider s BFSI-AO practice along with comparative evaluation of their BFSI-AO capabilities The 2015 BFSI-AO PEAK analyses focus on identifying the Star Performers, i.e., providers with strongest forward movement over time both in terms of market success and capability advancements BFSI ITO Service Provider Profile Compendium Capability profiles of service providers capturing their AO services experience in specific subverticals. Each service provider profile includes: Service provider overview details of AO services capabilities, key investments, proprietary solutions, and technological expertise Functional / Line of Business (LoB) focus Transactions overview for application services offerings and delivery footprint Enterprise Digital Effectiveness with APEX Matrix Two reports as part of an "open source" evaluation of the digital effectiveness of the largest retail banks in UK and the U.S. and mapping them on Everest Group s APEX Matrix as Leaders, Optimizers, Innovators, and Aspirants Global Banking Global Capital Markets Global Insurance Global Banking Global Capital Markets Global Insurance Banking and Capital Markets (BCM) in Europe Insurance in Europe Mobility in BCM Mobility in Insurance Analytics in BCM Analytics in Insurance Risk and regulatory compliance in BCM Global Banking Global Capital Markets Global Insurance APEX Matrix for Digital in the U.S. retail banks APEX Matrix for Digital in UK retail banks 4

5 Everest Group s BFSI research is based on two key sources of proprietary information 1 Everest Group s proprietary database of 500+ large, active, multi-year AO contracts within BFSI (updated annually through primary data collection via service provider RFIs) 1 2 The database tracks the following elements of each large AO relationship: Buyer details including industry, size, and signing region Contract details including TCV, ACV, term, start date, service provider FTEs, and pricing structure Activity broken down separately for banking, capital markets, insurance, and by line of business (for example, credit cards, lending, retail banking, and commercial banking) Scope includes coverage of buyer geography as well as functional activities Global sourcing including delivery locations and level of offshoring Everest Group s proprietary database of operational capability of 20+ BFSI AO service providers (updated annually through primary data collection via service provider RFIs) The database tracks the following capability elements for each service provider: Major BFSI AO clients and recent wins Overall revenue, total employees, and BFSI employees Recent BFSI-related developments BFSI AO delivery locations BFSI AO service suite Domain capabilities, proprietary solutions, and intellectual property investments Service providers covered in the analysis Assessment for Accenture, Capgemini, CSC, IBM, and Mphasis excludes service provider inputs, and is based on Everest Group s proprietary Transaction Intelligence (TI) database, service provider public disclosures, and Everest Group s interactions with capital markets buyers Note: We continuously monitor market developments and track additional service providers beyond those included in the analysis Confidentiality: Everest Group takes its confidentiality pledge very seriously. Any information, that is contract-specific, will be presented back to the industry only in an aggregated fashion 5

6 25 th percentile Market success 75 th percentile TCS is positioned as a Leader on Everest Group PEAK Matrix for capital markets AO relationships in Europe Everest Group Performance Experience Ability Knowledge (PEAK) Matrix for Capital Markets AO in Europe 1 High Major Contenders 75 th percentile Leaders Accenture TCS Cognizant Infosys Leaders Major Contenders Aspirants Star Performers CSC Luxoft HCL EPAM Capgemini Wipro CGI IBM L&T Infotech IGATE Tech Mahindra Mphasis Dell Services Syntel Low Aspirants Low 25 th percentile Capital markets AO delivery capability (Scale, scope, domain investments, delivery footprint, and innovation) 1 PEAK Matrix specific to large (>US$25 million TCV), multi-year (>3 years) application outsourcing relationships for the capital markets sector (investment banking, asset management, custody, fund administration, and brokerage) in Europe; excludes banking and insurance Note: Assessment for Accenture, Capgemini, CSC, IBM, and Mphasis excludes service provider inputs and is based on Everest Group s proprietary Transaction Intelligence (TI) database, service provider public disclosures, and Everest Group s interactions with capital markets buyers High 6

7 TCS Capital Markets ITO profile (page 1 of 14) Corporate and BFSI overview Company description: Tata Consultancy Services (TCS) offers a range of IT and consultancy services across various industries. TCS customers in the BFSI vertical include global universal banks, regional/local banks, market infrastructure providers, insurance companies, and investment banks. TCS provides solutions to meet their needs in multiple areas such as digital banking, core banking, payments, corporate actions, custody, governance, risk management, compliance, and analytics Headquarters: Mumbai, India Website: Geographical mix FY 2015; US$ million Latin America (2.10%) Service mix FY 2015; US$ million 100% = 15, % = 15,454 Engineering & MEA industrial (2%) India Other APAC 6% 9.3% Continental 11.6% Europe 16.7% UK 51.90% North America services (4.5%) Assurance services BPO Infra. services 8.5% 11.7% Consulting (3%) 13.8% 15.6% 40.2% Enterprise solutions including BI Asset leverage solutions (2.5%) ADM 1 FY ends on March 31; total may have minor variation owing to rounding-off adjustments >US$500 million US$ million <US$100 million Scale of BFSI subverticals Banking Capital markets Insurance Key financial parameters Revenue in US$ million Revenue 1 from the BFSI vertical Revenue 1 from other verticals Operating margin 26.9% 29.1% 27.0% 15,454 13,442 11,568 4,986 5,767 6,274 6,582 7,675 9,180 FY 2013 FY 2014 FY 2015 Services offered for the BFSI vertical: IT ADM/infrastructure services, BPO, consulting services, CRM solutions for wealth management and insurance, M&A integration support, services for cards, payments, risk management, and regulatory compliance, trade finance platform solutions, and TCS BaNCS (solutions for core banking, corporate actions, channels, custody, payments, securities trading, market infrastructure, and other capital markets and banking functions) Major BFSI clients: ABN AMRO, BNP Paribas, Citigroup, CBA, Deutsche Bank, ING, Rabobank, RBS, Bank of America, SBI, American Express, Lloyds, and JPMC 7

8 25 th percentile Market success 75 th percentile TCS Capital Markets ITO profile (page 2 of 14) European capital markets AO capability assessment and market success Everest Group PEAK Matrix for Capital Markets AO in Europe 75 th percentile High Major Contenders CSC Luxoft Accenture Infosys HCL Capgemini EPAM Wipro CGI Leaders TCS Cognizant IBM Capability dashboard Capital markets lines of business I-banking Asset mgmt. Key technology spend areas Brokerage Custody & fund admn Risk & regulatory compliance Geographic scope North America Latin America Mobility Social EMEA APAC Analytics Cloud L&T Infotech IGATE Tech Mahindra Mphasis Dell Services Syntel Low Aspirants Low 25 th percentile High Capital markets AO delivery capability (Scale, scope, domain investments, delivery footprint, and innovation) Established: Mature capabilities with high adoption Emerging: Nascent capabilities with limited adoption Market share by active ACV 17% 16% Credible: Strong capabilities with rising adoption Market share by number of contracts PEAK Matrix dimensions assessment Dimension Market success Scale Scope Rating High Low Strengths Extensive breadth and depth of banking expertise across various lines of business Launched new solutions for regulation compliance, Trade2 Securities (T2S) integration, T2S automated test scenario generation tool, trade surveillance, and investment process simplification Differentiates through deep domain expertise, flexible pricing, and ability to ramp up resources quickly The TCS BaNCS suite of solutions for both buy-side and sell-side to implement processes for securities trading, trade processing, clearing & settlement, custody, portfolio accounting, and corporate actions Significant onshore/nearshore presence, greater than 20% of the resources based in these locations Extended presence in France for SAP implementation through acquisition of ALTI SA in 2013 Domain investments Delivery footprint Innovation Areas of improvement Ensuring adequate management attention/focus to small- and mid-sized clients TCS will need to demonstrate industry thought leadership and be proactive about introducing automation to clients (esp. in applications services) to sustain differentiation and market share 8

9 TCS Capital Markets ITO profile (page 3 of 14) AO domain investments Proprietary solutions (representative list) (continued) Line of business Solutions Capital markets T2S Offering for Central Counter Parties (CCPs), Central Securities Depositories (CSDs) and custodians T2S Continuous Integration Solution: A continuous integration framework embedded within T2S simulator to enable continuous build T2S Scenario Generation: T2S scenario generation too is used for automating the process of test scenario generation based on numerous rule available. These rules are configurable and so can be updated/altered as per requirement T2S (Target2Securities) test strategy framework: Detailed questionnaire to develop a comprehensive test strategy for multi-year T2S transformation program (launched in 2014) T2S enabler framework: Framework for impact assessment on market players and transition and strategy for T2S adaptation T2S implementation impact analysis toolkit: Impact assessment on market players and transition TCS BaNCS: T2S Offering -solution integrates with existing systems to handle the entire range of T2S business functions thereby improving overall efficiencies while making the organization T2S and ISO compliant TCS BaNCS T2S adapter: The special adapter component to TCS BaNCS to adapt according to changes required for T2S Liferay portal Proof of Concept (POC): POC for leading stock exchange TCS Wealth Advisory Solution (TWAS) Recommendation Engine: Custom insights for a Financial Advisor to provide informed recommendations Social Sentiment Analysis: Sentiment of stock or portfolio based on TCS' Perivista tool Research Sentiment Analysis: Research report sentiment across various dimensions based on TCS Listening platform Optra Collaborative Financial Planner: Collaborative Financial Planner joint financial planning between Financial Planner and Client 9

10 TCS Capital Markets ITO profile (page 4 of 14) AO domain investments Proprietary solutions (representative list) (continued) Line of business Capital markets (continued) Solutions Mobile Sales Documents: Mobile document management with collaboration features based on TCS Cubbuzz Salesdoc product Integrated Collateral Management (ICM) This offering focuses on firm wide integrated collateral management system for Buy and Sell Side firms Investment Processing Landscape simplification (IPL): This offering focusses on simplification of Investment Processing functions such as Order Management Systems (OMS), clearing etc. Investment Performance and Reporting: Provides performance reporting & analysis for funds and investors Regulation Systems Compliance Integration (Reg SCI) : Consulting offering on adherence to Reg SCI Trade surveillance solution: TCS' trade surveillance offering comprises of third-party solutions implementation and upgrade (Actimize, Metricstream), in-house solution (Big data / CEP), consulting on control effectiveness / product selection (buy vs build) and its upgrade, IT services post selection of product (customization, integration, and rule engine optimization), and creating dashboards and analytics solutions Static data repsitory: Repository of reusable ready to use business data components that may be used as part of QA program within the BFS vertical Aggregated Investment Exposure Monitoring: Capital markets solution for real-time aggregated investment exposure monitoring across the entire investment chain Social media offering for wealth management firms: It enables financial advisors to leverage social network as an alternate channel for communication Reference architecture repository for asset management, wealth management, and broker-dealer. These incorporate industry best practices in transformation, modernization, and application rationalization Custody architecture repository: Reference architecture for asset management business incorporating industry best practices. This is used for transformation, modernization, and application rationalization engagements Forex architecture repository: Reference architecture for asset management business incorporating industry best practices. This is used for transformation, modernization, and application rationalization engagements 10

11 TCS Capital Markets ITO profile (page 5 of 14) AO domain investments Proprietary solutions (representative list) (continued) Line of business Capital markets (continued) Solutions Commodities architecture repository: Reference architecture for asset management business incorporating industry best practices. This is used for transformation, modernization, and application rationalization engagements Market-Infrastructure architecture repository: Reference architecture for asset management business incorporating industry best practices. This is used for transformation, modernization, and application rationalization engagements Transfer agency architecture repository: Reference architecture for asset management business incorporating industry best practices. This is used for transformation, modernization, and application rationalization engagements High Performance Computing (HPC) for Capital markets (in progress) Institutional Brokerage architecture repository: Reference architecture for asset management business incorporating industry best practices. This is used for transformation, modernization, and application rationalization engagements Mobile Security and Field Programmable Gate Array (FPGA) with Juniper Market Surveillance Framework leveraging digital technologies Settlement Utility / Offering B2B Portal and Open AM integration: Integrated Open AM with Liferay for authentication of user on various devices like tablet and laptop Customized jbpm: Meta rules designer solution on top of the jbpm engine using GWT EMIR Integrated Offering: Integrated offering from plan to implementation phase covering European Market Infrastructure Regulation (EMIR); launched in 2012 HPC Offerings: High Performance Computing (HPC) solutions from advisory to managed services; launched in 2012 MDM Solutions: Master Data Management (MDM)-based solution for wealth management firms to provide a consolidated view of the customer across the firm; launched in

12 TCS Capital Markets ITO profile (page 6 of 14) AO domain investments Proprietary solutions (representative list) (continued) Line of business Capital markets (continued) Solutions Reconciliations Utility: Offering to set up or assess reconciliation utility within the firm; launched in 2012 Dodd Frank Act Impact Assessment framework: Impact assessment framework covering business models, trading systems, risk management, clearing, and recordkeeping/reporting; launched in 2011 TCS derivatives regulatory compliance framework: Solutions and best practices launched in 2011 to enable buy-side and sell-side firms pursue compliance of various Over The Counter (OTC) derivatives regulations TCS MIFID regulatory compliance enabler framework: Solution helps capital markets firms in their adaptation to and compliance with the directives/regulations prescribed by MiFID II; launched in 2011 Risk management offerings covering enterprise risk management and BASEL Assurance services with specific offerings for third-party products like Calypso, Murex, etc. and reusable collection of test scenarios HARMONY across various capital markets functions Emerging technology-based offerings mobility, big data, social media, and connected marketing (digital marketing) TCS proprietary universal banking platform TCS BaNCS has Capital Market offerings including: Wealth Management: End-to-end solution covering the wealth management value chain from client onboarding to portfolio management Treasury: Mid- and back-office solution providing risk analytics and decision support functions for banks, central banks, and other financial institutions Securities Trading: Multi-asset and multi-market trading solution for integration between front- and back offices, and real-time risk management Securities Processing / Custody: Provides a range of securities processing functions, from trade execution through confirmation, settlement, and accounting Corporate Actions SWIFT Ready 2013 certified solution that automates end-to-end corporate actions and income processing 12

13 TCS Capital Markets ITO profile (page 7 of 14) AO domain investments Proprietary solutions (representative list) Line of business Capital markets (continued) Solutions Market Infrastructure - addresses Straight - Through Processing (STP) across the trading, clearing and settlement, risk, and collateral management value chain. It includes trading, CCP clearing, OTC services, depository services, registrars, and transfer agents services, etc. Overall BFSI TCS BaNCS Universal Financial Platform: Suite of BFSI business applications including loan origination, securities processing, corporate actions, life, P&C, workers compensation, agent workbench, core banking, payments, treasury, compliance, mobile banking, global risk management, market infrastructure, and channel services Private Banking - Supports mapping business processes to ensure high Straight-Through-Processing (STP) and offers complete regulatory compliance with due diligence, privacy regulations and market initiatives. Data management tools: Tools for data cleansing (DataClean), data generation (DataXplod), data masking, and data migration Reporting tools: Tools for XBRL-based reports (Exegenix), flex-based reporting solution for Force.com data, and regulatory reporting Other tools such as Assent (standards checker tool), Consult (knowledge management tool), empower (entity relationship diagramming tool), and Operations Platform for Reconciliation Frameworks such as Asset Liability Framework (modeling framework for liquidity gap) and Internet Banking Evaluation Framework Customer Analytics Framework (CAF): Pega- / Chordiant-based solution framework for lead management and campaign management DemoBank: A model SharePoint site with custom features built into a SharePoint portal (launched in 2012) Reference architecture and component models for switch platform and payments hub Digital commerce: Enable clients to connect, communicate, and collaborate with their customers, partners, and suppliers by focusing on the key commerce lifecycle processes (launched in 2014) 13

14 TCS Capital Markets ITO profile (page 8 of 14) AO domain investments Proprietary solutions (representative list) Line of business Solutions Overall BFSI (continued) TCS customer intelligence & insights: Understand customer needs and behaviors through analytics, identify relevant and targeted marketing and services messages to execute cross-channel communication. Domains include web and customer analytics, transactional fraud prevention, cross-channel campaign management, and marketing operations optimization (launched in 2014) Gamification in banking: Applying the gaming mechanics to influence customer behavior to increase customer engagement with the bank (launched in 2014) Avatar and Click2Chat/Click2Video: Solution enabling banks to improve customer experience for selfservice channels. Integrated with Click2Chat /Video to increase customer confidence in completing the transaction (launched in 2014) KIOSK banking: Solution demonstrating various scenarios and its solutions (launched in 2014) TCS active archive: Big Data Archive Solution for structured and unstructured data (launched in 2014) TCS big data desktop solution: Provides an interface to Hadoop to provide meta data management, data query, enterprise-ready security, and adequate code versioning support for Hadoop platform (launched in 2014) TCS PeriVista: Aggregates multi-dimensional information about existing and potential customers from internal and 'real world' social data sources (such as Facebook, Linkedin, Twitter, etc.) (launched in 2014) TCS data migration tool: Facilitates migration of data from traditional data storage systems to Hadoop (launched in 2014) TCS MasterCraft - A set of products for process automation, task digitization and analytics services covering development, deployment, maintenance, support, and transformation. Used extensively over 750 projects in both client and TCS delivery environments (launched in 2014) TCS CubbuZZ SalesDocs: Literature/Content distribution through mobile devices. Supports multiple formats including videos (launched in 2014) Market analytics: Accelerators to help in modeling of consumer & market trends, choice behavior, advertising recall, and product/service mix drivers (launched in 2014) 14

15 TCS Capital Markets ITO profile (page 9 of 14) AO domain investments Proprietary solutions (representative list) Line of business Solutions Overall BFSI (continued) Risk analytics: Framework for developing fraud models, LLR prediction, stress & scenario analysis, collection scoring & recovery strategy, model validation, regulatory compliance, and bureau preference (launched in 2014) TCS CLV (Customer Lifetime Value) framework solution: A customer value management solution to acquire, maintain, service, and retain customers in the overall CRM strategy (launched in 2014) Campaign insights and analytics: Enables cross selling and up selling and improve conversion rate (launched in 2014) Demand forecasting: Analytics based solution forecasting sales volume, sales value, loans, and deposits (launched in 2014) New product introduction: Solution enables organizations to make a decision by using internal and external data for modeling and simulating the business scenarios to identify features and price points to maximize market share (launched in 2014) Macroeconomic forecasting: Framework aids in development of solution for macroeconomic modeling on GDP, inflation and consumer spending (launched in 2014) Capacity forecasting: Framework to forecast branch staffing needs (launched in 2014) TCS CrowdWise: Tool for customer experience and brand monitoring (launched in 2014) CONDUCT: Risk framework and methodology solution (launched in 2014) BCBS risk data aggregation (239): Framework for data aggregation and reporting (launched in 2014) TCS connected universe platform: Platform for internet-of-things (IoT), provided as platform-as-a-service that runs on a network platform enabling developers to develop, deploy, and run IoT applications. It allows creation of web apps, real-time analytics, and batch analytics programs (launched in 2014) MapR distribution for Apache Hadoop: Provides disaster recovery, data protection, real-time file access, scalability, and support for mission-critical production applications (launched in 2014) MDM (master data management) framework: Solution accelerators and framework that enable customers to quickly adopt MDM (launched in 2014) 15

16 TCS Capital Markets ITO profile (page 10 of 14) AO domain investments Proprietary solutions (representative list) Line of business Solutions Overall BFSI (continued) RAFT for banking: RAFT framework customized for retail banking product Temenos T automated test cases covering functions such as customer creation, deposits, and payments (launched in 2014) Static data repository: Repository of reusable ready to use business data components that may be used as part of QA program within the BFS vertical (launched in 2014) Channel Convergence Reference Model and Architecture: Multi-channel Reference Architecture (RA) for on-line, mobile, and voice channels 16

17 TCS Capital Markets ITO profile (page 11 of 14) AO domain investments Acquisitions (representative list) Target Date Capabilities added ALTI SA (France) 2013 Enhanced TCS s capabilities for SAP solutions across industries such as banking, financial services, luxury, manufacturing, and utilities Computational Research Laboratory (CRL) (India) 2012 Expanded capability for high-performance computing Citigroup Global Services Limited (India) TKS-Teknosoft (Switzerland) Financial Network Services (FNS) (Australia) 2008 Enhanced ability to offer an end-to-end, domain-led third-party solution for business operations to TCS large financial services clients. The acquisition will also enable TCS to create platforms for the future and integrate TCS strong domain expertise in operations along with its suite of products for the financial services sector 2006 Expansion of TCS portfolio of products for the banking and financial services market 2005 Enhancement of the range of TCS asset-based solutions for the banking industry Comicrom (Chile) 2005 Enhancement of BPO capabilities for the BFSI space and thus, enabling TCS to offer integrated solutions 17

18 TCS Capital Markets ITO profile (page 12 of 14) AO domain investments (Europe-specific) Key alliances (representative list) Alliance partner Calypso Axiom SL Deutsche Bourse Alaric Indus Collections Suntec Opus Software Solutions Experian ACI Worldwide Jamo Level Four ThunderHead Fidessa SmartStream Others Purpose of alliance Treasury product implementation Risk and regulatory compliance Securities trading and processing Partnering for the rollout of Authentic switch system Co-bid for collection system implementation Agreement to co-bid for transaction-based pricing & and loyalty system implementation Agreement to co-bid for card and switch system implementation Co-owner of the product agreement to co-bid for the Tallyman collection system Cards and payments Mobility testing ATM testing Capital markets product implementation partnership Capital markets product implementation partnership Implementation partnership for SmartStream s trade reconciliation products Partnered with 30+ market infrastructure firms globally (trade avenues, clearing corporations, depositories, market regulators, and central banks) 18

19 TCS Capital Markets ITO profile (page 13 of 14) Capital markets ITO transactions activity (Europe-specific) NOT EXHAUSTIVE Recent transaction activity 1 (continued) Buyer s name Announcement date TCV estimate (US$ million) Duration (years) AO/IO/ Both Contract details and services Euroclear Finland May 2015 N/A N/A AO Euroclear Finland, CSD for Finnish Capital Markets launch "Infinity" powered by TCS BaNCS for Market Infrastructure Leading UK-based mutual financial institution October 2014 N/A N/A AO Selected as strategic partner to manage the core banking systems and business process management platform Unknown client January 2014 N/A N/A AO TCS developed a tablet application for a European payments provider to simplify sales process for its field force Keler November 2013 N/A N/A AO Implementation of TCS BaNCS market infrastructure solution BNP Paribas January 2013 N/A N/A N/A Implementation of TCS BaNCS for the bank s custody operations 1 Publicly-announced capital markets ITO transactions during 2012 to 2015, Transaction Intelligence Database 19

20 TCS Capital Markets ITO profile (page 14 of 14) Key offshore AO delivery locations NOT EXHAUSTIVE Confirmed location for banking AO 500-1,000 AO FTEs >5,000 AO FTEs AO FTEs 1,000-5,000 AO FTEs <100 AO FTEs Hungary China Mexico Colombia Ecuador Peru Brazil India Malaysia Singapore Thailand Philippines Indonesia Chile Uruguay South Africa Argentina Note: FTE strength represents the total number of AO FTEs across different industries for the particular country 20

21 Appendix 21

22 Market success (Transaction activity) 25 th percentile 75 th percentile 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 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 Aspirants 4 th quartile performance across market success and capability Low Low 25 th percentile Delivery capability (Scale, scope, domain investments, delivery footprint, and innovation) High 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 22

23 Market success Dimensions of service providers capability and market success underlying the PEAK Matrix Everest Group PEAK Matrix for European banking / capital markets Active ACV of relevant deals in Europe Major Contenders Leaders Number of relevant deals in Europe Growth in Europe AO revenue Number of new contracts signed in Europe Aspirants Delivery capability Scale Scope Domain investments Delivery footprint Innovation Revenue Lines of business served Proprietary solutions Delivery mix Innovative solutions Share of Europe in overall revenue ITO subfunctions Countries in Europe with active contacts Investments in M&As and certifications Delivery regions covered Innovative engagement models 23

24 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 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. 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 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 to the buyers in selecting particular providers for their specific requirements. It also helps providers showcase their strengths in specific areas 24

25 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 ( 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 25

26 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