Topic: A PEAK into the Leaders, Major Contenders,
and Emerging Players of Capital Markets BPO
Banking, Financial Services, and Insurance (BFSI) Outsourcing
Market Report: November 2012 – Preview Deck
Copyright © 2012, Everest Global, Inc.
EGR-2012-11-PD-0794
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EGR-2012-11-PD-0794
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Background and methodology of the research
Background of the research
Although capital markets BPO is the smallest segment of BFSI BPO, it is also the fastest growing. As global
capital markets recover from the effects of the global economic crisis of 2008-2010 and continue to grapple
with weak economic conditions in Europe, cost pressures, efficiency, and processing support have become
critical tools to remain competitive. As financial institutions around the world consolidate their service provider
portfolios, they are giving larger contracts to a smaller number of service providers. At the same time, capital
markets BPO contracts are expanding in scope and becoming more global, leading to buyers demanding the
ability to operate across multiple regulatory and operational environments from service providers. Service
providers too are investing in building capabilities and differentiating themselves in a competitive market. The
future will be interesting to watch as capital markets evolve through the economic situation and service
providers become stronger partners of financial institutions in cutting costs and fostering growth.
Scope and methodology
In this research, we analyze the global capital markets BPO service provider landscape. We focus on:
 Relative positioning of 14 service providers on Everest Group PEAK Matrix for capital markets BPO
 Service providers’ market success
 Service providers’ capability advancements
 Emerging service provider trends
 Implications for key stakeholders
Copyright © 2012, Everest Global, Inc.
EGR-2012-11-PD-0794
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Table of contents
(page 1 of 2)
Topic
Page no.
Section I: Introduction and methodology
5
Section II: Summary of key messages
12
Section III: Everest Group PEAK Matrix for capital markets BPO
16

Summary
17

PEAK Matrix for capital markets BPO
20

Market success in 2011
22
Section IV: Key insights on service provider delivery capability
23

Summary
24

Scale
27

Scope
29

Technology
32

Delivery footprint
33
Copyright © 2012, Everest Global, Inc.
EGR-2012-11-PD-0794
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Table of contents
(page 2 of 2)
Topic
Page no.
Section V: Emerging service provider trends
36

Summary
37

Reference Data Management
39

Platform BPO solutions
41

BPO for hedge funds
43

New delivery locations
47

Investment in domain expertise
48
Section VI: Implications for key stakeholders
50

Implications for financial institutions
51

Implications for service providers
52
Section VII: Appendix
53

Glossary of key terms
54

2012 BFSI Outsourcing research agenda
56

Research references
58
Copyright © 2012, Everest Global, Inc.
EGR-2012-11-PD-0794
5
Overview and abbreviated summary of key messages
(page 1 of 2)
Capital markets BPO is the smallest but the fastest growing market within BFSI BPO. This report uses Everest
Group’s proprietary PEAK Matrix to assess and rate service providers for capital markets BPO on various
dimensions of their capabilities. It also discusses key emerging trends in capital markets BPO.
Some of the findings in this report, among others, are:
Everest Group
PEAK Matrix for
capital markets BPO
Key insights on
service provider
delivery capability

Everest Group classifies 14 capital markets BPO service providers on the
Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix
into the three categories of Leaders, Major Contenders, and Emerging Players

There are five service providers in the Leaders category (Cognizant, eClerx,
Syntel, TCS, and Wipro) and six service providers (Genpact, iGate, Infosys,
HCL, HP, and WNS) in the Major Contenders category, followed by three
service providers (Capgemin, EXL Service, and Mahindra Satyam) in the
Emerging Players category

Leaders hold a clear advantage over Major Contenders and Emerging Players,
with a higher number of average FTEs for capital markets BPO as compared to
Major Contenders and Emerging Players. The average revenue per contract is
also higher for Leaders as compared to Major Contenders and Emerging
Players
Copyright © 2012, Everest Global, Inc.
EGR-2012-11-PD-0794
6
Overview and abbreviated summary of key messages
(page 2 of 2)
Key insights on
service provider
delivery capability
(continued)
Emerging service
provider trends

While Leaders have a more even mix of FTEs across all lines of business in
capital markets BPO, Major Contenders and Emerging Players tend to focus
more on particular lines of business. Leaders also focus more on large buyers

While add-on tools are employed predominantly by service providers in all three
groups, platform technology models are being increasingly adopted by Leaders
followed by Major Contenders. Emerging Players continue to rely exclusively on
add-on tools

Capital markets BPO continues to be largely offshore-driven across all service
provider groups, with some players also establishing small presence in onshore
and nearshore locations

Reference Data Management, Platform BPO solutions, BPO for hedge funds,
New delivery locations and balanced shoring, and investment in domain
expertise are the emerging trends for capital markets BPO today
Copyright © 2012, Everest Global, Inc.
EGR-2012-11-PD-0794
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This study offers four distinct chapters providing a deep dive
into key aspects of capital markets BPO; below are four
charts to illustrate the depth of the report
75th percentile
Leaders
Syntel
High
eCLERX
Cognizant
Genpact
Wipro TCS
Infosys
percentile
HP
Major Contenders
Emerging Players
High
Medium-high
Medium
Low
Delivery capability
Service provider
Scale
Scope
Technology
capability
Delivery
footprint
Market
success
Overall
Service provider 1
Service provider 2
Service provider 3
Service provider 4
Service provider 5
WNS
iGate
Service provider 6
Service provider 7
Mahindra Satyam
25th
Market success
Major Contenders
Leaders
Delivery capability
75th percentile
Capital Markets BPO PEAK Matrix 2012
HCL
Service provider 8
Service provider 9
Capgemini
EXL Service
Service provider 10
Service provider 11
Emerging Players
Service provider 12
Low
Low
25th percentile
Capital markets BPO delivery capability
(Scale, scope, technology, and delivery footprint)
High
Service provider 13
Service provider 14
Emerging trends
Scope
Distribution of FTEs across capital markets BPO lines of business
Number of FTEs
100% =
Brokerage
Custody and fund
administration
Capital
markets BPO
service
provider
emerging
trends
Asset management
Investment banking
3. BPO for
hedge funds
Leaders
Major Contenders
Emerging Players
Copyright © 2012, Everest Global, Inc.
EGR-2012-11-PD-0794
8
BFSI Outsourcing research agenda
(page 1 of 2)
Published
Topic
Current
Release date
Trade Reconciliations Business Process Outsourcing (BPO)
May-2012
Report Card for the Indian IT Majors – Pecking Order Analysis of the "WITCH" Group
June-2012
IT Application Outsourcing (AO) in Banking – Trends and Future Outlook
June-2012
BFS BPO Annual Report 2012 - Strong Growth Post the Downturn
Application Outsourcing (AO) in Banking: PEAK Matrix Provider Landscape – Evolution at Play
IT Application Outsourcing (AO) in Insurance – Navigating Business Challenges through Technology
July-2012
August-2012
September-2012
A PEAK into the Leaders, Major Contenders, and Emerging Players of the Banking BPO Market
October 2012
Applications Outsourcing in Banking – Service Provider Profile Compendium
October 2012
Global Sourcing Trends in the U.S. Mortgage Industry
October 2012
IT Application Outsourcing (AO) in Capital Markets Annual Report – Change is the only constant
October 2012
Webinar Deck: PEAK into the BFSI Outsourcing Market
October 2012
Application Outsourcing (AO) in Insurance: PEAK Provider Landscape – Policies for Growth and Differentiation
October 2012
Insurance Business Process Outsourcing (BPO) Market 2011-2012 – Annual Report
Copyright © 2012, Everest Global, Inc.
EGR-2012-11-PD-0794
November-2012
9
BFSI Outsourcing research agenda
(page 2 of 2)
Published
Topic
Current
Release date
A PEAK into the Leaders, Major Contenders, and Emerging Players of Capital Markets BPO
November-2012
BFSI BPO Service Provider Profile Compendium – Banking BPO
Q4-2012
BFSI BPO Service Provider Profile Compendium – Capital Markets BPO
Q4-2012
BFSI BPO Service Provider Landscape – Insurance BPO
Q4-2012
BFSI BPO Service Provider Profile Compendium – Insurance BPO
Q4-2012
Service Provider Landscape for IT application services in Capital Markets – PEAK report 2012
Q4-2012
IT Application Services in Insurance – Service Provider Profile Compendium 2012
Q1-2013
IT Application Services in Capital Markets – Service Provider Profile Compendium 2012
Q1-2013
Copyright © 2012, Everest Global, Inc.
EGR-2012-11-PD-0794
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Additional Capital Markets BPO research references
The following documents are recommended for additional insight on the topic covered in this report. The recommended documents either
provide additional details on the topic or complementary content that may be of interest
1. BFS BPO Annual Report 2012 – Strong Growth Post the Downturn (EGR-2012-11-R-0710a); 2012. The global industry for Business Process
Services (BPS) for Banking and Financial Services (BFS) is growing at a fast pace of over 16% annually. After a dip during 2008-2009, due to the global
financial crisis, BFS BPS is back on track, seeing rising contract numbers in both 2010 and 2011. Although BPO services account for only 10% of the
overall market for BFS BPS, adoption of BPO is now expanding globally. This report brings together insights from Everest Group’s research program in
BFS BPO across banking and capital markets. The report highlights key trends in both BPO markets, the drivers and challenges for greater BPO
adoption, service provider profiles and strategies for growth and profits, and the unique issues that confront the BFS BPO industry today.
2. Trade Reconciliations Business Process Outsourcing (BPO) (EGR-2012-11-R-0681a); 2012. Trade reconciliations is an important segment of
capital markets BPO, and the most frequently outsourced function in capital markets BPO contracts. While the global potential for trade reconciliations
outsourcing is in the range of US$1.8-2.4 billion, only about 5-10% of this market has been captured, representing significant untapped potential. Most
mature service providers in the capital markets BPO space also offer trade reconciliation services from offshore locations, and this is becoming an
important area of growth for service providers. In this research, we analyze the current trends and the future outlook for BPO in offshore trade
reconciliations, focusing on market size and potential, buyer adoption trends, and the service provider landscape and solutions trends
3. Capital Markets Business Process Outsourcing (EGR-2012-11-R-0636b); 2012. This report examines the global third-party capital markets BPO
industry. It focuses on market size and growth trends in capital markets BPO, market potential, key drivers, and challenges. It also looks at BPO maturity
by LoB, trade-lifecycle, and asset classes, solution characteristics, including scope and contract term, technology models, pricing structures,
performance metrics, and global sourcing. It also provides an assessment of the global third-party service provider landscape by scale, scope, delivery
footprint, and investments.
For more information on this and other research published by Everest Group, please contact us:
[email protected]
[email protected]
[email protected]
[email protected]
Saurabh Gupta, Vice President:
Rajesh Ranjan, Vice President:
Rishabh Gupta, Senior Analyst:
FS BPO Team:
Everest Group
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13455 Noel Road, Suite 2100
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EGR-2012-11-PD-0794
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