Everest Group’s PEAK Matrix for Global Payer IT Service ......L&T Infotech Tech Mahindra Fujitsu...
Transcript of Everest Group’s PEAK Matrix for Global Payer IT Service ......L&T Infotech Tech Mahindra Fujitsu...
Copyright © 2015 Everest Global, Inc.
This document has been licensed for exclusive use and distribution by TCS
Focus on TCS
December 2015
Everest Group’s PEAK Matrix for Global Payer IT
Service Providers
EGR-2015-12-E-1651
Copyright © 2015, Everest Global, Inc.
EGR-2015-12-E-16512
Introduction and scope
Everest Group recently released its report titled “IT Outsourcing in Payer Industry – Service Provider
Landscape with PEAK Matrix™ Assessment 2015”. This report analyzes the changing dynamics of the global
payer IT landscape and assesses service providers across several key dimensions.
As a part of this report, Everest Group analyzed 20 leading service providers on the Everest Group
Performance | Experience | Ability | Knowledge (PEAK) Matrix, specific to global payer IT, categorizing them
into Leaders, Major Contenders, and Aspirants. The PEAK Matrix is a composite framework that provides an
objective, data-driven, and comparative assessment of payer IT service providers based on their absolute
market success and delivery capability.
Based on the analysis, TCS emerged as a Leader and Star Performer. This document focuses on TCS’
payer IT experience and capabilities in the global payer IT market. It includes:
TCS’ position on the payer IT PEAK Matrix
Detailed payer IT profile of TCS
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.
Copyright © 2015, Everest Global, Inc.
EGR-2015-12-E-16513
Background and scope of the research
Background of the researchThe healthcare landscape has been subject to significant turbulence on account of a gamut of factors including escalating costs,
widespread regulatory amendments, changing business models, and evolution of the patient-centric paradigm (with mobile
computing, social media platforms, and “anytime-anywhere” information access). This combination of disruptive and legacy factors has driven the healthcare firms to adopt new technologies, while also revamping their existing systems, processes, and
interfaces.
As the technology mandate for healthcare enterprises evolves, so do their relationships with IT service providers. This, in turn, is driving the need for relevant research and market intelligence on demand and supply trends in healthcare outsourcing across the
three major market segments – payer, provider, and life sciences. Everest Group’s healthcare outsourcing research program
addresses this market requirement by analyzing outsourcing trends and service provider capabilities specific to ITO in the healthcare vertical.
In this report, we analyze the capabilities of 20 ITO service providers specific to the global healthcare payer sector.
These service providers are mapped on the Everest Group Performance | Experience | Ability | Knowledge (PEAK)
Matrix, which is a composite index of a range of distinct metrics related to a provider’s capability and market success.
We focus on: The landscape of service providers for healthcare payer IT
Assessment of the service providers on a number of capability-related dimensions Characteristics of Leaders, Major Contenders, and Aspirants on the Everest Group PEAK Matrix
Implications for healthcare payers and service providers
Scope of this report:
Industry: Healthcare payers (public and private health plans) Services: Large (TCV > US$25 million), multi-year (>3 years), and annuity-based IT outsourcing
Geography: Global (though with a slight skew towards the U.S. payer market, given dominant market activity)
Sourcing model: Third-party ITO transactions; excludes shared services or Global In-house Centers (GICs)
Copyright © 2015, Everest Global, Inc.
EGR-2015-12-E-16514
TCS is positioned as a Leader and Star Performer
on Everest Group’s PEAK Matrix for large payer IT
relationships
Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for large payer IT relationships1
Leaders
Major Contenders
Aspirants
Star Performers
Mark
et
su
ccess
Low
Low High
High
Delivery capability
(Scale, scope, domain investments, delivery footprint, innovation, and buyer satisfaction)
75th percentile
25
thp
erc
en
tile
25th percentile
CGI
Infosys
Wipro
AtosCSC
Capgemini+IGATEHPE
Virtusa
EPAM
L&T Infotech
Tech Mahindra
FujitsuUnisys
Hexaware
Accenture
CognizantIBM
TCS
75
thp
erc
en
tile
HCL Technologies
Dell Services
Major Contenders
Leaders
Aspirants
1 PEAK Matrix specific to large (>US$25 million TCV), multi-year (>three years) IT outsourcing relationships within the payer sector; the evaluation this year
(2015) is weighted more on Application Outsourcing (AO), as a majority of large deals have application outsourcing in scope
Source: Everest Group (2015)
Copyright © 2015, Everest Global, Inc.
EGR-2015-12-E-16515
TCS | Payer IT profile (page 1 of 5)
Corporate and healthcare overview
Company description: Tata Consultancy Services (TCS) offers a range of IT
and consultancy services across various industries. In the healthcare space,
TCS offers a consulting-led, integrated portfolio of IT and IT-enabled
infrastructure, engineering, and assurance services. TCS leverages a global
network of technology, domain and academic labs to co-create industry-relevant
solutions with its healthcare customers. It enables them to leverage
technologies to increase customer and patient centricity.
Headquarters: Mumbai, India
Website: www.tcs.com
Services offered for the healthcare vertical: IT services across
payer, provider, and life sciences segments. Services for the payer
segment include digital transformation, ADM development leveraging
distributed Agile, application maintenance, assurance, business
analysis, architecture migration, performance insight dashboards,
advanced analytics, claims management, policy administration, HIX,
fraud analytics, ICD-10 enablement and assurance services, legacy
transformation, BPO solutions, etc.
Major healthcare clients: Cigna, GlaxoSmithKline, Eli Lilly, Cadila,
and Cardinal Health.
Scale of healthcare subverticals
Payer Life sciences Provider
Key financial parameters
Revenue figures in US$ million Revenue1 from healthcare and
life sciences
Revenue1 from other verticals
Enterprise operating margin
1 Financial year ends on March 31
Note: Clients mentioned are specific to the payer segment, and have been identified only from public sources
Source: Everest Group (2015)
>US$500 million US$100-500 million <US$100 million
Service mix
FY 2015; US$ million
Geographical mix
FY 2015; US$ million
100% = 15,454 100% = 15,454
North America
Continental
Europe
India
ADM
Other APAC
BPO
Assurance
services
Enterprise solutions including BI
Infrastructure
services
Engineering &
industrial
services (4.5%) Asset
leverage
solutions
(2.5%)
UK
Latin America
(2.10%)
MEA (2%)
51.90%
16.7%
11.6%
9.3%
6%
40.2%
13.8%15.6%
11.7%
8.5%
Consulting
(3%)
10,966 12,838 14,672602 604
782
FY 2013 FY 2014 FY 2015
27.0%
11,56813,442 15,454
29.1%26.9%
Copyright © 2015, Everest Global, Inc.
EGR-2015-12-E-16516
Source: Everest Group (2015)
TCS | Payer IT profile (page 2 of 5)
Payer IT capability assessment and market success
PEAK Matrix dimensions assessment
Dimension Rating
Scale
Scope
Domain investments
Delivery footprint
Innovation
Buyer satisfaction
Market success
High Low
North America EMEA
Latin America APAC
Geographic scopePayer subsegments
Public health plans
Private health plans
Value chain solutionsFunctional scope
Product development Care managementIO
Policy servicing
and management
Claims
managementAO
SI/consulting Network management
Capability
dashboard
Established: Mature capabilities with high adoption
Credible: Strong capabilities with rising adoption
Emerging: Nascent capabilities with limited adoption
More engaged middle management to adopt design thinking and proactive problem solving by anticipating client
demands
Need for a more transparent approach to communication and project management
Can further streamline operations to increase agility and kick-off times
Areas of improvement
Increasing traction with public health plans as it leverages the emerging opportunity arising out of payer-provider
convergence
Delivering efficiency benefits (costs and YoY productivity benefits) at scale with assured delivery quality
Improving resource productivity and thus offering lower cost
Changing revenue mix with increased focus on IP, moving away from pure “efficiency enablers” to impetus for non-
linear growth through licensing revenue
Getting the onshore-offshore cost mix right
Strengths
Everest Group PEAK Matrix for life sciences ITO
Mark
et
su
ccess
LowLow High
High
Delivery capability
(Scale, scope, domain investments, delivery footprint, innovation, and buyer satisfaction)
75th percentile
25
thp
erc
en
tile
25th percentile
CGI
Infosys
Wipro
AtosCSC
Capgemini+IGATEHPE
Virtusa
EPAM
L&T Infotech
Tech Mahindra
FujitsuUnisys
Hexaware
Accenture
CognizantIBM
TCS
75
thp
erc
en
tile
HCL Technologies
Dell Services
Major Contenders
Leaders
Aspirants
Copyright © 2015, Everest Global, Inc.
EGR-2015-12-E-16517
Proprietary solutions (representative list)
Line of business Solutions
Payer Digital strategy solution: The TCS digital maturity model provides a high level overview of the transition
from basic web presence and information gathering to a fully integrated and socially-enabled model
ICD-10 compliance solution: Framework for ICD-10 compliance including multiple system remediation
approaches such as migration, field expansion, and crosswalks
Harmony Test Framework: To address challenges in domain-specific business process testing, time-to-
market, and business component testing
Test Message Generator: Enables generation of healthcare messages that are to be used to test
various systems
Interoperability solution: For unifying healthcare data (transformation and translation)
M2M solution: Platform for enabling aggregation of health information, analytics, and event triggering
Health Insurance Exchange (HIX) integration
Payer performance insights dashboards and advanced analytic solutions
Connected Wellness: A digital patient/member engagement platform for payers, providers, employers
for wellness solutions, wellness platform, messaging backbone, -driven wellness program, device
integration, and Internet of Things (IoT)
Sharehub: A solution for providing real-time operational data requests providing a consistent and
integrated view of latest healthcare information.
TDM-Secure: Test data security solution for healthcare payers, providers, and PBM encompassing risk
assessment, prioritization, and remediation powered by a Securehub and ARM framework
Customer 720 : Customer 720 is innovative, cost-effective, flexible, and scalable solution built on light
weight MDM framework to rapidly achieve a unified view of customer by utilizing data from internal,
external/social and analytical sources
TCS | Payer IT profile (page 3 of 5)
IT domain investments
Source: Everest Group (2015)
Copyright © 2015, Everest Global, Inc.
EGR-2015-12-E-16518
Proprietary solutions (representative list) (continued)
Line of business Solutions
Payer Transaction Validation and Translation Engine: The solution allows subscribers to upload their
predefined file formats as a part of the enrollment process that get submitted to the payers. The engine
validates the syntax and content of the file being uploaded and then converted to the predefined format
that gets consumed by the enterprise system. Includes scrubbers that clean the data working with the
enterprise system and pre-available data
Device Integration: The device integration solution provides the ability to bring in device data, transform
it, and provide the ability to store the same in an IoT platform or a relational database. The solution
uses patterns to be able to bring in newer devices with minimal lead time, with APIs exposed that would
be utilized by the system of engagement
TCS | Payer IT profile (page 4 of 5)
IT domain investments
Key alliances (representative list)
Alliance partner Purpose of alliance
(Several) General enterprise level alliances with vendors such as Salesforce, Alcatel-Lucent, Cisco, EMC, Google,
HP, IBM, MetricStream, Microsoft, NetApp, Oracle, Sun, SAP, and Xerox, for solutions across various
industry verticals
Source: Everest Group (2015)
Copyright © 2015, Everest Global, Inc.
EGR-2015-12-E-16519
TCS | Payer IT profile (page 5 of 5)
Key IT delivery locations
Confirmed location for payer ITO
>5,000 ITO FTEs
1,000-5,000 ITO FTEs
500-1,000 ITO FTEs
100-500 ITO FTEs
<100 ITO FTEs
Source: Everest Group (2015)
NOT EXHAUSTIVE
India
Mexico
China
Brazil
Europe
Uruguay
Argentina
Chile
Peru
Ecuador
Colombia
Middle East
Australia &
New Zealand
North America
South Africa
Copyright © 2015, Everest Global, Inc.
EGR-2015-12-E-165110
Appendix
Copyright © 2015, Everest Global, Inc.
EGR-2015-12-E-165111
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.
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
Low
Low High
Ma
rke
t s
uc
ce
ss
(Tra
nsa
ctio
n a
ctivity)
75th percentile
Top quartile performance
across market success and
capability2nd or 3rd quartile performance
across market success and
capability
4th quartile performance
across market success and
capability
Aspirants
Leaders
Major Contenders
75
thp
erc
en
tile
25th percentile
25
thp
erc
en
tile
Delivery capability
(Scale, scope, domain investments, delivery footprint, innovation, and buyer satisfaction)
Copyright © 2015, Everest Global, Inc.
EGR-2015-12-E-165112
Dimensions of service providers’ capability and
market success underlying the PEAK Matrix
Active ACV of
relevant deals
Relevant deals
Scale
Revenue
Domain
investments
Proprietary
solutions
Scope
Lines of
business
served
ITO
subfunctions
Geographies
served
Delivery capability
Ma
rke
t s
uc
ce
ss
Everest Group PEAK Matrix
Aspirants
LeadersMajor Contenders
Delivery
footprint
Delivery mix
Buyer
satisfaction
Buyer
perception score
Innovation
Innovative
solutions
FTEs Investments in
M&As and
certifications
Delivery regions
covered
Growth in
renewals (Year-
on-Year)
Innovative
engagement
models
Copyright © 2015, Everest Global, Inc.
EGR-2015-12-E-165113
Parameters identified for
quantifying innovation in
payer ITO
Based on the analyst’s
perception of the steps
taken by service providers
to align themselves with
the changing market
dynamics
Everest Group employed a combination of qualitative
and quantitative parameters to allocate an innovation
score to service providers
Innovation
Experience
(number of clients)
Percentage of
contracts
Number of
contracts
Qualitative Quantitative
Analytics
support
Outcome-driven
deals
Social media
support
Mobility
support
Cloud
support
Copyright © 2015, Everest Global, Inc.
EGR-2015-12-E-165114
Year 1
Year 0
Service
provider
Ma
rke
t s
uc
ce
ss
Capability
Everest Group confers the “Star Performers” title on
providers that demonstrate the strongest forward
movement over time on the PEAK Matrix
Methodology
Everest Group selects market Star Performers based on the relative YOY movement of each
service provider on the PEAK Matrix
In order to assess advancements on
market success, we evaluate the
performance of each service provider on
the PEAK Matrix across a number of
parameters including:
Active ACV of large active ITO deals
Relevant deals
In order to assess advancements on
capability, we evaluate the performance
of each service provider on the PEAK
Matrix across a number of parameters
including:
Annual growth in scale
Increase in scope of services
Expansion of delivery footprint
Technology / domain-specific
investments
The top quartile performers on each of the
identified parameters are identified and the
“Star Performer” rating is awarded to the
service providers with:
The maximum number of top quartile
performances across all of the above /
left-listed parameters and
At least one area of top quartile
performance in both market success
and capability advancement
The “Star Performers” title relates to YOY performance for a given service provider and does
not reflect the overall market leadership position. Those identified as “Star Performers” may
include “Leaders”, “Major Contenders”, or “Aspirants”
2015 Payer IT PEAK
Matrix Star Performers
Copyright © 2015, Everest Global, Inc.
EGR-2015-12-E-165115
Payer IT Star Performer 2015
Payer IT
Star Performer
2015
Distinguishing
features of market
success in 2014
Distinguishing features of
capability advancements
in 2014
Change in position
on the PEAK
Matrix for payer IT
Entered the
Leaders
category
~30% YOY growth on a
sizable payer IT
revenue base
Experienced
accelerated spending
from small- to mid-sized
payer clients and
Account Care
Organizations (ACOs)
Clients spread (beyond
North America) across
Europe and Asia Pacific
Broad range of domain
solutions catering to a
diverse set of buyers and
capabilities (public/private
health plans, PBMs, etc.)
Enhanced proprietary
solutions across claims
engines, compliance, digital
IT transformation, and
customer-centric platforms
Copyright © 2015, Everest Global, Inc.
EGR-2015-12-E-165116
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 Everest Group’s 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 in the global scenario that are assessed
but 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 providers for their specific
requirements. It also helps providers showcase their strengths in specific areas
Copyright © 2015, Everest Global, Inc.
EGR-2015-12-E-165117
FAQs (page 2 of 2)
What are the incentives for buyers and providers to participate in / 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
What is the process for a service provider to leverage their PEAK Matrix positioning status?
Providers can use their PEAK Matrix positioning rating in multiple ways including:
– Issuing a press release declaring their positioning/rating
– Getting customized PEAK Matrix profile for circulation (with clients, prospects, etc.)
– Quotes from Everest Group analysts could be disseminated to the media
– Leveraging 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
Blog
www.sherpasinblueshirts.com
@EverestGroup
Stay connected
Websites
www.everestgrp.com
research.everestgrp.com
Dallas (Headquarters)
+1-214-451-3000
New York
+1-646-805-4000
Toronto
+1-647-557-3475
London
+44-207-129-1318
Delhi
+91-124-284-1000
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, problem-
solving skills and original research. Details and in-depth content are available at
www.everestgrp.com and research.everestgrp.com.