Copyright © 2016 Everest Global, Inc.
This document has been licensed for exclusive use and distribution by TCS
EGR-2016-11-E-1822
Focus on TCS
July 2016
Everest Group PEAK Matrix™ for Banking BPO
Service Providers
2Copyright © 2016, Everest Global, Inc.
EGR-2016-11-E-1822
Introduction and scope
Everest Group recently released its report titled “Banking BPO – Service Provider Landscape with
PEAK Matrix™ Assessment 2016”. This report analyzes the changing dynamics of the banking BPO
landscape and assesses service providers across several key dimensions.
As a part of this report, Everest Group updated its classification of 24 service providers on the Everest Group
Performance | Experience | Ability | Knowledge (PEAK) Matrix for banking BPO into Leaders, Major
Contenders, and Aspirants. The PEAK Matrix is a framework that provides an objective, data-driven, and
comparative assessment of banking BPO service providers based on their absolute market success and
delivery capability.
Based on the analysis, TCS emerged as a Leader and also a Star Performer. This document focuses on
TCS’ banking BPO experience and capabilities. It includes:
TCS’ position on the Everest Group banking BPO PEAK Matrix
Detailed banking BPO 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.
3Copyright © 2016, Everest Global, Inc.
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1 Business-to-Consumer relationships
2 Business-to-Business relationships
Retail financial services
(B2C1)
– Cards
– Retail banking
– Lending
Commercial banking (B2B2)
Banking
Investment banking
Asset management
Custody & fund
administration
Brokerage
Capital markets
Life & pensions
Property & casualty
Reinsurance
Insurance
Banking, Financial Services,
and Insurance (BFSI)
Note: This report covers vertical-specific BPO within the banking space. It does not include coverage of
horizontal business processes such as F&A, HR, procurement, and contact centers
Focus of this document
Everest Group’s definition of BFSI includes the
following three segments
4Copyright © 2016, Everest Global, Inc.
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Everest Group PEAK Matrix – 2016 banking BPO
market standings
Performance | Experience | Ability | Knowledge
1 Service providers scored using Everest Group’s proprietary scoring methodology
Note: Assessment for Accenture, Equiniti, HPE, IBM, Mphasis, NIIT Technologies, and Polaris excludes service provider inputs on this particular study, and is based on
Everest Group’s estimates which leverage Everest Group’s proprietary Transaction Intelligence (TI) database, ongoing coverage, service provider public
disclosures, and interaction with buyers
Source: Everest Group (2016)
Leaders
Major Contenders
Aspirants
Star Performers
Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for Banking BPO1
25
thp
erc
en
tile
High75th percentile
High
75
thp
erc
en
tile
Mark
et
su
cces
s
(Revenue
, nu
mber
of clie
nts
, and
revenu
e g
row
th)
Banking BPO delivery capability
(Scale, scope, technology solutions & innovation, delivery footprint, and buyer satisfaction)
Leaders
Low
Low
Aspirants
25th percentile
Major Contenders Genpact
TCS
WiproMphasis
Accenture
Tech
Mahindra
Syntel
NIIT Technologies
Polaris
CSC
Equiniti
CapgeminiWNS
Avaloq
Cognizant
Sutherland
Global Services
Infosys
Concentrix
EXLIBM
HPE
HCL
Xerox
Intelenet
5Copyright © 2016, Everest Global, Inc.
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TCS is a banking BPO Star Performer based on strong
forward and upward movement over time on the
Everest Group PEAK Matrix
Change in TCS’ positioning on the Everest Group PEAK Matrix for banking BPO
Market success in 2015
Signed several new deals in 2015
As a result, witnessed revenue growth
of more than US$25 million while
making the biggest contribution to the
total number of new clients added by
all service providers over the last year
Capability enhancements in 2015
Improved its depth of coverage across various geographies while
adding new delivery centers
Amplified technology capabilities and enhanced their leverage in
contracts, thus gaining better acceptance from buyers
Mark
et
su
cc
ess
Major Contenders
2014
Leaders
TCS
Delivery capability
2015
Source: Everest Group (2016)
6Copyright © 2016, Everest Global, Inc.
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TCS (page 1 of 7)
Everest Group assessment1
1 Based on contractual and operational information as of 2015
Source: Everest Group (2016)
Delivery capability
Market successScale Scope
Technology
and innovation
Delivery
footprint
Buyer
satisfaction Overall
Leaders Major Contenders AspirantsMeasure of capability: Best-in-class Not mature
Capitalizing on its remarkable delivery capabilities, and fueled
by a revenue growth of over US$20 million, TCS is a Leader
and a Star Performer on the Everest Group banking BPO
PEAK Matrix
It has a good spread across different buyer geographies and
holds a considerable market share in the Asia Pacific,
Americas, and UK
As it has managed to add several new clients to its portfolio, it
has a well-balanced presence across various banking BPO
LoBs, thus lowering the concentration risk considerably
TCS enjoys high overall buyer satisfaction levels by leveraging
on its strengths in delivery, implementation, and ability to drive
clients to greater success
As some of the rule-based and offshore-
centric processes move towards automation,
TCS can do well to invest in more judgment-
driven processes and build its onshore scale
to support the same
Buyers expect TCS to stretch more in terms
of value addition and to be more proactive
While TCS has strong IT capabilities via its
BaNCS platform, it has traditionally found it
difficult to leverage it in its BPO relationships
Strengths Areas of improvement
7Copyright © 2016, Everest Global, Inc.
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TCS (page 2 of 7)
Banking BPO – overview
Recent acquisitions and partnerships
2015: Partnership on a KYC platform with a Big4 consulting firm
2015: Partnership with a global regulatory reporting leader for a
regulatory reporting solution
Recent developments
2015: Developed banking specific RPA components
2015: Building financial spreading, legal account remediation,
and KYC capability in commercial and retail banking in terms of
people and processes
2015: Developed a digitized decision engine workflow and
operational dashboard
2015: Created a pool of AML, RPA, BPM, and BA resources to
meet clients’ changing requirements
2015: Created collaborative IT-BPS solutions including a web
based debt management solution
2015: Developed web-based self-learning portals enabled by
domain academy for talent development
2015: Developed a mobile-based loan originations platform and
a unique e-KYC solution in the lending domain
2015: Deployed an imaging solution for efficient transaction
processing
Suite of services
Commercial/wholesale banking
Commercial real estate
Consumer lending
Retail banking and investments / private banking
Cards
Risk management (credit, market, liquidity, operations, and regulatory)
Payments
Analytics
2013 2014 2015
Revenue (US$ million) 450 491 515
Number of FTEs 17,000 18,700 19,200
Number of clients 20 28 41
Company overview
Tata Consultancy Services (TCS) is an IT, consulting, and business process
services organization. TCS has a diverse base of BFS clients and extensive, in-
depth domain expertise across all banking products. TCS’ offerings span
consumer banking and corporate businesses that include retail banking, cards,
loans, trade services, cash management, and capital markets (includes wealth &
asset management and investment banking). TCS offers its BaNCS platform
solution for all lines of business. TCS also deploys its FORE simplification
methodology, analytics, and automation to deliver on business outcomes and an
enhanced customer experience
Key leaders
Dinanath Kholkar – Global Head, Business Process Services
Arun Batra – Global Head, BFSI BPS
Headquarter: Mumbai, India
Website: www.tcs.com
Source: Everest Group (2016)
8Copyright © 2016, Everest Global, Inc.
EGR-2016-11-E-1822
TCS (page 3 of 7)
Banking BPO – key delivery locations
Cincinnati
Guadalajara
Quito
Santiago
Gurgaon
MumbaiBengaluru Chennai Manila
Kolkata
Gandhinagar
PuneDoha
Bogota
Source: Everest Group (2016)
Mexico City
Lima
Kochi`Hyderabad
Midland
9Copyright © 2016, Everest Global, Inc.
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TCS (page 4 of 7)
Banking BPO – capabilities and key clients
Banking BPO number of
contracts by buyer size1
Number of active contracts
Banking BPO revenue mix by
geography
Revenue in US$ million
Banking BPO FTE mix by
segment
FTEs in numbers
85%
2%
50%
20%
12%
10%5%
82%
15%3%
Key banking BPO engagements
Client name LoB Region Client since
Top three banking and financial services provider Commercial and retail banking United Kingdom 2015
Leading European multinational bank Commercial and retail banking Europe 2014
Largest NBFC in India Commercial banking, lending, and retail banking Asia Pacific 2011
Largest independent mortgage banker in U.S. Lending North America 2012
Large global bank All Global 2008
APAC
LATAM
Offshore
100% = 19,200
37%
26%
23%
14%
Commercial
banking
Retail banking
Cards LendingOnshore
NearshoreMEA
North
America
MediumContinental Europe
100% = 515 100% = 19,200 100% = 41
Small
Large
United
Kingdom3%
13%
1 Buyer size is defined as large (>US$10 billion in revenue), medium (US$5-10 billion in revenue), and small (<US$5 billion in revenue)
Note: Based on contractual and operational information as on December 2015
Source: Everest Group (2016)
Banking BPO FTE split by
delivery location
FTEs in numbers
10Copyright © 2016, Everest Global, Inc.
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Application LoB Year launched Description No. of BPO clients
M-Mortgage Lending 2015 TCS’ mobile & online platform for onboarding new retail mortgage
customers
2
Financial advisor
performance
analytics
All 2014 A tool for predicting financial advisor performance, taking into consideration
both quantitative performance aspects as well as qualitative variables such
as depth of relationships and activity
Less than 3
TCS risk &
compliance
solution
Cards,
commercial
banking, and
retail banking
2014 A tool that facilitates testing of transactions against business requirements,
policies, regulations for purposes of quality control, ORM, and quality
assurance/compliance assessment
N/A1
Robotic Process
Automation (RPA)
All 2014 A solution that is a suite of self-learning, non-intrusive robots developed to
address all possible business process scenarios
Less than 10
Reconciliation
platform
Cards and
retail banking
2012 TCS reconciliation/settlement tool for banking and cards Less than 3
TRAPEZE All 2011 A solution that enables transition, delivery, transparency, and value creation
for customers. The solution set includes banking suite, transition manager,
process management suite, governance suite, knowledge management
suite, document manager, business continuity manager, and analytics
platform
More than 20
TCS BaNCS All 2006 A suite of solutions for banks, capital market firms, insurance companies,
and diversified financial institutions. It encompasses an array of pre-
configured, customizable banking products such as digital banking,
universal banking, core banking, payments, compliance, financial inclusion,
Islamic banking, and treasury
Less than 3
TCS (page 5 of 7)
Banking BPO – technology solutions/tools
1 Not available
Source: Everest Group (2016)
11Copyright © 2016, Everest Global, Inc.
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TCS (page 6 of 7)
Banking BPO – risk management & regulatory reporting
Risk management support Details No. of BPO clients
Credit risk TCS is engaged in multiple activities to support the following:
Pre- and post-sanction decision-making
Credit operations including, but not limited to, static data maintenance, facility setting up, and
customer hierarchy maintenance
Less than 5
Operations risk • TCS provides consulting and execution services for designing ORM framework and testing
business process controls
• These controls and tests are mapped against business requirements, policies, and regulations
• The services also cover designing and implementation of supplier risk management framework
Less than 10
Market risk TCS supports market risk production activities such as:
• Market data time series sourcing, cleansing and validation. It also supports scenario generation
• Validation and reporting of sensitivities, Value at Risk (VaR), and economic capital reporting
Less than 5
Liquidity risk • Reporting on liquidity position across debt, equity, FX, derivative, loans, and deposits asset
classes
• Computing maximum cash outflows for the business at asset level and performing stress testing
on the same
Less than 3
Regulatory risk Managing regulatory risk by offering best-in-class solutions related to CFPB and FDCPA regulations,
and related to KYC, FATCA, and AML sanctions
Less than 10
Source: Everest Group (2016)
12Copyright © 2016, Everest Global, Inc.
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TCS (page 7 of 7)
Banking BPO – risk management & regulatory reporting
Regulatory reporting support List of regulations Description No. of BPO clients
U.S. regulations OCC, DFA and
CCAR
OCC reporting related functions across multiple products
Implements regulatory reporting tool for a large Europe based bank
for their CCAR reporting
More than 3
UK regulations FSA requirements Implements regulatory reporting tool for a large U.S. bank for their FSA
reporting
More than 3
EU regulations EMIR Supports a large European bank in EMIR compliance More than 3
Local regulations SSHR (Netherlands) Offers tools-based support for a European bank in their local regulatory
reporting
More than 3
Source: Everest Group (2016)
13Copyright © 2016, Everest Global, Inc.
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Appendix
14Copyright © 2016, Everest Global, Inc.
EGR-2016-11-E-1822
Everest Group classifies the banking BPO service
provider landscape into Leaders, Major Contenders,
and Aspirants on the Everest Group PEAK Matrix
1 Service providers scored using Everest Group’s proprietary scoring methodology
Source: Everest Group (2016)
Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix1 for banking BPO
Top Quartile performance
across market success
and delivery capability2nd or 3rd quartile
performance across market
success and/or delivery
capability
4th quartile performance
across market success
and delivery capability
High
Low
25
thp
erc
en
tile
75
thp
erc
en
tile
75th percentile
Mark
et
su
ccess
(Revenue, num
ber
of
clie
nts
, and r
evenue g
row
th)
Aspirants
Leaders
Major Contenders
Low High25th percentile
Banking BPO delivery capability
(Scale, scope, technology solutions & innovation, delivery footprint, and buyer satisfaction)
15Copyright © 2016, Everest Global, Inc.
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Service providers are positioned on PEAK Matrix
based on evaluation across two key dimensions
Measures success achieved in
the market. Captured through
banking BPO revenue,
number of clients, and
YoY growth
Mark
et
su
ccess
Measures the scope of
services provided
across LoBs,
geographies, and buyer
sizes
Measures the capability
and investment in
technology solutions
and ability to deliver
value-added services
(innovation) with high
technology leverage
Measures the delivery
footprint across regions
and the global sourcing
mix
Measures ability to deliver services successfully
Captured through five subdimensions
Measures the scale of
operations (overall
company revenue and
relative focus on the
vertical)
Scale ScopeTechnology solutions
and innovationDelivery footprint
Delivery capability
Measures the
satisfaction levels1 of
buyers across:
Business drivers
Implementation
Process expertise
Relationship
management
Buyer satisfaction
1 Measured through responses from referenced buyers for each service provider
Source: Everest Group (2016)
Aspirants
Leaders
Major Contenders
16Copyright © 2016, Everest Global, Inc.
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Additionally, Everest Group confers the “Star
Performers” title on the providers that demonstrate
the strongest forward movement over time on the PEAK Matrix
Year 1
Year 0
Service
provider
2016 banking BPO
Star PerformersDelivery capability
Methodology
Everest Group selects Market Star Performers based on the relative YoY movement of
each service provider on the PEAK Matrix
Market success dimension
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:
Yearly ACV growth
Number of new contract signings
Value of new contract signings
Delivery capability dimension
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
specified parameters are identified and the “Star
Performer” title is awarded to the service
providers with:
The maximum number of top quartile
performances across all of the above
parameters, and
At least one area of top quartile performance
advancement in either of the dimensions
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”
Mark
et
su
cces
s
17Copyright © 2016, Everest Global, Inc.
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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 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
services area. 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 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 particular providers for their specific requirements. It also helps providers showcase
their strengths in specific areas
What are the incentives for buyers and providers to participate/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
18Copyright © 2016, Everest Global, Inc.
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FAQs (page 2 of 2)
What is the process for a service provider to leverage their PEAK Matrix positioning status ?
Providers can use their PEAK positioning rating in multiple ways including:
– Issue a press release declaring their positioning/rating
– Customized PEAK profile for circulation (with clients, prospects, etc.)
– Quotes from Everest Group analysts could be disseminated to the media
– Leverage PEAK 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
Dallas (Headquarters)
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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.
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