Introduction

2010 saw the FAO market bounce back with an almost 15% growth in ACV, previously seen only in the pre-recession years. As the market continues to grow and mature, the competitive intensity in FAO is at an all time high. According to Everest’s PEAK Matrix for FAO, there are now six service providers in the Leaders category and several Major Contenders are closing the gap fast.

Rising competition is driving service providers to innovate and push the boundaries of traditional FAO solutions, as service providers invest in technology, maturity models, new markets and other differentiated offerings – driving greater value creation in the market.

In this study, we analyze the global FAO service provider landscape in 2010. We focus on:

• Relative position of 20+ service provider on Everest PEAK Matrix for FAO
• The Star Performers of 2010
• Implications of increased competitive intensity and how service providers are innovating to differentiate themselves in an increasingly globalized FAO market

Scope and methodology

• Third-party FAO deals; it does not include shared services or captives
• 580 multi-process FAO contracts signed till the end of 2010 with a minimum of two F&A processes, over US$1 million in ACV, and a minimum contract term of three years
• Coverage across 20+ FAO service providers, with multi-process capability including Aditya Birla Minacs, Accenture, Capgemini, Cognizant, EXL-OPI, Genpact, HCL, HP, IBM, iGATE-Patni, Infosys BPO, Intelenet, KPIT Cummins, Steria, TCS, VWA, Wipro, Xerox-ACS, and WNS

Content

This report will assist key stakeholders (buyers, service providers, technology providers) understand the changing dynamics of FAO market supplier landscape and help them identify Leaders, Major Contenders, Emerging Players, and the Star Performers in the 2010 FAO market. This report provides comprehensive coverage of the global FAO supplier landscape including detailed analysis on market shares, capability assessment, and the service provider landscape movement in 2010. The report also profiles the growing role of technology tools and platforms. It provides details of the various dimensions along which service providers are innovating to differentiate themselves in an increasingly competitive and globalized FAO market.

Some of the findings of this report, among others, are:

• Everest updated its classification of 20+ FAO service providers on the Everest PEAK Matrix for FAO into Leaders, Major Contenders, and Emerging Players. The PEAK Matrix is a framework to assess the absolute market success and capability of service providers
• The competitive intensity in FAO is increasing - there are now six service providers in the Leaders category (Accenture, Capgemini, Genpact, HP, IBM, and Infosys BPO) and several Major Contenders (namely TCS, Wipro, and WNS) are closing the gap fast
• Everest identified five service providers as the “2010 FAO Market Star Performers” – Accenture, Genpact, IBM, TCS, and WNS
• The five 2010 FAO Market Star Performers were chosen based on the relative movement on the Everest PEAK Matrix for FAO from 2009 to 2010 of 20+ FAO service providers. The movement relates to year-on-year (YoY) performance for a given service provider and does not reflect on overall market leadership positions
• Increased competitive intensity is driving innovation across three dimensions in the FAO market: Non-linear growth, differentiated offerings, and emergence of new buyer segments