Introduction

Although capital markets BPO is the smallest segment of BFSI BPO, it is also the fastest growing segment. As global capital markets recover from the effects of global economic crisis of 2008-2010 and continue to grapple with the 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.

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 provider market success
• Service provider capability advancements
• Emerging service provider trends
• Implications for key stakeholders

Content

This report will assist key stakeholders (financial institutions, service providers, and technology providers) understand the changing dynamics of the capital markets BPO service provider landscape. It will also help them identify market Leaders, Major Contenders, and Emerging Players for 2011. The report provides detailed analysis of service provider market shares, relative position on Everest Group PEAK Matrix, service provider capability assessment, and emerging service provider trends. Some of the findings in this report are:

• Everest Group showcases its classification of 14 capital markets BPO service providers on the Performance | Experience | Ability | Knowledge (PEAK) Matrix into the Leaders, Major Contenders, and Emerging Players categories
• There are five service providers in the Leaders category (Cognizant, eClerx, Syntel, TCS, and Wipro), six service providers (Genpact, iGate, Infosys, HCL, HP, and WNS) in the Major Contenders category, and 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 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
• 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 are also establishing a small presence in the onshore and nearshore locations