Introduction

Strained revenue growth, low interest rates, rise of the digital consumer, and growing pressure of regulatory compliance continued to adversely affect the profitability of banks in 2013. This has forced global banks to rethink and reinvent their business models as well as technological priorities. As a result, 2013 saw a strong return of the discretionary spend, led by investments in development of specific applications for regulatory compliance, risk management, channel-specific initiatives (social, mobile, etc.), and customer analytics.

Consequently, the competitive landscape for the service providers is also intensifying as they continue to ramp up their capabilities, invest in innovative technologies, form alliances, and acquire strategic targets to address the growing and complex technology needs of banks and financial institutions.

In this research, we analyze the capabilities of 23 leading AO service providers, specific to the global capital markets sector. These providers were mapped on Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix, which is a composite index of a range of distinct metrics related to each provider’s capability and market success. In this report, we focus on:

• The landscape of service providers for capital markets AO
• Assessment of the service providers on a number of capability-related dimensions
• Characteristics of Leaders, Major Contenders, and Emerging Players on Everest Group capital markets AO PEAK Matrix
• “Star Performers” of 2014, providers with the strongest forward movement over time – in terms of both market success and capability advancements
• Implications for capital markets buyers and service providers

SCOPE OF THE ANALYSIS

• Industry: Capital markets (investment banking, asset management, custody, fund administration, and brokerage); excludes banking and insurance
• Services: Large (TCV > US$25 million), multi-year (more than three years), and annuity-based application outsourcing
• Geography: Global
• Sourcing model: Includes 23 leading capital markets AO service providers

CONTENT

This report analyzes IT applications outsourcing in the capital markets subvertical with a focus on large (TCV > US$25 million), annuity-based, multi-year (over three years) relationships:

• Capital markets AO service provider landscape:
• Market share analysis by source geographies
• Market share analysis by capital markets lines of business
• Delivery capability assessment based on scale, scope, domain investments, delivery footprint, and buyer satisfaction
• Market success assessment
• Everest Group Performance Experience Ability Knowledge (PEAK) Matrix for capital markets AO
• Star Performers in the 2014 capital markets AO PEAK Matrix
• Capital markets AO PEAK Matrix characteristics:
• Market share and scale
• Scope characteristics
• Delivery footprint
• Market activity
• Service provider capabilities in digital themes:
• Overview and summary
• Regulatory and risk management
• Analytics
• Mobility

Everest Group has a complimentary four-page PEAK Matrix preview document for this service provider landscape report.