Capital Markets BPO – Service Provider Landscape with PEAK Matrix™ Assessment 2014

20 Nov 2014
by Amardeep Modi, Manu Aggarwal, Rajesh Ranjan

$2,999.00

Introduction

Capital markets BPO is the smallest segment of BFSI BPO, however, it continues to grow the fastest. Post 2008, capital markets, globally, have been facing multiple forces including weak and tentative economic recovery across North America and Europe, cost pressures, and an ever-tightening regulatory environment. All this has resulted in efficiency and processing support becoming critical levers to drive competitiveness. As financial institutions around the world, looking to ensure compliance and manage costs at the same time, reevaluate their service provider portfolios, an increasing percentage of those – many of them first-time buyers – are looking at giving more work to BPO service providers. Consequently, capital markets BPO contracts are seeing an increase in adoption from small- and medium-sized buyers. How the future evolves would be interesting to watch, as capital markets continue their movement through the economic uncertainty and service providers become stronger partners.

Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for Capital Markets BPO

Scope and Methodology

In this research, we analyze the global capital markets BPO service provider landscape. We focus on:

  • Relative positioning of 17 service providers on Everest Group’s PEAK Matrix for capital markets BPO
  • Service provider capability assessment across key dimensions
  • Emerging service provider trends
  • Implications for key stakeholders

Market Share

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 2013. The report provides detailed analysis of the service provider market share, relative position on the Everest Group PEAK Matrix, capability assessment, and emerging service provider trends. Some of the findings in the report are:

  • Cognizant, eClerx, Syntel, and TCS maintained their leadership positions in 2013
  • EXL, Genpact, HCL, IGATE, Infosys, Mphasis, Tech Mahindra, Viteos, Wipro, WNS, and Xchanging emerged as Major Contenders whereas Hexaware and NIIT Technologies are the Emerging Players on the PEAK Matrix for the capital markets BPO market
  • Top Quartile performers by market success (also the Leaders) account for over two-thirds of the overall capital markets BPO segment by revenue and about half of the clients
  • On average, the number of FTEs and the size of deals is much higher for the Top Quartile performers compared to Others
  • Most service providers focus primarily on one or two lines of business (LoBs)
  • Top Quartile performers provide technology-enabled services in most of their contracts, while Others offer the same in less than a fifth of their contracts
  • Overall, offshoring in capital markets BPO is higher compared to banking BPO. However, Top Quartile performers have started leveraging onshore locations to a much greater extent
  • Top Quartile performers have significantly higher buyer satisfaction levels
  • Technology solutions, analytics, risk management, regulatory reporting, and right-shoring emerge as key service provider trends
  • Inclusion of analytics services in the capital markets contracts has been on the rise for the last couple of years. While reporting and descriptive analytics remain the most commonly explored forms in capital markets BPO, some movement towards more complex offerings has been witnessed in the last few years

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

 

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