Introduction

In 2013-2014, BFSI buyers continued to remain under pressure to increase revenue, enhance customer experience, reduce costs, replace legacy systems, and meet regulatory requirements. To address these challenges, most insurance buyers focused on transforming themselves and increasing investments in technologies such as social media, mobility, big data & analytics, and cloud computing.

At the same time, service providers in the BFSI-AO space ramped up their capabilities, built up scale, invested in newer technologies, and developed/acquired IP/proprietary solutions. Further, they also formed alliances that allowed them to undertake and deliver large-sized, annuity AO engagements. The insurance AO market witnessed dominance of offshore majors in larger geographies and regional players in specific geographies, such as Latin America and Europe. The competitive intensity in the insurance-AO services space is at an all-time high. As a result, it is becoming difficult to differentiate service providers based purely on delivery capability. It is, therefore, critical to have a comprehensive, well-rounded, and fact-based assessment of each service provider's insurance-AO value proposition.

In this research, we analyze the current trends and the future outlook for large, multi-year application outsourcing relationships in the global insurance sector. We have assessed 22 insurance AO service providers for their capabilities in providing these services globally. These providers were mapped on the 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 insurance AO market
• Assessment of the service providers on a number of capability-related dimensions
• Characteristics of Leaders, Major Contenders, and Emerging Players on the Everest Group insurance 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 insurance buyers and service providers

SCOPE OF THE ANALYSIS

• Insurance AO service provider landscape
• Market trends and activity for large AO relationships in insurance firms
• Insurance AO PEAK Matrix characteristics

CONTENT

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

• Insurance AO service provider landscape:
• Market share analysis by source geographies
• 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 insurance AO
• Star Performers in the 2014 insurance AO PEAK Matrix
• Insurance AO PEAK Matrix characteristics :
• Market share and scale
• Scope characteristics
• Delivery footprint
• Market activity
• Service provider capabilities in next-generation digital themes (analytics, mobility, social media, and cloud) and regulatory compliance