everest group peak matrix™ for capital markets - wipro · reflected in the current analysis...

Copyright © 2017 Everest Global, Inc.

This document has been licensed for exclusive use and distribution by Wipro

EGR-2017-11-E-2396

Everest Group PEAK Matrix™ for Capital markets

BPO Service Providers

Focus on Wipro

October 2017

2Copyright © 2017, Everest Global, Inc.

EGR-2017-11-E-2396

Introduction and scope

Everest Group recently released its report titled ““Capital Markets BPO – Service Provider Landscape with PEAK Matrix™

Assessment 2017”. This report analyzes the changing dynamics of the capital markets BPO landscape and assesses service

providers across several key dimensions.

As a part of this report, Everest Group updated its classification of 19 service providers on the Everest Group PEAK Matrix for

capital markets BPO into Leaders, Major Contenders, and Aspirants. The PEAK Matrix™ is a framework that provides an

objective, data-driven, and comparative assessment of capital markets BPO service providers based on their absolute market

success and delivery capability. Everest Group also identified three service providers as the “2017 Capital markets BPO Star

Performers” based on the strongest forward movement demonstrated on the PEAK Matrix™ year-on-year.

Based on the analysis, Wipro emerged as a Leader. This document focuses on Wipro’s capital markets BPO experience and

capabilities and includes:

Wipro’s position on the capital markets BPO PEAK Matrix

Wipro’s year-on-year movement on the capital markets BPO PEAK Matrix

Detailed capital markets BPO profile of Wipro

Buyers can use the PEAK Matrix™to identify and evaluate different service providers. It helps them understand the service

providers’ relative strengths and gaps. However, it is also important to note that while the PEAK Matrix™ is a useful starting

point, the results from the assessment may not be directly prescriptive for each buyer. Buyers will have to consider their unique

situation and requirements, and match them against service provider capability for an ideal fit.

https://www2.everestgrp.com/reportaction/EGR-2017-11-R-2349/Toc?SearchTerms=capital markets


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Everest Group’s classification of the BFSI industry

1 Business to consumer

2 Business to business

Note: This report covers vertical-specific BPO within the capital markets space. It does not include coverage of horizontal

business processes such as F&A, HR, procurement, and contact centers

Banking, Financial Services, and Insurance (BFSI)

Retail financial services

(B2C1)

– Retail banking

– Lending

– Cards

Commercial banking

(B2B2)

Banking

Investment banking

Asset management

Custody & fund

administration

Brokerage

Capital markets

Life insurance

Pensions and annuities

Reinsurance

Others

L&P Insurance

Property insurance

Casualty insurance

Reinsurance

Others

P&C Insurance

NOT EXHAUSTIVE

Focus of report


EGR-2017-11-E-2396

Everest Group PEAK Matrix™

Capital markets BPO | Wipro positioned as Leader

Everest Group PEAK Matrix™ for capital markets BPO

Capital markets BPO delivery capability

(Scale, scope, technology solutions & innovation, delivery footprint, and buyer satisfaction)

Ma

rket

su

ccess

(Re

ve

nue, n

um

ber

of clie

nts

, a

nd r

eve

nue g

row

th)

High

High

25

thp

erc

en

tile

25th percentile

75th percentile

Low

Major Contenders

75

thp

erc

en

tile

Infosys

Tech Mahindra

HCLViteos

DXC Technology

Leaders Cognizant

Wipro

Syntel

TCS

Genpact

Low Aspirants

Capgemini

Avaloq

Broadridge

WNS

NIIT Technologies

Hexaware

Mphasis

EXL

eClerx

Leaders

Major Contenders

Aspirants

Star Performers

1 Assessment for eClerx, DXC Technology, and Viteos excludes service provider inputs and is based on Everest Group’s proprietary Transaction Intelligence (TI)

database, service provider public disclosures, and Everest Group’s interactions with insurance buyers

2 Service provider assessments are based on data collected through December 31, 2016. Any changes in capabilities due to M&A activity after this date are not

reflected in the current analysis

Source: Everest Group (2017)


EGR-2017-11-E-2396

Wipro is a capital markets BPO Star Performer based

on strong forward and upward movement over time on

the Everest Group PEAK Matrix™

Change in Wipro’s positioning on the Everest Group PEAK Matrix for capital markets BPO

Market success in 2016

Signed several new contracts in 2016 leading to a

sharp increase in the total number of clients

This was accompanied by an expansion in the

scope of existing contracts; As a result, revenue for

capital markets BPO increased by more than 15%

Capability enhancements in 2016

Consolidated its delivery capability by adding new delivery centers

across several nearshore and onshore locations, thereby improving

its shoring mix

Added new technology solutions to its current portfolio and

enhanced its current set of capital markets-specific technology

offerings and solutions to gain more traction in the market

Mark

et

su

ccess

2016

Wipro

Delivery capability

2017



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Wipro | Capital markets BPO profile (page 1 of 7)

Everest Group assessment1

Measure of capability:

Driven by expansion in delivery capability and having witnessed high

service line growth owing to the acquisition of new client logos, Wipro

emerged as a Star Performer and a Leader on the capital markets BPO

PEAK Matrix

Wipro’s success is attributed to the investments it has made in

developing technology solutions as well as focused offerings in high

growth areas such as analytics, risk management, regulatory

compliance, and automation

It has a good presence across all major geographies and has witnessed

increased traction in Continental Europe and Asia Pacific

It enjoys high overall buyer satisfaction levels with relationship

management, innovation, and transition & implementation management

highlighted as the key strength areas

While Wipro has witnessed significant traction in the large-sized buyer

segment, it can achieve greater market success by tapping into the

small- and medium-sized buyer segment

It is primarily focused on investment banking and needs to increase its

play in the remaining LoBs

Wipro can further enhance the satisfaction level of the buyers by being

more proactive

Strengths

Delivery capability

Market successScale Scope

Technology

solutions and

innovation Delivery footprint Buyer satisfaction1 Overall

Best-in-class Very high High Medium high Medium Medium low Low Not mature

Areas of improvement

1 Based on contractual and operational information as of December 2016



EGR-2017-11-E-2396

Company overview

Wipro Limited is a leading global information technology, consulting, and

business process services company. They provide cognitive computing, hyper-

automation, robotics, cloud, analytics, and emerging technologies to help clients

for digital adaptation. They are recognized globally for their comprehensive

portfolio of services, strong commitment to sustainability, and good corporate

citizenship. They have a workforce of over 170,000, serving clients across six

continents.

Key leaders

Azim H. Premji, Chairman

Abidali Neemuchwala, Chief Executive Officer & Member of the Board

Nagendra Bandaru, Global Head, Business Process Services (BPS)

Sandeep Kumar, Business Head, Capital Markets BPS

Headquarters: Banglore, India

Website: www.wipro.com

Suite of services:

Reference data management

KYC and client onboarding

Reconciliations

Risk management

Regulatory reporting

Clearing and settlements

Brokerage, clearing, and exchange fees processing

Asset servicing (including corporate actions)

Syndicated loans processing

Middle-office functions

Fund services

Recent developments

2016: Launched contract management service offering to support

end-to-end contract management lifecycle

2015: Launched Artificial Intelligence (AI) platform HOLMESTM,

leveraging it for its e-KYC solution

Recent acquisitions and partnerships

2017: Acquired InfoSERVER SA, a Brazil-based IT Services

provider offering custom application development & software

deployment services

2016: Acquired Appirio, a U.S.-based technology and professional

services leader in cloud transformation practices

2016: Acquired HealthPlan services, a technology and process-as-

a-service provider in the U.S. health insurance market

2015: Acquired Designit, a global strategic design firm specializing

in designing transformative product-service experiences

2015: Acquired Cellent AG, a leading IT consulting and software

services company

2015: Partnership with GoldenSource, a provider of instrument

data management solutions to the securities & investment

management industry

2014 2015 2016

Revenue (US$ million) Not disclosed

Number of FTEs 4,050 4,900 5,800

Number of clients 14 18 24


Overview


http://www.wipro.com/


EGR-2017-11-E-2396

Pune

ChennaiBangalore

Hyderabad

ShanghaiNCRMumbai

Singapore

London

Hong Kong

Johannesburg

New Jersey

Dublin

Kuala Lumpur

Zurich

Mexico City

Costa Rica

Colombia

Jacksonville

Warsaw

Buenos Aires

Edinburgh

Manila


Key delivery locations



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Capital markets BPO FTE split by

delivery location

FTEs in numbers

89%

Capital markets BPO revenue mix

by buying geography

Revenue in US$ million

Capital markets BPO FTE mix by

buying segment

FTEs in numbers

Capital markets BPO number of

contracts by buyer size1

Number of active clients

50%

17%

33%35%

30%

16%

14%

75%

9%

8%8%

MEA (2%)Asset managers

Offshore

100% = 5,800

Custodian

Investment

banking

North

America

UK

100% = N/D 100% = 5,800 100% = 24

LATAM (3%)

APAC

Continental

Europe

Onshore (6%)

Large

Small

Medium

Nearshore (5%)

Brokerages


Capabilities and key clients

Key capital market BPO engagements

Client name LoB Region Client since

Leading French investment bank Investment banking Asia Pacific, Continental Europe, and North America 2015

U.S. headquartered top five global investment bank Investment banking Asia Pacific, Middle East & Africa, and North America 2014

Leading European investment bank Investment banking Asia Pacific, Continental Europe, North America, and United

Kingdom

2013

Leading global transfer agency Custody & fund administration North America 2011

Premier global investment bank Investment banking and wealth

management

Asia Pacific, Continental Europe, Latin America, North America,

and United Kingdom

2011

Global investment firm managing US$120 billion in

assets

Investment banking North America 2009

Leading multinational European investment bank Investment banking Asia Pacific, Continental Europe, North America, and United

Kingdom

2008

1 Buyer size is defined as large (US$10-50 billion in revenue), medium (US$5-10 billion in revenue), and small (<US$5 billion in revenue)



EGR-2017-11-E-2396

Wipro | capital markets BPO profile (page 5 of 7)

Technology solutions/tools

Application LoB Year launched Description No. of BPO clients

Data discovery

platform

All 2016 An integrated solution for capturing & managing data and generating

actionable insights through advanced analytics to offer price,

performance, and time benefits

2

Robotic Process

Automation (RPA)

solution

All 2015 An RPA tool offering for capital markets customers to capture and

interpret existing applications for processing a transaction,

manipulating data, triggering responses, and communicating with

other digital systems

12

e-KYC HOLMES Asset management

and investment

banking

2015 An in-house Artificial Intelligence (AI) platform to support

remediation of KYC data and create scalable and compliant

onboarding processes

5

SSI managed

service solution

Asset

management,

brokerage, and

investment banking

2015 Partnership with iMeta to provide a “SSI Managed Service” to

assure robust, streamlined process for maintaining data quality and

SSI’s for client banks

1

Instrument data

management

solution

Asset management

and investment

banking

2015 A comprehensive catalog of instrument data management services

on MDM platforms as an enterprise-wide utility in partnership with

GoldenSource

1

Intellifee All 2014 A Brokerage, Custody, and Exchange (BCE) fees platform-based

BPS solution for automation of invoice management & reconciliation

and enabling incisive spend analytics

2

Reconciliation

solution

All 2014 A hosted reconciliation utility solution to enable capital markets

customers to access an end-to-end, “pay-as-you-go”, and scale-

advantaged reconciliation service

3

Data quality-as-a-

service solution

Asset management

and investment

banking

2014 A solution to remediate and sustain data quality for critical domains

relating to regulatory compliance, reporting, and capital allocation

2



EGR-2017-11-E-2396


Risk management & regulatory reporting

Risk management support Details No. of BPO clients

Credit risk Provides credit risk management support to an investment including credit risk stress testing, RWA

computation, counter-party credit risk, and capital adequacy ratio computation

4

Operations risk Managing operational risk for capital markets clients with the help of proprietary methodologies

and tools

Support operations due diligence undertaken by investors on hedge funds before any new

allocations. The primary focus is on operations risk, transparency, accuracy, and independent

reporting

20

Market risk Providing market risk service to leading European investment banks to manage risk analytics,

quantitative model validations, and stress testing

Update and support client risk systems such as risk metrics, riskgura, and imagine

12

Liquidity risk Provides liquidity risk management support to an investment bank that includes liquidity risk

stress testing, counter-party credit risk, and liquidity coverage ratio computation

12

Regulatory risk Provide regulatory risk management support to investment banks through key data quality

projects executed including data profiling, data monitoring, and data remediation – FCA reporting

code accuracy in entity master; remediating entities under MIFID category

Undertake regulatory reporting for customers including tracking regulatory reporting thresholds

required by SEC, CFTC, CIMA, and ESMA

20



EGR-2017-11-E-2396


Risk management & regulatory reporting

Regulatory reporting support List of regulations Description No. of BPO clients

U.S. regulations Financial & Regulatory

Reporting; Dodd-Frank Act;

FATCA; KYC and AML; US SEC

reports; Basel - Pillar I, II & III

disclosures (covering credit,

market, operations and liquidity

risks, pillar II risks)

Extraction of data from client applications, population of

requisite reporting formats, report generation, report

approvals, and uploads

5

UK regulations Prudential Regulatory Authority

(PRA)

Implementing regulatory reporting for investment banks as

per the prescribed PRA guidelines

5

EU regulations Markets in Financial Instruments

Directive; EMIR; KYC and AML;

EU Trade & Transaction

Reporting

Extraction of data from client applications, population of

requisite reporting formats, report generation, report

approvals and upload. The clientele includes large

Investment banks

5

Local regulations Hong Kong Monetary Authority,

MSA: Monetary Singapore

Authority, RBI-Reserve Bank of

India; Local regulatory reporting

Implementing the regulatory reporting, as per the prescribed

guidelines of HKMA and MSA, for investment banks, for

their branches based out of Singapore/Hong Kong/India

4

1 Not disclosed



EGR-2017-11-E-2396

Appendix


EGR-2017-11-E-2396

Everest Group PEAK Matrix is a proprietary framework for

assessment of a service provider’s capability

Everest Group PEAK Matrix™ for capital markets BPO

2nd or 3rd quartile performance across

market success and capability

Top quartile performance across


Capital markets BPO delivery capability

(Scale, scope, technology solutions & innovation, delivery footprint, and buyer satisfaction)

25th percentile

25

thp

erc

en

tile

75th percentile

75

thp

erc

en

tile

High

Low

Low High

Leaders

Major Contenders

Aspirants

Mark

et

su

cces

s

(Revenue

, nu

mber

of clie

nts

, and

revenu

e g

row

th)

4th quartile performance across


Everest Group’s PEAK Matrix is a composite index of a range of distinct metrics related to a service provider’s scale, scope,

technology/domain investments, delivery footprint, and resultant market success in the context of a given services function.


EGR-2017-11-E-2396

Service providers are positioned on the Everest Group PEAK

Matrix™ based on the evaluation of two key dimensions

Measures the scale of

operations (overall

company revenue and

relative focus on the

vertical)

Scale

Measures the scope of

services provided across

LoBs, geographies, and

buyer size

Scope

Measures the capability

and investment in

technology solutions and

the ability to deliver value-

added services

(innovation) with high

technology leverage

Technology solutions

and innovation

Measures the delivery

footprint across regions

and the global sourcing

mix

Delivery footprint

Measures the satisfaction

levels1 of buyers across:

Business driver

Implementation

Process expertise

Relationship

management

Buyer satisfaction

Delivery capability

Measures success, which is captured

through capital markets BPO revenue,

number of clients, and

Year-on-Year (YOY) growth

Measures ability to deliver services successfully.

This is captured through five subdimensions

Ma

rket

su

ccess Major Contenders

Leaders

Aspirants

1 Measured through responses from two/three referenced buyers for each service provider


EGR-2017-11-E-2396

Everest Group confers the “Star Performers” title to

providers that demonstrate the strongest forward

movement over time on the PEAK Matrix™

This slide to be used ONLY for “Star Performers”

Methodology

Everest Group selects “Star Performers” based on the relative YOY movement of each service

provider on the PEAK Matrix

Year 1

Year 0

Service

provider

Mark

et

su

cces

s

Capability

The top quartile performers on each of the specified

parameters are identified and the “Star Performer”

rating is awarded to the service providers with:

The maximum number of top quartile performances

across all of the above parameters

At least one area of top quartile performance in both

market success and capability advancement

The “Star Performers” title relates to YOY performance for a given service provider and does not reflect the overall

market leadership position. Those identified as “Star Performers” may include “Leaders,” “Major Contenders,”

or “Aspirants.”

In order to assess advancements on market success,

we evaluate the performance of each service provider

on the PEAK Matrix across a number of parameters

including:

Yearly revenue growth

Number of new clients added

Number of contract extensions

Value of new contract signings

In order to assess advancements on capability,

we evaluate the performance of each service

provider on the PEAK Matrix across a number of

parameters including:

Annual growth in scale

Increase in scope of services

Expansion of delivery footprint

Technology- / domain-specific investments

2017 Capital markets

BPO Star Performers


EGR-2017-11-E-2396

FAQs (page 1 of 2)

Does the PEAK Matrix™ assessment incorporate any subjective criteria?

Everest Group’s PEAK Matrix™ assessment adopts an objective and fact-based approach (leveraging service provider RFIs and

Everest Group’s proprietary databases containing providers’ deals and operational capability information). In addition, these

results are validated / fine-tuned based on our market experience, buyer interaction, and provider briefings

Is being a “Major Contender” or “Aspirant” on the PEAK Matrix, an unfavorable outcome?

No. PEAK Matrix™ highlights and positions only the best-in-class service providers in a particular functional/vertical services

area. There are a number of providers from the broader universe that are assessed and do not make it to the PEAK Matrix™ at

all. Therefore, being represented on the PEAK Matrix™ is itself a favorable recognition

What other aspects of PEAK Matrix™ assessment are relevant to buyers and providers besides the “PEAK Matrix™

position”?

PEAK Matrix™ position is only one aspect of Everest Group’s overall assessment. In addition to assigning a “Leader”,

“Major Contender” or “Aspirant” title, Everest Group highlights the distinctive capabilities and unique attributes of all the

PEAK Matrix™ providers assessed in its report. The detailed metric level assessment and associated commentary is helpful for

buyers in selecting particular providers for their specific requirements. It also helps providers showcase their strengths in specific

areas

What are the incentives for buyers and providers to participate/provide input to PEAK Matrix™ research?

Participation incentives for buyers include a summary of key findings from the PEAK Matrix™ assessment

Participation incentives for providers include adequate representation and recognition of their capabilities/success in the

market place, and a copy of their own “profile” that is published by Everest Group as part of the “compendium of

PEAK Matrix™ providers” profiles


EGR-2017-11-E-2396

FAQs (page 2 of 2)

What is the process for a service provider to leverage their PEAK Matrix™ positioning status ?

Providers can use their PEAK positioning rating in multiple ways including:

Issue a press release declaring their positioning/rating

Customized PEAK profile for circulation (with clients, prospects, etc.)

Quotes from Everest Group analysts could be disseminated to the media

Leverage PEAK branding across communications (e-mail signatures, marketing brochures, credential packs, client

presentations, etc.)

The provider must obtain the requisite licensing and distribution rights for the above activities through an agreement

with the designated POC at Everest Group

About Everest Group

Everest Group is a consulting and research firm focused on strategic IT, business

services, and sourcing. We are trusted advisors to senior executives of leading

enterprises, providers, and investors. Our firm helps clients improve operational

and financial performance through a hands-on process that supports them in

making well-informed decisions that deliver high-impact results and achieve

sustained value. Our insight and guidance empower clients to improve

organizational efficiency, effectiveness, agility, and responsiveness. What sets

Everest Group apart is the integration of deep sourcing knowledge, problem-

solving skills and original research. Details and in-depth content are available at

www.everestgrp.com.

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+1-214-451-3000

Bangalore

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+91-804-276-4533

Delhi

[email protected]

+91-124-496-1000

London

[email protected]

+44-207-129-1318

New York

[email protected]

+1-646-805-4000

Toronto

[email protected]

+1-416-388-6765

Social Media

@EverestGroup

@Everest Group

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