everest group’s peak matrix™ for global life sciences ito … · · 2016-01-05to provide...

Copyright © 2015 Everest Global, Inc.This document has been licensed for exclusive use and distribution by HCL Technologies

Focus on HCL TechnologiesAugust 2015

Everest Group’s PEAK Matrix™ for Global Life Sciences ITO Service Providers

EGR-2015-12-E-1540

2Copyright © 2015, Everest Global, Inc.EGR-2015-12-E-1540

Introduction and scope

Everest Group recently released its report titled “IT Outsourcing in Life Sciences Industry – Service Provider Landscape with PEAK Matrix™ Assessment 2015”. This report analyzes the changing dynamics of the global life sciences ITO landscape and assesses service providers across several key dimensions.

As a part of this report, Everest Group analyzed 20 leading service providers on the Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix, specific to global life sciences ITO, categorizing them into Leaders, Major Contenders, and Aspirants. The PEAK Matrix is a composite framework that provides an objective, data-driven, and comparative assessment of life sciences ITO service providers based on their absolute market success and delivery capability.

Based on the analysis, HCL Technologies emerged as a Leader. This document focuses on HCL’s life sciences ITO experience and capabilities in the global life sciences ITO market. It includes: HCL’s position on the life sciences ITO PEAK Matrix Detailed life sciences ITO profile of HCL

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://research.everestgrp.com/Product/EGR-2015-12-R-1469/IT-Outsourcing-in-Life-Sciences-Industry-Service-Provider-Lan


Background of the researchThe healthcare and life sciences landscape has been subject to significant turbulence on account of a gamut of factors including escalating costs, widespread regulatory amendments, changing business models, and evolution of the patient-centric paradigm (with mobile computing, social media platforms, and “anytime-anywhere” information access). This combination of disruptive and legacy factors have driven healthcare and life sciences firms to adopt new technologies, while also revamping their existing systems, processes, and interfaces.

As the technology mandate for healthcare and life sciences enterprises evolves, so do their relationships with IT service providers. This, in turn, is driving the need for relevant research and market intelligence on demand and supply trends in healthcare and life sciences IT across the three major market segments – payer, provider, and life sciences. Everest Group’s healthcare and life sciences IT research program addresses this market requirement by analyzing outsourcing trends and service provider capabilities specific to IT in the healthcare and life sciences vertical.

In this report, we analyze the capabilities of 20 ITO service providers specific to the global life sciences sector. These service providers are mapped on the Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix, which is a composite index of a range of distinct metrics related to a provider’s capability and market success. We focus on: The landscape of service providers for life sciences ITO Assessment of the service providers on a number of capability-related dimensions Characteristics of Leaders, Major Contenders, and Aspirants on the Everest Group PEAK Matrix Implications for life sciences ITO buyers and service providers

Scope of this report Industry: Life sciences (pharmaceuticals, medical devices, biotechnology, and other life sciences1) Services: Large (TCV >US$25 million), multi-year (>3 years), and annuity-based application outsourcing Geography: Global Sourcing model: Third-party ITO transactions; excludes shared services or Global In-house Centers (GICs)

Life sciences ITO service provider landscape: Background and scope of the research

1 Includes healthcare data & information services and medical products distribution


HCL Technologies is positioned as a Leader on Everest Group’s PEAK Matrix for large life sciences ITO relationshipsEverest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for large life sciences ITO relationships1

High

LowLow High

Mar

ket s

ucce

ss(T

rans

actio

n ac

tivity

)

Delivery capability(Scale, scope, domain investments, delivery footprint, innovation, and buyer satisfaction)

75th percentile

75th

perc

entil

e

25th

perc

entil

e

25th percentile

Hexaware FujitsuUnisys

VirtusaEPAM

L&T Infotech

IGATE

Tech MahindraDell Services

CGICSC

Capgemini

HP ES

Wipro

TCSCognizantHCL Technologies

IBMAccenture

Leaders

Major Contenders

Aspirants

Infosys

LeadersMajor ContendersAspirantsStar Performers

1 PEAK Matrix specific to large (>US$25 million TCV), multi-year (>three years) application outsourcing relationships within the life sciences sector; the evaluation this year (2015) is weighted more on Application Outsourcing(AO) as a majority of large deals have application outsourcing in scope

Source: Everest Group (2015)


HCL Technologies | Life sciences ITO profile (page 1 of 6)Corporate and healthcare overview

Company description: HCL Technologies is a global service provider with a portfolio of services spanning application development, enterprise application services, engineering and R&D services, infrastructure management, and business process services. HCL leverages its workforce of 106,100 employees spread across locations in 31 countries to provide services in key industry verticals including BFSI, manufacturing, consumer services, public services, and healthcare

Headquarters: Noida, India

Website: www.hcltech.com

Services offered for the healthcare vertical: IT services across payer, provider, and life sciences segments. Services for the life sciences segment span drug discovery, clinical trials, regulatory compliance, drug safety, pharmacovigilance, manufacturing and plant automation, sales & marketing, LIMS, serialization & e-Pedigree, predictive analytics, information asset management, mobility, BI, SaaS, and cloud services

Major healthcare clients: Allscripts, AstraZeneca, BCBS, Eli Lilly, GlaxoSmithKline, HCSC, Merck, Novartis, Pfizer, Purdue Pharma, Quest Diagnostics, Shire, and UHG

Scale of healthcare subverticals

Payer Life sciences Provider

>US$500 million US$100-500 million <US$100 million

1 FY ends on June 30Source: Everest Group (2015)

Key financial parametersRevenue figures in US$ million

Revenue1 from healthcareRevenue1 from other verticalsEnterprise operating margin

3,642 4,070 5,291510 616661

FY 2013 FY 2014 FY 2015

20.1%22.2%

4,6865,95224.2%

5,360

Service mixFY 2015; US$ million

Geographical mixFY 2015; US$ million

58%31%

11%

100% = 5,952

AmericasEurope

ROW

35%

27%

15%

18%5%

100% = 5,952

Enterprise system

integration

Infrastructure services

Engineering and R&D services

BPO services

Industry application services

http://www.hcltech.com/


HCL Technologies | Life sciences ITO profile (page 2 of 6)Life sciences ITO capability assessment and market success

North America EMEA

Latin America APAC

Geographic scopeLife sciences subsegments

Pharma

Biotech

Medical devices

Others

Everest Group PEAK Matrix for life sciences ITO

Drug discovery/research

Marketing andsales

Clinical and pre-clinical trials

Supply chainand distribution

Value chain solutionsFunctional scope

IO

AO

SI/consulting

Manufacturing operations

PEAK Matrix dimensions assessment

Dimension Rating

Scale

Scope

Domain investments

Delivery footprint

Innovation

Buyer satisfaction

Market success

Focus on developing dedicated solutions for life sciences, in addition to a mere “healthcare wrapper” over its broad-based horizontal solutions

Create downstream technology implementation opportunities through a consulting-led selling approach Emphasize on identifying incremental/adjacent opportunities for HCL’s involvement in incumbent accounts Reinforce offerings in life sciences R&D and supply chain to emerge as an all rounder across the value chain

Areas of improvement

Success in building revenue stream from IO services in life sciences engagements, to top up its already prominent presence in the AO space

A strong foothold in pharma and medical devices, with growing traction among biotechnology and contract research organizations

Effective project/account management mechanisms with frequent touchpoints and robust communication with clients Strong focus on talent building/grooming via Centers of Excellence (CoEs) dedicated to healthcare and life sciences

StrengthsHigh Low

Capability dashboardEstablished: Mature capabilities with high adoptionCredible: Strong capabilities with rising adoptionEmerging: Nascent capabilities with limited adoption High

LowLow High

Mar

ket s

ucce

ss(T

rans

actio

n ac

tivity

)

Delivery capability(Scale, scope, domain investments, delivery footprint,

innovation, and buyer satisfaction)

Hexaware FujitsuUnisys

Virtusa EPAM

L&T Infotech

IGATETech Mahindra

Dell ServicesCGI

CSCCapgemini

HP ES

WiproTCS

CognizantHCL Technologies

IBM Accenture

Leaders

Major Contenders

Aspirants

Infosys



HCL Technologies | Life sciences ITO profile (page 3 of 6)ITO domain investments

Proprietary solutions (representative list)

Line of business Solutions

Life sciences Discovery and research– UCP (Unified Clinical Platform), Drug Safety Utility Model, end-to-end clinical transformation, and trial

optimization– Clinical Platform as a Service (CPaaS): A solution cum business model that offers control and

collaborative environment to sponsors and clinical research organizations– LABIMS: HCL's proprietary Laboratory Information Management System (LIMS)

Sales and marketing– A solution to target geographies according to sales potential and align sales force– Sales & marketing / commercial transformation comprises solutions across a global digital enablement

platform, next-generation sales force enablement, key opinion leader and payment management, sales and marketing data hub, and next-generation analytics

– Think Care @ Launch: An approach for connecting patient outcomes, service offerings, and potentially available technology to identify a set of Patient Service Archetypes (PSAs)

Mobility– mTrace is a mobile reporting solution built on MicroStrategy for iPads– Sun Safe: A mobile app that displays current UV index and suggests skin care recommendations– Mobility Kinect Concept app: This app leverages Kinect for Windows, the Kinect SDK, and Net

Framework 4.0 to enable surgeons perform hands free computing for seeking medical documents on a thin-glass wall

– CoolSAP: A mobile suite for integrating SAP workflows and processes under one umbrella Reporting/Analytics

– Connected Digital Healthcare (CDH): A solution that leverages patient and devices data to provide on-demand data for proactive usage and adaptive decisions

– MyDashboard: A unified reporting platform for event and service management data




Proprietary solutions (representative list)

Line of business Solutions

Life sciences IT operations– Auto LSH Configuration Wizard: Accelerator for integrating SAS and Oracle LSH– Workflow (BPM) enabled LSH statistical programming life cycle is an accelerator for LSH Validation– Event Triggering Workflow (BPM): LSH event/signal monitoring and alert tool– Lean ASM is a pharma framework which provides predictable services across business processes of

value chain, and minimizes spend on “Run The Business” (RTB) programs by improving operational efficiency

– Enhanced SAS IDE Integration to enable automated save/load SAS code to LSH– APSE: Project Management Tool for SAP implementation and package implementation– Test Factory in a Box (TFiB): A proprietary framework for implementing testing methodologies, identifying

defects, and retesting– iDPC: A tool that enables testing and data generation for ICD 9 and ICD 10 codes

Cloud– GIT Cloud is a private cloud solution offering IaaS– MyCloud is a flexible, high-performance, pay-as-you-go, and on-demand infrastructure-based offering

Compliance– Pharmacovigilance, information management, regulatory affairs and compliance officer, Universal

Content Manager, LIMS, Information ontology for R&D, and e-pedigree– HORIZON is a solution for risk-based monitoring– POEM is a task distribution control for virtually monitoring risk-based monitoring




Key alliances (representative list)

Alliance partner Purpose of alliance

Amazon Web Services (AWS)

HCL is a certified life sciences competency consulting partner with AWS

Clinical Data Interchange Standards Consortium (CDISC)

HCL is a certified platinum member of CDISC

Experts systems Partnership for semantic technology and Optimal Strategix (RWE)

Oracle Partnership for Oracle Health Sciences product suite implementation and support

Pegasystems Gold partner of Pegasystems with strategic relationship. A dedicated PEGA CoE to develop solutions and frameworks to accelerate Pega BPM programs

Salesforce.com Platinum consulting partner and cloud alliance partner

SAS Partnership for data analytics in the payer, provider, and pharma space

Sentrx Partnership in the drug safety and regulatory space

Tableau Partnership for data analytics visualization of HCL Care Intelligence Platform

TIBCO Partnership for business process management-related offerings

SAP Global SAP implementation partner

Validic Partnership for real-time integration of personal medical devices to HCL’s Care Engine platform

Veeva Global implementation partner

(Several) Other alliances with Labtronics, Trviium Health, Foresight, Pharmasol, ACT, Optimal Strategix, and Edetek



HCL Technologies | Life sciences ITO profile (page 6 of 6)Key ITO delivery locations

India

U.S.

Confirmed location for life sciences ITO 500-1,000 ITO FTEs>5,000 ITO FTEs 100-500 ITO FTEs1,000-5,000 ITO FTEs <100 ITO FTEs

NOT EXHAUSTIVE

Argentina

Japan

Canada Europe(multiple locations)UK

Singapore

Brazil Australia

China

MalaysiaMexico



Appendix


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 outsourcing function

The service providers were mapped on Everest Group’s Performance | Experience | Ability | Knowledge (PEAK) Matrix

Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for IT Outsourcing

High

LowLow High

Mar

ket s

ucce

ss(T

rans

actio

n ac

tivity

)

75th percentile

Top quartile performance across market success and capability

2nd or 3rd quartile performance across market success and capability

4th quartile performance across market success and capability

Aspirants

Leaders

Major Contenders

75th

perc

entil

e

25th percentile

25th

perc

entil

e

Delivery capability(Scale, scope, domain investments, delivery footprint, innovation, and buyer satisfaction)


Dimensions of service providers’ capability and market success underlying the PEAK Matrix

Active ACV of relevant deals

Relevant deals

Scale

Revenue

FTEs

Domain investments

Proprietary solutions

Investments in M&As and certifications

Scope

Lines of business served

ITO subfunctions

Geographies served

Delivery capability

Mar

ket s

ucce

ss

Everest Group PEAK Matrix

Aspirants

LeadersMajor Contenders

Delivery footprint

Delivery mix

Delivery regions covered

Buyer satisfaction

Buyer perception score

Growth in renewals (Year-on-Year)

Innovation

Innovative solutions

Innovative engagement models


Parameters identified for quantifying innovation in life sciences ITO

Based on the analyst’s perception of the steps taken by service providers to align themselves with the changing market dynamics

Innovation

Analytics support

Outcome-drivendeals

Social mediasupport

Mobility support

Experience (number of clients)

Percentage of contracts

Number of contracts

Qualitative Quantitative

Cloud support

Everest Group employed a combination of qualitativeand quantitative parameters to allocate an innovationscore to the service providers


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 Everest Group’s 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 in the global scenario that are assessed but 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 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 in / 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


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 Matrix positioning rating in multiple ways including:

– Issuing a press release declaring their positioning/rating– Getting customized PEAK Matrix profile for circulation (with clients, prospects, etc.)– Quotes from Everest Group analysts could be disseminated to the media – Leveraging PEAK Matrix 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

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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 empowers 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 and research.everestgrp.com.

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everest group’s peak matrix™ for global life sciences ito … · · 2016-01-05to provide...

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