Introduction

In 2014, banks continued to face multiple challenges such as revenue pressures, cost reduction, regulatory compliance, legacy modernization, and increasing customer expectations. As a result, banks are required to evolve across the value chain and are focusing on efficiency (run the bank), compliance (manage the bank), and transformation (change the bank). As banks embrace transformation through digital channels, they are demanding strategic partnerships from their service providers to bring in best practices and innovation into the engagements. Disruption from non-traditional players has made banks rely heavily on their technology partners to generate more value from investments in new delivery methodologies, automation, and next generation technologies.

At the same time, the service provider landscape is transforming rapidly with rise of challengers. These players are displacing large-scale incumbents through risk-linked pricing models, innovation in next-generation technologies, investments in building proprietary solutions, and spearheading adoption of new production and delivery methodologies.

In this research, we analyze the service provider landscape for large, multi-year application outsourcing relationships in the global banking sector. We have assessed 30 banking 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:

• Assessment of the service providers on a number of capability-related dimensions
• Characteristics of Leaders, Major Contenders, and Aspirants on the Everest Group banking AO PEAK Matrix
• “Star Performers” of 2015, providers with the strongest forward movement over time – in terms of both market success and capability advancements
• Implications for banking buyers and service providers

SCOPE OF THE ANALYSIS

• Market trends and activity for large AO relationships in banking firms
• Banking AO PEAK Matrix characteristics
• Banking AO service provider characteristics

CONTENT

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

• Buyer feedback for service providers
• Banking trends and its implications for key stakeholders
• Everest Group Performance Experience Ability Knowledge (PEAK) Matrix for banking AO
• Star Performers in the 2015 banking AO PEAK Matrix
• Banking AO PEAK Matrix characteristics :
• Market share and scale
• Scope characteristics
• Domain investments
• Delivery footprint
• Market activity
• Buyer satisfaction
• Key characteristics of service providers on the PEAK Matrix

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