IT Outsourcing in European Banking and Capital Markets – Service Provider Landscape with PEAK Matrix™ Assessment 2015

4 Nov 2015
by Aaditya Jain, Archit Mishra, Jimit Arora, Ronak Doshi, Sarah Burnett

$2,999.00

Introduction

Globally, BFSI is the largest vertical constituting 22-26% of the total share of ITO spend. Europe remained the largest source geography in terms of the number of BFSI IT outsourcing transactions in 2014, with 54% of the transactions sourced from this region.

The European banking and capital markets industry is undergoing an evolution. Despite positive outlook in Europe, BFS firms are still holding onto a recession mentality as they continue to operate in an uncertain regulatory environment. Firms have cost reduction and efficiency improvement on top of their agenda. Demand for AO services is the highest in United Kingdom and is on the rise in the Nordics and a few parts of Continental Europe. Firms are moving towards digitization, which constitutes a majority of their IT investments. Service provider landscape in Europe has been dominated by large-sized providers and is witnessing an emergence of mid-sized regional players with expertise in niche segments. Service providers in Europe are investing in increasing their delivery footprint in the region and building portfolio of offerings in areas such as risk & regulatory compliance, payments, mobility, big data, social media, and cloud. In order to succeed in the market, it is essential for service providers to understand specific challenges in the market environment as well as buyers’ preferences and devise an effective approach.

In this research, we analyzed the current trends and the future outlook for large, multi-year application outsourcing relationships for the European banking and capital markets sector. We have assessed 20 banking AO service providers and 18 capital markets AO providers in Europe, for their capabilities in providing these services in the region. 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:

  • Implications for buyers and service providers
  • The landscape of service providers for banking and capital markets AO in Europe
  • Characteristics of Leaders, Major Contenders, and Aspirants on the Everest Group banking and capital markets AO PEAK Matrix for Europe
  • “Star Performers” of 2014, providers with the strongest forward movement over time in terms of both market success and capability advancements

Banking PEAK

SCOPE OF THE ANALYSIS

  • Banking and capital markets ITO market overview (global with a focus on Europe)
  • Market trends and activity for large AO relationships in European banks and capital markets firms
  • European banking and capital markets AO service provider landscape
  • European banking and capital markets AO PEAK Matrix characteristics

Banking PEAK

CONTENT

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

  • Banking and capital markets ITO market overview:
    • Global IT outsourcing market size and vertical split
    • BFSI transactions split by geography
    • Banking and capital markets IT market split
    • IT transaction trends in Europe for banking and capital markets
  • European banking and capital markets AO overview and service provider landscape:
    • Everest Group Performance Experience Ability Knowledge (PEAK) Matrix for banking and capital markets AO in Europe
    • Star Performers in the 2014 European banking and capital markets AO PEAK Matrix
  • Europe banking and capital markets AO PEAK Matrix characteristics :
    • Domain investments
    • Delivery footprint
    • Key characteristics of service providers
    • Market share and scale
    • Scope characteristics
  • Service provider capabilities in digital themes

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

 

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