Introduction

Capital markets BPO continues to grow rapidly with a maturing service provider landscape. It achieved close to 20% revenue growth in 2014, led by investment banking and asset management. North America, United Kingdom, and Continental Europe continue to be major growth drivers in capital markets BPO, but increased traction is also being witnessed in Asia Pacific, as more players look to develop a footprint in this fast-growing region. The nascent industry state and higher adoption by small- to medium-sized buyers has led to smaller-sized deal signings. While technology continues to play an important role, providers are now coming up with innovative solutions to maximize their process & geographic coverage and gain market share. The tightening of the regulatory landscape has prompted buyers to look at new means to ensure they meet compliance requirements as well as contain costs. As a result, value added services, especially in areas such as regulatory reporting, risk management, and analytics are gaining prominence. The future landscape would be interesting to watch, as increasing technology play and innovation is expected to result in significant variance from present operating models, which, in turn, is likely to drive down the incremental requirement of FTEs.

Scope and Methodology

In this research, we analyze the global capital markets BPO service provider landscape. We focus on:

• Relative positioning of 18 service providers on Everest Group’s PEAK Matrix for capital markets BPO
• Service provider capability assessment across key dimensions
• Service provider comments

Content

This report will assist key stakeholders (financial institutions, service providers, and technology providers) understand the changing dynamics of the capital markets BPO service provider landscape. It will also help them identify market Leaders, Major Contenders, and Aspirants for 2015. The report provides detailed analysis of the service provider market share, relative position on the Everest Group PEAK Matrix, and capability assessment. Some of the findings in the report are:

• Cognizant, TCS, and Wipro emerged as Leaders
• Avaloq, Broadridge, eClerx, EXL, Genpact, HCL, IGATE, Infosys, Mphasis, Syntel, Viteos, WNS, and Xchanging emerged as Major Contenders
• Hexaware and NIIT Technologies are Aspirants on the PEAK Matrix for capital markets BPO
• Top Quartile performers by market success account for about 55% of the overall capital markets BPO segment by revenue and about half of the number of clients
• Most service providers focus primarily on one or two lines of business (LoBs) and Leadership positions by market share vary significantly across the LoBs
• Top Quartile performers provide technology-enabled services in most of their contracts and are better positioned to deliver innovative and value-added services such as analytics, automation, regulatory compliance, and risk management support
• Overall, offshoring in capital markets BPO is higher as most of the processes outsourced are more transactional in nature
• Buyers expect service providers to be flexible, innovative, responsive to changing industry landscape, proactive, and demonstrate thought leadership in their services. Top Quartile performers have significantly higher buyer satisfaction levels

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