Introduction

The capital markets industry continues to grapple with high regulatory pressures, intense competition, and an uncertain economy. Market participants are adopting disruptive business models to contain costs and improve profitability. As the financial services industry undergoes a technology revolution through adoption of digital technologies, capital markets players are investing in next-generation technologies to stay ahead of competition. Buy-side and sell-side participants, as well as financial intermediaries are investing in risk & compliance management solutions, automation, cloud & open-source technologies, mobility, high-end analytics, and third-party platforms as they focus on cost reduction, standardization, and portfolio rationalization.

The evolving demand landscape is compelling IT service providers to adapt their offerings and invest in digital technologies, utility-based models, product & platform alliances, regulatory solutions, and co-innovation with clients.

In this research, we analyze the service provider landscape for large, multi-year application outsourcing relationships in the global capital markets sector. We have assessed 24 capital markets 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 capital markets 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 capital markets buyers and service providers

SCOPE OF THE ANALYSIS

• Market trends and activity for large AO relationships in capital markets firms
• Capital Markets AO PEAK Matrix characteristics
• Capital Markets AO service provider characteristics

CONTENT

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

• Capital markets trends and its implications for key stakeholders
• Everest Group Performance Experience Ability Knowledge (PEAK) Matrix for capital markets AO
• “Star Performers” in the 2015 capital markets AO PEAK Matrix
• Capital markets 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.