Capital markets operations landscape is becoming intensely competitive, with more and more service providers diversifying their LoB presence as well as delivery footprint. The landscape is evolving, with players enhancing their capabilities in LoB, where their presence had been limited so far, and creating a partner ecosystem to be able to provide their buyers the most efficient solutions in capital markets.

The landscape is evolving with larger players in the segment moving towards creating end-to-end holistic offerings for their clients and offering value-add services, such as analytics and risk & regulatory support, as part of their engagements. Most of the service providers are now working to add digital levers, such as AI, ML, and cognitive elements, to their solutions in their capital markets operations. Buyer expectations are evolving, to focus more on the total impact created rather than just cost savings from an outsourcing engagement. Buyers now expect their service providers to be more proactive in identifying areas for creating efficiencies and process overhauling.

Service providers need to find the right balance between various tasks, such as deepening their domain expertise, keeping their technology up to date, enhancing solutions with digital elements, maintaining a diverse delivery footprint, developing a consulting-led approach to offer a complete package to the client, and providing the value for money to their buyers, in order to stay ahead.

Scope and Methodology

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

• Relative positioning of 24 service providers on Everest Group’s PEAK Matrix for capital markets operations
• 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 operations service provider landscape. It will also help them identify market Leaders, Major Contenders, and Aspirants for 2020. The report provides detailed analysis of the service providers’ market share, their relative positioning on the Everest Group PEAK Matrix, and their capability assessment. Some of the findings in the report are:

• Cognizant, TCS, and Wipro emerged as Leaders
• Accenture, Avaloq, Broadridge, Capco, DXC Technology, eClerx, Exela Technologies, EXL, FIS, Genpact, HCL Technologies, Infosys, Mphasis, Syntel, Viteos, and WNS emerged as Major Contenders
• Capgemini, Conduent, Hexaware, NIIT Technologies, and Tech Mahindra are Aspirants on the PEAK Matrix for the capital markets operations
• With a strong performance during 2018-2019, Broadridge, HCL Technologies, Infosys, and TCS were conferred the “Star Performers” title on the capital markets BPO PEAK Matrix for 2020
• Avaloq has the highest capital markets BPO by revenue, whereas DXC Technology has the highest number of capital markets BPO clients
• HCL, Hexaware, Infosys, and TCS witnessed a service line growth of over 10% by revenue
• Accenture, HCL, Infosys, and TCS together accounted for more than 60% of the YOY growth (2018-2019) in capital markets operations by revenue
• The provider landscape is very different across the LoBs though there are service providers that have found a niche to focus on and are seeing good success in the market
• North America is the largest buyer geography for capital markets operations by revenue. While “Leaders” have a significant presence across most geographies, the market in Continental Europe is largely dominated by Avaloq and DXC Technology

Membership(s)

Banking and Financial Services (BFS) - Business Process Outsourcing (BPO)