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Everest Group: Report Analyzes Leading Service Providers of IT Application Outsourcing in Insurance Sector
DALLAS --(Business Wire)--
The leading global service providers of IT Application Outsourcing (AO)
services to insurance companies hold the majority of active annual
contract value (ACV) and total contract value (TCV) of large insurance
AO contracts, but the leading offshore service providers have witnessed
the fastest growth in revenues as well as new accounts over the last
three years, according to Everest
Group, an advisory
and research
firm on global services.
Everest Group's study, Application
Outsourcing in Insurance: PEAK Into the Evolving Service Provider
Landscape, analyzes the capabilities of 18 leading service
providers for IT Applications Outsourcing in the insurance vertical. The
insurance AO market represented by the 18 service providers assessed in
the report scaled up to over US$5.3 billion in revenues and 66,000
full-time employees spread across 20 delivery countries. While global
majors dominate the market in terms of revenue, offshore majors are
seeing improved revenues and transaction activity built on strategies
that include positioning more FTEs in strategic nearshore and offshore
delivery locations.
Analyzing performance and capabilities displayed last year, Everest
Group classified leading service providers on its
Performance/Experience/Ability/Knowledge (PEAK) matrix into categories
of Leaders, Major Contenders and Emerging Players:
-
Leaders are Accenture,
Cognizant,
CSC,
IBM
and TCS
-
Major Contenders are Capgemini,
CGI,
HCL,
HP,
Infosys,
L&T
Infotech, MphasiS
and Wipro
-
Emerging Players are Atos,
Hexaware,
Mindtree,
Softtek
and Syntel
"During the slowdown phase of the economy, Leaders lost share when
discretionary spending was put on hold whereas other service providers
with more specialized offerings saw an uptick in business as buyers
sought to execute smaller contracts for specialized requirements," said Amneet
Singh, vice president - Global Sourcing. "With the economy returning
to growth in 2010, the market-leading service providers benefitted at
the expense of the smaller, specialized providers as the result of
buyers regaining their appetites for broader and larger outsourcing
contracts."
Insights from the AO PEAK performers analysis include:
-
Leaders have the strongest portfolio of proprietary solutions for
insurance AO delivery.
-
Major Contenders have augmented their delivery capability by
establishing relevant product partnerships in this vertical and are
growing scale through acquisitions.
-
Emerging Players have leveraged their strength in broader application
services and tailored their offerings to meet the specific
requirements of insurance AO buyers.
-
Multi-tower contracts are more commonly signed by Leaders and Major
Contenders whereas Emerging Players focus on pure AO services.
-
Leaders have a much broader global delivery footprint compared to
Major Contenders and Emerging Players.
"Buyers need to prepare for changes in the evolving service provider
landscape. As economic conditions improve, service providers are gaining
confidence to participate in M&A activity to improve competitive
position, grow in new markets, offer end-to-end services and acquire
domain capabilities," said Jimit
Arora, research director. "In line with this trend, buyers must
familiarize themselves with their service provider's evolving strategy,
assess impact on existing services and prepare for changes in their
service portfolios."
This year, Everest Group is releasing 15 outsourcing reports for the
BFSI (banking, financial services and insurance) industry focused on ITO
and BPO themes. This includes nine reports on AO: market trends and
outlook, service provider landscape and service providers' profiles
compendiums for AO in banking, capital markets and insurance. Everest
Group's research studies are based upon analysis of about 350 large,
multi-year BFSI AO contracts and ongoing analysis of more than 20
leading service providers.
For more information about the report, Application
Outsourcing in Insurance: PEAK Into the Evolving Service Provider
Landscape, other BFSI
outsourcing research reports or other research services, please
visit research.everestgrp.com,
email info@everestgrp.com or
call +1-214-451-3110.
About Everest Group
Everest Group is an advisor to business leaders on the next generation
of global services with a worldwide reputation for helping Global 1000
firms dramatically improve their performance by optimizing their back-
and middle-office business services. With a fact-based approach driving
outcomes, Everest Group counsels organizations with complex challenges
related to the use and delivery of global services in their pursuits to
balance short-term needs with long-term goals. Through its practical
consulting, original research and industry resource services, Everest
Group helps clients maximize value from delivery strategies, talent and
sourcing models, technologies and management approaches. Established in
1991, Everest Group serves users of global services, providers of
services, country organizations and private equity firms, in six
continents across all industry categories. For more information, please
visit www.everestgrp.com
and research.everestgrp.com.
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