RS - 1707 - HFS BG DXC 2017

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The Services Research Company™

A Buyers’ Guide to DXC Technology (CSC/HPE/Xchanging)


July 2017

Hema Santosh
Principal Data Analyst
[email protected]

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Table of Contents

TOPIC PAGE

Why DXC Technology (CSC/HPE/Xchanging) 3

Financials 10

Blueprint Performance 16

About the Authors 56

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Why DXC Tech

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DXC – Consolidation of Service Providers

A Big Entity DXC

Two Big Competitors CSC HPE

History of Niche
Xchanging UXC Fruition Fixnetix
Acquisitions

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DXC Technology: Overview
In April 2017, DXC Technology was formed with the merger of CSC and HP Enterprise Services (HPES). The new
company has the tagline “New. But not born yesterday,” contrasting the company’s recent creation with its long
legacy heritage.

The aim of the new organization is to become the “world’s leading independent, end-to-end IT Services company,”
prioritizing its role as a change agent with its clients, driving technology-driven business transformation by investing
in its current legacy skills base, and improving operational efficiencies.

The new company has a mammoth task of generating a differentiated and relevant service portfolio that attracts a
wider base of clients. The new company remains largely infrastructure-led. DXC Technology has to work on balancing
its portfolio with investments in building strong consulting capabilities and innovation. To start, DXC has decreased its
combined offerings from 370 (HPES’s 230 offerings and CSC’s 140) to 84 offerings that sit within nine streamlined
offering groups.

DXC Technology is going to market with its new operating model “build, sell and deliver.” The first stop for this new
operating model is the current base of 6,000 clients with which the company wants to maintain a close relationship.
At the same time, this model will be applied to the new businesses.

DXC, has to hit the ground running and start to attract and retain clients across its service lines. However, the biggest
risk to its success is not external, it must successfully integrate with cost and operational efficiencies.

Other Quick Facts about DXC are:

 Total number of employees: 170,000 are part of its Global Delivery Network as of March 2017
 Geographic Presence (Estimated)
• Onshore (North America (28%), UK and Western Europe (17%)
• India (Gurgaon, Mumbai, Kolkata, Pune, Chennai, Hyderabad, and Bangalore) – 38%
• Other APAC (Australia, Singapore, and Japan) – 9%
• Nearshore (Latin America and Eastern Europe) – 8%
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Clients*

* Representative list of publicly referenceable clients Included in HfS Blueprints

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Strategy, Strengths, and Weaknesses
Strategy
• DXC’s aim is to grow its Digital practice faster than the core services, which includes workload migration, security services, big data, and mobility that are
expected to contribute more than 25% by 2020.
• DXC will make a few tuck-in acquisitions to aid its 3-year outlook for revenue growth. In the first week of July, DXC made its first acquisition with Tribridge.
• DXC has a re-mix strategy: First, the new entity to consolidate its vendors/partners to streamline duplicative contracts and assess clients that will benefit
from renegotiating contracts that will consolidate the scale and expand the scope of higher-value next-generation work.
• Cost efficiencies will continue to be of prime importance especially with the balancing of the facilities portfolio and re-assessing of roles and responsibilities
to eliminate duplicate roles and silos along with automation.
• In addition to location and delivery talent, the biggest task and priority for DXC is sales force consolidation and clarity on combined offerings to position and
pitch a perfect sale. The company already claims a 65% win rate and that the majority of its sales people (92%) are already being trained on the new
offerings.
• DXC aims to improve the delivery and operations of traditional processes and use these productivity gains to partially fund clients on their digital
transformation journey.

Strengths Weaknesses
• DXC has more end-to-end scale of two competitors merging into one entity that • Merging synergies from the two companies will need more time and
has opportunities to cross-sell and build a partner network to fill in gaps effort due to cultural differences
• Before the merger, both firms had common initiatives for internal • It will take major effort and time to re-brand the uniqueness of the
transformations and cost cutting, which will help continue the momentum for new entity
the merged entity • The restructuring cost of severance payments and infrastructure
• DXC has a solid client base in healthcare, public sector, and CPG verticals charges to consolidate data centers and delivery centers and
• In BPO services, DXC draws strength from its own GBS for F&A, Procurement, and consolidate operations or contract cancellation may adversely affect
Customer Care to develop a balance between transactional and higher-end the bottom line and cost-efficiency initiatives
services and extend many of these benefits to its clients • The outcome and solutions-led emphasis may overwhelm a few
• Trust of existing customers: Existing customers are looking forward to combined customers, and there lies the risk that they will insource work
services and solutions that will benefit them and believe that the • Talent shortage, especially in the Workday services market and
integration/merger will work for the larger good other emerging technologies, such as automation
• DXC has a well-planned strategy to embrace change by partnering to win in new • The competition is already gearing up to position DXC’s post-merger
Digital areas. For example, the AWS partnership allows its clients to deploy a
synergies as one of the limitations in forthcoming renewals
private or hybrid cloud using AWS architecture. Partnered with HCL in banking
and Mphasis for the public sector.

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Horizontal Offerings - DXC’s 9 Global Offering Families
•Customer Experience (CX) Services •DXC MyWorkStyle Digital Workplace •Cloud and Mobile Applications •Security Advisory Services
•Digitization Services •Mobility & Workplace Services •Intelligent Security Operations
•Finance and Administration (F&A) ManagementProductivity & Unified •Enterprise SaaS Services •Infrastructure and Endpoint Security
Services Communications •Microsoft Dynamics Services •Threat and Vulnerability Management
•Human Resources (HR) and Payroll •Mobile Apps and IoT •Oracle Services •Security Risk Management
Services •User Support •SAP Applications •Identity and Access Management
•Cards and Payment Services •Software Licensing & Management •ServiceNow Services •Data Protection and Privacy
(C&PS) Solutions
•Cloud Security
•Business Process Services Advisory

Business Process Workplace and Enterprise And


Security
Services Mobility Solutions Cloud Applications

•Applications Development •Advisory, Transformation and •Customer Engagement and •Analytics Advisory
Services Migration Solutions •Analytics And Big Data Platform
Design
•Applications Management •Enterprise Solutions On Demand
•Salesforce •Analytics Solutions And Services
Services •Brokerage and Integration Services
•Managed Cloud Services •Digital Commerce •Artificial Intelligence And IoT Analytics
•Applications Modernization & •Marketing Platform •Information Governance
•Data Center, Network and Hosting
Transformation
Solutions •Managed BI And Analytics
•Testing and Quality Services

Application
Cloud Solutions Consulting Analytics
Services

Industries is one of the 9 Global Offerings

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Industry Offerings
•U.S. Public Sector •Supports 400 energy businesses •Healthcare Provider •Consumer Packaged Goods
•UK Public Sector worldwide across: •Government Healthcare •Retail
•Solutions for Public Sector • Oil and Gas •Lifesciences
•Utilities
•Natural Resources Solutions

Public Sector/ Energy and Healthcare and


Retail
Government Utilities Life Science

•Airlines •Telecom Providers •Industry 4.0


•Freight & Logistics •Banking & Capital Markets •Media and Publishing •Automotive
•Railways Solutions •Aerospace and Defense
•Insurance

Travel and Telecom and


BFSI Manufacturing
Transportation Media

DXC Has Simplified Horizontal Offerings Across The Industry Groups Mentioned Above

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Financials

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DXC Global Services Financial Performance
Revenue ($M) / Operating Margin % by Calendar Year Revenue FY 2016 ($M) by Business
26,371
Segment
25,157
23,196
21,796
11% 19,501
18,221
14,905 9%
14,589
13,184 8% 8%
12,593
7%
6% 6% 10,132 CSC - Global Business
5% 7,525 4,173
Services
4% 4%
3%
CSC - Global Infrastructure
3,434
Services

CY 2011 CY 2012 CY 2013 CY 2014 CY 2015 CY 2016

Revenue HPES ($M) Revenue CSC ($M)2


-6% HPES Margin (%) CSC Margin (%)

Growth vs. Operating Margin by calendar Quarters


Revenue Growth HPES (%) HPES Margin (%) Revenue Growth CSC (%) CSC Margin (%)

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017

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Delivery Location Compendium, 1
Capabilities Headcount Onshore - US Nearshore - Onshore - UK and Nearshore- India Philippines Other APAC
and Canada Latin Western Europe Continental
America Europe

ServiceNow, 2016 420 45% North America 33% Europe 5% 19% Asia-Pacific Tokyo
(CSC) CEMEA

Workday Services, 200 US and Canada Ireland, UK, France, Poland: Bangalore China,
2016 (HPE) and Germany Wroclaw Australia,
Japan

Salesforce Services, 214 US Brazil France, Spain and Central


Belgium; UK and Continental
2016
Ireland; Nordics Europe

Procurement As-a- 1000+ United States: United Kingdom: Spain: China and
Service, 2016 Annapolis; Basildon; Bracknell; Barcelon Australia
(Xchanging) Chicago; Columbia; Edinburgh; Fulwood; a;
Columbus; Miami; Preston; Glasgow; Madrid
NYC; Phoenix; Littlehampton;
Sacramento; London; Luton;
Springfield Newcastle;
Nottingham
France: Paris;
Amiens; Lille

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Delivery Location Compendium, 2
Capabilities Headcount Onshore - US Nearshore - Onshore - Nearshore- India Philippines Other APAC Others
and Canada Latin UK and Continental
America Western Europe
Europe
Finance & 6,000 (HP) 5% – 5% UK - Preston, 15% - 20% 65% to 75% China - Dalian
Accounting As-a- San Jose, CA Costa Rica Nottingham Continental Bangalore,
1,350+ (XCh) (Xch) Europe – Chennai
Service Business Warren, MI (Xch) Wroclaw and
Process Lodz, Poland Shimoga (Xch)
Outsourcing, 2016
(HPE and
Xchanging)

Healthcare Payer 7000 10% 10% 50% 25%


Operations, 2015 US UK Bangalore Australia
(HPE) 800

(Xchanging)

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Tools/Methodology Compendium, 2
Capabilities Tools/Methods

ServiceNow, 2016 • LIFT Implementation Framework: provides CTI-based “guardrail” best practice implementation, and includes
one year of application management via Virtual Admin service
• Cybersecurity – ServiceNow-based security operations center
• Secure FedRamp hosting of ServiceNow
• MyServicePortal is a custom ServiceNow platform application developed to elevate engagement with the
customer
• HRCM Accelerator: HR Case Management in ServiceNow
• ITAM Accelerator: Bolt-on integration capability; preconfigured instance with defined automation

Workday Services, 2016 • Hyperloader: Data conversion tool


• TECSYS: Supply chain/warehousing tool
• PinPoint: Payroll parallel testing tool
• Workday Analyzer and Monitor (WAM): Used in sales, implementation, and post-production sales process

Salesforce Services, 2016 • Omni360 for Utilities: Integration platform for multi-channel customer communications
• Omni 360 Insurance Agent Portal Accelerator
• Healthcare Accelerator: Community portal for coverage search, selection and purchase
• AMA Asset Management Accelerator: Sales and service application for asset managers and service agents

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Tools/Methodology Compendium, 3
Capabilities Tools/Methods

Procurement As-a-Service, 2016 • MM4


(Xchanging) • X-Flow (AP)
• X-Act
• VAULT
• Spikes Cavell Spend Analytics

Finance & Accounting As-a- • HP Business Process Analytics Tools (BPAT)


Service Business Process • Autoflow: ePresentment tools
Outsourcing, 2016 • Phantom: HP Quick Test Pro
• Autoflow: Autonomy
• HP CARTT
• HP e-Solution: tools for document capture
• Framework for Innovation & Transformation
• HP ES Document Processing Services (DPS): including HP TRIM, digital archiving software

Healthcare Payer Operations, • InterChange MMIS, with components:


2015 • Connections for automated rules based workflow
• Healthcare Portal for self-service provider and member enrollment/ management
• HP ProDur for drug utilization support
• Immunization Registry
• Correspondence
• Atlantes for care management
• HP interChange Business Intelligence and Analytical Reporting
• HP PASSAR: Preadmission Screening and Resident Review for Long Term Care
• HP inSight Dashboard
• HP ALM and PPM for demand management, project management

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Blueprint Performance

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CSC/Xchanging Profiles from HfS Blueprints (2014–2017)
This report contains Service Provider profiles of CSC/Xchanging from 34 HfS Blueprints covering business
processing, IT and engineering services.

CSC/Xchanging was seen by our HfS Analyst team as:

• Building on the acquisition of MM4 to drive North American and As-a-Service based growth
(Procurement As-a-Service, 2016 – Derk Erbe)

• Customer experience “on demand” and omnichannel investments driving digital contact center
innovation (Digitally Enabled Contact Center, 2016 – Melissa O’Brien)

• A growing practice, with ambition to establish a strong brand as a long-term partner (Workday
Services, 2016 – Khalda De Souza)

• Inorganic growth drives deep ServiceNow capabilities, broad recognition for pioneering role of
Fruition Partners (ServiceNow Services, 2016 – Tom Reuner)

• Customer experience “on demand” and omnichannel investments driving contact center innovation
(Contact Center Operations Services, 2016 – Melissa O’Brien)

• Refreshing its identity and reenergizing its culture with a strong Robotic Process Automation
capability incorporated into business process services (Finance & Accounting As-a-Service Business
Process Outsourcing, 2016 – Phil Fersht, Barbra McGann and Hema Santosh)
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Blueprint Index
Blueprint Title Positioning Page
Procurement As-a-Service, 2016 (CSC/Xcg) High Performer 21
Digitally Enabled Contact Center, 2016 (HPE) Winner’s Circle 22
Workday Services, 2016 (HPE) High Potential 23
ServiceNow Services, 2016 (CSC) Winner’s Circle 24
Contact Center Operations Services, 2016 (HPE) High Performer 25
F&A As-a-Service Business Process Outsourcing, 2016 (HPE) High Performer 26
F&A As-a-Service Business Process Outsourcing, 2016 (XCG) Execution Powerhouse 27
Salesforce Services, 2015 (CSC) --- 28
Trust-as-a-Service, 2015 (HPE) Winner’s Circle 29
Healthcare Payer Operations, 2015 (HPE) Winner’s Circle 30
Healthcare Payer Operations, 2015 (Xcg) High Performer 31
Insurance As-a-Service, 2015 (CSC) High Performer 32
Insurance As-a-Service, 2015 (Xcg) High Performer 33
Application Testing Services, 2015 (HP) Winner’s Circle 34
Application Testing Services, 2015 (CSC) High Performer 35

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Blueprint Index
Blueprint Title Positioning Page
Procurement As-a-Service, 2015 (Xcg) Winner’s Circle 36
Workday Services, 2015 (HP) --- 37
Enterprise Mobility Services, 2015 (HP) High Performer 38
Enterprise Mobility Services, 2015 (CSC) --- 39
Enterprise Analytics Services, 2015 (CSC) High Performer 40
Enterprise Analytics Services, 2015 (HP) High Performer 41
Enterprise Analytics Services, 2015 (Xcg) --- 42
Progressive F&A BPO Services, 2015 (HP) Winner’s Circle 43
Progressive F&A BPO Services, 2015 (Xcg) --- 44
SAP Services, 2014 (HP) Winner’s Circle 45
SAP Services, 2014 (CSC) High Performer 46
Talent Acquisition Service Providers, 2014 (HP) --- 47
Digital Transformation Services, 2014 (HP) Challenger 48
Digital Transformation Services, 2014 (CSC) Rising Star 49
Cloud Infrastructure Services, 2014 (HP) Winner’s Circle 50
Enterprise Mobility Services, 2014 (HP) High Performer 51
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Blueprint Index
Blueprint Title Positioning Page
Multi-tower HRO, 2014 (HP) --- 52
Insurance BPO,2014 (CSC) High Performer 53
Insurance BPO, 2014 (Xcg) High Performer 54

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CSC/Xchanging – Procurement As-a-Service, 2016
CSC/Xchanging Building on the acquisition of MM4 to drive North American and
High Performer As-a-Service based growth
Blueprint Leading Highlights Strengths Challenges

• Depth of Industry Specific • Acquiring Procurement Building Blocks: Xchanging’s acquisition of MM4 has • Dealing with Acquisition Impact: Xchanging has been
Capabilities revitalized its presence in North America and provided a base for a more technology acquired by CSC in 2015 and will be part of the HPE/CSC ‘spin-
• Flexibility to Deliver Point & End to enabled, cross-client as-a-service offering. This has been followed by the acquisition of merge’. HfS identifies the post-merger transition as a
End Solutions and Integration of Spikes Cavell in early 2015 for spend analytics capabilities and technology, with a challenge for Xchanging’s procurement group. The main
Supporting Technology strength in the UK public sector. driver for the acquisition by CSC are Xchanging insurance
• Investment in Procurement As-a- • Procurement As-a-Service Strategy: In 2014, Xchanging began to build out a distinct services. CSC nor HPE has a procurement practice. The
Service Plug & Play Digital Services offering set for As-a-Service procurement delivery to sit aside traditional contracting challenge for Xchanging will be to find a place within the new
and solutioning models. This shows that the service provider has been listening to organization with priority to invest in talent, geographic
customer feedback on the needs of enterprise buyers. The addition of Spikes Cavell growth, technology platforms and advanced analytics for a
further enhanced the As-a-Service strategy, with Analytics As-a-Service and Data As-a- standalone procurement services group.
Service offerings for spend management joining the portfolio of services. • Retaining Staff: As in any merger and acquisition situation, it
• Tail Spend Management: Xchanging has developed a significant capability to deliver is a challenge to retain staff in an environment with
Value Chain Services Maturity uncertainty. From market discussions HfS learned that
tail spend management As-a-Service which responds to a growing need and interest
from the procurement outsourcing buyers. Xchanging has offered incentives to key personnel to stay put
Strategic Sourcing and Xchanging reports this to be successful.
• Regulatory Expertise: Xchanging has a deep history of working with major clients in
highly regulated markets and is known for its responsiveness to changing and often • Recovering from Bad FY 2015: 2015 was a very difficult year
Contract Management for Xchanging’s procurement group. It reported a loss and a
highly complex requirements.
subsequent program, Split and Fix, that split up the
Supplier Management • Analytics: With the 2015 acquisition of Spikes Cavell Xchanging added a full spend procurement group. Its technology assets (MM4 and Spikes
analytics stack to its analytics capabilities, amplifying the ability to offer end-to-end Cavell) became part of Xchanging’s technology practice and
Technology Management and point solutions to clients. the procurement services part of the larger business services
• Delivering Procurement to CSC: One early and tangible result of the acquisition by CSC practice.
Transactional Procurement is Xchanging adding its new parent as a procurement outsourcing client.

Acquisitions and Partnerships Key Clients Global Operations Proprietary Technologies / Platforms

Acquisitions 110+ Clients in Procurement Headcount: ~1,000 FTEs • MM4


• 2015: Spikes Cavell – data analytics Services including: • X-Flow (AP)
• 2014: MM4 Locations: • X-Act
• Military Systems Provider • VAULT
• Global Cosmetics • United Kingdom: Basildon; Bracknell; Edinburgh;
Partnerships Fulwood; Preston; Glasgow; Littlehampton; London; • Spikes Cavell Spend Analytics
Manufacturer
• Oracle • European Pharmacy Luton; Newcastle; Nottingham
• Blue Prism Chain • France: Paris; Amiens; Lille
• Salesforce • Consumer Products • United States: Annapolis; Chicago; Columbia;
• KOFAX Manufacturer Columbus; Miami; NYC; Phoenix; Sacramento;
• Elcom • Security and Facilities Springfield
• Coupa Provider • Spain: Barcelona; Madrid
• Australian Banking Giant
• American Family • China
Restaurant Chain • Australia

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HPE – Digitally Enabled Contact Center, 2016
HP Enterprise Customer experience “on demand” and omnichannel investments
As-a-Service Winner’s Circle driving digital contact center innovation

Blueprint Leading Highlights Highlights Examples What to Watch

• Ability to Execute Digital • Digital Customer Experience Center: The HPE Global CX Center of • Platform and Chat: HPE • Align vision with overall HPE
Interactions Excellence is an environment for designing, prototyping, analyzing, leveraged its CX On Demand messaging: HPE’s overall
• Generates Actionable Data collaborating and reporting on digital customer experiences, while platform with application strategy seems more aligned
• Omnichannel Investment providing advanced analytics and interactive visualization capabilities management services for an to supporting the back office,
that can be used for to deliver a personalized customer experience. electronics manufacturer to add a but the CX leadership’s
chat channel, reducing phone position and messaging is
• “CX On Demand” platform: HPE has 22 clients on its on-demand support from 100% of inquiries to strong around omnichannel.
Value Chain Services Coverage: platform, including a specialty desk for routing across channels. 70%.
• Analytics: For another electronics
Digital Interactions • Investment in Omnichannel: HPE quoted a $45M in omnichannel manufacturer, HPE used analytics
investment to develop a breadth of digital channels beyond voice. The to eliminate error-prone manual
Social Media SMS service provider is using CX analytics and consulting tools and proprietary processes and providing more
IP such as HPE Haven/IDOL to first identify customer preferences, then explanatory customer content,
Web Self-Service Including build a Digital Halo which is the overall impression of a person’s digital absorbing increasing volumes
existence. HP’s multichannel offerings support social media, SMS, web with no increase in customer
Mobile App and Visual IVR self-service, chat and video chat. Automated Chat, WebRTC, Proactive service calls.
Marketing, Agent Video, Virtual Agent and Advanced Routing.
Chat Video Chat

Analytics Consulting

Relevant Acquisitions/Partnerships Client Profile Proprietary Technologies

Acquisitions: Total number of clients: 300 • Qfiniti: Workforce management, call monitoring.
• Aruba Networks, 2015, Integration of Mobile CX, Key verticals include: All • IDOL/ Haven: CX Analytics
Beacons, and Geo-location Key clients include: • Aruba Networks: Mobile Technology
Partnerships: • Accor • HP Explore: CX Analytics (using Haven, IDOL as engine)
• Major strategic partnership with AVAYA for CX On • GM, GM Financing
Demand Cloud Platform • CaixaBank
• Google
• Barclays
• Southwest Airlines, AAA, Nissan, BC Revenue,
Toshiba, UK Ministry of Justice

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HPE – Workday Services, 2016
HP Enterprise A growing practice, with ambition to establish a strong brand as a
High Potential long-term partner

PLAN Strengths Challenges

IMPLEMENT • Steady Growth And Strong Ambition For Workday Services Practice: HPE has increased both the • Talent Shortage: As with all of the service providers in
number of clients and certified Workday consultants during this past year. HPE still represents this Blueprint, HPE faces the challenge of talent
MANAGE one of the largest deployments of Workday HCM, and is often called upon to act as a reference shortage in the Workday services market. Buyers
client of Workday. This valuable internal experience is helping HPE to gain credibility and new should check the availability of skills in required
OPERATE clients. HPE has Workday HCM clients in North America and Europe, and is one of the few locations for engagements.
Workday services partners with resources in Japan. HPE aims to continue to strengthen its • Current Uncertainty with HPE and CSC Merger:
OPTIMIZE European And APAC business in the next few years. HPE also has access to a global delivery Enterprises may be concerned about any changes to
network that can support Workday projects. delivery and commitment, after HPE’s merger with
Blueprint Leading Highlights • Management Services Focus: HPE has identified application management services as a focus CSC. Early indicators show a business as usual
growth area this year. Its established experience in application management services in general scenario, and long-term a possible combined Workday
• Quality of Account lends it credibility to deliver this offering to Workday clients. HPE offers a modular offering which services practice would bring additional valuable skills.
Management Team includes flexible, ongoing support tailored for the Workday market. HPE has won several
• Geographical Scale and application management deals this past year for clients who used a different partner for the
Capabilities deployment, indicating that HPE is succeeding in establishing a brand in this growth market.
• Investment in Tools

Relevant Acquisitions/Partnerships Key Clients Operations Technology Tools and Platforms

Partnerships include: HPE targets large, global enterprises across • Partner Since: 2013 • DataMorpher: data migration tool
• Appirio industry sectors. • Number of Employees in Workday Services • HR Enterprise Portal. Employee communication
• PWC Practice: 200 tool to facilitate HR service delivery.
Geographic Coverage: North America, EMEA, • Number of Certified Workday Consultants: 125 • CloudPay. Offers third-party cloud solution to
APAC and Japan • Average Number of Certifications Per extend Workday software payroll capabilities.
Consultant: 1.7 • Test Case Templates. HP has developed nearly
Industry Coverage: Manufacturing, Financial • Total Number of Clients: 14 10,000 scenarios to test Workday
Services (Banking and Capital Markets), • Total Number of Projects/ Ongoing
implementations and integrations.
Technology, Healthcare Engagements: 17

Some publicly disclosed clients include: Key delivery locations for Workday practice:
• Airbus • India: Bangalore
• HPE • Poland: Wroclaw
• ING • US: Plano (Texas), various locations
• Nissan • EMEA: various locations

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CSC – ServiceNow Services, 2016
CSC Inorganic growth drives deep ServiceNow capabilities, broad
Winner’s Circle recognition for pioneering role of Fruition Partners
PLAN
Strengths Challenges

• Broad recognition for the pioneering role of Fruition Partners: While CSC has expanded the • Continuing change management including but also
IMPLEMENT
ServiceNow practice beyond the Fruition Partners acquisition, clients reference and value the beyond HPE: The last couple of years for CSC have
MANAGE capabilities and thought-leadership of Fruition Partners, especially in the US market. For many characterized by cost containment, but with limited
clients Fruition Partners is the reference point for the journey around ServiceNow capabilities. expansion and innovation. Continuing change
OPERATE Deep application management capabilities are underpinning this, especially a round the management will lead to more headwinds.
Management -as-a-Service (MaaS) offering. • Maintaining the culture and mind-set of acquisitions:
OPTIMIZE • Strong CSAT scores underline clients’ and market’s overall impression of the quality of service danger of dilution and assimilation. CSC’s culture is
across the value chain. Clients cite the availability of a broad set of accelerators as key reason to vastly different to most of its acquisitions, though
Blueprint Leading Highlights sign with CSC. Account teams support client with roadmaps. When resourcing issues occur, CSC is executives at CSC see Fruition Partners as a conduit
said to escalate and react quickly. for change
• Actual Delivery of Services • Broad vertical capabilities, in particular Healthcare, Life Sciences and Retail: examples include an • Integration of Intelligent Automation: CSC is still
• Geographical Footprint and HR Automation engine for the UK NHS with centralized analytics and governance; Service Catalog evaluating how to expand to and integrate Intelligent
Scale Factory” to allow for self-service tooling for a Life Sciences client. Automation. Given its strong entrenchment with
• Vision and Investments in ServiceNow, HfS would like to see a more proactive
• Driving ServiceNow into security: The ServiceNow-based security operations center is a reference
ServiceNow Services role in driving innovation
• Availability of Enterprise for the willingness to invest and expand the core functionality of ServiceNow. This is strongly
Service Management aligned with CSC’s historic strength around security capabilities, in particular on a federal level • Expansion to notions of SIAM: A clearer positioning
Capabilities • Significant traction in ESM as more than 30% of revenues are generated beyond ITSM capabilities. and though-leadership on the notion of SIAM:
• Increased Value over This aligned with the way CSC is positioning ServiceNow as a conduit to change mind-sets toward
Contract Life Cycle as-a-Service concepts.

Strategic Positioning Key Clients Operations Technology Tools and Platforms

Partner Level: Global Strategic CSC works with clients across industry sectors: CSAT (as reported by ServiceNow • LIFT Implementation Framework: provides CTI-
customers): : 9.0 based “guardrail” best practice implementation,
Acquisitions include: • Delphi Automotive and includes one year of application management
• Fruition Partner (US, Canada, • Ameriprise Financial Geographic footprint and scale of the via Virtual Admin service
UK,2016) • Aon ServiceNow practice: • Cybersecurity – ServiceNow-based security
• UXC Keystone (AUS, NZ2016) • Allianz operations center
• Aspediens (Switzerland, Germany, • Materials Manufacturer • North America: 200 FTEs • Secure FedRamp hosting of ServiceNow
France, Spain,2016, pending) • Vantiv • EMEA 140 FTEs • MyServicePortal is a custom ServiceNow platform
• Baylor, Scott & White • ANZ: 80 FTEs application developed to elevate engagement
Strategic positioning: • Carahsoft Technology Corp with the customer
• Pioneer and thought leader on • New York University These resources are enhanced by a Global • HRCM Accelerator: HR Case Management in
ServiceNow • Financial Firm Operate Group of more than 50 FTEs, ServiceNow
• Deep capabilities in application development centers in Hyderabad , Vietnam • ITAM Accelerator: Bolt-on integration capability;
management and Bulgaria with around 150 FTEs. preconfigured instance with defined automation
• ServiceNow as a conduit to change Furthermore, practice ramp ups in Mexico,
Brazil and Nordics,
mind-sets toward as-a-Service
• Deep vertical build outs
• Federal/Defense contractor and
Cybersecurity

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HPE – Contact Center Operations Services, 2016
HP Enterprise Customer experience “on demand” and omnichannel investments
driving contact center innovation
High Performer

Blueprint Leading Highlights Strengths Challenges

• Account Management • “CX On Demand” platform: HPE teamed with AVAYA in a multi-year agreement to • Size: HPE’s size works against it in some cases, and clients
Incorporates Feedback provide cloud-based unified communications and contact center technology. HPE cited HPE’s size as a roadblock to getting things done,
• Ability to Execute Multi-Channel became the delivery vehicle for AVAYA's private cloud, transferring 1100 employees stating that things could have gone smoother in contract
Interactions to HPE in support of this initiative. When provided in tandem with agent services, this negotiations. Going to market as “One HPE" to bring single
• New Thinking to Write Off Legacy is a good example of a “plug and play” type of solution, allowing clients to shift from a scope around all HPE offerings (Security, Cloud and
• Investing in Omnichannel capex to opex model and help to write off legacy. HPE currently has 22 clients of this Analytics) can be a strength but in certain cases is likely
service. Included in this platform is a specialty desk for CX regardless of channel, using causing negotiation headaches for clients. Given the nature
customer experience based routing. of “One HPE,” the service provider will need to carve out
• Investment in Omnichannel: HPE quoted a $45M in omnichannel investment to more of a brand for contact center services and bolster its
Value Chain Services Coverage: develop a breadth of digital channels beyond voice. The service provider is using CX focus in this area.
analytic and consulting tools and proprietary IP such as HP Explore to first identify • Delivery Location Diversification: HPE is lacking breadth of
Interaction Management customer preferences, then build a Digital Halo which is the overall impression of a delivery locations as compared to some competitors, in
person’s digital existence. HPE’s interaction management capability supports digital particular around a heavy India-based delivery and lacks
Traditional channels, with a recent substantial focus on substantial investments specific to omni-
Digital Channels home based agent services, which is still an important
Channels channel support: Automated Chat, WebRTC, Proactive Marketing, Agent Video, Virtual element of interaction management services.
Agent and Advanced Routing. HPE also recently acquired Aruba to integrate geo-
Back Office Contact Center location and beaconing.
Support • Trustworthy Partner. Clients comment that they consider their relationship with HPE
as a partnership, and are able to put a lot of trust in account management to make
Consulting Analytics decisions on their behalf.

Relevant Acquisitions/Partnerships Client Profile Service Delivery Operations Proprietary Technologies

Acquisitions: Total number of clients: 300 • Contact Center Operations • Autonomy/Qfiniti: Workforce management, call
• Aruba Networks, 2015, Integration of Key verticals include: All Headcount: 22,454 monitoring.
Mobile CX, Beacons, and Geo-location Key clients include: • Total Delivery Locations: 100 • Autonomy/IDOL/ Haven: CX Analytics
Partnerships: • Accor • Delivery location highlights:34 • Aruba Networksg: Mobile Technology
• Major strategic partnership with AVAYA • GM, GM Financing countries • HP Explore: CX Analytics (using Haven, IDOL as
for CX On Demand Cloud Platform • CaixaBank • Languages supported: 51 engine)
• Google
• Barclays
• Southwest Airlines, AAA, Nissan, BC
Revenue, Toshiba, UK Ministry of
Justice

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HPE – Finance & Accounting As-a-Service Business Process Outsourcing, 2016
HP Enterprise Refreshing its identity and reenergizing its culture with a strong Robotic
High Performer Process Automation capability incorporated into business process services

Blueprint Leading Highlights Strengths Challenges

• Quality of Account Management • F&A More Prominent with HPE’s New Identity: HPE as an independent entity has • Vertical-Specific Platform Offerings: HPE is in the early days of
• Applying Intelligent Automation broadened its positioning from the erstwhile “new style of IT” to a “new style of verticalizing its offerings beyond CPG, for example, educating its
business” to support clients in what HP terms the “idea economy” (bearing some industry practice on the business process tools and capabilities such as
• Use of Technology to Support
similarities to HfS’ notion of the “As-a-Service Economy”). the FIT framework for benchmarking and journey mapping. As basic
Business Processes transactions are automated, and the market is high competitive, it
• Strong Penetration in CPG Vertical: HPE has an impressive portfolio of large
• Vision for Finance As-a-Service multinational CPG clients and has served them well, stemming from its flagship would serve HPE well to focus on developing unique industry specific
Proctor & Gamble relationship. There are strong vertical capabilities such as Cash capability.
Acceleration for the Consumer Goods. • Design Thinking, Consulting and Transformational Capability Need
• Balancing Traditional and As-a-Service Models with SAP and Salesforce Strengths: Attention: HfS has heard some feedback indicating that HPE is weaker
Expertise across SAP-based BPO transformations in F&A and payroll and partnership competitively on bringing thought leadership and transformational
with Salesforce, in addition to its servicing of the company as an F&A client, is driving guidance to the table to help define and drive change. This area could
“As-a-Service” mentality as well as new capabilities for F&A solutions, extending be one of investment and focus in the coming months. Investing in
Value Chain Coverage: Design Thinking would be a significant step forward.
processes.
• Improve Its Speed to Action: HPE tends to move a bit slowly, from
Procure to Pay • Impressive Maturity Model for Automation: Laser focus on building out its
what we hear, with too much time taken from discussions with clients
automation capabilities with a number of clients. Positive feedback from clients on to decisions. It’s possible that with the separation and focus now, that
Order to Cash the use of RPA “from the beginning.” the organization will streamline its own process and be able to move
• Client Interaction: Commitment and flexibility in HPE’s client approach is faster in making decisions and implementing change with clients.
Record to Report appreciated by clients. Clients cite that HPE management really listens to them and • Talent Development and Retention: HPE’s F&A turnover is higher than
engages in dialogue about how to proceed, whether it is an issue to resolve or an the clients would like to see. HPE has an opportunity to create
idea to explore. HPE has introduced the FIT assessment framework and BPAT for excitement and engagement in its workforce with its refreshed identity
Finance Transformation operational analytics to augment its transformational-led approach, but it still needs and progressive approach with its use of technology with BPO,
to work on how to incorporate all of it together in a outcomes-focused approach particularly with automation.
Analytics that appeals to clients wanting to break out of the old model.

Acquisitions / Partnerships Client Profile Service Delivery Operations Proprietary Technologies

Acquisitions: 40 F&A BPO clients including: AOL, British Headcount: 6,000 • HP Business Process Analytics Tools (BPAT)
• NA Columbia Ministry of Revenue, P&G, Molson • Autoflow: ePresentment tools
Coors, Smith & Nephew, Salesforce.com Delivery Centers (30+): • Phantom: HP Quick Test Pro
Partnerships: • USA – 5% (San Jose, CA) • Autoflow: Autonomy
Target Industries:
• KPMG and PwC for consulting, • Latin America – 5% (Costa Rica) • HP CARTT
advisory and governance Special focus on Consumer Goods, • Continental Europe – 15% - 20%: • HP e-Solution: tools for document capture
• PwC and Deloitte for specialized Manufacturing and Transportation (Wroclaw and Lodz, Poland) • Framework for Innovation & Transformation
accounting services • India - 65% to 75% (Bangalore, • HP ES Document Processing Services (DPS): including HP
• SAP for ERP support Chennai) TRIM, digital archiving software
• China (Dalian)

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Xchanging – F&A As-a-Service Business Process Outsourcing, 2016
Xchanging A Source-to-Pay focused service provider with strong presence in UK specially
Execution Powerhouse in the mid-market segment
Blueprint Leading Highlights Strengths Challenges

• Quality of Account Management • Procurement-focused F&A Practice: Xchanging’s strength is in its Source or • Leadership: Clients and HfS feel a certain lack of authoritative
• Incorporating Feedback Pay functions, which is a result of a focus on outsourcing services for strategic thought leadership on Xchanging accounts. The company needs to
• Continuous Improvement sourcing and procurement; its recent acquisition of Spikes Cavell for spend expand the leadership team with more industry and
• Use of Technology to Support analytics shows continued commitmentto this space. However it is not the transformational leaders who can work with clients, to understand
limit of the service provider’s capability. business and industry context for driving relevant and therefore
Business Processes
• Account-Level Engagement: Xchanging can be very accommodating of increased value over time. This gap could be addressed through
• Investing in Future Talent and
requests and willing to invest in accounts, such as sending team members on- partnerships or hiring.
Technology site, diagnostics, and amortizing implementation costs over time. • Consistency: HfS observes that if a client sets high expectations for
• Human-Centric Automation: Xchanging’s approach to robotic process Xchanging, and push for increased value over time, Xchanging will
automation is ramping up, although seems to move quite slowly as few clients work to meet those expectations. However if the client expectations
are seeing the impact. However, Xchanging has been featured in the industry are low and sharing of corporate context is low, then Xchanging will
as having employees well-engaged in defining and managing RPA, finding focus on simply delivering and not be as proactive with innovation.
Value Chain Coverage: opportunities to implement it, and changing jobs and roles to incorporate RPA It’s therefore more incumbent on the client, and Xchanging needs to
Procure to Pay into their work. create a better balance and more consistency across accounts
• Useful Technology Enablement: Clients appreciate the operational technology (related to the point above about leadership).
enablement, and the ability of the workflow to connect and integrate • Operational Analytics: While the workflow and dashboards bring
Order to Cash
disparate systems; Xchanging seems to have some sophisticated tools for together and present data, Xchanging is not doing as much as clients
automated training and support as well. would like to see to analyze the data in the context of client
Record to Report • Industry Depth and UK Advantage: The service provider has industry-specific requirements and identify trouble spots and opportunities for
capability to support real estate, financial services, and healthcare. Xchanging change. New investments and pending rollouts of CFO Dashboard
Finance Transformation has had success in the UK enterprise and government segment. This can and Procurement Operations Dashboard should help address this
further be leveraged to secure more F&A engagements specially in the mid- gap.
Analytics market segment.

Relevant Acquisitions / Partnerships Client Profile Service Delivery Operations Proprietary Technologies

Acquisitions: Client base is primarily in the mid market ($5-10B in Headcount: 1350+ • CORE, X Flow: for workflow processing
• Spikes Cavell (2015) for spend analytics revenues), however, Xchanging will work with larger • X Pro
• Cambridge Solutions (2009) and smaller companies as well. The company is Delivery Centers (6): • Smart Process Automation Suite:CAAPS / CBRE
Partnerships: expanding beyond its core industry base to target • USA – 1% (Warren, MI) • Corporate Accounting Accounts Payable System – EMEA
• KOFAX, Skelta manufacturing, pharmaceuticals, and • UK – 2% (Preston, • NAGE
• Oracle telecommunications. Nottingham)
• Newgen • India – 97%: (Bangalore,
20+ F&A BPO clients
• Recall/ Grace Shimoga, Gurgaon)
• Windstream Target Industries:
Healthcare, Real Estate, Energy & Utilities, Insurance
and Banking, Manufacturing, Pharmaceuticals,
Telecommunications.

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CSC – Salesforce Services, 2015

CSC Strength in healthcare and public sector industries with skills across IT services
and technologies
PLAN Strengths Challenges

IMPLEMENT • Industry Sector Focus, with Particular Strength in Healthcare: CSC offers targeted Salesforce • Seen as A Technology Partner: Despite its investment in
offerings to the healthcare industry, building on its established reputation in this sector. It building consulting services and its understanding of CRM
MANAGE partners with Vlocity for its healthcare solution, but further tailors the offerings by adding in a holistic way, CSC is still perceived to be more of a
components and enhancing the user interface. CSC has also built IP solutions for the technical implementation partner. CSC has opportunities to
OPERATE banking and insurance industries and aims to continue to build industry accelerators. educate the market on its wider Salesforce capabilities to
• Integrated Approach Focused on Delivering Business Solutions: CSC focuses on help it to position as more of a strategic partner for clients.
OPTIMIZE
understanding industry and business results rather than pursue pure technical • Inadequate Communication of Skills: CSC is not always the
implementation projects. It achieves this by integrating industry and consulting expertise in obvious choice for clients making a provider selection short
Blueprint Leading Highlights Salesforce service engagements. In addition the consulting team is well utilized in delivering list. For example in Europe it is still not perceived to be a
optimization services. global Salesforce service provider – and yet more than half
• Quality of Account • IT Service Capabilities That enhance Salesforce Service Skills: CSC has skills in hardware, of its Salesforce service revenue comes from this region.
Management Team software, service and the data center – all of which can be leveraged to enhance its CSC therefore needs to increase its marketing efforts with
• How Service Providers existing and prospect clients to communicate its Salesforce
Salesforce service capabilities. It can integrate Salesforce with other applications such as
Incorporate Customer service capabilities. CSC has a three year strategic intent to
SAP, and it has capabilities in analytics and IoT, as well as a big focus on change
Feedback grow its Salesforce practice by a factor of ten, and to
• Experience Delivering management services.
• Dependable and Easy To Work With: Clients commended the high quality of CSC team position itself as a “global leader in integration solutions
Industry Specific Solutions
• Partnership Strategy members, with one saying that they were ‘all brilliant people’. They also appreciate CSC’s and services for targeted industries.”
• Integration of Third Party efforts to maintain stable team members for each engagement. Clients also highlighted that
Capabilities CSC met all of their commitments in the engagements.

Relevant Acquisitions/Partnerships Key Clients Operations Technology Tools and Platforms

Partnerships include: CSC focuses on large and medium-size enterprises, • Partner Level: Gold • Omni360 for Utilities: Integration platform for
• Vlocity specifically in the US , France , Nordics, Brazil, ANZ, • Fullforce Master Qualifications: N/A multi-channel customer communications
• Composer UK. • Fullforce Industry Solutions: N/A • Omni 360 Insurance Agent Portal Accelerator
• Docusign • Salesforce Certified Consultants: 145 • Healthcare Accelerator: Community portal for
• FinancialForce Industry Coverage: • Certified Technical Architects: N/A coverage search, selection and purchase
• Informatica • Insurance • Total number in practice: 214 • AMA Asset Management Accelerator: Sales and
• Xactly • Healthcare • Number of projects completed: 145+ service application for asset managers and service
• Banking • Customer Satisfaction Score: 9.39/10 agents
• Public Sector

Some publicly disclosed clients include: Key delivery locations for Salesforce
• UK Water Utility practice:
• Biomet Microfixation • USA
• Global Agribusiness • LATAM: Brazil
• Nordic Telecommunications Provider • Europe: South and West (France, Spain
and Belgium); UK and Ireland; Central
Continental Europe, Nordics

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HPE – Trust-As-a-Service, 2015

HP Enterprise
Breaking free of the “legacy” HP with a strong focus on
Winner’s Circle enabling digital trust
HIGHLIGHTS STRENGTHS CHALLENGES
• Execution Ability • Business Leadership: Enterprise Security Services (ESS), including • Physical/Digital Integration: HPE must expand their service
Managed Security Services (MSS), within HPE have brought on capabilities with regard to support for jointly tracking physical
• Tools and Platforms significant expertise over the past 12-18 months, adding to the and digital threats.
• Expertise and Vision ranks of both executive leaders and operational management. • Shoring Up Underperforming Services: While its capabilities
• Alignment With Digital • Growth: MSS is the fastest growing team within ESS, carrying with appear solid, areas such as DLP, Data Protection, Vulnerability
Trust & Security them both momentum and the support of the other units. Management, and Identity Management need increased
Framework • Digital Trust Focus: HPE’s MSS team (and their overall ESS focus) visibility within the market and a stronger focus on business-
deliver solidly on the elements of Digital Trust, including a fast- oriented opportunities.
DIGITAL TRUST ALIGNMENT
growing capability in user engagement and behavioral influence. • MSS Enhancement: HPE is midway through an effort to rebuild
VERY HIGH • Partner Ecosystem: HPE has pulled together a very broad and refocus its core MSS offering.
ecosystem, setting aside the brand history of HP and moving • Brand Visibility: Despite a solid global footprint and extensive
towards a vendor-agnostic approach (similar to what we see in service capabilities throughout the ESS organization, it needs to
HIGH other hardware-legacy brands). clearly, and quickly, clarify the identity of the new HP Enterprise
• Business Independence: The recent emergence of HP Enterprise brand to avoid prolonged confusion with legacy HP.
MODERATE - HIGH
(HPE) as a separate business from the traditional HP brand can only • Expansion into North America and Asia-Pac: The MSS offerings
MODERATE help them differentiate themselves moving forward. Issues of brand of HPE/ESS are dominated by European clients (60%) – we feel
awareness aside, the new independent status can only help them it should be more competitive in the North American and Asia-
LOW - MODERATE keep their focus, and corporate resources, focused on services first. Pac markets.
LOW

INFORMATION SOLUTIONS DIGITAL TRUST / AS-A-SERVICE CLIENTS / DELIVERY


MANAGEMENT CORE FOCUS DIGITAL TRUST ALIGNMENT CLIENTS
• Art Wong, SVP and Global General • Key services focus on blending • Solid support for most elements with • 500+ Global Clients for Managed
Manager, Enterprise Security Services Technology Solutions, Security good/emerging support for User Security Services with additional 250+
• Rick Miller, VP and Offering Lead, Consulting (Risk Management and Engagement and Business Alignment using custom security services (total
Managed Security Services Compliance), and Managed Security • Commitment towards an As-a-Service of 1,200 ESS clients)
STAFFING Services business model • Europe 60%; NA 30%; AP10%
• Est. 1500 Staff, Enterprise Security OFFERINGS DIGITAL MATURITY SUPPORT DELIVERY CENTERS / STATS
Services, 600 Staff in Managed • Key MSS offerings include: Security • Standard offerings capable of • 3 Global SOCs: Plano, TX; Manchester,
Security Services (400 in SOCs) Management, Threat Intelligence, assisting clients through Level 3 of the UK; Sydney, Australia
Security Monitoring, Incident
Response HfS Digital Trust & Security Maturity • 3 Specialized SOCs: Canada; Germany;
Model India
• Secondary offerings: Risk
Management, App Security, Network • 4 Global Delivery Centers: Costa Rica;
Security, Threat Management, IAM, Bulgaria; India; Malaysia
Data Protection & Privacy, Incident
Response • 1 U.S. Public Sector SOC: Herndon, VA

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HPE – Healthcare Payer Operations, 2015
HP Enterprise Helping to digitize and automate Government healthcare, with depth of
experience and reusable modularized solutions
Winner’s Circle
Commercial Government Business Operations Maturity: Claims Services Member Services Provider Services Health & Care Mgmt Admin: F&A, Doc/Print

Blueprint Leading Highlights Strengths Challenges


• Quality of Account Management
• Depth of experience in Government and relevant breadth in other industries: • Build momentum for change: With HPES experience and client base,
• Delivery Performance and
Continuous Improvement Having worked with Government entities for over 50 years, HPES has a strong HfS believes it could take a more visible and vocal role in sharing
• Pricing and Investment into the capability for an expanding market. In the past year, HPES has also been more thought leadership and stories to help drive take up and change in the
Account proactive about looking into its other industry groups including banking and travel Government healthcare sector that can also carry into the Commercial
• Integration of Technology into for assets and expertise relevant to healthcare. side, especially with Commercial payers extending their support for
Process • Componentized, modular approach in shift to “modern” healthcare: HPES business Medicare. The results and capability of the e-prescribing is an excellent
• Vision for Healthcare Payer example.
Operations process services and technology are available on as-needed (plug & play) and/or
subscription with InterChange MMIS. The use of this system for eligibility & • Transition from IT led to outcome led with business process and IT
enrollment took one state online from in-person paper-based processes, and from 20 enablement, enhanced with analytics: Hewlett Packard Enterprise
Path to As-a-Service days for the end to end process to 20 minutes. Now, agents are managing cases Services as a new brand and entity is launching a fresh approach to the
versus spending time on enrollment processing. market, with an outcome and solutions led emphasis. HP traditionally
HPES has longevity with its clients in
the Government healthcare space, as • Intelligent Automation at core to changing transaction based systems to does a really good job at describing the suite of technology, and now
well as with technology. And now they performance driven solutions: Besides using automation for routing and workflow, needs to drive towards a more analytics and insight enabled business
are re-orienting to a business outcome HPES is increasingly automating transaction processing, such as provider process services, and continue to invest in talent to enable this
focus. All of this comes together to credentialing. Some changes require HPES to help get new legislation passed, such as approach.
position them well along the path to for digital signatures to be part of the automated process. HPES is also applying • Breadth of services yet to extend into population health or care
As-a-Service. HPES can also re-use
cognitive computing to reduce fraud, and incorporating an artificial intelligence management business process services: Although HPES has the
solutions due to the lack of
competition between state approach in call centers to derive sentiment in voices and to identify faces in images. Atlantes care management platform, the service provider is not yet
governments. A key area of focus to tie • Secure private cloud for Medicaid customers: HPES has spent the last decade providing business process services in these areas that can help clients
it all together is to ensure talent consolidating most of its Medicaid customers into a leveraged, secure private cloud better understand and impact the health and medical outcomes.
development stays current as the environment and is now working to migrate them into the Helion Virtual Private Recognizing that this will be increasingly critical in the move to fee for
healthcare market changes, & increase Cloud for US Public Sector, a FedRamp-authorized, HIPAA-compliant cloud service. performance and stars program ratings, for example, HPES is
the use of design thinking and developing this capability.
analytics.

Relevant Acquisitions / Partnerships Client Profile Service Delivery Operations Proprietary Technologies

• 2011, Acquired Vertica with • BPO: Yes • Health Payer Operations for over 50 • InterChange MMIS, with components:
platform for real-time big data • Platform Based BPO: Yes years - Connections for automated rules based workflow
analytics • BPaaS: Yes • Healthcare Headcount: > 7,000; > - Healthcare Portal for self-service provider and member enrollment/
• 2011, Acquired Autonomy for search Including: 10,000 Healthcare IT professionals; management
software AL, AR, CO, CT, DE, FL, GA, IN, KS, MA, ~250 Clinicians - HP ProDur for drug utilization support
NV, OH, OK, OR, PA, RI, TN, VT, WI • Specialties: Doctors, Dentists, - Immunization Registry
Pharmacists, Nurses - Correspondence
• Center Locations: U.S. - Atlantes for care management
- HP interChange Business Intelligence and Analytical Reporting
• HP PASSAR: Preadmission Screening and Resident Review for Long Term Care
• HP inSight Dashboard
• HP ALM and PPM for demand management, project management

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Xchanging – Healthcare Payer Operations, 2015
Xchanging Focusing on how to best leverage enabling technologies for the health care
High Performer management process end to end

Commercial Government Business Operations Maturity: Claims Services Member Services Provider Services Health & Care Mgmt Admin

Blueprint Leading Highlights Strengths Challenges

• Quality of Account Management • Options for SaaS, BPaaS or plug into legacy health insurance policy and claims • Lack of evident roadmap for sourcing and healthcare beyond
• Delivery Performance management: Xchanging acquired AgencyPort Europe to add healthcare plan technology: Despite the progress in building in robotic process
• Integration of Technology with enrollment and management capability, and integrated it into Xuber (policy automation and use of software as a service, clients indicate that
Process management and claims for insurance) for a singe platform with business process recently Xchanging is more reactive with continuous improvement,
• Investing in Future Technology support. The resulting OPEN Core Platform: Health solution is hosted by Xchanging and and they do not see a clear roadmap forward on where Xchanging
provides online multi-currency and multi-language support. The process covers when a is investing in the future for BPO + technology.
member enrolls, through scheduling and appointments, claims and billing. Clients find • Talent on-boarding, transition, and development: Turnover tends
this new technology very useful. to drive some slow down in the work effort, per clients. While the
• Responsive account management and quality delivery: Xchanging staff are appreciated capability of the BPO associates is appreciated, contextual training
Path to As-a-Service by clients for bringing a thoughtful approach to delivery, leveraging automation and and and on-boarding could be a smoother process. Also, the service
capability to simplify, and then find the right balance of talent and technology for a provider could promote more unique talent engagement and
Strong investment in development and solution. BPO associates share examples of how robotics creates “team members” who development programs, like in the Workers Compensation Center
acquisition of technology to enable as- process work directed by the team. of Excellence.
a-service outcome focused results.
However, Xchanging is more reactive • Ties reengineering, analytics, and automation together: As an example, Xchanging
when it comes to continuous worked with a client to diagnose and address a provider coding issue in a worker’s
improvement and best practices, which compensation scenario to ensure appropriate referrals and treatment. Xchanging has a
could addressed through more creative Workers Compensation Center of Excellence.
and proactive problem solving like with
Design Thinking.

Relevant Acquisitions / Partnerships Client Profile Service Delivery Operations Proprietary Technologies

• 2014, Acquired AgencyPort Europe for • BPO: Yes • Healthcare Payer Operations for 15 years • Open Core Platform:Health web-based, hosted
exposure modeling and risk analysis, policy • Platform Based BPO: Yes • Healthcare Headcount: 800 healthcare insurance plan platform
administration, billing and claims business • BPaaS: Yes • Specialties: Nurses, Clinicians, Certified Coders • Xuber for policy administration and claim
processing in healthcare (& P&C insurance) Including: • Center Locations: India (50%), Australia (25%), management
• 2013, Acquired MM4 (MarketMaker4) for U.S. (15%), UK (10%) • Xchanging Scheduling for booking
- Payers
vendor management appointments between patients and providers
- Insurance Organizations
• Digital 360 for workflow management in F&A,
- Medical Service Providers
Partnerships: with Revenue Cycle Management, Workers’
• Automation: Blue Prism Compensation
• Analytics: MyFriday to simplify Big Data as a
virtual coach for employees and as a virtual
assistant for managers

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CSC – Insurance As-a-Service, 2015
CSC A major BFSI technology solution provider with growing BPO
High Performer servicing capabilities in the U.S.

P&C L&A

Blueprint Leading Highlights Strengths Challenges

Execution • Comprehensive insurance platform offering has helped create sticky • Additional technology value from premium pricing. Multiple clients state
• How service providers relationships. CSC’s BPS services provide full administration services to that they are not getting value out of new platform updates, as making
incorporate customer feedback clients including a web portal front-end for application submission and policy upgrades as part of its base platform makes BPO service more efficient.
• Delivery of policy serving service, core processing functions via a CSC application engine, management Clients wish they were able to upgrade their platforms as part of CSC’s
• Delivery of claims reporting and standard integrations to third parties. Its platform has also premium pricing.
administration helped insurance clientele stick on and thrive as the rest of the company
restructures this year. • Management style has shifted away from a previous focus on
networking. Clients feel a change in engagement style that has affected
Innovation • Client proximity has helped delivery team develop domain expertise. Clients day to day account interactions and overall insurance community
• Investment in future state that CSC has a great understanding of the insurance industry due to its interactions. They do not see as much collaboration opportunity as in the
capabilities longevity with its onshore presence. past (user groups, workshops, etc.). This is due to changes in the
• Vision for insurance-specific leadership position in the last 4-5 years that have cut discretionary
solutions • Consistent and responsive delivery personnel. Clients rate CSC’s service spending, which may have had an impact on community engagement.
• Incorporating regulatory delivery highly. In particular, its focus on security, domain knowledge across Based on customer feedback and new organizational leadership (Mike
requirements quickly and infrastructure, technology and BPO, SLA performance and ability to Risley), CSC is starting to address this through new networking events, but
proactively incorporate client feedback. it is currently a challenge.
• BFSI industry presence is a well balanced portfolio across a large client • Further investing in As-a-Service by doubling down on areas such as
base. CSC has one of the largest client bases of L&A and P&C clients for Digital and IOT in concert with its rebranding as CSC Global Commercial.
insurance BPO, predominantly in North America due to its legacy business There are no clear leaders yet in this space, including in insurance, and
spanning the last two decades. CSC will have to take rapid and decisive actions to create its future brand.

Relevant Acquisitions and Partnerships Key Clients Global Operations Centers Proprietary Technologies
• 2014: CSC aligned with ISSI, a wholly owned • Tennessee Farmers • Headcount: 2,557 FTEs • CyberLife (policy admin for NA L&A)
subsidiary of Standard Insurance, to provide • Starr Companies • Wealth Management Accelerator (manages
Philippine based call center services • Florida Penn • Locations: Majority of delivery from centers both asset accumulation and disbursement)
• Dongbu in the U.S. (Nashville, Tennessee, Hartford, • Customer Service Accelerator – csA
• Accident Fund CT; Jacksonville, IL; Dallas, TX; Blythewood,
• (customer service across channels)
MetLife SC; Sarasota, FL) and India (Noida,
• Transamerica Capital Management • New Business Accelerator (streamlines new
Vadodara). business capture and submission, risk
• Swiss Re
• Northstar Small presence in South Africa (Cape Town) assessment and underwriting automation)
• Wilton Re • PerformancePlus (Producer & incentive
• Starr management)
• Preferred Management Agency • AgencyLink (helps agents sell and service
P&C policies)
• POINT IN (policy admin for P&C)

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Xchanging – Insurance As-a-Service, 2015
Xchanging Bringing innovation and learning from London market experience to BPO
High Performer clients

P&C L&A

Blueprint Leading Highlights Strengths Challenges

Execution • Reputed insurance brand in the London Insurance Market. Xchanging has one of • Ability to run complex processes. Clients mentioned that Xchanging
• How service providers engage the largest client bases for insurance BPO, predominantly in the UK and Australia. excels at executing BPO processes that are transactional in nature.
customers and develop The service provider has a balanced portfolio of L&A and P&C clients, as well as However, its capabilities and scale in complex service areas such as
communities experience with brokers and reinsurance companies. Clients are confident of actuarial and catastrophe modeling are not as advanced as major
• Flexibility to deliver both end- working with Xchanging because of its Lloyds Insurance workspace experience and competitors and have not evolved significantly since the last
to-end solutions and point onshore delivery capabilities, and believe that the service provider can run large Blueprint.
solutions insurance programs.
• Value adds to BPO. Clients cited that while Xchanging does add
• Quality of account • Strong community development. Clients get tremendous value from Xchanging’s certain technology enablers to add value to its BPO operations, a
management insurance community development, including technology events, BPO and refresh including more automation on these tool kits would further
• Delivery of policy serving insurance best practice events, access to SMEs and other UK practitioners, and improve performance. This is something that Xchanging is
annual conferences. aggressively investing in (RPA), but will take time to mature as it rolls
Innovation out to its elective BPO clients beyond the London Market services.
• Incorporating regulatory • Experienced delivery teams. Clients felt confident of Xchanging’s vertical
requirements quickly and knowledge and expertise, stating that the majority of employees have been in the
proactively industry for a long time and understand the requirements of service or roles to be
• Investment in future performed. Clients also appreciated the service provider’s delivery capabilities,
capabilities with consistent performance on core insurance processes.

Relevant Acquisitions and Partnerships Key Clients Global Operations Centers Proprietary Technologies
• 2014: Acquired Total Objects, a reinsurance • Top 3 insurance broker • Headcount: 985 FTEs • Insurers Market Repository (document management
software provider • Lloyds London Market utility and workflow service)
• 2014: Acquired Agencyport to strengthen contracts • Locations: Delivery roughly equally split • Netsett (STP)
the Xuber insurance software offerings • Top 10 insurance broker between India (Bangalore, Gurgaon, • Electronic Claims File (claims processing and work flow
• General insurer Shimoga, Solan) and the UK (London, for the London insurance market)
Partnerships with: Chatham/Folkestone,
• Blue Prism for RPA deployment • eAccounts (data and document submissions of
Romford/Basildon, Leicester) premiums to the bureau)
• Watertrace to build the Binder360 platform
- the bordereaux transformation service • Xchanging Data Hub (B2B gateway)
• ACORD4ALL (B2B gateway)
• Xpresso (claims management mobile app for insurance
claims handlers and insurers)
• Binder 360 Services (streamline the binder process,
significantly reducing the associated frictional costs)

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HP – Application Testing Services, 2015
HP Leading global service provider, leveraging its strong heritage in testing tools
Winner’s Circle

Strengths Challenges
Blueprint Leading
Highlights • Market leadership of HP proprietary testing tools: HP’s • Penetration of HP proprietary tools are double edged
leading position in testing tools provides broad sword for many clients: HP’s strength around tools
mindshare as well as broad prospective client awareness curtails its ability to provide best-of-breed solutions.
Execution
of the brand. Similarly it reinforces perceptions of being technology
led for some clients.
• Geographic Footprint and • Investments in DevOps model: HP testing services are
Scale of the Application integrated with the application development and • Not perceived as provider for comprehensive
Testing Practice operations life-cycle which in line with the overall service outsourcing: HP remains confined to project business
provider focus on DevOps. and limited managed testing engagements. The
• Actual Delivery of Services
majority of its revenues comes from bundled
• Strong traction in the Public Sector: While not always
application development and management contracts.
through testing versus as as part of broader application
Innovation
development and management HP is one of the market • Lack of industrialized vertical assets: HP is lagging its
leaders in supporting public sector clients . leading peers in building out deep vertical assets.
• Integration of New
Aligned to that is a perception of not being fully
Technologies
embedded into client’s business processes.
• Continuous Improvement
Methodology and
Capability

Staff & Operations Technology

• Testing professionals: 4,300 • Proprietary HP Application Life Cycle Manager,


• Estimated testing revenues ~$450m Unified Functional Testing, Performance Center, and
• 7 Global delivery hubs: India, Philippines, China, Argentina, Application Security Center tools
Costa Rica, Egypt, Poland; using enterprise testing process • Regression test packs for some SAP modules, e.g. FICO
(finance and control), HRM (HR management), Order-
for application testing.
to-Cash and Procure-to-Pay
• While account executives lead sales, engagements are led
by testing programme managers and testing project
managers

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CSC – Application Testing Services, 2015
CSC Leading global service provider, with differentiating traction in
High Performer public sector markets

Strengths Challenges
Blueprint Leading
Highlights • Presence in the US federal market and the UK National • Process standardization: Client feedback suggests that
Health Service: These are anchor markets for CSC in CSC is lagging peers when it comes to process
testing and act as are reference points for its ability to standardization and rigorous project KPI measurement.
Execution:
meet the specific requirements of these segments, and it
• Investment in test automation: CSC is lagging the
• Actual Delivery of Services should therefore be considered for outsourced testing in
leading peers in investing in automation for testing ion,
these sectors
but the service provider has prioritised investments for
• Cloud-based ERP testing capabilities for SaaS leading the next fiscal year.
Innovation:
vendors such as Salesforce and Workday.
• Vision for comprehensive outsourcing: CSC is playing
• Vision for Industry Specific
• Investments in generic disruptive technologies: HfS to its strength in project centric or embedded
Solutions and Application
believes that CSC is making innovative moves with contracts but needs to evolve the narrative to meeting
Lifecycle Integration
investments platforms such as Agility Platform, a cloud emerging client requirements.
• Integration of New automation and brokerage platform which can be
Technologies harnessed to deliver new, flexible testing services.
• Flexible engagement models in particular 'Testing as a
Service'

Staff & Operations Technology

• Testing professionals: 9,600 • Score methodology helps clients with typically


• Estimated testing revenues: ~$550m decentralized testing functions to implement a TCoE by
• Strong delivery footprint in India through AppLabs leveraging standardized methodologies such as TMMi,
acquisition with 60+ Global Test Centers of Excellence TPI, and Tmap
• Application Modernization Testing
• Next generation testing solutions e.g . Mobile Assure,
an end-to-end solution that ranges in capability from
functional testing to platform compatibility

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Xchanging – Procurement As-a-Service, 2015
Xchanging Building on the acquisition of MM4 to drive North American and As-a-Service based
Winner’s Circle growth

Strategic Sourcing Strengths Challenges

Transactional Procurement • Successful MM4 Integration. Coming shortly after our last Procurement • Becoming More Seamless. The PO market is in a state of transition to an As-
Outsourcing Blueprint, Xchanging’s 2013 acquisition of MM4 has revitalized a-Service solution and delivery model. For large clients this means building
Supplier Management its presence in North America and provided a base for a more technology complete solutions that are seamless in their design and operation. One
enabled, cross-client as-a-service offering. This has been followed by the concern with Xchanging is that they still come across to some prospects as
Contract Management acquisition of Spikes Cavell in early 2015 for spend analytics capabilities and being silo-ed between internal and external components of their largest
technology. solutions.
Technology Management • As-a-Service Strategy. In 2014, Xchanging began to build out a distinct • Transactional Procurement. By comparison to most of the other Winner’s
offering set for As-a-Service procurement delivery to sit aside traditional Circle service providers, Xchanging’s transactional procurement delivery is
contracting and solutioning models. This market setting momentum shows much smaller in scale. A potential strategy to counter act this would be for
Blueprint Leading Highlights that the service provider has been listening to customer feedback on the the service provider to focus on getting the most out of the client’s retained
needs of enterprise buyers. transactional staff (especially in shared services) as partners in a complete
Execution end-to-end solution.
• How Service Providers • Strategic Sourcing. Xchanging has been investing in aggressively increasing
Incorporate Customer Feedback the number of North American based strategic sourcing resources since 2014. • Contract Management. Competitive offerings and client expectations for
• Strategic Sourcing This is aligned to the needs of large enterprise buyers who are looking for co- contract management are increasingly significant in the current PO
• Technology Management located or close proximity capabilities. It also builds on what was already a marketplace. Xchanging needs to allocate additional attention and
• Flexibility To Deliver Both End to significant capability for Xchanging in strategic sourcing and category investment in this space to keep pace with many of the other service
End and Point Solutions management across indirect spending. providers in the Winners Circle.

Innovation • Tail Spend Management. Xchanging has developed a significant capability to • Geographic Footprint And Scale. Because of having a smaller transactional
• Integration of As-a-Service deliver tail spend management as-a-service which responds to a growing procurement footprint to its peers, Xchanging has not developed the off-
Capabilities need and interest from the procurement outsourcing buyers. shore delivery capability common to almost all of the other service providers
• Integration of Technology • Regulatory Expertise. Xchanging has a deep history of working with major in this Blueprint. For certain clients this may be an issue while for others
• Incorporate Regulatory clients in highly regulated markets and is known for its responsiveness to especially in sourcing and supplier management this could work just fine.
Requirements changing and often highly complex requirements.

Client Industry Verticals Key Clients Global Operations Centers Technology

• Manufacturing 110+ Clients in Procurement Services Headcount: ~1,000 FTEs over 60+ delivery locations including: Xchanging Proprietary Solutions include:
• Banking including: • MM4
• Insurance • United Kingdom: Basildon; Bracknell; Edinburgh; Fulwood; • X-Flow (AP)
• Real Estate • Military Systems Provider Preston; Glasgow; Littlehampton; London; Luton; Newcastle; • X-Act
• Global Cosmetics Manufacturer Nottingham
• Healthcare • VAULT
• European Pharmacy Chain • France: Paris; Amiens; Lille
• Energy • Consumer Products Manufacturer • Spikes Cavell Spend Analytics
• Education • United States: Annapolis; Chicago; Columbia; Columbus; Miami;
• Security and Facilities Provider
• NYC; Phoenix; Sacramento; Springfield
Logistics • Australian Banking Giant Key Third Party Solutions Include:
• Consumer Goods, Retail • • Spain: Barcelona; Madrid • Oracle
American Family Restaurant Chain
• Defense, Public Sector • China • Blue Prism
• Australia • Salesforce
• KOFAX
• Elcom
• Coupa

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HP – Workday Services, 2015
Touting itself as the largest Workday customer in the world, HP joined
HP the ecosystem in 2013 to capitalize on its experience and platform popularity

PLAN Strengths Challenges

IMPLEMENT • Established brand and skills in IT services and BPO. HP is a recognized • Actual Workday experience. As one of the newest members of the
global IT services and business process outsourcing (BPO) player, with skills Workday partner ecosystem, HP does not have a list of readily
MANAGE spanning the IT services lifecycle, functional domains, and industry sectors, available external customer references to offer to prospect customers.
and touts its “New Style of IT” capabilities in cloud, social, mobile, and HfS research shows clients of the traditional global service providers
OPERATE analytics. It has some of the broadest support of the Workday services value find that peer connections for comparison and recommendations are
chain and can offer a powerful portfolio to take to market. For example, it a key reason they are chosen and provide valuable experience for
OPTIMIZE can leverage its experience in general HR BPO services to offer Workday- customers, so this could prove to be a challenge as HP initially builds
specific BPO, as well as general cloud strategy migration services that can be its practice. That said, its partnerships, especially with PwC and
Blueprint Leading Highlights tailored for the Workday environment as it matures. Deloitte, should help to bring new opportunities to HP, particularly in
• Workday’s largest deployment. HP has globally deployed Workday the BPO areas that those service providers don’t want.
• Geographic Footprint and Scale internally for its 300,000 employees in 170 countries with more than 400 • HRO attention and investment. While HP executives express strategic
• Integrate Technology into integrations reportedly in 16 months. Following this project, HP has intent to continue to offer and in fact lead in the broader human
Business Process assembled a team to deliver its own Workday services to the marketplace. resources outsourcing market, it has not performed as well as others
• Vision This personal experience of technical and organizational issues relevant to a in HfS Blueprint reports in key areas of HR capability such as talent
large global Workday deployment, and HP’s established general IT services acquisition and payroll and benefits administration in the last year as
capabilities, lend credibility to HP’s ability to implement and sustain large, legacy clients look for and expect more value from initial cost-cutting
complex global deals moving forward. deals. That said, clients identify HP’s willingness and ability to support
• Workday services strategy commitment. HP is targeting aggressive growth them globally, particularly with multi-lingual call centers and on-going
for its Workday practice, to meet or exceed the growth rate of the Workday operational support. HP is winning follow-on business in Workday
market overall. Its depth of capabilities and global customer base provides environments that can help it build out solid application management
the company a good opportunity to grow at a rapid pace. services offerings as well as exceptional transaction and employee
support services around Workday over time.

Relevant Acquisitions/Partnerships Key Clients Staff & Operations Technology Tools and Platforms

• HP partners with PwC for strategic • Target market: large, multi-country, HP HRO • Partner since: 2013 • HR Enterprise Portal. Employee
HR consulting services around clients with new Workday deployments or new • Total number of Workday certified communication tool to facilitate HR service
Workday. Workday deployment (no initial outsourcing) consultants: ~80 delivery.
• Deloitte is a strong general services as well as existing Workday clients wanting • Total number in practice: ~80 • CloudPay. Offers third-party cloud solution to
alliance partner to HP and is likely HRO support. extend Workday software payroll capabilities.
the service provider that helped HP • HP plans to also target Fortune 100 to 500 • HP reports more than 15,000 professionals in • Test Case Templates. HP has developed nearly
deploy Workday itself, could lead organizations in the following industry sectors: its “Industrialized Delivery System (IDS)” 10,000 scenarios to test Workday
to joint Workday project work in Retail, Travel/Transportation, Healthcare, supporting clients, including 2,900 HR & implementations and integrations.
the future. Automotive, Government. payroll experts worldwide. • Data Migration Tool: HP Proprietary tool which
• Clients include: IHG and Nissan • HP has virtual Workday delivery teams enables streamlined migration/conversion of
supported by 3 regional delivery centers in data into Workday
Plano, Texas (US), Wroclaw (Poland), and
Bangalore (India)

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HP – Enterprise Mobility Services, 2015
HP Very strong outside the US and with initiatives requiring complex integration and
High Performer elements of transformation

2014 Mobility Revenue / Growth: Strengths Challenges


HfS Estimate: $625M (150%)
• Brings very broad and deep experience across design and • With the pending into two public companies: Hewlett-Packard
technology and able to utilize this mix to drive enterprise Enterprise (focused on enterprise hardware, software and services)
Relative Strength Across Stages transformation making it a top tier High Performer. and HP Inc., (focused on personal computing and printing), some
of Mobility Adoption • Strong focus on as-a-service offerings and able to price effectively synergies might be lost – though this appears to be driving greater
for this type of plug and play technology adoption. cooperation among the two groups today.
• Robust UX / UI skills that cohesively brings together a mx of art and • Stills needs to do a better job of getting the word out around its
Stage 3: science strengths in application development as it continues to be
Transform • Very innovative in developing real world applications. Not merely a overshadowed by technology offerings across mobile devices,
portfolio of interesting PoCs but truly market tested development. networks and platforms.
• True integrated offerings from device through application • Though it is getting the message out more around innovation and
deployment and infrastructure management that leaves no aspect business transformation – two areas where it has done some solid
of mobility environment uncovered within their walls. work - is still not well known for it in the marketplace.
• Despite the breadth of its own offerings it demonstrates a readiness
Stage 1: to embrace partners to augment areas for greater depth such as its
Stage 2: global push around partnering with leading design agencies.
Discrete
Integrate
Apps

Client Industry Verticals Key Clients Global Operations Technology Offered

Focus on Key Verticals: HP targets large enterprise, multi national Mobility Headcount: Proprietary Platforms & Software:
• Banking and Financial Services corporations in every region and every industry • ~2,000 FTEs • HP Anywhere, HP Hydra, HP Mobile
• Consumer Packaged Goods across the globe – primarily Fortune 2000 Center, HP AppPulse Mobile, HP Service
• Technology enterprise companies in excess of $1B in Key Delivery Locations: Platform, HP Digital Context Aware
• Oil & Gas revenue. • 12 Global Delivery centers located across Platform, HP Enterprise Mobility Platform,
• Airlines South & Central America, Asia, and Europe HP Enterprise Mobility Gateway, HP Smart
Clients Include: • APJ (75%) Shopper HP Smart Meter, HP Smart
Revenue Mix: • Mary Kay • EMEA (15%) Traveler
• 25% B2C • Valentino • Americas (10%)
• 75% B2B • BCI Bank (Chile) Key Partnerships:
• PKO Bank (Poland) Acquisitions: • Microsoft, Google, Intel, Cttrix, SAP, Kony,
• Autonomy (2011, analytics) Vmware/AirWatch, Critical Mass,
In addition: • Fortify (2010, security)
• Major airline DigitasLBi, Organic, Projekt202
• Eucalyptus (2013, deployment)
• Global CPG firm • Shunra (2013, testing)
• Logistics company
• Global entertainment & media firm

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CSC – Enterprise Mobility Services, 2015
An emerging contender with strong partnerships, project management and
CSC infrastructure skills makes it a good choice for complex integration.

2014 Mobility Revenue / Growth: Strengths Challenges


HfS Estimate: $120M (150%)
• Recently shifted Mobility into the Emerging Business Group • Given the depth of turnaround required, HfS has some concerns that
alongside Cloud, Cybersecurity, Big Data & Analytics which makes CSC may yet be broken up or acquired – and this may be leading to
Relative Strength Across Stages for easier and more robust cross collaboration for transformation. seeds of uncertainty for acquiring new logos.
of Mobility Adoption • Strengthening its relationship with IBM’s software division – one of • Enterprise buyers cite its deep history in ITO and federal government
the leading platform providers for all aspects of mobility - which will as a challenge to its efforts of being viewed as an innovator.
speed CSC’s time to delivery. • Clients cite that traditional corporate processes can at times appear
Stage 3: • With strong legacy infrastructure services, CSC has a solid footing in to get in the way of contracting for mobile engagements which
Transform the emerging area of IoT and continues to invest around this today. require a more nimble approach than large IT Outsourcing deals. i.e.
• Two years into a broader recovery effort, the service provider is The same internal approval appears to be required internally for a
infused with new energy and leadership at the top. multiyear outsourcing deal as it is for a short app development
• Fairly robust approach to pricing, building and running enterprise project.
App Factories makes it a strong go to for that model.
• Very strong player acting as prime even if not as broad with in
Stage 1: house skills. Strong project management that is dedicated.
Stage 2:
Discrete
Integrate
Apps

Client Industry Verticals Key Clients Global Operations Technology Offered

Focus on Key Verticals: CSC's Mobility offerings are targeted at any Mobility Headcount: Proprietary Platforms & Software:
• Public Sector size customer including CSC's existing Fortune • ~510 FTE’s • N/A
• Insurance 500 customers.
• Healthcare Key Partnerships:
• Finance/Banking Enterprise Mobility Clients include: Key Delivery Locations: • Appcelerator, IBM (WorkLight and
• Manufacturing and transportation • Large European airline • DACH (20%) MaaS360), SAP (SMP), Citrix, MobileIron,
• UK financial services firm • France (20%) SOASTA, and AT&T
Revenue Mix: • Global aerospace firm • India (20%)
• 5% B2C • Large shipbuilder • Vietnam (15%)
• 95% B2B • Global financial services firm • US (10%)
• UK (10%)
• Australia (5%)
Acquisitions:
• n/a

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CSC – Enterprise Analytics Services, 2015
CSC Combining consulting experience with unique defense & intelligence analytics
High Performer capability to form a new practice

Blueprint Leading Highlights Strengths Challenges


• Delivery of Advanced analytics • A growing practice with corporate commitment. CSC established a Big Data & Analytics • Perceived as expensive. CSC’s clients commented on pricing
modeling and ongoing decision (BD&A) strategic business unit in April 2013 to bring together analytics capabilities from relative to the marketplace, perceiving CSC to be expensive in
support across the organization, including: Big Data Business consulting, Data Science and comparison to similar delivery with other global service
• Concrete Plans to Deliver Value Analytics consulting, Big Data and Analytics Platform consulting and Big Data and providers.
Beyond Cost and Investment Analytics Subscription and Managed Service Delivery. While strong in consulting for • Scale and geographic spread. CSC has spent the last two years
into Future Capabilities analytics, CSC is now growing a managed services portfolio by investing in verticalized consolidating its analytics business into a growth practice.
• Ability to leverage external analytics services within its software groups for insurance, banking & capital markets, While it has organized organic and inorganic assets towards
value drivers (emerging travel & leisure, media, healthcare and automotive. achieving this goal, it has yet to reach the level of scale of the
technologies, security, social • Unique capabilities around highly advanced risk analytics. Acquisition of 42Six adds a competition across nearshore and offshore delivery locations.
media, mobility and cloud) differentiated capability in defense and intelligence analytics including video analytics,
• Quality of Account • Lack of community development. CSC’s clients would like to
geospatial analysis, advanced risk avoidance modeling, cyber security analytics beyond
Management Team see a more concerted effort to develop a community to evolve
SIEM and advanced nodal analysis in graph models. The Infochimps acquisition brought
best practices in analytics including access to broader industry
in a subscription-based, open source, fully-managed Big Data platform.
experts and client organizations.
• Perceived as innovative. Clients were impressed with CSC’s ability to consistently deliver
innovation specific to analytics, mentioning that the service provider brings a new way
of thinking about core business challenges, going above and beyond to understand their
unique company environments.

Relevant Acquisitions Key Clients Global Operations Centers Proprietary Technologies


• 2012, 42Six for advanced analytics, data • A leading global provider of vehicle rental • Headcount: 3,300 FTEs • Big Data Platform as a Service
mining and visualization services to the U.S. services • EZBake – a unified application platform that
defense and intelligence community • A global logistics provider brings various application and big data
• 2013, Infochimps to jumpstart CSC’s Next • A large European railway network capabilities into a single environment and
Gen commercial Big Data business with a • A global multi-line insurance company enables data sharing and warehousing to
Big Data Platform as a Service offering • One of the largest electronics aid in code, data, and logic reuse.
manufacturers • Amino – a big data analytic platform that
analysts use to experiment with new
theories, test, discover answers, and
progress to the next level of analysis.
• Link Analysis and Visualization tool –
correlates and enriches disparate structured
and unstructured data streams and enables
users to visualize non-obvious relationships
between events and entities.

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HP – Enterprise Analytics Services, 2015
HP An data and analytics technology provider with a strong corporate agenda to grow
High Performer managed services

Blueprint Leading Highlights Strengths Challenges


• How Service Providers Engage • Corporate commitment to developing analytics services business. HP • Relating analytics results to business context. A client pointed out HP’s
Customers and Develop recently renamed the practice to Analytics and Data Management, challenge in presenting and discussing analytical findings and results in
Communities reflecting a corporate focus on growing the analytics services component more of a business versus technology context.
• Integration of Technology into beyond data infrastructure and management. Aggressively hiring data • Talent acquisition for services. Following on from the previous point,
Business Process scientists, building out senior leadership teams and committing to help career paths need to be aligned to analytics services rather than large scale
• Pricing enterprise clients get more business results from their data by embedding technology and product development.
insights into process and applications.
• Market perception as an analytics technology rather than services firm. HP
• BI modernization with a focus on big data. Working with clients in
will have to develop a brand as a provider of analytics services that impact
traditional data warehouse environments to deploy big data technologies
business value. The majority of HP’s business stems from analytics software
into the existing applications and processes. HP’s Big Data Discovery
and infrastructure design, implementation, maintenance, and
Experience is a related solution that helps clients improve decision-making
management. Current marketing investments are intended to demonstrate
and business processes in ways that are not possible using traditional data
growing capabilities around analytics projects and managed services to
technologies.
change this positioning.
• Integration of technology assets into a platform. HP is increasingly building • Vertical-specific offerings lack maturity. HP will need to dig deeper into
out managed services on the back of acquired and integrated assets from current engagements and new platforms to develop differentiated and
Vertica and Autonomy. Integration of these technologies has resulted in a verticalized use cases from which clients can quickly benefit.
powerful platform, Haven, offered "as-a-service" in HP Helion (cloud).
Vertica As a Service provides a real-time analytics option.

Relevant Acquisitions Key Clients Global Operations Centers Proprietary Technologies


• 2011, Autonomy Corp., with IDOL now a • Americas: AT&T, CenterPoint Energy, • Headcount: 5,000 FTEs • Haven – a scalable, open, and secure
core component of HP's Haven Big Data Conservation International, Disney World platform for Big Data with capability to
Platform Parks & Resorts, Dreamworks, NASCAR, • Americas – 18%; key countries are: handle structured, unstructured, and semi-
• 2011, Vertica Systems, with the Vertica Mondelez, Rockwell Collins - USA, Argentina, Canada, Brazil structured data and securely derive
platform now a core component of HP's • EMEA: Fastweb S.p.A., Eurizon Capital, • EMEA – 17%; key countries are: actionable intelligence from that data in
Haven Big Data Platform Flemish Government, Jaguar Land Rover, - Poland, Italy, Germany, UK real-time.
Norfolk County, Royal Dutch Shell, VW • APJ - India – 65%; key countries are: • HP Visual Display Solution – a display and
• APAC: Akshara Foundation, Meridian - India, China, Philippines, Australia, New content management solution enabling
Energy, Telstra Zealand management of big data environments. This
technology provides an immersive viewing
experience, enabling simultaneous
presentations of multiple and varied data
feeds, and customized multipoint display
control of content.

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Xchanging – Enterprise Analytics services, 2015
Xchanging A procurement analytics specialist with growing capabilities in embedding machine
learning for BPO/ITO

Blueprint Leading Highlights Strengths Challenges


• Advanced analytics modeling • Using analytics to differentiate outsourcing service delivery. The service provider is • Scale and networking of operations. Xchanging has a relatively
and ongoing decision support using analytics as a differentiator for new BPO/ITO wins, instead of developing a small analytics team today, and separate groups. It needs to
• Experience Delivering Industry- standalone business. Xchanging consolidated its analytics talent in mid-2013, and is invest in expanding and networking this team to accommodate
Specific Solutions eyeing analytics + specific vertical/horizontal/product embedding opportunities. As targeted cross-sales to more BPO/ITO and technology product
• Embedding analytics into IT an example, it is improving procurement BPO outcomes by adding predictive clients. While it has invested in machine learning R&D, it will need
and BPO practices analytics, mixing new data sources and using machine learning to do spend analytics to develop some scale in operations to implement solutions to
and savings categorization. more clients.
• Vertical focus. Apart from horizontal BPO analytics, Xchanging is exploring vertical- • Overarching vision and strategy for analytics. Xchanging is doing
specific analytics opportunities for either BPO, ITO or technology product some high value analytics work in pockets but lacks a clear
improvements. E.g. it is working with top insurers to improve claims reserves message on direction. It will need to decide whether it wants to
allocation using machine learning and is helping banks and telcos enrich their continue to use analytics to differentiate its existing IT and BPO
customer data profiles using unstructured data for anti-money laundering and KYC services portfolio as it claims, or has a long term roadmap for
processes. global data analytics and mobile capabilities, given its investment
• Independent joint venture with YTL for next gen analytics. The service provider in the Malaysian market with YTL.
started a joint venture with Malaysian telco YTL called Xchanging Malaysia last year.
The initiative is integrating data across public and private organizations and applying
data analytics and mobile capabilities.

Relevant Acquisitions Key Clients Global Operations Centers Proprietary Technologies


• 2015, Spikes Cavell Analytic Limited, a • Lloyd's of London • Headcount: 80 FTEs • XCrawl – Data collection from publicly available data
British spend analytics technology and • YTL Communications sources
services provider mainly to public sector • Ministry of Education Malaysia • UK – 25% (London, Glasgow) • Xsentiment – Sentiment Analysis
institutions in the UK and higher • CHEP Europe (Spend Analytics) • India – 60% (Bengaluru, Gurgaon, • XKYC – Building 360 profiles of a Person or a Company,
education authorities in the US, but also • Godiva Chocolatier, Inc (Spend Chennai) for profiling and segmentation of customers
increasingly to the private sector Analytics) • Malaysia – 15% (Kuala Lumpur) • MM4 Spend Analytics, comprising:
• 2014, Joint venture with YTL - MM4 Data Transformation – a managed service for
Communications, jointly going to • Via Spikes Cavell acquisition: the collection, validation, cleansing, classification,
market with telecom data and analytics - Homes for Haringey and reporting of procurement expenditure data.
capability to Malaysian enterprises - California State University - MM4 Observatory – a modular suite of analytical
- Washington State Department of tools delivered in the cloud (enabling access from
Transportation any web enabled device) to analyse spend data.
- MM4 Measure – an application which enables
measurement of savings on procurement spend.

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HP – Progressive F&A BPO Services, 2015
HP As-a-Service potential and GBS delivery model approach, combined with leading
Winner’s Circle Robotic Process Automation focus

Procure to Pay Strengths Challenges


• Large enterprise clients. Has developed an impressive portfolio of F&A BPO clients • Can be inflexible. Not openly aggressive with offering gain share type models.
Order to Cash over the years in the US and Europe, stemming from its flagship Proctor & Gamble The same goes for point solution flexibility with clients – HP seeks to provide
relationship. Its international presence outside of the US is a strong plus for the firm. end-to-end solutions.
• Renewed BPO focus. BPO organization has adopted it as “new style of BPO” with • HP’s corporate brand deterioration in recent years is hurting sales efforts. Poor
Record to Report three core priorities – integration of its Global Business Services with BPO; leveraging leverage gained from EDS acquisition, workforce reductions, and generally
technology ecosystem across social media, mobility, analytics, and cloud; and the use diluted industry focus have combined to weaken HP’s position in the BPO
Finance Transformation of Robotic Process Automation (RPA). Its recent number one rating in the 2015 service market. However, HfS has seen HP’s brand improve over the last year,
Robotic Premier League is testament to HP’s strong focus in F&A. with improving financials and a positive restructuring of the global services and
• SAP strengths put HP in a formidable position to win deals with heavy SAP-based products portfolios. Meg Whitman’s strong leadership and personnel
Blueprint Leading Highlights BPO transformations in F&A and payroll. management has been a strong plus for the firm during its difficult era.
• Salesforce.com strengths. HP’s partnership with Salesforce, in addition to its • Lagging vertical-specific platform offerings. A greater abundance of more
Execution servicing of the firm as an F&A client, is driving “As-a-Service” mentality as well as vertical-specific solutions would be ideal (as compared to its peers in the F&A
• Leveraging new technologies, driving new capabilities for F&A solutions, extending processes. space). However, not dissimilar from Capgemini, its strong horizontal capability
• Recent restructuring of HP a positive for F&A. This has exposed some of the “gold” is a plus for many F&A clients. Additional investment in these areas is much
security, social media, etc.
in the firm to upper management, including the robust F&A business. needed
• Integration of technology into
• Historically strong with CPG clients. Holds an impressive portfolio of these types of • Client management still remains a weakness in terms of execution of delivery,
business process clients and has served them well in the past. In addition, HP is focusing on new which was exacerbated during its difficult 2012 ad 2013 years. However, HfS has
• Incorporate regulatory verticals needing “New style of IT” industry solutions. seen some improvement here with its renewed stability at the client account
requirements quickly and • Recent investments in AutoFlow show commitment to process automation, level.
proactively specifically for F&A BPO clients. Additionally, HP is focused on reducing redundancies • Flattening of pyramid. HP headcount is relatively higher as compared to
to increase profitability, hence robotics has higher emphasis. revenue from handful of F&A clients, due to its focus on clients needing
• Strengths in F&A have been gleaned from its own shared service center. Has helped transformation. In order to provide value to its clients, HP needs a trimming of
develop a balance between transactional and higher-end services and extend many headcount as well as a flattening of the inverse pyramid, in terms of both skill
of the benefits of Global Business Services to its clients. sets and locations.
• Increase sales engine. Historically, HP has not been aggressive in new client
acquisitions; however, under the leadership of Mike Nefkens, the sales force
has got a face-lift, which may see HP F&A BPO winning new logos in near
future. 2014 has been a noticeable uplift in competitive performance for HP’s
F&A business.

Client Industry Verticals Key Clients Global Operations Centers Technology

• Communications & Media 37+ F&A BPO clients across USA, UK, • Headcount: 11,100+ FTEs • AutoFlow • Emagia
• Consumer Packaged Goods and Continental Europe • HP’s Invoice Automation • HP CART
• Transportation • India: Bangalore, Chennai • Newgen • Blue Prism
• Financial Services • Smith & Nephew • Poland: Worclaw, Lodz • SunGard • HP TRIM and Digital
• Proctor & Gamble • Costa Rica: San Jose
• Manufacturing • Webcollect archiving tool
• Molson Coors • Panama: Panama City
• Clorox • AssureNET • CVG
• China: Dalian • ReconNET • Business Objects
• Tribune Group • Philippines: Manila
• DHL • eClose
• Vietnam: Ho Chi Minh City

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Xchanging – Progressive F&A BPO Services, 2015
A procurement analytics specialist with growing capabilities in embedding machine
Xchanging learning for BPO/ITO

Procure to Pay Strengths Challenges


• Procurement-focused F&A practice. Very strong in the Source or Pay functions • Developing F&A propositions with industry focus around Real Estate,
Order to Cash as a result of their focus on procurement outsourcing services and, in general, Healthcare, Manufacturing, and Insurance industries
strategic sourcing and procurement. • Presence outside UK. Has significant footprint in USA through F&A
Record to Report • Sustainable delivery. Has successfully partnered with F&A customers to deliver customers, but failed to develop scale in last few years in terms of clients
sustainable business and process improvements. and experience.
• Movement and development into unique and value chain-specific services in • Slow to capitalize on F&A clients gained from acquisition of Cambridge
Finance Transformation analytics. Some of the most interesting developments surround the spend Solutions in 2009 – has failed to add significant new F&A clients
management and P2P functions. • Late entrant to truly innovative, technology-backed operations. Has made
• Impressive clients in the healthcare, real estate, and education verticals. the move to technology-driven transformational solution approach,
Blueprint Leading Highlights • UK advantage. Xchanging has had success in the UK enterprise and government beyond a lift and shift operation strategy with clients, but behind the
segment. This can further be leveraged to secure more F&A engagements. market.
Execution • Strengthening quality and operational excellence. Xchanging is keen on • Unclear F&A strategy. Unlike procurement, where in 2013 Xchanging
• Flexibility to deliver both end-to-
differentiating itself from the rest of the pack on operational excellence culture. acquired MarketMaker4 (MM4), an e-sourcing technology company based
end and point solutions • Focused on technology platform. Recently developed technology platform in the USA, the inorganic growth of F&A BPO has taken a backseat.
underpinning all three towers of P2P, R2R, and O2C – successfully rolled out • Flat revenue and leadership changes. Had flat revenue growth over the
across ~ 20 countries between USA, Europe, and APAC. last two years and leadership changes.

Client Industry Verticals Key Clients Global Operations Centers Technology

• Banking 20+ F&A BPO clients largely across UK and in • Headcount: 1650+ FTEs • X-Flow (F&A)
• Insurance Europe and Americas • X-Act
• Real Estate • UK: London, Preston, Glasgow, Manchester • VAULT
• Healthcare • Defense and aerospace company • APAC: Adelaide, Gurgaon, Bangalore, • KOFAX
• A multinational real estate company Shimoga, Singapore, Sydney
• Energy
• Education • Europe: Paris, Frankfurt, Berlin, Barcelona
• Logistics • US: Chicago, Detroit, New York
• Consumer Goods
• Retail
• Public Services & Defense

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HP – SAP Services, 2014
HP Successful hardware history in the SAP space is still a competitive differentiator for
Winner’s Circle HP.

Market Share: 3.40 % Key Strengths Key Challenges


Overall Score: 3.60
• Strong global hosting and application management • Past corporate branding and management issues are
Innovation capabilities, highly innovative in the Cloud and big data having more serious consequences for client satisfaction
space. Strong brand awareness as the global market as expected. Internal coordination within HP – one face
• Score: 3.45 leader for SAP hardware. to the customer – is still a long way away.
• Good innovation • Like IBM, HP can offer the full lifecycle service for SAP • Size and revenue of the SAP practice is well below the
capabilities. Winner of and beyond - for hardware and a growing software top three market leaders. HP is not in the same league as
many Pinnacle Awards portfolio. Accenture or IBM in this market.
over the years. Many • Market leading SAP management solution within the HP • The SAP strategy consulting is an area HP is investing in
initiatives based on the Software portfolio. to broaden its’ portfolio, in order to improve revenue,
HP hardware expertise. customer feedback and mindshare.
• Highly capable of adopting to global and local client
needs. Very customer-focused. • A number of clients report that HP’s SAP solutions are
often over-engineered.
• Potential future issues in the SAP partnership through a
growing overlap between HP’s SAP management
Execution solution and SAP’s Solution Manager.

• Score: 3.75 Customer Satisfaction And


SAP Services Scale SAP Services Coverage
Competitive Differentiation
• At the lower end of the
top ten. Still strong in • Market Share: 3.40 % • # of SAP practitioners: 9,250 • Average level of customer satisfaction.
most areas but client • Estimated revenues: $ 1,700 M • Top 3 Verticals: Manufacturing, Big drop from 2013.
satisfaction is going • Consulting: $ 1,290 M consumer products, • HP has traditionally been the number
• Hosting: $ 410 M transportation. one hardware choice for SAP. This
down. • Good coverage of the entire value
• Large player. Good global remains a huge branding plus.
chain, with particular strength in
coverage with more focus on operational management and
technology than verticals. implementation consulting, as well
as hosting.

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CSC – SAP Services, 2014

CSC Solid High Performer with few weaknesses but also few true market differentiators.
High Performer

Market Share: 1.62 % Key Strengths Key Challenges


Overall Score: 3.20
• Existing customers are highly satisfied with the services • Hugely successful in the US public sector. Other
Innovation and solutions that are being provided. industries are lagging by comparison and that can be
especially so internationally.
• Score: 2.95 • Solid High Performer with well-balanced global
coverage. Capable of providing full lifecycle support to • The involvement in the NSA spying scandal is having a
• For the past 12 months, clients across the globe. seriously negative effect on the brand in Continental
CSC has been quiet on Europe. In general, branding in international markets
• One stop shopping solution without the Accenture or
the innovation front. needs to be improved.
IBM overhead.
The score is now only
• Behind global competitors in leveraging best practices
just average. • Go-to-market by industry which is appreciated by
and lessons learnt.
clients.
• Customers report that CSC appears to be less innovative
• Strong push towards cloud by CSC with accompanying
than the market as a whole, with the exception of Cloud.
investment by the SAP practice with the CSC
ServiceMesh Agility Platform and legacy architectures
into cloud-based transformation partnership with HCL.
Execution

• Score: 3.45 Customer Satisfaction And


SAP Services Scale SAP Services Coverage
• CSC’s execution Competitive Differentiation
capabilities are above • # of SAP practitioners: 8,400
• Market Share: 1.62 % • High level of customer satisfaction, but
average. Existing clients • Top 3 Verticals: Manufacturing,
• Estimated revenues: $ 810 M only average price versus value
are satisfied with the public sector, aerospace and
• Consulting: $ 540 M assessment.
project performance defense.
• Hosting: $ 270 M • CSC is going through a rough phase.
and the global scale. • Good coverage of all SAP Services.
• Large player. Balanced mix Corporate issues increasingly influence
between hosting and consulting. the SAP practice.

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HP – Talent Acquisition Service Providers, 2014
Tech Titan Targeting Talent and Workforce Support Services
HP
Staff Source Engage
Blueprint Leading Highlights Strengths Challenges

• Flexibility to Deliver • Enterprise system expertise. HP is betting on its knowledge in SAP, Oracle, and • Looks good on paper. As we identified in the last workforce-related
Workday to provide the bedrock of its global human resources services Blueprint report, while HP’s own business practices, including an
Both End-to-End and capabilities, including talent acquisition services. As many companies look to established global business services function for HR, do give the firm
Point Solutions preserve their existing applicant tracking and contract labor vendor management some credibility to speak to best practices today, HP has work to do
• Integration of systems and want their service partners to interact and integrate with these to demonstrate it can offer strategy support and compelling
Technology into systems, this area of expertise should serve HP well. candidate and employee experiences built on the latest technologies
and service expectations in end-to-end HRO and talent
Business Process • Business analytics. Having access to a lot of administrative information around management.
recruiting, hiring, and on-boarding from its existing multi-process HRO clients, in
addition to on-going performance and development data as well, HP’s HR-related • Technology and talent tension. Like other leading players with
business analytics can help clients’ connect the dots between their talent significant ITO businesses, HP is at an inflexion point where it needs
acquisition philosophies, policies, and procedures and workforce performance to move up market and provide more value added transformational
over time and help clients support workforce decision making and change as well. services. It has identified HRO as an area it would like to invest and
lead and talent acquisition services must be a part of the offering.
• Customer Engagement Management (CEM) capabilities. As HfS has previously Yet is betting heavily on Workday and Workday’s recruiting
recognized, HP provides employee contact services to nearly all of its HRO clients capabilities are very limited, with the first version just being made
(claiming capabilities of 28,000 agents supporting 51 languages across 34 countries widely available in April 2014. While it hopes to be able to share its
worldwide) and it has an opportunity to provide similar contact support to GBS experience and Workday expertise in the marketplace, it will
enhance the candidate/contractor experiences, from pre-hire through on- need more to win in the competitive talent acquisition space in the
boarding and contractor payments. HfS has said before, as worker expectations of next few years.
employers become the same as consumers, this expertise will be a key
differentiator to offering compelling workforce support in a cost-effective

Relevant Acquisitions and Partnerships Key Clients Global Operations Centers Technology Offered
• N/A • Molson Coors • Headcount: 50 - 75 FTEs in recruiting • Currently technology-agnostic with no proprietary or
• Telstra and staffing offerings preferred platforms
• Unicredit • SAP HCM/SuccessFactors, Oracle/Peoplesoft, Workday
• Locations: include Wroclaw (Poland), experience
Costa Rica, Milan (Italy) and Melbourne • Meta4 (Latin America)
(Australia)

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HP – Digital Transformation Services, 2014

HP HP’s “best-for-the-customer” approach makes it a strong partner for those looking


Challenger to experiment in Digital.

Our Take: Strengths Challenges

HP has all the technical capabilities necessary • HP’s best-for-the-customer approach is working well right now. IT • HP needs to get its message out more around innovation and
to build robust new digital offerings and its managers trust HP to guide them through the Digital journey. business transformation where it has done some solid work but
strengths in certain verticals like airlines or oil • As a service provider that can truly provide end-to-end mobile is not as well known for it in the marketplace. HP will have to
and gas leaves it well suited to tailor these for integration, from device through network including app development, continuously work on branding and marketing.
specific needs. However, its extreme customer HP can meet the needs of any buyer looking to rationalize its mobile • Given the great depth of offerings within each area of the firm, it
centric focus coupled with standalone infrastructure alongside new enterprise apps. may be difficult to present a truly unified solution to a customer,
operating structure keeps it from fully • HP is one of the few vendors that truly covers all the different services however the company has been working aggressively to
leveraging synergies from past engagements of the whole Cloud Infrastructure Services space on a global level and establish an account executive as a single point of contact.
and may slow some innovation. HP makes a maintains a robust Cloud network able to “locally” deliver any app. • HP’s vertical-specific offerings are not as mature as its
great partner for co-innovation but lacks some competitors. It will need to do more to develop differentiated
• It invests aggressively to maintain its relevance by building out a strong
ability to leverage synergies from the past. and verticalized use cases and platforms.
portfolio of offerings for the next wave of mobility in 2014 and 2015.
• After HP acquired Vertica and Autonomy, its integration of these • HP’s best-for-the-customer approach makes it difficult to fully
technologies has resulted in a powerful platform that handles realize its revenue potential. HP will typically tailor a solution to
unstructured data, delivers meaning-based computing and enables the customer’s needs, which means that often its automation
real-time analytics. Called Next Generation Information Optimization, potential is not fully leveraged, and HP does not extract the
this platform is another step for the provider in the big data space, maximum revenue from the client. HP needs to strike the right
along with HP's Big Data Discovery Experience solution set. balance here.
• The provider has a relatively balanced workforce distribution with • Its traditional strengths in mobile devices, networks and
roughly half of its delivery done from onshore locations in the US, UK platforms tend to overshadow its activity in application
and continental Europe. development where it also has some good capabilities.

Key Acquisitions & Partnerships “Digital” Operating Structure Proprietary Platforms


Acquisitions: HP Services is organized around seven Proprietary Platforms & Software:
Autonomy, Fortify, 3Com, Palm, practices with Mobility (largely devices), Aurasma, Autonomy, Anywhere, Vertica, Agile
Stratavia, 3PAR, Vertica Systems Analytics (largely data management) and Cloud Manager, ALM / Quality Center, LoadRunner,
(largely infrastructure) operating alongside Fortify, HP Anywhere, ArcSight, TippingPoint,
Strategic Partnerships: “Industry Solutions” as well as other areas like Big Data Discovery Experience, Next
SAP, Kony, Citrix XenMobile, Symantec, application services. Generation Information Optimization
Salesforce.com

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CSC – Digital Tranformation Services, 2014
CSC Will need to operate in double time as it looks to make up years of lost ground.
Rising Star

Our Take: Strengths Challenges

CSC is on the road to recovery with relatively • While late in responding to offshore disruption, CSC has been more • Management changes and a confused strategy caused CSC to
new management looking to invigorate the aggressive in its response to the disruption from Digital having made a stumble in the past. Future prospects are promising but much
entire business – including efforts around the couple of large acquisitions last year alone. work needs to be done at a time when available investment
Digital big MAC. An early leader in the Cloud • One of the first traditional IT Service providers to embrace the Cloud, it resources are lower than at most.
and an acquirer around big data, CSC brings is the fifth largest provider of Cloud Infrastructure Services today. • CSC is still viewed largely as a managed services provider with
some strengths but will have its work cut out • CSC demonstrated a commitment to Cloud with its acquisition of deep technology skills that executes well but is not necessarily
for it as it looks to position itself for the future ServiceMesh which positions it well to act as services integrator. seen as a leading innovator in business.
of Digital Transformation while shoring up its • CSC needs to do more to get the word out around its effort to
• It embraced new rules of co-opetition as it partners with the likes of
positioning in traditional IT Services markets become a business transformation provider rather than a
AWS and HCL to best reach certain markets even as it competes
today. technology implementer.
directly with them in others.
• CSC brings strong technology skills within enterprise mobility that • Enterprise buyers still largely view its mobility offerings as a
position it well for critical offerings such as secure device management. technology play rather than one of business enablement.
• The company acquired InfoChimps to build out its big data offerings • With a large part of CSC’s business coming from governmental
last fall and continues to build out capabilities there. clients whose buyers tend to operate in different circles and
• A very pragmatic provider, CSC says it sells what it can deliver today often according to different rules, some of CSC’s best work does
rather than promises what it hopes to provide and in general is very not get the same level of visibility in the commercial market.
strong in execution.

Key Acquisitions & Partnerships “Digital” Operating Structure Proprietary Platforms


Acquisitions: CSC is in the midst of a large transition phase Proprietary Platforms & Software:
ServiceMesh, InfoChimps, 42Six, iSoft having recently refreshed its leadership. As CSC BizCloud, ServiceMesh
Group such, “Digital” remains an aspirational
operating model as it focuses instead on
Strategic Partnerships: refining operations within its three primary
HCL, AWS, AT&T markets – global business services, global
infrastructure services and North American
public sector. Within each of these are areas of
delivery that cut across all elements of digital.

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HP – Cloud Infrastructure Services, 2014

HP Successful network and infrastructure history makes HP one of the best choices for
Winner’s Circle Cloud Infrastructure

Market Share: 6.49 % Key Strengths Key Challenges


Overall Score: 4.53
• Converged infrastructure has been on HP’s agenda for • Historical corporate branding and management issues
Innovation many years. A growth in market share, survey results, seem to be resolved, but survey results and client
and anecdotal evidence show that this is now conversations show that some potential clients remain
• Score: 4.47 resonating strongly with clients. Consequently, HP has a skeptical. HP will have to continuously work on branding
• HP has a stronglegacy strong competitive advantage over most of the and marketing.
competition.
in IT infrastructure, but • HP’s best-for-the-customer approach makes it difficult to
it is also known for its • HP is one of the few vendors that truly cover all the fully realize its revenue potential. HP will typically tailor a
ability to innovate. different services of the whole Cloud Infrastructure solution to the customer’s needs, which means that,
Both resonate well with Services space on a global level. On the Private Cloud often, its automation potential is not fully leveraged, and
clients in the Cloud era. side, the company is also capable of leveraging market- HP does not extract the maximum revenue from the
leading strength in server hardware. client. HP needs to strike the right balance here.
• HP’s best-for-the-customer approach is working well • As strong as HP is on the infrastructure and internal IT
right now. IT managers trust HP to guide them through side, business decision makers are less likely to be aware
the Cloud journey.. of HP’s strengths.
Execution

• Score: 4.60 Customer Satisfaction And


Cloud Infra Services Scale Cloud Infra Services Coverage
• HP has a large global Competitive Differentiation
market share. Clients • # of Employees: 15,800
• Market Share: 6.49% • Clients are very satisfied overall with
have a high level of • All regions and relevant countries
• Revenues: $3,355 M HP, and they regard the company as a
trust in HP and are very covered extremely well. HP is well
• IaaS: $355 M partner rather than solely a supplier.
satisfied with the known for its local footprint.
• Hybrid Cloud: $1,900 M • The differentiation level is high
service they receive. • HP covers all aspects of the Cloud
• Private Cloud: $1,100 M because of HP’s strong legacy,
market..
• Comment: Well-balanced across historically high innovation
all market areas. capabilities, and breadth of
capabilities.

Scale Explanation: 1 (Low) To 5 (High) –Innovation 50%, Execution 50%

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HP – Enterprise Mobility Services, 2014

HP
High Performer

2013 Mobility Revenue/Growth: Strengths Challenges


HfS Est.: $250M (15%) • As a service provider that can truly provide end-to-end integration: • Its traditional strengths in mobile devices, networks and platforms
from device through network including app development HP can tends to overshadow its activity in application development where
Relative Strength Across Stages meet the needs of any buyer looking to rationalize its mobile it also has some good capabilities
of Mobility Adoption infrastructure alongside new enterprise apps.
• Needs to get its message out more around innovation and business
• Provides a comprehensive portfolio of hardware, software, services transformation where it has done some solid work but is not as well
and solutions from HP and its partner ecosystem. known for it in the marketplace.
Stage 3:
Transform • Provides a robust cloud network on which to deliver any app. • Given the great depth of offerings within each area of the firm, it
may be difficult to present a truly unified solution to a customer
• Extremely broad global footprint that allows “local” hosting in however the company has been working aggressively to establish
nearly every country today. an account executive as a single point of contact.
• Investing aggressively to maintain its relevance by building out a
strong portfolio of offerings for the next wave of mobility in 2014
Stage 1: and 2015.
Stage 2:
Discrete
Integrate
Apps

Client Industry Verticals Key Clients Global Operations Technology Offered


Focus on Key Verticals: HP targets the Global 2000 across all regions. Headcount: Proprietary Platforms & Software:
• Banking and Financial Services • ~1,000 developers • Aurasma, Autonomy, Anywhere, Vertica,
• Consumer packaged goods Clients Include:
Agile Manager, ALM / Quality Center,
• Technology • Large multinational bank Key Delivery Locations: LoadRunner, Fortify, HP Anywhere, Fortify,
• Oil & Gas • Global technology firm • 12 Global Delivery centers located across ArcSight, TippingPoint
• Airlines • A global oil & gas producer South & Central America, Asia, and Europe
Key Partnerships:
Revenue Mix: Acquisitions and Strategic Partnerships: • SAP, Kony, Citrix XenMobile, Symantec
• 25% B2C • Autonomy
• 75% B2B • Fortify Core Technologies:
• iOS, Android, Windows 8, HTML5

Scale Explanation: 1 (Low) To 5 (High) –Innovation 50%, Execution 50%

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HP – Multi-tower HRO, 2014
HP
Strengths Challenges
Market Share: 1.2%
• European stronghold with “German payroll factory.” Despite selling • Looks good on paper. While HP’s own business practices, including
off ExcellerateHRO US benefits administration business to an established global business services function for HR, do give the
ACS/Xerox, HP execs say it is committed to being a Tier 1 player in firm some credibility to speak to best practices today, discussions
Blueprint Leading Highlights
HRO, building on its strengths in technology, established finance with HP employees reveals their experiences of services internally
and accounting BPO market share, and success in Europe where it from the firm are far from seamless. HP therefore has work to do to
• Strong Delivery of Payroll (Europe) supports dozens of clients in HRO areas. both convince internal leadership to invest in both HR and the HRO
• practices in the same way it will expect clients to spend money for
Flexibility to Deliver Both End to- End and • Business analytics. Acknowledging the increasing interest of clients compelling employee support services built on the latest
Point Solutions to look beyond monetary rewards to help manage wages and retain technologies and service expectations.
• Integration of Technology into employees, HP is using its expertise and capabilities in HR business
analytics services to accelerate clients’ understanding of the • Technology and talent tension. Like other leading players with
• Business Process
possibilities for improved decision making once they have a truly significant ITO businesses, HP is at an inflexion point where it needs
global view of the workforce and the tools to measure the to move up market and provide more value added transformational
effectiveness of non-monetary programs beyond intuitive services and has identified HRO as an area it would like to invest
guesswork or conventional wisdom. and lead. That being said, it has built much of its existing offering on
SAP while it now is implementing Workday itself internally. While it
• Customer Engagement Management (CEM) capabilities. HP reports hopes to be able to share its GBS experience and Workday expertise
it provides employee contact services to nearly all of its HR and in the marketplace, time will tell the tale.
payroll outsourced clients, with capabilities based on 30+ years of
service delivered by 28,000 agents supporting 51 languages across
34 countries worldwide. As employee expectations of employers
become the same as consumers, this expertise will be a key
differentiator to offering compelling workforce support in a cost-
effective way through multiple worker touch points, including
mobile.

Relevant Acquisitions/Partnerships Key Clients Global Operations Technology Offered


• Technology • Molson Coors • Headcount: 1,900 • Currently technology-agnostic with no
• CPG & Retail • Locations: Delivery centers primarily in proprietary or preferred platform
• Manufacturing • Telstra Latin America, Europe, and Asia Pacific. • SAP HCM, Oracle/Peoplesoft partnerships
• Energy • Unicredit • Key locations: Poland with two sites, • KIDCAP (healthcare / public sector Europe)
• Telecommunications Germany with twelve sites, Indian • Meta4 (Latin America)
• Pharmaceuticals • Coles Group centers, and Melbourne, Australia • E-Travel for travel booking and expense
• Transportation reimbursement services
• Professional Services • In discussions with Workday and
SuccessFactors

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CSC – Insurance BPO, 2014
CSC
High Performer

P&C L&A

Strengths Challenges
Market Share: 5.7%
• Onshore Delivery. CSC has significant service delivery capabilities in the US, • Weak in Some Key Client Markets. CSC has firmly dug its roots in North
giving it a leg up on local knowledge (e.g. regulatory compliance) and client America, but it needs to expand its presence in key client markets like the
Blueprint Leading Highlights proximity. Clients state CSC has developed industry expertise due to this. UK and continental Europe where it is comparatively weaker. The service
provider will need to expand its capabilities in these established markets,
• Integration of Technology into • Large Client Base. CSC has one of the largest client bases for insurance BPO, and stay on top of the localization efforts for its offerings in these as well as
Business Process predominantly in North America due to its legacy business in the market emerging markets.
over the last two decades. The service provider has a balanced portfolio of
• Quality of Account L&A and P&C clients. • IT Project Management. CSC has a long track record in the financial services
Management industry, with a host of technology solutions that have dominated the
• Highly Scalable and Global • Technology Integration and Offerings. CSC’ BPS services provide full market over the years. However, a client we spoke to felt that the
Footprint administration services to clients including a Web portal front-end for company’s BPO operations over the years have been executed with the
application submission and policy service, core processing functions via a same IT project management methods. Its challenge is going beyond its
• Strong Delivery of Policy CSC application engine, management reporting and standard integrations
Serving historic technology business and gaining more exposure to some of the BPO
to 3rd parties. Its Life and Annuity BPS offering also encompasses claims management practices led by competitors.
• Strong Focus on Regulatory administration and annuity payouts.
Compliance and Governance
• Delivery Excellence. Clients rated CSC’s service delivery highly, citing
• Strong Pricing Flexibility consistently high service levels and responsiveness to feedback from
account management and delivery personnel.
• Value Adds to BPO. Clients commended CSC’s built-in dashboards that help
them track important business-specific metrics (e.g. transactions reports,
claims results, financial vs. non-financial abandonment rates).

Relevant Acquisitions/Partnerships Key Clients Global Operations Centers Technology Offered


• CSC recently aligned with ISSI, a wholly • Tennessee Farmers • Headcount: 2,100+ • CyberLife (policy admin)
owned subsidiary of Standard Insurance, to • Starr Companies • Wealth Management Accelerator (policy
provide Philippine based call center services • Preferred Management Agency • Locations: Majority of delivery from admin)
• Florida Penn established, integrated centers in the US • Customer Service Accelerator
• Dongbu (Nashville, Tennessee, Hartford, CT,
• (csA)(customer service)
Accident Fund Jacksonville, IL, Dallas, TX , Blythewood, SC ,
• MetLife • New Business Accelerator(New business)
Sarasota, Fla ) and India (Noida, Vadodara). • PerformancePlus ( Producer & incentive
• Transamerica Capital Management Small presence in South Africa (Cape Town).
• Swiss Re management)
• Product Accelerator (Product development)
• AgencyLink (Agent Services)
• POINT IN (policy admin)

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Xchanging – Insurance BPO, 2014
Xchanging
High Performer

P&C L&A

Strengths Challenges
Market Share: 6.4%
• Onshore delivery. Xchanging has significant service delivery capabilities in • Weak in Some Key Client Markets. Xchanging has broad market coverage
the UK, giving it a leg up on local knowledge (e.g. regulatory compliance) in the UK and Australia. However, it needs to expand its presence in key
Blueprint Leading Highlights and client proximity. Xchanging is a UK-listed company and therefore both client markets like the US and continental Europe where it currently does
Lloyd’s and the FSA are domestic regulators. not operate. The service provider will need to expand its capabilities and
• Highly Scalable and Global stay on top of localization efforts for its offerings in these as well as
• Large and diverse client base. Xchanging has one of the largest client bases emerging markets.
Footprint
for insurance BPO, predominantly in the UK and Australia. The service
• Strong Delivery of Policy provider has a balanced portfolio of L&A and P&C clients, as well as • Relevant and impactful innovation. Clients have cited a very reactive
Serving experience with brokers and reinsurance companies. approach to innovation from Xchanging. They believe the service provider
• Strong Delivery of Claims needs more drive to bring new ideas to improve processes and affect
• Account management. Clients state that Xchanging has good account outcomes; it is currently geared to maintaining the status quo for BPO
Administration
management for insurance BPO. The service provider’s insurance operations. Xchanging will need to chart out a long term strategy for driving
• Strong Community executives are highly experienced in the space, giving clients confidence in
Development new business in this vertical beyond executing on current engagements.
their ability to resolve issues and stay on top of market movements.
• Quality of Account • Value adds to BPO. Clients cited that while the service provider does add
• Vertical expertise. Clients felt confident of Xchanging’s vertical knowledge certain technology enablers to add value to its BPO operations, a refresh
Management Team
and expertise, stating that the majority of employees have been in the including more automation on these tool kits would further improve
industry for a long time and understand the requirements of service or performance.
roles to be performed. Clients also appreciated the service provider’s
delivery capabilities, with consistent performance on BPO operations.

Relevant Acquisitions/Partnerships Key Clients Global Operations Centers Technology Offered


• N/A • Top 3 Insurance Broker • Headcount: ~2,500 • Insurers Market Repository (document
• London Market Utility Contracts management and workflow service)
• Top 10 Insurance Broker • Locations: Significant presence in India and • Netsett (STP)
• General Insurer the UK, some presence in Australia • Electronic Claims File (claims processing and
work flow for the London insurance market)
• eAccounts (data and document submissions
of premiums to the bureau)
• Xchanging Data Hub (B2B gateway)
• ACORD4ALL (B2B gateway)
• Xpresso (claims management mobile app
for insurance claims handlers and insurers)

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About the Author

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Hema Santosh
Principal Analyst, HfS Research – Bangalore, India

Overview
▪ Hema Santosh is a Principal Analyst at HfS supporting research in finance and accounting
and related business services, and global in-house delivery centers. She has held senior
research positions for organizations such as, Information Services Group, Accenture, Wipro
and ITFinity Solutions. Her journey as a research professional has evolved over 14 years by
working across facets of MIS, business planning, market forecast, market analysis,
competitive intelligence and large strategic initiatives.
▪ Hema understands the nuances and dynamics of the BPO and Technology industry. Her
experience ranges from custom research, quantitative studies to qualitative secondary
research conducted among financial services, government and media & telecommunication
industries.
[email protected]
Education
▪ She holds a Bachelor’s degree in Commerce from the University of Mumbai, an MBA
specializing in Marketing from Manipal University and a certificate in full time ‘Management
Program for Women Entrepreneurs’ from the Indian Institute of Management (IIM),
Bangalore.

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About HfS Research
HfS Research is The Services Research Company™—the leading analyst authority and global community for business
operations and IT services. The firm helps organizations validate and improve their global operations with world-class
research, benchmarking and peer networking. HfS Research was named "Independent Analyst Firm of the Year for 2016" by
the Institute of Industry Analyst Relations which voted on 170 other leading analysts. HfS Chief Analyst, Phil Fersht, was
named Analyst of the Year in 2016 for the third time.

HfS coined the terms "The As-a-Service Economy" and "OneOffice™", which describe HfS Research's vision for the future of
global operations and the impact of cognitive automation and digital technologies. HfS' vision is centered on creating the
digital customer experience and an intelligent, single office to enable and support it. HfS’ core mission is about helping clients
achieve an integrated support operation that has the digital prowess to enable its organization to meet customer demand -
as and when that demand happens. With specific practice areas focused on the Digitization of business processes and Design
Thinking, Intelligent Automation and Outsourcing, HfS analysts apply industry knowledge in healthcare, life sciences, retail,
manufacturing, energy, utilities, telecommunications and financial services to form a real viewpoint of the future of business
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HfS facilitates a thriving and dynamic global community which contributes to its research and stages several OneOffice™
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Now in its tenth year of publication, HfS Research’s acclaimed blog Horses for Sources is the most widely read and trusted
destination for unfettered collective insight, research and open debate about sourcing industry issues and developments.

HfS was named Analyst Firm of the Year for 2016, alongside Gartner and Forrester, by leading analyst observer
InfluencerRelations.

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