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IoT in Digital Transformation
Jan 15, 2019 | Market Analysis by David Mayer
NelsonHall's market analysis of the transformational IoT services industry and trends consists of 74 pages. [...]view this reportdownload abstractTable of contents:
- 1. Introduction
- IoT is moving from being a point technology…..
- …to becoming a key component of digital transformation….
- …with an increasing emphasis on standards and interoperability
- 2. Changing Shape of the IoT Services Market
- IoT is progressing from providing asset visibility to becoming part of the core digital fabric of the extended enterprise
- The current IoT market is driven by asset lifecycle management, process optimization, and cognitive awareness
- CURRENT MARKET:
- By 2022, IoT will be the digital fabric for manufacturing and energy firms
- FUTURE MARKET:
- IoT will evolve from point solution to transformational hub by 2022…
- Now (2018-2019)
- Next (2020-2022)
- …and then to ecosystem IoT by 2025, demanding increased focus on interoperability and connecting IoT ‘Islands’
- BY 2025:
- 3. Customer Requirements
- North America leads in volume for IoT-centric digital transformation
- Asset lifecycle management, process optimization, cognitive awareness are the top drivers for transformational IoT adoption
- Adoption Drivers
- ‘Walled Garden’ standards, security, and sensor refresh are key inhibitors to continued expansion of IoT 2.0 adoption
- Adoption Drivers
- The most common use cases for transformational IoT today are manufacturing process optimization, asset lifecycle management, smart inventory management, and decision process acceleration
- The ‘Cognitive Core’ of AI and ML is broadening in IoT usage
- Adoption Drivers
- 3.1 IoT Transformational In-Use Case Studies
- 3.1.1 Manufacturing IoT Case Studies
- Tech Mahindra assisted manufacturer in improving asset location tracking and reducing pick times
- Objectives
- Results
- TCS achieved 50% manufacturing lead time reduction for CPG company
- Objectives
- Results
- Infosys assisted Toyota in achieving an asset performance improvement of 10% for its spindle machinery
- Objectives
- Results
- 3.1.2 Energy IoT Case Studies
- EY assisted European petroleum refiner in improving the predictive accuracy of its refining model by 50%
- Results
- Atos assisted Indian petroleum provider’s retailing operations in reducing pump downtime
- Objectives
- Results
- TCS assisted a major Japanese energy products manufacturer in saving $3m per coal-fired boiler
- Objectives
- Results
- Genpact assisted oil & gas producer in achieving 90% prediction accuracy for new wellbore drilling
- Objectives
- Results
- 3.1.3 Healthcare and Life Sciences IoT Case Studies
- Virtusa designs smart blister pack to assist healthcare services provider in increasing medication compliance
- Objectives
- Results
- Capgemini assists Welch Allyn in reducing device support issues by 30%
- Objectives
- Results
- NTT DATA assisted medical analysis laboratory in increasing test throughput to ~500K analyses per day
- Objectives
- Results
- 3.1.4 Transportation and Logistics IoT Case Studies
- Sopra Steria assisted SNCF in reducing track incidents by 38%
- Results
- Genpact assisted aviation operator in reducing maintenance backlog by 50%
- Objectives
- Results
- 3.1.5 Smart City IoT Case Studies
- EY assisted Suez waste management in reducing claims for missed stops by 60%
- Objectives
- Results
- 4. Market Size and Growth
- Global IoT transformation market will grow at 23% CAGR to $7.3bn by 2022
- ...with significant growth in U.S., U.K. & Europe, Middle East, Japan
- Manufacturing, energy, logistics sectors lead global market
- Forecast assumptions: interoperability becomes the norm; 5G becomes a source of tailwind; AI/ML in IoT matures quickly
- 5. Vendor Market Shares
- Accenture, NTT DATA, IBM, TCS lead IoT digital transformation market by revenue
- 6. Vendor Offerings and Targeting
- The service delivery architecture of transformational IoT involves four layers….
- …with solution development typically taking 6-9 months
- IoT-centric service delivery is moving from engineering group to the digital transformation organization
- T&M dominates commercials with per-asset, outcome-based pricing on the rise
- Ideation is an onshore task, but solution development is done offshore
- IoT monitoring and analytics delivery is predominantly offshore
- Transformational IoT delivery has transitioned faster from PoCs to production deployments in 2018 – and will continue to accelerate
- Vendors are increasingly investing in soft sensor technology and enhancing the cognitive core….
- …with vendor roadmaps also focusing on accelerator development, solution preconfiguration, MES/SCADA connectivity, and IoT microservices….
- …in order to enhance IoT ease and speed of deployment
- Vendors’ accelerator agendas center on minimizing time to PoC & MVP…
- Accelerators
- …with preconfigured IoT solutions used to reduce total design and testing time
- Prebuilt IoT Solutions
- Cognitive core investments are being undertaken to provide hybrid approaches to anomaly detection and resolution…
- Cognitive Core Solutions
- …with investment in MES/SCADA connectivity to expand the reach of IoT solutions
- MES/SCADA Connectivity
- MES connectivity prioritization favors GE, Siemens, ABB, & Rockwell
- Microservices architecture provides solution modularity
- Microservices Architecture
- The U.S. and EMEA dominate target geographies for service providers
- Manufacturing, energy, healthcare are most targeted verticals
- The Fortune 1000 is the primary target for IoT vendors
- 7. Selection Criteria, Challenges, and Success Factors
- Primary drivers of transformational IoT vendor selection are environmental reach, security, and cognitive capabilities
- Vendor selection is strongly influenced by use case experience and long-term vision for the transformed environment
- Vendor challenges to success include security, performance expectations, infrastructural fragmentation…
- Downstream success for IoT transformation vendors depends on their reach beyond the enterprise, interoperability...
- …analytics maturity, edge capability, and digital twinning resolution
- …together with analytic vision, and solution scale
- Appendix I – Vendors Researched
- IoT digital transformation services vendors researched
Next-Gen MSP: Optimizing Contingent Talent Strategies
Jan 09, 2019 | Market Analysis by Nikki Edwards
NelsonHall's market analysis of the MSP industry and trends consists of 100 pages. [...]view this reportdownload abstractTable of contents:
- 1. Changing Shape of Managed Service Programs
- The MSP market is becoming as complex as the RPO market…
- CURRENT MSP MARKET
- …as buyside organizations want a plethora of latest services/ tech/tools…
- CURRENT MSP MARKET
- …tailored to their individual needs (by skillset, industry, geo and size)
- CURRENT MSP MARKET
- The MSP market outlook is more fragmented…
- FUTURE MSP MARKET
- …with the emergence of new skillsets, industry sectors, the SMB take up of MSP, and a mix of providers of MSP solutions…making the task of selecting the right vendor difficult for the buyside!
- FUTURE MSP MARKET
- 2. Customer Requirements
- Socio-economic factors continue to challenge organizations in their pursuit of talent…
- Socio-economic trends
- Globalization/expansion of MSP
- …with compliance and access to data major priorities for organizations…
- Compliance
- Data
- …along with digitalization of MSP and candidate experience processes
- Technology and Tools
- Getting help to source niche contingent talent is the top overall driver for MSP, followed by compliance, need to improve visibility of contingent talent, cost savings, and need for market insight…
- …with additional drivers including a need to improve quality of talent and hiring processes
- Sourcing scarce contingent talent is an issue both in low pay and cyclical sectors and in niche technical skills
- Driver #1 Sourcing Scarce Contingent Talent
- Ensuring compliance is becoming more important driven by the emergence of new regulations such as GDPR
- Driver #2 Ensuring Compliance
- While additional major drivers include achieving visibility of talent (#3), cost savings (#4), and application of data/analytics (#5)
- Driver #3 Visibility of Contingent Talent
- Driver #4 Cost Savings/Cost Efficiencies
- Driver #5 Data and Analytics
- The top three most common reasons why an MSP vendor beats the competition in the MSP tendering process are reputation, track record and journey…
- …followed by expertise in data/technology/tools, price, and niche capability
- Lorien assisted bank in recruiting IT personnel with ‘agile’ skills
- Lorien (Impellam Group) – Seeking Agile Talent for a Banking Client
- Affinity Workforce leveraged one of its own brands in support of locum attraction & retention for healthcare client
- Affinity Workforce – Developing Candidate Loyalty for a Healthcare Client
- TAPFIN conducted a comparative market analysis to help a client with its talent plan for a new location
- TAPFIN – Providing Market Insights for Expansion Plans of a Client
- Capita Resourcing hired staff under its ‘Employed Resource’ model to support national infrastructure client
- Capita Resourcing – Rescuing its Infrastructure Client from an Unplanned Crisis
- HCMWorks assisted telecoms client in implementing new procurement platforms
- HCMWorks – Evolution of Technology for a telecoms client
- HCMWorks deploys an electronic procure-to-pay solution to eliminate manual processes for a bank
- HCMWorks – Procurement Services for a banking client
- Allegis Global Solutions helped an IT client consolidate the number of MSPs
- Allegis Global Solutions – Managing Cross-operational Implementations and Multiple MSP Consolidations for a Global IT Client
- Allegis Global improves multiple SLAs (up to 25%) for light industrial roles in a retail client
- Allegis Global Solutions – Adjusting Skewed SLAs for New Roles Within a Retail Client
- KellyOCG assisted a financial services client in becoming 100% compliant
- KellyOCG – Journey of Compliance Continuous Improvement for a financial services client
- 3. Market Size and Growth
- Global MSP spend under management (SUM) is forecast to grow at 6.1% CAAGR for 2018-2022…..
- …but is being impacted by global economic uncertainty….
- …and actual SUM continuing to fall short of targeted SUM
- The 2018 global MSP market is led by the manufacturing industry with 24% SUM share, followed by tech/telco/media (23%) and BFSI (19%)….
- …each of those having high SUM growth rates, along with high SUM growth in the healthcare sector
- Integrated models (a mix of other model types) have grown their proportional share in 2018, as vendors flex their channel sourcing mix to find talent…
- Blended programs (a mix of MSP, SOW, freelancers, etc.) now account for a similar share as standalone MSP programs
- The SMB segment represents a 56% share of MSP market in 2017/2018, an increase of 8% in 12 months
- Global economic uncertainty has driven increased emphasis on single-country MSP growth during 2017/2018
- Global MSP revenues are slowing to an average 4.5% CAAGR for 2018-2022…
- …as vendors are pressurized to offer more for less
- 4. Vendor Market Shares
- TAPFIN, Allegis Global Solutions and Pontoon Solutions lead the global MSP SUM share (~37%)…
- ..closely challenged by Randstad Sourceright and KellyOCG (representing another 13.7%)
- The North American market is dominated by TAPFIN and Allegis Global Solutions taking 29% of the SUM market share…
- …closely followed by Pontoon Solutions and KellyOCG (a further 18.5% SUM market share)
- In the U.K., Allegis Global Solutions and TAPFIN lead the market in MSP SUM with 24.4% market share…
- …with Capita Resourcing, Geometric Results Inc., Pontoon Solutions, Guidant Global and Alexander Mann Solutions challenging the leaders (with a further 34.5% SUM market share)
- Continental Europe is dominated by Randstad Sourceright and TAPFIN with a combined ~48% SUM market share…
- …challenged by ZeroChaos, Pontoon Solutions and KellyOCG (representing another 20.7% SUM market share)
- TAPFIN and KellyOCG dominate the Middle East/Africa region in SUM market share (~70%), with ZeroChaos, Pontoon Solutions, and talentCRU building up a competitive SUM market share (a further ~18%)
- TAPFIN and Allegis Global Solutions lead the MSP SUM share in APAC, with 31.8% and 16.9% respectively…
- …challenged by Randstad Sourceright, Pontoon Solutions and Geometric Results (with a further 13.1% SUM)
- LATAM is dominated by U.S. headquartered vendors, particularly TAPFIN, KellyOCG, AgileOne and Pontoon Solutions (71% SUM market share)
- 5. Vendor Offerings and Targeting
- MSP Models
- Vendor Neutral (VN)
- Master Vendor (MV)
- Direct Sourcing
- MSP Models
- Integrated Models
- MSP and SOW programs still predominate…
- MSP
- SOW
- Freelancers/ICs
- …but client organizations have more choice in which contingent worker program type to leverage…
- Blended Program
- Mini MSP (or other terminology)
- Administered Programs
- …with the risk that some MSP vendors could spread themselves too thin
- Frameworks help determine the MSP journey that client organizations need to take…
- …with vendors offering different solutions at each maturity stage:
- The broad range of service offerings from MSP vendors takes an about-turn…
- …as MSP vendors realize they cannot be experts in everything!
- MSP vendors show how their short-term solutions can be turned into longer-term initiatives to overcome talent shortages…
- …while also driving quality in contingent talent
- MSP Vendor Examples of SLAs/KPIs
- Outcome-based metrics have a slow adoption rate
- What a difference a year makes…MSP technology (and the attitude towards using it) has moved on somewhat…
- MSP vendors’ use of third party technology represents between 70% and 100% depending on platform type…
- …with MSP vendors enhancing/focused on VMS, FMS, talent clouds/talent platforms, and analytics in 2018…
- …as well as multifunctional platforms and a select range of new technology
- Emerging technology/tool focus includes video interviewing, RPA and chatbots, and talent pooling platforms
- Affinity Workforce leverages technology to enhance candidate loyalty
- Affinity Workforce – Developing Candidate Loyalty Using the ‘Affinity App’
- Many vendors operate in the mid-market space, as this market offers the greatest opportunity for vendors to expand their business
- Larger, established vendors work across many industry sectors, with smaller/newer vendors focusing on industry niches…
- …ultimately giving more choice to organizations when selecting a vendor to partner with for the long-term to meet their talent needs
- 6. Vendor Delivery in Managed Service Programs
- Location and number of MSP delivery hubs
- Delivery of MSP services is being increasingly tailored for clients…
- Blended delivery is poised to overtake SSC only delivery
- Blended MSP delivery has a relatively low proportion of remote (home) worker support, despite the need for clients to flex and scale contingent needs
- 7. Challenges and Success Factors
- The #1 key challenge is addressing talent shortages across industries, skillsets, and geographies
- Talent Shortage
- Critical success factors for tackling contingent talent shortages include building a compelling employer brand to attract increasingly choosy candidates
- Critical success factors for talent shortage
- The #2 challenge is educating organizations about striking a balance between cost and quality to deliver a fit-for-purpose MSP
- Balancing Cost versus Quality
- Critical success factors ensuring a balance between cost versus quality
- Critical success factors for the right balance between cost and quality
- The #3 challenge is achieving 100% compliance for client organizations
- Compliance
- Critical success factors for ensuring 100% compliance include providing quick wins re visibility and costs of hidden talent
- Critical success factors for ensuring 100% compliance
- The #4 challenge is educating client organizations of the need to change their culture to enable successful contingent talent attraction
- Organization culture
- Critical success factors for ensuring organizational culture change around attracting contingent talent include showcasing client examples of success
- Critical success factors for ensuring organization culture change around attracting contingent talent
- Appendix I: Vendors Researched
- Vendors researched for analysis (vendor interviews)
- Vendors researched for analysis (secondary research)
- Appendix II: Abbreviations and Definitions
- NelsonHall abbreviations
- NelsonHall definitions
CX Services in Energy and Utility
Dec 18, 2018 | Market Analysis by Ivan Kotzev
The global CX services market (excluding collections) for the energy and utility sector is ~7% of the global industry and is growing at ~3.0% CAAGR (against a market average of 5.1%). Europe is the biggest market at (~40%), followed by North America. The sector revenues in APAC are growing faster than the overall market, at ~4.8% CAAGR througho [...]view this reportdownload abstractTable of contents:
- 1. Introduction
- 2. Changing Shape of CX Services in E&U
- 3. Customer Requirements
- 4. Market Size and Growth
- 5. Vendor Market Shares
- 6. Vendor Offerings and Targeting
- 7. Delivery in CX Services in Energy and Utilities
- 8. Selection Criteria, Challenges, and Success Factors
- Appendix I – Vendors Researched
Salesforce Services
Dec 05, 2018 | Market Analysis by Dominique Raviart
NelsonHall's market analysis of the Salesforce services consists of 62 pages. It provides an in-depth understanding of the dynamics at play in the Salesforce services market. [...]view this reportdownload abstractTable of contents:
- Changing Shape of the Salesforce Services Market
- The Salesforce services market is enjoying high growth and will continue to do, fueled by Salesforce’s growth ambitions
- The service mix will move from Sales and Service Clouds to Customer Success Platforms and new products
- Delivery is more onsite-centric than SAP/ERP projects. It will become more offshore-centric in the coming years
- Customer Requirements: Salesforce Services
- Salesforce clients look to refresh and digitally enable their applications …
- … and will benefit from further functionality brought by Salesforce, or by Salesforce’s ISV ecosystem
- The majority of organizations aspire to be more digitally-enabled thanks to Salesforce
- Digitally-driven organizations want to modernize their CRM and contact center
- Market Size and Growth
- Foreword: all forecasts are based on Salesforce’s objectives to reach revenues of $20bn-$22bn by FY22
- The Salesforce services market opportunity will more than double during the 2017-2022 period
- North America is and will remain by far the largest Salesforce services market
- Customer Success Platform & new products will overtake Sales and Service Clouds by 2022
- Service growth by vertical will depend on Salesforce’s product investments. In all likelihood, financial services and U.S. healthcare are its priority
- Systems integration will remain the largest area of spending in all Salesforce services, fueled by new software product launches
- Vendor Market Shares
- Accenture, followed by Salesforce, Deloitte, IBM, and Capgemini lead the global Salesforce services market
- In North America, Accenture leads, along with Salesforce, Deloitte, and IBM
- In EMEA, Accenture leads along with Deloitte, Capgemini, Salesforce, and Cognizant
- Vendor Delivery Capabilities and Trends
- Salesforce projects require core skills that are similar to those needed for SAP and ERP projects, but in an agile context
- Currently, delivery is more onsite-centric than for SAP projects. This will change in the coming years once the clients’ confidence levels increase
- Indian vendors have plans to expand nearshore selectively. Onshore vendors look for nearshore or offshore locations to lower their costs
- Skills: Salesforce is currently fueling demand all over the place, around mature products, new products, minor products, and ISV partners
- Accelerators: Most vendors have developed consulting methodologies and project management tools….
- … in the coming years, they will develop technology accelerators to shorten implementation times and invest in Salesforce’s next-gen offerings
- M&As: Accenture most acquisitive. The largest Salesforce specialists are now gone
- M&As: target firms have become less common and are smaller in size
- Vendor Offerings and Targeting
- Service portfolio: Vendors are playing catch-up with Salesforce, with AI in mind
- Service portfolio: vendors have structured their consulting portfolio…
- … and are developing specialized offerings
- Industry Solutions: most vendors are creating vertical IP …
- … targeting their industries of strength….
- … focusing on solutions rather than software products….
- Industry Solutions: vendors will continue to develop industry solutions but remain cautious about products
- BPaaS: Vendors are starting to provide contact management BPaaS on Salesforce, and are expanding to claims processing and marketing services
- Vendor Challenges and Success Factors
- DDOs look for Salesforce expertise and industry knowledge
- SCS look for vendors with Salesforce expertise that can handle complex projects
- ITFOs needs vendors that can fund new functionality through cost savings
- NMs look for an outsourcing partner that will execute on its promises
- Appendix I – Vendors Researched for Analysis
- The following vendors were interviewed for this report:
- Appendix 2 – List of Salesforce Acquisitions since 2015
Next Generation Supply Chain Management BPS
Nov 12, 2018 | Market Analysis by Janet Irwin
NelsonHall's market analysis of Next Generation Supply Chain Management BPS consists of 49 pages. [...]view this reportdownload abstractTable of contents:
- 1. Introduction
- Vendor SCM BPS covers demand planning through after-sales support
- 2. Changing Shape of Next Generation SCM BPS
- The current SCM BPS market remains driven by order management cost reduction and improved demand forecasting…..
- …with the future digitalization of the SCM BPS market moving to touchless order processing and use of blockchain to manage supply chain integrity
- 3. Customer Requirements
- SCM functions currently reactive and over-reliant on historical information
- Organizations are looking to outsource SCM services to achieve better visibility and performance
- Organizations are changing how they outsource, putting more of the onus of investing in development on the vendors
- Next gen SCM BPS is typically delivering order delivery cycle time reduction of 15-20% and improvements in forecast accuracy of 10%-30%
- Arvato reduced costs in product serialization for pharmas in response to the EU Falsified Medicines Directive
- Capgemini assisted FMCG company with ~400 brands & ~$63bn annual revenue in achieving ~10-20% improvement in forecast accuracy across product lines
- Capgemini assisted multinational medical device, pharma & CPG company with ~$70bn annual revenue in achieving ~$7m in external manufacturing operational savings over 5 years
- Exertis reduced air freight costs ~50% for a French multinational energy management corporation with $28bn annual revenue
- Genpact reduced inventory by ~50% for a hi-tech client with ~12 factories, ~400 channel partners and ~10 demand forecasting units
- GEP synchronized demand forecasting & production planning for a $6bn global chemical company driving annual cost saves of ~$500m
- Infosys achieved ~$75m cost reduction in order management for a global leader in hardware & network equipment manufacturing
- OnProcess Technologies drove ~$3m in annual cost savings for a global oncology radiation treatment OEM with ~$1.3bn annual revenue
- TCS generated direct revenue of ~7.8m with rebilling process of nonreturned parts for a Fortune 50 global conglomerate’s healthcare diagnostic image media business in the U.S. & Canada
- Tech Mahindra reduced TAT for customer orders by ~30% for a large telecom company
- Wipro delivered ~36% ROI by automation or order management for a large telecom equipment manufacturer
- WNS assisted a Fortune 500 cosmetics company in achieving ~20% reduction in order delivery cycle times
- 4. Market Size and Forecast
- North America and EMEA currently account for ~90% of the SCM BPS market with strong growth also expected in APAC
- CPG & retail will remain the dominant sector for SCM BPS through 2022
- 5. Vendor Market Shares
- The global SCM BPS market is led by Arvato, followed by TCS, Infosys, Genpact, Wipro, Accenture, HCL Technologies, & OnProcess….
- ….challenged by DXC Technology, Cognizant, EXL Service, Capgemini, Tech Mahindra, Sutherland, GEP, and IBM
- The North American SCM BPS market is led by TCS, Wipro, Infosys, Arvato, HCL Technologies, OnProcess, Accenture, & Cognizant
- ….followed by DXC Technology, Genpact, Sutherland, Capgemini, Tech Mahindra, GEP, and IBM
- The EMEA market is led by Arvato, TCS, Genpact, EXL Service, Accenture, Infosys, DXC Technology, Capgemini, & Tech Mahindra….
- ….followed by HCL Technologies, OnProcess, GEP, Exertis, and Sutherland
- 6. Delivery in Next Generation SCM BPS
- 84% of SCM BPS delivery personnel are based offshore, predominantly in India
- Proprietary tools used in SCM BPS include platforms for dashboards and analytics…..
- …demand forecasting and promotion effectiveness…..
- …..master data, order and logistics management….
- …..service and shopfloor support as well as more general-purpose automation and AI platforms
- Key elements of Next Gen SCM BPS include automation, cognitive/machine learning….
- ….Social media insights, mobile-enabling, and drone-based warehouse management
- …with blockchain and connected operations becoming key to the future
- 7. Challenges and Success Factors
- Key vendor success factors include deep domain expertise combined with ability to reinvent supply chain processes using analytics, ML, and blockchain…
- …while the biggest challenges for SCM services vendors include acquiring onshore SMEs and moving beyond consulting & project assignments
- Appendix I
- Vendors Researched
UX-UI Services
Oct 11, 2018 | Market Analysis by David McIntire
NelsonHall’s market analysis of UX-UI Services consists of 49 pages (plus detailed appendices). [...]view this reportdownload abstractTable of contents:
- UX-UI services enable clients to transform how they interact with customers and employees to generate added value
- 1. Changing Shape of UX-UI Services
- UX-UI services use research and design thinking to help clients transform their customer or employee digital interactions…
- …but is shifting to experiences driven by emerging technologies and end to end service design with a quantified value realized
- 2. Customer Requirements
- UX-UI Services are evolving from customer-facing web to conversational interactions and service design
- Past
- Present
- Future
- ~65% of clients engage vendors to support specific identified objectives
- Benefits sought from engaging a vendor for UX-UI services primarily focus on customer satisfaction and retention with increasing customer base or revenues growing in importance
- Now and in the future, clients’ primary focus is on a vendor’s onshore design consulting, tailored frameworks and templates and hosting and delivering design thinking sessions
- Clients are seeing UX-UI services drive improved customer satisfaction scores and improving online conversions
- Adoption of UX-UI services are inhibited by limited visibility to value realized and time commitments
- The greatest uptake of UX-UI Services is in consumer-facing industries
- Mphasis transformed a travel insurance app for a large global insurer to increase conversions by 25%
- Grow adoption of travel insurance through transformed app
- Virtusa transformed a restaurant’s mobile ordering app improving NPS by 91 points
- Restaurant group growing business through mobile ordering
- NTT DATA’s Digital Entity group help an Italian fintech build a new digital payments business
- Building a new business through the use of digital UX
- Foolproof transforms End to End B2B process for Oil Major, reducing cost $7.5m, and improving customer satisfaction
- Enterprise transformation to drive better user experience
- 3. Market Size and Forecast
- Market for UX-UI consulting & implementation services is poised to grow ~15.4% CAAGR to reach $10.8bn by 2022
- North America places the greatest importance on UX-UI design services today, though APAC and Latin America will grow faster
- Broad-based growth is led by consumer facing industries such as retail, healthcare, BFSI and transport through 2022
- 4.1 Vendor Market Shares
- The global UX-UI services market is led by Accenture, IBM, TCS, NTT DATA, and Infosys
- 4.2 Vendor Market Shares by Geography
- The North American UX-UI services market is led by IBM, Accenture, TCS, Infosys and NTT DATA
- The EMEA UX-UI services market is led by IBM, Accenture, NTT DATA, TCS and Infosys
- The APAC UX-UI services market is led by Accenture, TCS, NTT DATA, and IBM
- 5. Vendor Offerings & Targeting
- The early focus on external facing UX initiatives is evolving and will see an equal number of internal initiatives by 2020
- As client interest in UX-UI services grows, vendors are helping clients better quantify the value realized from the investment
- Key business case factors
- As the scope of UX-UI services grows and evolves, it is increasingly delivered as a bundle with other services
- Looking beyond customer interface, clients are increasingly looking for vendors to support a full service design transformation
- Vendors are also engaging to build client’s own internal capabilities in addition to delivering projects
- 6. Vendor Delivery
- Vendors are using design thinking processes to collaboratively develop solutions with users and stakeholders
- User research to inform design process aligns stakeholders with user and customer needs
- 75% of vendors have invested in dedicated design studios to drive the facilitation of client workshops
- Vendor design thinking spaces include open collaboration spaces and specialized usability testing rooms
- Vendors are building UX-UI design capabilities proximate to their clients, and are supported by both local and remote developers
- Close client and user collaboration drives a majority of UX-UI services to be delivered from client proximate locations
- IT service vendors are primarily using commercially available tools to support UX-UI services, in particular Adobe
- 56% of vendors have acquired design agencies to build UX-UI consulting capabilities
- Investment focuses include UX offerings for emerging areas such as AR/VR and voice and expanding delivery capabilities
- 7. Challenges and Success Factors
- Vendors need to be able to quantify the business value of intangible customer or user experiences
- Developing a Quantified Business Case for UX-UI Services
- Design agencies and creatives have different culture and priorities than IT service acquirers
- Integration of Creative Services
- Key success factors to deliver UX-UI services include a design studio network and service design mindset
- Appendix I
- Vendor Investment Priorities
- Vendors are looking to expand emerging technology, including AR/VR and conversational and voice UI offerings
- Appendix II
- Vendor Design Studio Locations
- Vendor Design Studio Count by Region
- Appendix III
- Glossary and Definitions
- Glossary of Terms
- Appendix IV
- Vendors Researched
- Vendors Researched for Analysis
Targeting Life, Annuities & Pensions BPS
Oct 03, 2018 | Market Analysis by Suri Nair
NelsonHall's market analysis of the Life, Annuities & Pensions BPS industry and trends consists of 57 pages. [...]view this reportdownload abstractTable of contents:
- 1. Introduction
- Life, Annuities & Pensions BPS – definition and report description
- 2. Changing Shape of the Life, Annuities & Pensions Market
- LA&P BPS is currently dominated by closed block with a high level of offshoring……
- ….with onshoring expected to grow as RPA reduces offshore activity and demand increases to support new products
- 3. Customer Requirements
- The EU insurance industry is impacted by Solvency II mandates for improved solvency metrics and consumer protection…..
- Regulatory issues affecting life, annuity and pension issuers in the EU
- …..but Solvency II may not apply in the future to U.K., with Brexit
- Regulatory issues affecting life, annuity and pension issuers in the U.K
- U.S. insurance regulations for LA&P are pushing carriers towards convergence in risk-metric presentation and consumer-friendly policy presentation...…
- Regulatory issues affecting life, annuity and pension issuers in the U.S…
- ...with U.S. regulatory issues including a proposed alteration in capital reserves calculation, and regulatory convergence & compliance
- Regulatory issues affecting life, annuity and pension issuers in the U.S…
- Changing demographics in the U.S. and EU are affecting LA&P issuers’ offerings, which are increasingly focusing on specialized products and annuities…
- Social and economic issues affecting life, annuity and pension issuers…
- …and a need for greater customer engagement, as challenges from start-ups are disrupting industry practices
- …continued
- Current major issues facing insurers include high costs from use of legacy platforms, time to market for launching new products, and increasing regulatory requirements
- Operational life, annuities and pensions BPS issues
- Closed block LA&P BPS drivers
- …while speed to market, support for specialist product market entry, and access to differentiated engagement models are the main drivers for open block business
- Open block LA&P BPS drivers
- Life companies still enhancing digital customer experience but looking to take an end-to-end approach to digitalization
- Customer experience transformation requires improved customer experience platform, improved customer segmentation, and incorporation of customer analytics
- Key areas for process transformation & automation initiatives are policy administration, customer service, and new business
- Half of life companies favor replacing legacy platforms with new single insurance platform
- Characteristics sought from operations transformation partners include both automation & provision of agents
- Life insurance is still primarily focused on RPA roll-out rather than wider adoption of
- Best practice process models and onshore employee change management are key ingredients of future BPO contracts
- Main benefits sought by LA&P insurers include closed block business cost reduction, speed to market capabilities, and CSAT improvement through new technologies and engagement models
- Benefits
- LA&P insurers are seeking vendors which can minimize policy administration costs and optimize business processes with automation, workflow and dashboard tools…
- Closed block policy administration cost reduction segment
- Open block LA&P BPS need new engagement models, greater flexibility and reduced cost of entry to new markets
- ‘Speed to market’ open block segment
- WNS assisted a leading U.S. insurer in enhancing actuarial modelling processes
- WNS: Actuarial Modeling
- TCS introduced RPA and chatbots into insurance processes for a large Australian insurance provider
- TCS: Redesign operating framework with RPA
- Genpact migrated an insurer’s policy data using Rapid Automation
- Genpact: Data migration using Rapid Automation
- DXC enabled a leading life insurer to streamline internal processes and improve customer service to become more competitive
- DXC: Streamline internal processes and improve customer service
- EXL identified a premium customer segment for a life company based on the customer expected lifetime value
- EXL: For a leading life insurance company
- Kane LPI completed a platform migration for an insurer in support of new product introduction
- Kane LPI: Migration from its legacy platform to Kane LPI's proprietary IMS system
- DXC implemented a new product for an insurer in six months with subsequent product launches in 30 days with 20% savings
- DXC: New product launch with speed to market
- SE2 transitioned an acquired life & annuities block to its platform achieving resulting administrative savings of 60%
- SE2: Convert and transition a block of business
- TCS identified strategies to improve collection and retention/ renewal rates for a large Indian life insurer
- TCS: Retention/renewal strategies
- 4. Market size and Growth
- Life, Annuities & Pensions BPS market forecast to reach $3.5bn by 2022
- Growth will be strongest in open block in both U.S. and U.K.
- 5. Vendor Market Shares
- The Global Life, Annuities & Pensions BPS market is led by Capita, TCS, Se2, Accenture, EXL Service, and DXC
- The North America Life, Annuities & Pensions BPS market is led by SE2, EXL Service, DXC, TCS, Cognizant, Capgemini, and Genpact
- The EMEA Life, Annuities & Pensions BPS market is led by Capita, TCS, Accenture, HCL, Atos, and IFDS
- The U.K. Life, Annuities & Pensions BPS market is led by Capita and TCS, followed by HCL, Atos, WNS, and IFDS
- 6. Vendor Offerings and Targeting
- While policy servicing, claims management, new business services, and agency management services continue with steady growth, actuarial and analytics services are also growing….
- …with DXC, SE2, TCS and WNS offering end to end LA&P BPS services
- Policies types experiencing increased demand for LA&P BPS services include annuities and variable life
- An estimated 40% of LA&P providers have acquired or partnered in the last three years, with EXL playing an active role
- 7. Vendor Delivery in Life, Annuities and Pensions, BPS
- DXC, Infosys, NIIT and TCS primarily focus on closed block policy administration, while Kane and EXL have strong presence in new business administration
- Offshore delivery accounts for unweighted average of 64% of LA&P BPS FTEs
- Agency services, surrender and terminations, fund support and actuarial services are primarily delivered from offshore locations
- Per policy pricing is most commonly adopted followed by transaction based pricing
- 8. Critical Success Factors
- Critical success factors in Life, Annuities & Pensions BPS include:
- Appendix I: Vendors Researched
- The following vendors were researched in this report
Blockchain Services
Sep 27, 2018 | Market Analysis by David Mayer
NelsonHall's market analysis of the blockchain industry and trends consists of 79 pages. [...]view this reportdownload abstractTable of contents:
- 1. Introduction
- Blockchain Is No Longer a Speculative Technology
- The Blockchain Technology Picture: Competing Standards, and a Long Tail of Specialized Platforms
- Platforms in the Blockchain services space can be categorized along axes of open to permissioned, and flexible to purpose-built
- Blockchain technology can be classified into quadrants
- Quadrant I platforms are for secure, high-performance use cases
- Quadrant II platforms are generally cryptocurrency applications
- Quadrant III platforms are generally consumer noncoin applications
- Quadrant IV platforms are enterprise blockchain breadth plays
- 2. Changing Shape of the Blockchain Market
- The current blockchain market is driven by cost and cycle time reduction, transparency and trust, and transaction audit security
- Blockchain architecture and deployment process will change from a point solution to an ecosystem by 2022
- The next jump (from point solution blockchain to ecosystem blockchain) will demand interoperability and business partnership
- 3. Customer Requirements
- Operating transparency, audit quality control, and cost reduction are among the top drivers for blockchain adoption
- Blockchain is emerging as a component of digital transformation
- Interoperability is a top topic of conversation for vendors and clients
- The most common use cases for blockchain today are cross-border remittances, SCM/provenance, and invoice settlement
- 3.1 Blockchain In-Use Case Studies
- EY Implemented Blockchain to Achieve Daily Settlement in Microsoft’s Digital Content Royalty Payments
- Objectives
- Results
- Atos Designs, Deploys Food Traceability Solution for Bureau Veritas
- Objectives
- Results
- Wipro Constructs Blockchain for Waterborne Commodity Trading
- Objectives
- Results
- Infosys Provides Airline With Blockchain Airworthiness Solution
- Objectives
- Results
- IBM Assisted Maersk in Implementing Blockchain in Support of Shipping
- Objectives
- Results
- Tech Mahindra Designs CBR Blockchain Platform for State Bank of India
- Objectives
- Results
- 3.2 Blockchain Pilots and PoCs
- ATOS Provides BFSI Client with Corporate Bond Issuance Blockchain
- Objectives
- Results
- EY Deploys Tesseract Asset Management for German Auto Sharing
- Objectives
- Results
- Infosys Addresses International Mobile Carrier’s International Roaming Challenges
- Objectives
- Results
- Tech Mahindra Pilots Loan Origination Solution for Indian Bank
- Objectives
- Results
- Wipro Readies GDPR Solution for EU Consumer Goods Firm
- Objectives
- Results
- Virtusa Streamlines Commercial Loan Covenant Management
- Objectives
- Results
- TCS Designs Blockchain Securities Settlement Platform for ABN AMRO
- Objectives
- Results
- Capgemini Builds Policy Bidding Blockchain for Italian Insurance Brokerage
- Objectives
- Results
- Mphasis Re-Imagines Mortgage Origination on Blockchain for Bank Client
- Objectives
- Results
- IBM Manages Own Vendor Invoices on Blockchain Settlement Solution
- Objectives
- Results
- NTT DATA Provides Interbank Reconciliation Solution for ABI
- Objectives
- Results
- 4. Market Size and Growth
- Global blockchain implementation & management market will grow at 94% CAGR to $8.6bn by 2022
- ...with significant growth in U.S., U.K. & Continental Europe, Middle-East, Japan , South Korea
- Banking and insurance lead the global blockchain market, followed by healthcare, manufacturing, energy & utilities, & logistics
- Banking and insurance is the primary demand industry for blockchain deployment, and will remain so – along with healthcare and manufacturing – over our forecast period
- Forecast assumptions: platforms become interoperable and consolidate; quantum computing nets out to a neutral impact
- 5. Vendor Market Shares
- IBM, Infosys, and Wipro lead SI blockchain market in revenues to date
- 6. Vendor Offerings and Targeting
- Blockchain solution delivery in 2018 is typically set up around a CoE with liaisons to the organization’s vertical and horizontal business units.
- Use case definition is changing as vendors identify commonality of applications, with best practices usually ‘stored’ between the CoE and horizontal SBUs.
- Vendors are of three types in blockchain platform architecture: agnostic, monolithic, and bespoke
- AGNOSTIC VENDORS
- MONOLITHIC VENDORS
- BESPOKE VENDORS
- Blockchain will increasingly Transition from PoCs to Production Deployments during 2018
- Ethereum/Quorum Dominate Use Case Infrastructure, But Hyperledger and Corda are Gaining Ground
- Ethereum and Hyperledger Fabric are the market share leaders for platforms in a long-tail market with many competitors.
- By 2022, we forecast a more clearly-defined set of use-specific platforms with the combined Hyperledger family of project architectures leading the way; Hashgraph becomes commercially viable.
- Market Sentiment increasingly favors Fabric, Corda, & Quorum Blockchain Platforms
- The U.S. and EMEA dominate target geographies for service providers
- BFSI, healthcare, manufacturing are most targeted verticals
- IBM, Infosys, Tech Mahindra lead in Banking & Insurance use cases
- IBM, Wipro, EY, Tech Mahindra lead in manufacturing use case diversity
- Wipro, Infosys, TCS, NTT DATA lead in life sciences use case diversity
- IBM, Wipro take lead in Energy & Utilities sector use case diversity
- Tech Mahindra, NTT DATA, Infosys, EY lead in telecom & media use case diversity
- Wipro, Tech Mahindra lead in public sector use case diversity
- The Fortune 1000 is the primary target for blockchain vendors
- Current blockchain-related M&A activity is dominated by technology companies, but we expect service provider M&A to pick up in 2019…
- …with acquiring firms seeking to add specialized capabilities such as throughput acceleration, quantum computing-proofing, and AI
- Vendor roadmaps focus on accelerator development, solution preconfiguration, interoperability, and partner ecosystem expansion
- Moves to accelerate deployment, ease client concerns dominate roadmap initiatives
- 7. Selection Criteria, Challenges, and Success Factors
- Primary drivers of blockchain vendor selection are demonstrable improvements in security, transparency, and transaction processing speed
- Vendor selection is strongly influenced by similarity of proven commercial deployments to new engagements and the provider’s vision for blockchain within digital transformation.
- Principal challenges for vendors today are breadth and depth of solution experience by vertical market, horizontal process, and blockchain platform.
- Downstream success for blockchain services vendors depends on their ability to connect multiple areas of the organization
- Appendix I – Vendors Researched
- Blockchain services vendors researched
Cloud Infrastructure Brokerage and Orchestration Services
Sep 25, 2018 | Market Analysis by John Laherty
NelsonHall's market analysis of cloud infrastructure brokerage and orchestration services industry and trends consists of 64 pages plus detailed appendices. [...]view this reportdownload abstractNext Generation Mortgage & Loan BPS Market Assessment and Forecast
Sep 17, 2018 | Market Analysis by Andy Efstathiou
NelsonHall's market analysis of the mortgage and loan market consists of 94 pages. [...]view this reportdownload abstractTable of contents:
- Changing Shape of Next Generation Mortgage and Loan BPS
- Buy-Side Requirements
- Market Size and Growth
- Vendor Market Shares
- Vendor Offerings and Targeting
- Vendor Challenges and Success Factors
- Appendix A – Service Definitions
- Appendix B – Vendor Details
- Appendix C – Key Regulations Impacting the Adoption of Next Generation Mortgage and Loan BPS
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