Vendor Analysis
published on Oct 05, 2015
Report Overview:
This NelsonHall assessment analyzes Cognizant's offerings and capabilities in analytics and reporting BPS in banking. Cognizant is one of a number of analytics and reporting BPS companies analyzed in NelsonHall's comprehensive industry analysis programs.
Who is this Report for:
NelsonHall's Analytics and Reporting BPS in Banking vendor assessment for Cognizant is a comprehensive assessment of Cognizant's analytics and reporting BPS in banking offerings and capabilities, designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of capital market process outsourcing and identifying vendor suitability for analytics and reporting BPS in banking RFPs
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the support services sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of Cognizant's analytics and reporting BPS in banking offerings, capabilities, and market and financial strength, including:
- Identification of the company's strategy, emphases and new developments
- Analysis of the company's strengths, weaknesses and outlook
- Revenue estimates
- Analysis of the profile of the company's customer base including the company's targeting strategy and examples of current contracts
- Analysis of the company's offerings and key service components
- Analysis of the company's delivery organization including the location of delivery locations.
Key Findings & Highlights:
Cognizant started its analytics activities in early 2000; this was significantly enhanced in 2007, with the acquisition of MarketRX, an analytics software vendor focused on the pharmaceutical industry. It then expanded its BFS BPS "embedded analytics" capability in 2009, with the addition of UBS India Captive, an experienced BPS BFS reporting, valuation and risk analytics team. Initially, Cognizant BFS BPS provided financial planning and analysis services, but over time its analytics engagement spread has expanded to include operations analytics, and risk and customer analytics services across BFS verticals (including capital market, cards and payments, mortgages, and retail banking).
Cognizant analytics and reporting BPS has 2.5k FTEs working in financial services (retail banking and capital markets), and delivers service from thirteen offshore and eleven onshore delivery centers.
In addition to the analytics and reporting BPS employees, Cognizant also has the following employees:
- Analytics consulting (all industries): 2k FTEs
- Analytics ITS (all industries): 10k FTEs.
Each physical center has a backup location to assure backup and disaster recovery. Client operations are deployed within centers, with client-specific security.
Cognizant' primary targets are:
- Tier 1 banks headquartered in the U.S., U.K., and Continental Europe
- Large regional banks and capital markets firms based in the U.S., U.K., or Europe.
Regional firms are targeted where Cognizant believes there is an opportunity for growth in the relationship, to a large scale relationship.
Cognizant has an estimated ~18 analytics and ~50 reporting BPS clients. Clients, by geography, are:
- U.S.: ~33%
- Europe: ~67%.
The breakdown of Cognizant's analytics and reporting BPS clients by sub-sector is:
- Capital markets: ~67%
- Retail banks: ~33%.
Cognizant has an estimated ~150 BFS clients overall, which are prospects for analytics and reporting BPS. It can grow its business in the next 12 months by focusing on helping clients which want to:
- Outsource analytics and reporting operations to reduce their capital commitment to lines of businesses
- Convert CAPEX to OPEX by buying a BPaaS analytics service.