Vendor Analysis
published on Jun 16, 2014
Report Overview:
This NelsonHall assessment analyses Mphasis' offerings and capabilities in reference data management BPO. Mphasis is one of a number of reference data management BPO companies analyzed in NelsonHall's comprehensive industry analysis programs.
Who is this Report for:
NelsonHall's Reference Data Management BPO Vendor Assessment for Mphasis is a comprehensive assessment of Mphasis' reference data management BPO (RDM BPO) offerings and capabilities, designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of capital market process outsourcing and identifying vendor suitability for RDM BPO 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 Mphasis' reference data management BPO 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:
Mphasis has provided RDM BPO services since 2005, when a large U.S. based retail brokerage firm came to Mphasis for client information file (CIF) support. Mphasis started providing CIF BPO services for both the firm's brokers and the registered independent advisors (RIAs) who also provide services through the firm. The relationship has continued to grow since its inception.
Mphasis' RDM BPO revenues are primarily generated from account opening services (as are its CM BPO revenues). In addition, Mphasis provides IT services to all of its RDM BPO clients; we estimate that Mphasis' RDM IT services revenues are similar in size to its BPO revenues.
Delivery Capabilities
Mphasis' RDM BPO supports client operations in the U. S. However, Mphasis has also supported its U.S. clients in Europe for M&A activities. Each of the Indian centers is a BCDR backup to the other center.
Target Markets
Mphasis' primary targets for RDM BPO are North American based:
- Large retail and institutional brokerage firms
- Large retail banks
- Mortgage lenders (since the 2013 acquisition of Digital Risk).
Mphasis targets these firms for:
- Account opening RDM BPO services
- M&A based data integration projects
- BOT processing operations set-ups.
Strategic Direction
Mphasis is targeting tier one clients based in North America. It is focusing on account opening/administration BPO services (either retail brokerage accounts, retirement accounts, or mortgage accounts). Most BPO vendors of RDM BPO focus on securities/transactions processing, not account servicing; Mphasis is focused on a less well served segment of the RDM BPO market.
Mphasis has grown its RDM BPO business from a small start in 2005 to a medium sized business, which has a much larger group of former clients (from BOT and M&A engagements); these former clients are attractive prospects going forward. In addition, the recent acquisition of Digital Risk in 2013 provides a good base from which to pursue further mortgage account opening clients.