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Infosys McCamish Life & Annuities Platforms Combining Depth of Policy Coverage & Breadth of Customer Experience
Nov 20, 2020, by John WillmottFor some time, life & annuities carriers have suffered from a multitude of legacy platforms, with each implemented to handle a particular style of product that was either not handled by its predecessor or was added through the acquisition of a set of blocks from another carrier. The resulting stable of platforms has always been expensive to maintain. In recent years, this has bee[...]
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Atos to Leverage New Aegon Contract to Challenge for U.K. Life & Pensions Closed Books
Nov 30, 2018, by John WillmottIn 2016, Atos was awarded a 13-year life & pensions BPO contract by Aegon, taking over from the incumbent Serco and involving the transfer of ~300 people in a center in Lytham St Annes. The services provided by Atos within this contract include managing end-to-end operations, from initial underwriting through to claims processing, for Aegon's individual protection offering[...]
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SE2’s Digital Transformation: Enabling Future-Proof Life Insurance & Annuities
Oct 19, 2017, by NelsonHall AnalystNelsonHall recently attended the SE2 Partnership Forum, entitled ‘Future-proof: From Here to Digital’, in Washington D.C., where the main focal point of discussion was the challenge of digital transformation in the life insurance and annuity sector. Here I look at a number of developments in SE2’s offerings that are helping clients to address the challenge of dig[...]
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Wipro: Applying RPA to Insurance Claims & New Business, Looking to Holmes to Support KYC
Jun 23, 2016, by NelsonHall AnalystThis is the first in a series of blog articles looking at how business process outsourcing vendors are applying RPA and AI in the insurance sector. First up: Wipro. Wipro started its automation journey in the late noughties and has since gone on to set up a dedicated RPA practice, and also developed its own AI platform, Wipro Holmes. Currently, Wipro is principally partn[...]
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IBM Cloud Infrastructure Investments Lead IBM Outsourcing Transformation
Feb 04, 2015, by Rachael StormonthOverall IBM Group revenues in 2014 declined 6% (-1% in CC and excluding divestitures). However, IBM is in the midst of a major adjustment of its portfolio. In line with this, the company is reporting $25bn in revenues (and 16% revenue growth) in 2014 (out of a total of $92.8bn) from its "strategic imperatives". IBM's acquisition of Softlayer, where it continues to invest strongly,[...]
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HCL Awarded 11-Year Life BPO Contract Renewal to Consolidate Services by Chesnara
Aug 19, 2014, by John WillmottChesnara plc, the life assurance consolidator, has awarded a life & pensions BPO contract renewal to HCL Insurance BPO Services Limited ('HCL') which consolidates the services provided in the existing arrangements and which extends the service for a further 11 years. The service scope across the various books remains unchanged, as do the broad service levels. HCL’s original co[...]
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Cognizant Q2 2014 Results: Delivers on Revenues, Margins, But Share Price Falls on Reduced Guidance. Over-Reaction, We Feel
Aug 06, 2014, by Rachael StormonthSo why has Cognizant’s share price taken such a battering today, after such strong topline growth (16.5%, at the mid-point of prior guidance) and a non-GAAP operating margin of 21%, above the company’s target range of 19% to 20%? (see here). Quite simply because of the revised revenue guidance for 2014 from growth of at least 16.5% to at least 14%. This is a huge[...]
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Serco's Profits Decline Following its Annus Horribilis
Mar 04, 2014, by NelsonHall AnalystSerco announced its 2013 results this week including: Revenue £4,288.1m up +5.6%, up +6.7% at constant currency (CC) Operating profit was £143.8m, a margin of 3.4%, down 330 bps The decline in profits was anticipated with a warning given by the company to this effect only a few weeks ago. In this period, Serco reported a net exceptional charge of £90.5m, reflecting p[...]
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Xerox Services Q4 2013 Results: Needs to Improve Margin In 2014
Jan 24, 2014, by Rachael StormonthXerox Services financial performance in Q4 and full year 2013 had some clear positives. Looking at signings: Full year 2013 signings were up 20%, with BPO and ITO renewal rate at 92%, above the target range of 85% to 90% and 7 points higher than 2012. And new business signings was up 9% in BPO and up and up 23% in Document Outsourcing (DO) In Q4 2013, overall signings TCV was flat y/y w[...]
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Infosys Q3 FY 2014 Results: Traditional ADM Services Recover; PPS Businesses Yet to Make a Meaningful Contribution to Infosys 3.0
Jan 10, 2014, by Rachael StormonthThere are clear positives to this quarter’s results from Infosys, and its share price certainly picked up (is now the highest since March 2012), though it continues to look to address a number of challenges, some of which are company-specific issues. This is the third quarter of improved topline growth. Management has raised revenue guidance for full FY 2014 to growth of 11.5-12% (up from[...]
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Insurance BPS: Delivery & Service Line Trends for 2017
Feb 09, 2017, by NelsonHall AnalystThe insurance outsourcing industry is moving at a fast pace in response to the need for rapid deployment of digital platforms and offerings, as well as advancements in new distribution models that are emerging via ‘insurtech’ start-ups. Here I take a look at some of the key trends driving the insurance BPS market in 2017, both in terms of delivery and transformation, and [...]
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HCL: Applying RPA to Reduce Customer Touch Points in Closed Book Life Insurance
Nov 08, 2016, by John WillmottThis is the third in a series of blogs looking at how business process outsourcing vendors are applying RPA in the insurance sector. HCL provides closed book life insurance outsourcing services, and is currently engaged in RPA initiatives with three insurance clients. In order to capture customer data in a smarter, more concise way, HCL is using ‘enhancers’ at the front end, prov[...]
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Dell Services: Complementing FTEs with Proprietary AFTE Technology
Nov 04, 2016, by NelsonHall AnalystThis is the fourth in a series of blogs on vendors’ RPA initiatives in the insurance sector. We now turn our attention to Dell Services, which has adopted an automation focus across its life and healthcare insurance BPS processes. Focusing on healthcare payer & provider and life insurance process automation In 2016, life insurance accounts for around 30% of Dell Services’[...]
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SE2 Eyes Growth through Platform Enhancement & Life Insurance Market Expansion
Sep 21, 2016, by NelsonHall AnalystAt SE2’s Partnership Forum in Boston last week, the main theme was ‘FutureProof’, and specifically how to prepare and guard your company from regulatory and operational uncertainties. In effect, the life and annuities insurance BPS vendor is future proofing itself by investing heavily in its infrastructure, middleware, and platform capabilities to address its own fu[...]
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Capita’s Offer to Xchanging: How it Makes Sense
Oct 19, 2015, by Rachael StormonthOn October 14, the Xchanging board recommended a final cash offer by Capita of 160p per share. The offer, valuing Xchanging at ~£412m, represents a premium of ~44% to the closing price on October 2, 2015 (the last business day before the start of the offer period), 52% to the prior three-month average price and 64% to the one-month average price. Capita states it believes the acquis[...]
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HP Enterprise Services to Strip Out $2bn of Annual Costs in Next Three Years in Pursuit of Margin of 7-9%
May 22, 2015, by Rachael StormonthHP Enterprise Services has announced Q2 FY 2015 results, for the period ending April 30, 2015: Revenue was $4,817m, down 15.5% y/y, and down 10% in constant currency (CC), reflecting key account run off and weakness in EMEA Segment earnings before taxes (EBT) were $194m, a margin of 4.0%, up 143 bps y/y. Q2 FY 2015 revenue by service line (with y/y revenue growth) was: [...]
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Accenture to Acquire Agilex to Enhance Digital Capabilities and Agile Delivery for Federal Sector
Feb 09, 2015, by Rachael StormonthAccenture Federal Services (AFS) is to acquire Agilex Technologies, a privately-held provider of digital solutions for the U.S. federal government based in Chantilly, VA. Terms of the transaction were not disclosed. The acquisition will enhance Accenture’s digital capabilities in analytics, cloud and mobility for federal agencies. It also will add agile delivery expertise. Agilex br[...]
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Wipro Changes its Approach to “Fast and Uncertain”, with Increased Focus on Developing Effective Ecosystems
Sep 30, 2014, by Andy EfstathiouThis week Wipro held its first analyst day in the U.S. in over 18 months. During this time, Wipro has conducted a strategic review of its approach to the market, and decided to change its method of engaging clients and prospects. First CEO TK Kurien opened by describing Wipro’s view of the market: Enterprises were created prior to the current digital era. As a[...]
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Wipro Q1 FY 2015 Results: Good in Parts....
Jul 24, 2014, by Rachael StormonthWipro announced its Q1 FY 2015 results today (for full details see here:). Bit of a mixed bag from Wipro this quarter, generally positive, but with a few areas where we would hope to see improve over the next few quarters. Looking at overall topline performance, revenues were towards the higher end of prior guidance of $1,715m-$1,755m, and the 9.6% reported y/y growth was[...]
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GP Strategies: Looking at International Expansion
May 01, 2014, by Gary BragarGP Strategies is focused on global expansion. Its non-U.S. business accounted for 22% of global revenues in Q1 2014. Continued global deployment at its soon-to-be largest client HSBC will add to international growth this year. In Q1 2014 deployment of services to HSBC commenced in the U.S., Canada, U.K. and Hong Kong. Additional geographies to be deployed in 2014[...]
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Serco's Woes Continue Despite Clearance by U.K. Government to Bid for New Contracts
Jan 31, 2014, by NelsonHall AnalystSerco has updated its guidance for 2013 and 2014 following its clearance by the U.K. government to bid for new contracts. Serco expects a mid-single digit percentage organic decline on 2013 revenue due to: Lower levels of incremental work won across the group to date Attrition from contracts lost such as electronic monitoring Volume reductions in its Australian immigration detent[...]
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Wipro Q3 FY14 Results: Making Progress, But Is it Catching Up?
Jan 17, 2014, by Rachael StormonthWipro results this quarter show an ongoing improvement: topline growth is continues to improve and operating margin is the highest it has been for two years. Clearly, it still has a way to go to catch up with Indian growth rates (NASSCOM guided on 14% this FY), let alone with TCS. This quarter, Wipro achieved an operating margin of 23% and $101m in y/y topline growth; TCS achieved an operating mar[...]
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GP Strategies To Acquire Denmark's Effective-People and Effective-Learning Companies to Strengthen HCM Capability
Jan 17, 2014, by Gary BragarOn January 17, 2014 GP Strategies announced its intent to acquire the Effective-People and Effective-Learning companies in Denmark to strengthen its HCM capability beyond learning. The two companies are part of the Effective Companies headquartered in Copenhagen. Their combined revenue in 2013 was $8.5m. Effective-People and Effective-Learning offer HCM technology for: Recruiting Onboar[...]
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TCS Q3 FY14 Results: TCS Continues to Pull Ahead - What are Its Growth Engines?
Jan 16, 2014, by Rachael StormonthAnother very strong quarter from TCS, with no hint of the slight slowdown in growth that we have seen at Accenture (for its November quarter) and Infosys. If we look at where the growth is coming from: The more established ADM services (where Infosys took its eye of the ball in FY 13) contributed an estimated $173m in additional revenue, or 35.4% of the y/y growth of $490m. (Infosys achie[...]
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HP Enterprise Services Exceeds Guidance for FY 2013
Nov 26, 2013, by Rachael StormonthHP Enterprise Services (ES) has announced fiscal Q4 2013 results, for the period ending October 31, 2013: Revenues were $5,759m, down 9.3% y/y, and down 1% sequentially EBIT was $255m, a margin of 4.4% down 223 bps y/y. Fiscal Q4 2013 revenue (and y/y and sequential revenue growth) by service type was: Infrastructure technology outsourcing $3,563m (-9%, -3%) Application and bu[...]