Vendor Analysis
published on Jul 01, 2014
Report Overview:
This NelsonHall assessment analyses NIIT Technologies' offerings and capabilities in reference data management BPO. NIIT Technologies 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 NIIT Technologies is a comprehensive assessment of NIIT Technologies' 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 NIIT Technologies' 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:
Reference data is part of NIIT Technologies' BPO line of business. NIIT Tech started its reference data BPO business in 2004, when it began an RDM BPO relationship with a securities services vendor, a customer since 1995 and a provider of investment processing services to ~200 banks and investment managers. The relationship includes a range of industry specific processes, of which RDM has represented 13% to 20% of the overall contract over the years.
Delivery Capabilities
NIIT Tech BPO delivers service from two delivery centers:
- Gurgaon
- Noida
Target Markets
NIIT Technologies is targeting tier 2 U.S. financial institutions with asset bases between $10bn and $200bn in assets under management, which are:
- Asset managers/family offices
- Community banks
- Broker/dealers
- Regional and super regional banks
- Securities processing vendors.
Key targets for NIIT Tech are its existing IT services clients which are asset managers and broker/dealers.
Strategic Direction
NIIT Tech is looking to grow its RDM BPO business by:
- Helping tier two clients reduce cost of data management, by:
- Benchmarking processes and consolidating data feeds by eliminating redundant data feeds
- Architecting changes in data management platforms and implementing those changes with attendant process changes
- Improving data accuracy
- Scaling support for existing clients, primarily customers of SEI
- Supporting compliance efforts of clients
- Creating an RDM BPO utility focused on revenue generation using social media and other external data analytics with its Digital Foresight initiative
- Cross-selling to CM clients which currently buy IT services (20 CM clients versus 6 existing RDM BPO clients).