Vendor Analysis
published on Sep 03, 2015
Report Overview:
This NelsonHall assessment analyzes NIIT's offerings and capabilities in analytics and reporting BPS in banking. NIIT Technologies 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 NIIT is a comprehensive assessment of NIIT'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 NIIT'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:
This report focuses on analytics BPS, which is part of NIIT Tech's BPO line of business. NIIT Tech started its analytics BPS business in 2004, by beginning an analytics and data management relationship with a U.S. based financial services company, a customer since 1995 and a provider of investment processing services to ~200 banks and investment managers. The relationships with this U.S. based financial services company includes a range of industry-specific processes, of which analytics has represented 5% to 10% of the overall contract over the years.
NIIT Technologies BPO has employees working in analytics and reporting BPO, and delivers services from one delivery center in Gurgaon.
NIIT Tech's analytics and reporting BPO supports client operations in the U.S.
NIIT Tech's BPO delivery is built on three tenets:
- Standardization of processing
- Aggregation and consolidation of data
- Platform implementation support (ITS).
NIIT Technologies is targeting tier 2 U.S. financial institutions with asset bases of between $10bn and $200bn in assets under management, which are:
- Wealth managers/family offices
- Asset managers
- Financial advisors
- Retirement account administrators.
Current clients are organizations located in the U.S. and U.K. Key targets for NIIT Tech are its existing IT services clients which are asset managers, and broker/dealers.
NIIT Tech is looking to grow its analytics and reporting BPO business by:
- Helping tier 2 clients improve performance analytics and reporting
- Improving data accuracy and automating scrubbing techniques
- Scaling support for existing clients, primarily customers of the U.S. based financial services company
- Supporting the compliance efforts of clients by applying best practices across multiple tier 2 clients
- Creating an analytics BPO offering for writing and distributing fund factsheets, for wealth management firms to distribute to their customers and prospects
- Cross-selling to CM clients which currently buy IT services (20 CM clients versus three existing analytics BPO clients).
Partnerships with product vendors have not been an important part of its strategy. NIIT Tech does use proprietary technology as a differentiator to enhance the effectiveness of its clients' platforms. However it is beginning to develop partnerships with some solution vendors to deliver analytics BPO, where the solution vendor is unwilling to provide BPO services based on its own platforms.
The primary focus in the next 12 months will be on:
- Developing an analytics BPS offering to create fund factsheets using report templates. This is likely to be part internal development and part partnering for IP and staff (web designers)
- Acquiring a captive center in India to deliver banking BPS to an existing client, and over time to expand to additional clients for analytics services
- Expanding its presence in non-U.S. markets, primarily the U.K. (where it has a small presence currently).
New engagements are expected to involve IT consulting and services support, to automate manual processes, as lead-ins to the analytics BPO relationship.
