Everest Group BPS Top 50 2018 May 2018
WHAT IS THE EVEREST GROUP BPS TOP 50? The Everest Group BPS Top 50 is a global list of the 50 largest third-party providers, based on their Business Process Services (BPS) revenues 1 and year-on-year growth. BPS is also referred to as Business Process Outsourcing (BPO). Inaugurated in 2015, Everest Group publishes this list every year. WHY THE EVEREST GROUP BPS TOP 50? The global third-party BPS industry is valued at more than US$175 billion. Over the years, this industry has evolved significantly, both in breadth and depth of services. What started as a cost optimization concept focusing on non-core and back-office business processes, today permeates the entire business process value chain addressing a wide variety of business objectives. Naturally, the industry has attracted many service providers from a broad range of backgrounds and heritages. Today, Everest Group estimates there are more than 200 service providers with more than US$50 million in revenues offering BPS services around the globe. Some are pure-play BPS providers, while others offer business services as part of a broader portfolio (IT services, consulting, technology products, etc.). Some are focused on a particular domain or geography, while others are broad-based. Some are listed, while others are privately held. This list helps enterprises to identify the scaled-up providers and their functional coverage. It also helps BPS service providers to compare themselves against others in the industry. HOW IS THE EVEREST GROUP BPS TOP 50 DIFFERENT IN 2018? Based on market feedback and to reflect the momentum in service providers businesses, this year s ranking is based on both revenues and year-on-year growth (whereas the previous years rankings were based solely on revenues). 1 BPS revenues exclude public sector services 2
HOW IS THE EVEREST GROUP BPS TOP 50 DETERMINED? There are two distinct steps involved in determining the Top 50: Qualification Only the 50 largest service providers, based on their BPS revenue, qualify for the BPS Top 50 assessment Rank determination Service providers are ranked on the basis of overall BPS revenue and year-on-year growth. Growth has two sub-parameters: absolute growth (measured as change in BPS revenue in US$ million) and percentage growth (measured as percentage change in BPS revenue) + REVENUE GROWTH COMPOSITE SCORE (75%) Actual Percentage (100%) growth* growth** (12.5%) (12.5%) + = We use multiple sources of information to conduct our analysis and determine the list rankings: Reported BPS revenues and growth figures by listed companies Bottom-up revenue and growth build leveraging Everest Group s proprietary BPS databases tracked and maintained at the functional levels Information shared/validated by service providers *Year-on-year revenue change in U.S. dollars **Year-on-year percentage of revenue change 3
Everest Group BPS Top 50 TM 2018 Rank Service provider 2017 BPS revenue (US$ million) YOY Horizontal BPS Contact center Doc. Mgmt. F&A HR Key BPS Offerings Procurement / Supply chain Industry-specific BPS Financial Life services Sciences Insurance 1 ADP 3 9719 3% 2 Teleperformance 2 4723 18% 3 Accenture 1 4800-5100 12% 4 Conduent 6022 6% 5 Paychex 3101 7% 6 Concentrix 2 1990 25% 7 DXC Technology 1 2900-3000 7% 8 Xerox 3419 1% 9 Arvato 1 ~2900 3-4% 10 Genpact 2266 9% 11 Cognizant 1,2 1300-1400 30% 12 TCS 1 2200-2300 6-8% 13 Alight Solutions 1 ~2400 3-4% 14 Atento 1921 9% 15 Convergys 2792 4% 16 TTEC 2 1477 16% 17 Capita 1 2400-2500 3-5% 18 Williams Lea Tag 1 2000-2100 1% 19 Sykes 1586 9% 20 Alorica 1 ~2300 4% 21 Iron Mountain 1468 7% 22 Exela Technologies 1, 2 ~1200 11% 23 Sitel 1 1700-1750 1-3% 24 Fidelity 1 1500-1600 4-5% 25 WNS 1,2 710-720 22% 26 Sutherland 1 ~1200 10% 27 KellyOCG 1 570-620 24-26% 28 Relia 1,2 1000-1100 12-14% 29 RR Donnelley 1614 0% 30 Wipro 979 12% 31 transcosmos 1 1000-1200 7% 32 Willis Towers Watson 729 12% 33 Webhelp Group 1 ~1000 ~6% 34 EXL 762 11% 35 iqor 1 750-800 10% 36 ManpowerGroup Solutions 1 550-600 12-15% 37 CGI 1 850-870 6% 38 Infosys 637 11% 39 Konecta 1 900-950 4-5% 40 SD Worx 1 ~550 11% 41 Allegis Global Solutions 1 650-750 7-8% 42 Capgemini 1 800-900 2-3% 43 NTT Data 1 800-900 2-3% 44 HGS 1 550-600 5-6% 45 Swiss Post Solutions 583 5% 46 Sopra Steria 1 600-650 3% 47 Mercer 1 ~550 3-4% 48 IBM 1 ~1300 8-9% 49 FirstSource 1 ~550-3% 50 Transcom 1 550-600 7-10% Others 1 Everest Group estimates 2 Service providers went through mergers, acquisitions, and divestitures 3 Excludes Professional Employer Organization (PEO) Services 4
BPS TOP 10 SERVICE PROVIDERS BY REVENUE AND GROWTH Players by revenue Players by percentage growth Healthcare & Life Sciences 1 2 3 4 5 6 7 8 9 10 5
Broad-based versus specialist providers The share of specialist providers grew in 2017, driven by the CCO sub-function 2016 58% 42% Broad-based 1 Specialist 2 2017 56% 44% Top 5 broad-based providers (by revenue) Conduent Accenture DXC Technology Arvato Bertelsmann Capita 56% 2017 20% 44% 16% CCO Top 3 specialist providers (by revenue) Teleperformance Convergys Alorica HRO Top 3 specialist providers (by revenue) ADP Paychex Fidelity 8% Document management Top 3 specialist providers (by revenue) Xerox Williams Lea Tag Iron Mountain Cumulative revenue of BPS Top 50 providers, 2016 and 2017 (US$ billion) Aggregated revenue in BPS Top 50 list grew by 7% in 2017 2016 US$ 84-86 2017 US$ 89-91 1 Service provider offering BPS services in more than one functional area 2 Service provider predominantly offering BPS services in one functional area 6
Service providers market share by region, 2016-2017 North America-based service providers continue to dominate the list; however, the region s overall share has declined versus 2016, while the Rest of Europe s share has grown Rest of Europe Top 3 providers by revenue, 2017 Accenture Teleperformance Arvato Bertelsmann North America Top 3 providers by revenue, 2017 ADP Conduent Xerox APAC Top 3 providers by revenue, 2017 TCS transcosmos Relia North America APAC Rest of Europe United Kingdom Latin America 2016 share 56% 24% 14% 4% 2% 2017 share 54% 18% 22% 6% 0% 7
About Everest Group Everest Group is a consulting and research firm focused on strategic IT, business services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empower clients to improve organizational efficiency, effectiveness, agility, and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problemsolving skills and original research. Details and in-depth content are available at www.everestgrp.com. For more information about Everest Group, please contact: +1-214-451-3110 info@everestgrp.com Dallas (Headquarters) info@everestgrp.com +1-214-451-3000 New York info@everestgrp.com +1-646-805-4000 Toronto canada@everestgrp.com +1-416-388-6765 London unitedkingdom@everestgrp.com +44-207-129-1318 Delhi india@everestgrp.com +91-124-284-1000 Bangalore india@everestgrp.com +91 806-781-9999