Reetika Fleming
Research Vice President 
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Time to go fishing for Fintech in Boston?
March 16, 2017 | Reetika Fleming

"We're driving this community as we try to figure out how to make our over-150-years-old financial institution relevant to the digital age and beyond," said an executive from John Hancock last Monday, as they opened the inaugural Boston Fintech Showcase event. With 16+ startups in attendance, the Showcase was held at John Hancock’s Seaport district location, home to its Lab of Forward Thinking (LOFT) innovation group. The Boston community has growing influence in how modern technologies are making their way to various BFSI segments including payments, capital markets, insurance, mortgage, financial reporting, and taxation. Within the diversity at the showcase, what struck me were two common threads that bound the majority of the showcase participants and their value propositions to the legacy banking, financial services and insurance industry.

  • Reducing customer effort using technology: Driving better customer experiences is usually outlined by most large financial institutions as one of their key focus areas - with just cause, as customer ratings continue to fluctuate for this industry. A large part of financial services experience has to do with the level of effort it takes for end customers to interact with their banks and complete any transaction. Using more straight-through processing, automating redundant interactions, reducing the legalese required, and overall easing of the customer effort was a big theme at the Boston Fintech Showcase. For example:
    • Quilt is trying to streamline the life insurance segment for the new generation of millennial policyholders that want 100% online transactions/interactions with lower legal ease.
    • Rate Gravity is simplifying the home mortgage industry by eliminating salespeople and providing a single source for potential customers to compare lenders and complete their loan process more efficiently using technology.
    • Circle is a social payments platform that is using the open internet to offer secure and fast payments globally all from your mobile device, without any lengthy data entry/form filling (think Venmo for cross-border payments).
  • Leveraging data for new ways of working: A large number of the startups showcased, including the examples mentioned above, have focused on simplified data entry and making more efficient use of external data sources through automation. While this in itself adds to reducing the customer effort, we see ways in which some fintech startups are developing new businesses on the back of big data and analytics. For example:
    • Prattle is a text analysis specialist that offers sentiment data that predicts the market impact of central bank and corporate communications to help traders spot macroeconomic trends and improve their predictive models.
    • Finomial automates aspects of investor services by providing a single platform for fund administrators to process inflows/outflows, track transactions, get compliance dashboards (FATCA) and performance reports, as well as giving investors access to data and documents.
    • Finmason provides independent investment analytics to help customers make better decisions on their portfolio.

Partnering on fintech will drive new results for financial services

From our research, these examples and use cases are aligned with investment intentions that large financial institutions have expressed to advance their digital journey. They are also problem areas that IT and business services providers that run operations for banking clients are trying to solve.

While these startups have a head start with building out solutions, the next step for them is critical market exposure to scale solutions and drive adoption, partnering with clients, technology and service providers to the industry.

The corporate strategy head of a large financial institution brought up during our conversation at the event, "We are trying to prioritize which of these initiatives we really want to double down on in the next two years. We might have to look outside because we cannot create incubators for everything." It is an opportunity for partnerships/acquisitions for service providers looking for innovative solutions, and at the same time, an opportunity to bring their strengths together. Part of the Fintech Sandbox initiative is giving startups free access to financial data to help them develop their offerings. This is another area where service providers could step up, with valuable operational data and expertise.

Overall, we see a strong need for the industry to work together to solve these critical challenges - lowering customer effort to create better service experiences, and making better use of data and analyses available to financial institutions. The event was a great example; many BFSI firms had internal strategy and innovation groups exploring fintech internally and supporting startups with incubator-like capabilities. With that kind of support, the Boston fintech community is quickly becoming a hub for smart enterprises on that journey.

Genpact becomes the first provider to acquire an AI platform
March 14, 2017 | Phil FershtReetika FlemingTom Reuner

While most of the services and operations industry obsesses with Robotic Process Automation to streamline its rudimentary back office processes, one provider that’s never shied away from making bold moves to disrupt illustrious competitors is Genpact, with an imaginative move to integrate true artificial intelligence with its business process service offerings by acquiring the impressive Boston-based Rage Frameworks.

It's almost history repeating itself from a decade ago, when the (then privately held) Genpact turned the BPO model on its head with its disruptive virtual captive proposition that significantly challenged the pricing models and ability to integrate offshore capabilities into the old BPO model. Now, the firm is breaking the mold, yet again, by making real inroads into infusing AI into business processes and introducing these concepts to its huge global community of finance leaders.  

Let’s get to the rub: RPA is all about digitizing the back office, but Artificial Intelligence is where we see the true marriage of business processes with clever technology and self-developing algorithms. We’ve danced for years trying to prophesize when BPO will truly integrate with IT, but we’ve now had reality unveiled: RPA platforms streamline the back office, while AI brings the middle and front together to create that true Digital OneOffice experience. The Digital OneOffice is not about collecting and archiving historical data simply to discover what went wrong, it's about being able to predict when things will go wrong and devising smart strategies to get ahead of them. The Digital OneOffice is about embedding smart cognitive applications into process chains and workflows, it’s about learning from mistakes and new experiences along the way. This is the emerging “organization neural system”, where the needs of the customer can be intelligently supported by real-time, self-learning intelligent operations:


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Why is this acquisition significant?

In a nascent market where stakeholders stumble through smoke and mirrors to make any sense of the many claims around Intelligent Automation, M&A is a clear indicator that the market is starting to mature. When in December 2016 ISG bought Alsbridge and CA acquired Automic, HfS suggested that Intelligent Automation was at an inflection point and that the focus on automation tools will shift toward the likes of Google, Amazon, and Facebook around deep learning and the integration of unstructured data. While we have not yet seen the Internet giants play their hand, Genpact’s acquisition of Rage Frameworks is underlining exactly these market dynamics. And this is the first time that a service provider is driving automation capabilities through M&A.

Rage Frameworks drives pre-built automation engines deep into unstructured territory

Whereas the broader market remains misguidedly focused on the intricacies of RPA, Rage’s focus is not on automating specific process steps, often on sub-process level, but on developing a broad ranging platform (RAGE Enterprise) for custom solutions with a deep vertical footprint. While RPA is largely focused on structured information, Rage will take Genpact deeper into integrating semi and unstructured data. Their development effort over the last two years to build enterprise applications for financial industry processes (wealth management, commercial loan processing and financial statement spreading) is shifting the focus from automation tools and capabilities to providing an end-to-end process leveraging a model driven business transformation platform.

In our view, the value proposition of Rage Frameworks is centred on leveraging Machine Learning and Natural Language Processing to build out highly vertical engines in Financial Services, Capital Markets, and Supply-Chain. The functionality of these engines ranges from managing business rules to real-time integrating content to data access and NLP all built around a process assembly engine. These engine building blocks can then be assembled for custom solutions that automate business processes or can be used as one of three pre-assembled financial services industry applications: LiveWealth, LiveCredit, and LiveSpread. In addition, broader capabilities including front desk automation, real-time intelligence, and pricing are transforming how commercial lending, policy underwriting, financial statement analysis, investment research, and multi-system reconciliation can be performed.

RAGE’s industry applications are a big part of the allure for Genpact, which has spent the last few years going deeper into its commercial banking and capital markets operations accounts with data and analytics solutions trying to solve the same client operational challenges as Rage. In our recent HfS Capital Markets Operations Blueprint, Genpact placed in the Winner’s Circle, with an HfS callout about its need to bring more technology enablement to capital markets. The service provider has examples of using emerging technologies such as machine learning, automation, dynamic data extraction, etc., in LOBs as retail banking. What Rage brings to the table for Genpact is a more strategic approach for impacting client operations through technology-led change.

Genpact continues to lead the automation discussion from the front

From Genpact’s perspective, the acquisition is reinforcing the perception of being a pioneer in Intelligent Automation. Having led the market with the first publicly announced partnerships with AutomationAnywhere, Exilant, and Automic around its Rapid Automation program, Rage Frameworks fits in well with Genpact’s holistic approach to automation. Within that context, Rage’ assets will further advance the integration of unstructured data: Genpact has invested heavily in analytics and big data with a dedicated research lab in Bangalore, India. They have developed a Data Engagement Platform using big data technologies, in order to be able to harness structured and unstructured data from multiple sources. Thus, its Lean Digital strategy is aligned with HfS OneOffice concept. But the company has to demonstrate that it is starting to link up back, middle and front-office.

The broader market will follow with accelerated M&A activity

Regulations and risk management requirements are forcing banks to rethink the way in which they capture, store, manage, and distribute the growing volumes of transactional and trade data. Structured data from multiple departments and asset classes are maintained in silos, and unstructured data present new challenges as well as opportunities for automation and analytics.

Despite the continuing noise around RPA, we believe the market will shift toward operational analytics and the broader notion of AI. Not only are the leading RPA tool providers expanding in that direction, but we expect the investment focus to progress toward Deep Learning, Neural Networks, and broad NLP capabilities. While it might sound trite, data really is becoming the new currency. But this currency needs to be integrated into delivery backbones on an industrial scale. Thus, service providers need to reinforce their efforts on service orchestration. We haven’t seen many proof points for a successful expansion into data-centric scenarios, but those deployments will be a clear demarcation between the leaders and the also-runs.

Central to this will be the articulation and delivery of business outcomes for specific industry functions through the use of operational analytics, RPA, BPO and AI. Can Genpact put together a financial spreading function by leveraging its operational expertise in BPO and RPA, the RAGE LiveSpread application and analytics interventions to deliver more efficient and effective credit risk management?

Bottom-line: Genpact is progressing toward True Digital OneOffice capabilities

Genpact’s announcement can be crystalized to its ambition of blending RPA in the back-office with AI in the middle-office, which is why the firm, still regarded by many as a "pureplay BPO" managed to break the top 10 in the recent Digital OneOffice Premier League, despite not dragging a multi-billion dollar IT services business around.

Thus, BPO is ever more changing to becoming technology-led. We expect that this strategy will be increasingly underpinned by neural networks and notions of self-remediation to enhance the Digital Underbelly and the Intelligent Digital Processes of the OneOffice concept. While Rage Frameworks is one of the superior suppliers across the Intelligent Automation Continuum, the more providers that are progressing toward the notion of AI, the more inflated the valuations for M&A will become. Against this background, valuations for RPA providers could look like peanuts very quickly. But then again, M&A is rarely rational in today's foggy market.

Watson and Einstein Sitting In A Tree: IBM-Salesforce join forces to give you more ways to buy AI
March 10, 2017 | Phil FershtReetika FlemingTom ReunerKhalda De Souza

The time for smart partnerships to drive real innovation and new thinking in Artificial Intelligence (AI) and cognitive computing is now. This means we need to see the industry’s deep-pocketed innovators become increasingly open – and eager - to working together to help the services industry make the shift to true digital, intelligent, cognitive capabilities.

Recent HfS research shows adoption of Artificial Intelligence (AI) and cognitive computing to enhance operational analytics and Machine Learning is strongly accelerating, with 72% of senior operations executives citing cognitive as becoming a critical component of the future operations strategy:

Digital and Cognitive are Driving Enterprise Operations

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Source: “Intelligent Operations" Study, HfS Research 2016; Sample: Buyers = 371

While the market perception around these topics remains refreshingly blurred, AI is a critical building block as organizations increasingly look to progress from legacy labor-driven service delivery to progress toward notions the As-a-Service Economy and the Digital OneOffice (see link). While AI is capturing the imagination of many PE investors and VCs and is being used to hype up media reporting and conference circuits, the market dynamics are far from clear.

Against this background, the fundamental question being posed is “Who will be in the driving

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NTT DATA's Insurance IoT Survey Confirms The Steady Rise Of “Connected Insurance”
February 28, 2017 | Reetika Fleming

The IoT hype in insurance continues unabated, with new research by NTT DATA suggesting that 3 out of 4 insurance carriers believe IoT will strongly influence their future products and services. Titled “IoT: Disruption & Opportunity In The Insurance Industry,” this U.S. based study surveyed end consumers and decision makers in carrier organizations on the subject of IoT devices in the home (thermostats, smoke alarms, garage door openers, door locks and bells). A few research findings for the two groups stood out to us.

Consumers are divided on their readiness to change

Two cohorts emerged from the consumer research, which also reflects in their views about smart home technologies. 64% of consumers surveyed, or the “Seekers” are younger, less loyal to their carrier, price-sensitive and want more personalized products and service. Unsurprisingly, the Seekers want their carriers to be more innovative and are more willing to share varying degrees of smart home data in exchange. The remaining 36% are the “Keepers,” older policyholders that feel protected by their current policies and are unlikely to make sudden switches. Overall, 50% of the consumers expected to buy smart home devices in the future despite privacy and security concerns, but the majority find current products to be expensive and complex: I still haven’t rigged up my “smart bulbs,” gifted over Christmas by a tech-savvy relative!  

Insurance carriers get the importance of IoT

87% believe IoT will improve customer relationships, 83% see it as an opportunity to attract new customers, and 74% see IoT as having a significant influence on products and service. Already, 77% are ramping up IoT initiatives, with customer service and technology use cases at the outset. The major challenges for carriers are the inability to get smart home data (68%), building analytics into underwriting processes (62%) and the expenses of the carrier or customer buying and installing smart home devices (55%).

In my conversation with Normand Lepine, NTT DATA Consulting’s Sr. Director of Insurance Data and Analytics, he pointed out, “Carriers recognize the opportunity to expand their value proposition with clients through IoT. In the next year, pilots, strategy and lab work around smart home technologies will help carriers create new products and services.” We believe each carrier that is experimenting with smart devices will go through a calibration process with customers, all centered around one factor – data and how to use it to create meaningful products and services. NTT’s survey data hints at this as well, with the lack of data being a carrier challenge, and consumer responses suggesting that they are willing to share only certain types of data, depending on their demographics and lifestyles.

Implementing connected insurance solutions requires carriers to rethink major business functions towards becoming digital organizations.

Let’s consider the customer lifecycle as an example. Carriers will need strong, mobile-first, sales and marketing channels to attract and transact with the “Seekers.” They can leverage smart home device technology to offer two key benefits to customers – a more personalized service experience, and cost savings in the form of usage-based risk and premium determination (an “As-a-Service” offering). This customer acquisition effort will need to have straight-through processing, with smart underwriting powered by real-time profitability analysis. When it comes to customer service experiences, smart devices again play a few roles, such as providing insights (e.g. smoke alarm data) that can be made accessible to customers with recommendations on usage. If a carrier is interested in smart home technology to drive new customer experiences, customer interaction touchpoints can be reimagined with the help of interactive personal assistants (e.g. Amazon Echo). These at-home assistants can intelligently converse with policyholders for simple service requests throughout the customer lifecycle (as Nationwide, Grange Insurance and Safeco have started to do).

In addition to home insurance, we also see examples of carriers exploring IoT- enabled auto insurance, and large-ticket opportunities in areas like commercial insurance. What will be interesting to watch is the role that technology and business service providers play in this evolving market. From IoT infrastructure services to the design, development and running of the related data and analytics infrastructure and services, IT services such as IoT app development, platform migrations, and micro-services, consulting/advisory on new product development and rapid prototyping/testing of IoT offerings, partnering with device manufacturers (particularly niche, insurance-related startups), we see several new opportunities for service providers.

While IT and business services providers are investing in IoT offerings as a horizontal capability, carriers will need to find the ones that are doubling down on insurance, with the appetite to invest in the industry specifically. The survey data makes this much clear – both consumers and carriers are getting ready for IoT-led change. The question is—will the service providers be able to embed themselves as “As-a-Service” partners to the emerging “connected insurance” economy?

EXL On A Journey to More Effective Engagement with Insurance Clients
February 07, 2017 | Reetika Fleming


On a recent visit back home to India, I had the opportunity to spend some time with EXL’s EXLerator team that is working on how to improve insurance operations and deliver more business value for its clients with a “version 2.0” of EXLerator. From what I saw, this team’s efforts couldn’t be more timely and are in line with what we have outlined in our research as its areas of improvement.

Like the HfS Buyers Guide on EXL suggests, the service provider pursues an industry-led approach to providing business processes, with strong vertical practices in insurance, healthcare, travel and logistics, banking and utilities. The 2015 Insurance As-a-Service Blueprint highlighted EXL’s domain expertise and scale and execution on BPaaS strategies. However, both the Buyers Guide and the Blueprint also pointed out that EXL needed to bring more technology enablement. It has struggled to find footing with technology-enabled BPO that will fundamentally change the way day-to-day operations are run, moving away from the legacy BPO model. In addition, we have heard from clients the message, “great story but give us examples of how it all comes together.” So EXL also needs to convince its clients to come on this journey.

The work-in-progress V2 of the ‘Business EXLerator Framework’ is EXL’s approach to delivering a change in customer and business outcomes for its clients. What stands out to HfS from the visit, is alignment on the HfS Eight ideals of As-a-Service delivery, which we see as the building blocks for more collaborative and business oriented engagements, including: 

  • Design thinking principles: The EXLerator team highlighted “effortless experience” for insurance customers as one of its key goals. The point, therefore, of EXLerator v2.0 is to give the EXL team a framework for helping clients create “effortless experience” for their stakeholders and clients. Instead of focusing on only traditional process views to make improvements, EXL is starting with comprehensive customer journey maps, taking an insurance customer/agent lens on, for example, lead-to-sale, and then working through the appropriate processes and where and when to use what technology to create that targeted experience.
  • Collaborative engagements working towards outcomes: EXL stressed its commitment to improving business outcomes, which are impacted by achieving process outcomes. In this way, EXL is making a distinction between efficiency (and KPIs) and business impact. Confusion between the two is what usually results in the “watermelon effect,” an industry challenge where the service provider delivers on its KPIs, but the services buyer is unhappy with the results of the engagement. Defining and delivering business outcomes comes with its own challenges, but we like the linkages that EXL is making with process outcomes as building blocks to overall business goals. For example, its client, a US personal lines insurer, outlined “cost per quote” as an outcome, which was reduced by 20% by EXL, through a 10% improvement in process accuracy using the EXLerator framework.
  • Actionable and accessible data and analytics in core processes: EXL is investing in machine learning and operational analytics as one of the key technologies that will improve core insurance operations with EXLerator v2. The journey maps we saw had clear points of decision making where analytics interventions could make a difference, such as the insights that agents and underwriters need in commercial underwriting. Its EXLerator analytics team sits on the operations floor and receives direct mentorship and guidance from EXL’s analytics practice.

The vision is gradually coming together for EXL as it evaluates how to change its traditional business and drive progressive services engagements that will survive the next 5-10 years of this industry. EXL has invested in developing or acquiring a lot of ‘pieces’ and is known for delivering on analytics, etc. but the EXLerator 2.0 framework looks like it is designed to bring it together to enable a journey with the clients.

Even with this progress, the hard work for EXL – like many of its competitors – starts now. The future is all about driving more intelligent operations that will help enterprises become digital customer-facing organizations. Technology enablement is a big piece of that puzzle and EXL has challenges to overcome in executing on its 2.0 vision. The EXLerator team is still fairly small and will be unable to hit EXL’s entire client base consistently, making those valuable “2.0” experiments slower to roll out. Additionally, its robotic process automation approach is currently hinged squarely on its partnership with Automation Anywhere, with which not all clients are willing to get on board. In its journey to create “effortless experiences” for end customers, EXL must keep working on how to make it easy for clients to join along for the ride.

Capital Markets Operations Blueprint Explores the Perfect Storm for Services
January 20, 2017 | Reetika Fleming

We started off the new year at HfS with the launch of the Capital Markets Operations Blueprint last week. This is our first coverage of the key dynamics in capital markets and furthers our BFS research on the back of the HfS Mortgage As-a-Service Blueprint mid-last year.

Policies, politics, and structural market challenges are plaguing capital markets firms, raising the stakes in partnerships with service providers

Going into 2017, we find banks and capital markets firms are cautious as they continue to endure a volatile environment with no signs of letting up. Policy ambiguity across the US and European markets, political uncertainty, and structural market changes continue to plague the capital markets industry. Meanwhile, low interest rates and as a consequence, bank margins across sectors have created new waves of cost pressures. Capital markets firms continue to struggle to generate more revenues to counter their rising cost of capital.

To add to this perfect storm, the revenue-generating aspect of this industry is under fire as well. Capital markets firms have had to abandon categories of products due to new regulations. They are more challenged to attract and retain clients that expect different, digitally enabled levels of service with faster turnaround times across the ecosystem, particularly in wealth management. As more big-ticket fines and penalties hit the headlines, public confidence and trust are continuing to erode, and at the same time, the competitor landscape is expanding for the biggest players with the continued success of community banks, regional banks, and fintech disruptors.

Overall, banks and capital markets firms are severely challenged in predicting strategies for long-term sustainability in a changing market and need to have several strategies in play to meet short-term cost pressures. Traditional cost management from cutting back trading desks and providing front-line compensation have not yielded results at the magnitude required to significantly balance profitability.

As a result, we believe that capital markets firms will undergo large-scale operational transformations in 2017 and beyond.

 Since the early to mid-2000s, global technology and business services providers have taken over large parts of the back and middle office processes for banks and capital markets clients. They are now in a unique position to help rethink and run more Intelligent Operations as capital markets clients figure out their strategies to tackle these market challenges. Some of the key buyer-service provider dynamics include:

Back Office Processes Continue to Dominate the Services Landscape: The capital markets operations market started a little over a decade ago with back-office BPO processes offshored to IT service providers. Today, these processes are the majority of work engagements, prominent in 63% of contracts in our analysis. Major service areas include clearing and settlement, corporate actions, reconciliations, fund accounting, collateral management, data management and reporting, investor operations, and product control.

  • Market Forces and Regulation Stimulating New Demand: With global regulatory bodies placing continual pressure on banks and capital markets firms, there are new areas of opportunity for service providers to step in to help clients meet regulatory compliance requirements in different ways. Regulatory data management and reporting and analytics modeling and model monitoring are some of the biggest areas of growth for service providers.
  • Industry Staring at Technology-Driven Change: We see multiple initiatives fighting for prioritization within client stakeholders and service providers’ strategies, all related to technology-enabled service delivery in capital markets’ operational processes. Platform-based services, provided as a utility, are sparking new interest from clients especially as these models promise consolidation and economies of scale across internal LOBs and asset classes. Similarly, clients are also driving automation initiatives within each business, led by robotic process automation and some level of machine learning and predictive analytics to improve operational performance for retained and outsourced functions.


What’s next?

Standardization: We see a sort of “gold rush” for standardization in the foreseeable future of the capital markets operations. Service providers, including new entrants and industry veterans, are in a race to find ways to bring more standardization to overcome the significant challenges in data management. The managing director at a midsize PE firm we interviewed remarked, “Although we all have to do reconciliations, everyone’s built up in a certain way. The challenge for a service provider or market utility is not the actual processing but standardization in the upstream data that has to be fed in from various systems and the downstream outputs to different stakeholders like regulators and clients where the reporting requirements may be different.” Even within the walls of one enterprise client, data metrics, logs, and audit terms and the systems that consume them across businesses are varied. The biggest areas of investment for clients in the next few years will be in consolidating and standardizing processes such as reference data management and reconciliations.

Robotic Process Automation: Along with potential cost savings, one of the biggest business benefits of using intelligent automation technologies is the higher level of accuracy and standardization due to the lack of manual errors. It is no wonder that the new breed of automation tools has caught the attention of capital markets clients. We see a strong appetite for automation with RPA at the forefront. In the next year, we anticipate many more implementations, particularly for processes that have not been offshored yet where big bang savings are more possible. In the medium term, the cognitive capabilities and machine learning projects under way today in areas like due diligence and inquiry management will have matured and created more confidence for conservative buyers. This is a big opportunity for new market entrants to come in with an automation-first strategy for displacing incumbents. The key will be in proving domain knowledge by coming to service buyers with industry-specific use cases and examples; don’t expect them to have done the homework in this emerging area.

Industry Expertise: On the subject of domain experience, we see emerging opportunity for providing ongoing guidance to capital markets clients for the changes in and the impact of regulatory reforms on their operations and compliance needs. They have traditionally sought consultative advice from risk advisories and consulting firms, and our primary research reveals that for many clients, most service providers are not perceived by key client stakeholders as experienced enough to take on those advisory roles. We anticipate more acquisitions and strategic partnerships by service providers to bridge this gap as multiple clients in our research state that they would find value in getting advisory input from experienced operations partners.

Overall, banks and capital markets firm in our Blueprint research highlighted – and evaluated—the need for a collaborative service provider that is willing to take risks on critical new initiatives that they plan to roll out in the next 12-18 months.  

Bottom Line: Whether it’s automation-led, pure-play BPO services, platform investments to drive BPaaS and/or market utilities, or bringing experienced consultants to address regulatory concerns, this high-stakes market demands service providers that are willing to take risks and invest for the long term.

For more details –including visuals of the market activity and analyses of the service providers—click here to access and download the HfS Capital Markets Operations Blueprint. The service providers included in this report include Capgemini, Cognizant, EXL, Genpact, HCL, Hexaware, Infosys, NIIT Technologies, Syntel, TCS, Tech Mahindra, WNS and Wipro.

Ramyam and Arvato – Raving Fans or Raving Mad?
January 16, 2017 | Reetika FlemingMelissa O'Brien

Arvato just announced its acquisition of Bangalore-based Ramyam Innovation Lab, whose stated mantra is to make customers “raving fans” by enabling contact center staff to have valuable customer information at their fingertips. Ramyam’s key asset is its omnichannel platform, Enliven CEM. The platform integrates various communication channels such as email, chat, voice and social media, and uses interaction information to generate individual customer profiles. This is layered with analytics and dashboards; the analytics model aspires to manage customer journeys with “context-based decisioning” in real time, helping agents more proactively solve customer problems.

Our research shows that in this race toward providing digital customer experience, most of the leading customer experience management companies are taking a stab at providing omnichannel customer services. Major CEM providers are starting to/have figured out their strategies for developing 360 customer views that would provide insights to improve contact center effectiveness. To provide progressive omnichannel service support, a CEM service provider needs a strong framework for the underlying data and technology, and that’s what this acquisition is about. Most are taking a third-party approach to enabling the technology, but Arvato’s move provides it an opportunity to have better integration and perhaps move towards providing CEM As-a-Service in the future.

Arvato’s approach is admirable, especially where it affords the company an inroad to one of its key growth markets in India. Ramyam’s highlighted consumer-facing verticals of telecom, retail, banking and travel are key industries for omnichannel customer communication. This also is some much-needed publicity for Arvato, which has fallen behind its customer experience management competitors in thought leadership and demonstrated investment in innovation.

However, all of these buzzwords around omnichannel are used so often and heavily (i.e. “next generation analytics-driven actionability, enabling service providers to deliver superior experience and engagement to their customers”) that they are becoming diluted, making it harder for service providers to carve out a real differentiator with these platforms. Arvato’s assertion that this capability creates “a distinct competitive advantage” is disillusioned. To create differentiation, it will need to use this acquisition to craft and articulate an As-a-Service on-demand, flexible strategy for providing customer experience management—one that provides a single contract with well-defined business outcomes by leveraging technology platforms, data and insights and omnichannel customer support functions.  

The bottom line: Kudos to Arvato for making an investment in a young, emerging tech startup with some solid customer experience thinking. But the messaging needs some maturing to really highlight the differentiation that Ramyam can bring to the table.

Whether the combination can help turn Arvato’s end customers into raving fans, we’ll wait and see.

Wipro’s analytics wing is trying new ways of driving collaborative engagements
December 12, 2016 | Reetika Fleming

Wipro has recently been firing on all cylinders to get going on its ‘drive the future’ strategy for growth. We wrote about their smart move on acquiring Appirio with the opportunity to bring together consulting, IT integration, BPO, and global delivery scale. From my recent conversations with its analytics leaders, I’ve seen a similar “combination” strategy resonate around Wipro’s analytics stack.

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What kind of RPA symphony is your shared service center running?
November 22, 2016 | Reetika Fleming

Wait, what is RPA symphony and why does my shared service center need it? This blog is about exactly that - the use of robotic process automation (RPA) by shared services centers, where we found two different but equally effective approaches that share a few common traits. I learned these stories on the RPA panel at the NASSCOM BPS Summit in Bangalore a couple of months ago and followed up with the speakers to learn a little more. Capturing the essence of the two practitioner experiences from global in-house centers, we have the following approaches to getting started with RPA:

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IBM’s Watson is coming of age
November 03, 2016 | Reetika FlemingTom Reuner

IBM’s Watson has come a long way since winning a Jeopardy contest in 2011. While popular games remain a benchmark for advances in Artificial Intelligence as seen in Google’s DeepMind winning at Go, Watson’s capabilities have evolved strongly. So much so that IBM is betting much of its fundamental transformation on the deep investments in the development of Watson. Thus, Watson has become a key strategic pillar for IBM next to cloud and Bluemix. Having had the opportunity to attend the World of Watson in Las Vegas, one couldn’t help to notice the scale of the evolving ecosystem as more of 17,000 people attended the gathering. Suffice it to say but the scale also references the complexity of the evolving ecosystem.

Charting the complexity of the evolving Watson ecosystem

The issue that struck us the most in Las Vegas was the comprehensiveness (put positively) or complexity (put slightly more negatively) of the various Watson offerings. The core Watson Cognitive Platform is composed of four components: cloud, content, compute, and conversation. From a service delivery perspective, the two key components are conversation and content. Within the conversational services, Watson Conversation enables developers to create dynamic interactions and custom applications using the full spectrum of Watson services.

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