Everest Group PEAK Matrix™ for Mortgage

Copyright © 2017 Everest Global, Inc.

This document has been licensed for exclusive use and distribution by TCS

EGR-2017-11-E-2460

Everest Group PEAK Matrix™ for Mortgage

BPO Service Providers

Focus on TCS

December 2017

2Copyright © 2017, Everest Global, Inc.

EGR-2017-11-E-2460

Introduction and scope

Everest Group recently released its report titled ““Mortgage BPO – Service Provider Landscape with PEAK Matrix™ Assessment

2017”. This report analyzes the changing dynamics of the mortgage BPO landscape and assesses service providers across

several key dimensions.

As a part of this report, Everest Group updated its classification of 16 service providers on the Everest Group PEAK Matrix for

mortgage BPO into Leaders, Major Contenders, and Aspirants. The PEAK Matrix™ is a framework that provides an objective,

data-driven, and comparative assessment of mortgage BPO service providers based on their absolute market success and

delivery capability. Everest Group also identified three service providers as the “2017 mortgage BPO Star Performers” based on

the strongest forward movement demonstrated on the PEAK Matrix™ year-on-year.

Based on the analysis, TCS emerged as a Leader. This document focuses on TCS’s mortgage BPO experience and capabilities

and includes:

TCS’s position on the mortgage BPO PEAK Matrix

Detailed mortgage BPO profile of TCS

Buyers can use the PEAK Matrix™ to identify and evaluate different service providers. It helps them understand the service

providers’ relative strengths and gaps. However, it is also important to note that while the PEAK Matrix™ is a useful starting

point, the results from the assessment may not be directly prescriptive for each buyer. Buyers will have to consider their unique

situation and requirements, and match them against service provider capability for an ideal fit.

https://www2.everestgrp.com/reportaction/EGR-2017-11-R-2444/Toc?SearchTerms=mortgage BPO


EGR-2017-11-E-2460

Everest Group’s classification of the mortgage value chain

Analytics

Regulatory compliance and reporting

Origination Servicing

Default

management

Refinance / loan

modification

Short sale /

foreclosure

Credit/collater

al evaluation

Credit risk

assessment

Fraud risk

assessment

Document

verification

Rate locking

Sourcing

Lead generation

Application

management

Loan pricing

Loan document

indexing and

verification

Underwriting

Collateral risk

underwriting

Underwriting

decision

Underwriting

audit

Risk

management

Securitization

support

Loan setup

Payment

processing

Collections

Credit reviews

Collateral review

Post funding

review

Loan funding

Document draw

Condition clearing

and validation

Wire request and

approval

Post closure

document review

Purchase review

and approval

Compliance/post

closure

compliance1

Securitization

support

Processing

Account

closure /

foreclosure

Securitization

Pre-

securitization

Core

securitization

Quality assuranceRisk

management

Document

support

Regulatory

compliance

1 The United States compliance follows the mortgage electronic registration system and the HUD1 settlement statement

Note: This report covers vertical-specific BPO within the mortgage space. It does not include coverage of horizontal business processes such as F&A, HR,

procurement, and contact centers


EGR-2017-11-E-2460

* Service providers scored using Everest Group’s proprietary scoring methodology given on page 12, 13 and 14

Note: Assessment for Capgemini, DXC Technology, EXL, and IBM excludes service provider inputs on this particular study, and is based on Everest Group’s

estimates which leverage Everest Group’s proprietary Transaction Intelligence (TI) database, ongoing coverage, service provider public disclosures, and

interaction with buyers

Source: Everest Group (2017)

Everest Group Mortgage BPO – Service Provider Landscape with Services PEAK Matrix™*

Mortgage BPO vision & capability

(Vision & strategy, scope of services offered, innovation & investments, and delivery footprint)

Ma

rket

imp

ac

t

(Ma

rke

t a

doption, p

ort

folio

mix

, a

nd

va

lue

de

live

red)

High

Low

Low High

AccentureTCS

HCL

Genpact

Sutherland

Wipro

InfosysIBM

Mphasis-Digital Risk

Firstsource

Cognizant

DXC Technology

Intelenet

EXLWNS

Capgemini

Aspirants

LeadersMajor ContendersLeaders

Major Contenders

Aspirants

Star Performers

Everest Group PEAK Matrix™

Mortgage BPO | TCS positioned as Leader


EGR-2017-11-E-2460

1 Value delivered score and overall PEAK matrix positioning adversely impacted for those service providers who did not provide adequate information

Measure of capability: Best-in-class Very high High Medium high Medium Medium low Low Not mature

TCS | Mortgage BPO profile (page 1 of 6)

Everest Group assessment1

Market impact Vision & capability

Market

adoption Portfolio mix

Value

delivered1 Overall

Scope of

services

offered

Innovation

and

investments

Delivery

footprint

Vision and

strategy Overall

Strengths Areas of improvement

TCS has a taken a step toward integrating its IT and BPO functions.

This is expected to enhance its problem-solving by positioning itself as

an integrated solutions provider to clients

TCS has continued to be a Leader on the Services PEAK Matrix, with

sustained growth in the mortgage BPO market due to its well-diversified

scope of services

It has significant technology capabilities with focused offerings and

investments in high growth areas such as analytics, risk & regulatory

compliance, and automation

TCS can leverage its onshore delivery capabilities to expand the

judgment-intensive services such as collateral risk underwriting and

underwriting decision services

While it has invested in developing its RPA capabilities, it should also

proactively improve its traction among clients to cement its position as

a Leader. This will help it to create a sustainable competitive advantage

in the market

Clients suggest that TCS can improve on flexibility and delivery of

mortgage services


EGR-2017-11-E-2460

Recent acquisitions and partnerships

2017: Partnered with IBM on iReply – a next-generation service request

monitoring tool based on NLP algorithm

2016: Partnered with IBM on check processing solution and lending

originations-as-a-service

2016: Partnered with multiple RPA vendors such as Blue Prism, Automation

Anywhere, WorkFusion, and UiPath underway

Recent developments

2017: Developed mMortgage-Digital Quality Control, a robust rule engine to

digitize data from loan documents into LOS

2017: Developed mMortgage-Digital Servicing, a platform- and device-agnostic

solution that solicits requests from online sources

2016: Developed in-house technology – Kofax, a data extraction and workflow

solution that enables automatic data extraction or aided data extraction from

U.S. title documents

2016: Investment in creating a digital underwriting solution that enhances the

mortgage processor's and underwriter's productivity

2015: Investment in creating customer onboarding tablet-based application

Suite of services

Origination

Active servicing

Default servicing

Analytics – risk analytics, customer analytics, fraud analytics, and marketing

analytics

Risk management (credit, market, liquidity, operations, and regulatory)

Payments

Fraud, risk, and compliance

Company overview

Tata Consultancy Services (TCS) is an IT, consulting, and Business Process

Services (BPS) organization. TCS has a diverse base of mortgage clients and

extensive domain expertise across all loan products. It supports consumer lending

operations across the lending value chain and offers a wide array of services and

solutions that range from business process services to custom built point solutions,

platform based managed services, consulting, analytics, and business

transformation. TCS also deploys its ValueBPS™ offering with transformation levers

such as FORE™, robotic process automation, IT-BPS synergy, Business-Process-

as-a-Service (BPaaS) models to build a customer centric operating model that is

lean, efficient, and scalable.

Key leaders

Arun Batra, Global Head, BFSI BPS

Karthik Kumar, Director, Mortgage BPS

Headquarter: Mumbai, India

Website: www.tcs.com

Mortgage BPO 20151 20161 20171

Revenue (US$ million) ~150 ~145 ~155

Number of FTEs ~5,920 ~6,335 ~6,275

Number of clients 25+ 30+ 34+


Overview

1 Twelve months ending June 30 of any particular year, i.e., from July 20XX to June 20XX+1


http://www.tcs.com/


EGR-2017-11-E-2460


Key delivery locations

ManilaBangalore

Cincinnati

MumbaiPune

ChennaiChennai

Kolkata

Gurgaon & Delhi

Gandhinagar

United Kingdom

Guadalajara

Quito

Santiago

Africa

France

Canada Norway



EGR-2017-11-E-2460

Mortgage BPO FTE split by delivery

location

FTEs in numbers

Mortgage BPO client split by buyer

size (buyer revenue)1

Number of clients

Mortgage BPO revenue mix by

geography

Revenue in US$ million

Mortgage BPO FTE mix by segment

FTEs in numbers

1 Buyer size is defined as large (>US$10 billion in revenue), medium (US$5-10 billion in revenue), and small (<US$5 billion in revenue)

Note: Based on contractual and operational information as on June 2017



Capabilities and key clients

85%

8%

4% 3%

100% = 6,275 100% = 155 100% = 6,275 100% = 34

48%

37%

15%

Origination

Servicing

Securitization

North

America

UKContinental

Europe

LATAM

86%

11%3%

Offshore

NearshoreOnshore

62%

35%

3%

Small

Large

Medium

Key mortgage BPO engagements

Client name Category (origination, securitization, or servicing) Region Client since

U.S.-based non-bank consumer lender Origination North America 2017

Top-10 U.S. investment bank Origination and securitization North America 2016

Top-three mutual fund and financial services group Origination and servicing North America 2016

U.S.-based full service banking provider Origination North America 2016

A leading Texas-based servicer Origination, securitization, and servicing Ecuador 2012

Top-three Ecuador Bank Origination, securitization, and servicing North America 2007

Large global bank Origination, securitization, and servicing North America 2003


EGR-2017-11-E-2460

Application Category Year launched Description No. of BPO clients

iReply – Next-gen service

request monitoringServicing 2017 The solution classifies the service requests on NLP algorithm.

Exceptions are used to build and train the predictive engine

NA

mMortgage-Digital Quality

ControlOrigination and

servicing

2017 It performs automated data check points on information between

multiple documents and Loan Originations Systems (LOS). It has

an inbuilt OCR/ICR technique to digitize data from loan documents

into LOS

<3

mMortgage-Digital

ServicingServicing 2017 It is a platform and device agnostic solution which solicits requests

from online sources<3

Cognitive call center Servicing 2017 The solution helps contact centers and back-office agents, and

discusses ways to improve operations to deliver better customer

experience at every interaction

NA

mMortgage-Digital

UnderwritingOrigination and

servicing

2016 It is a rule engine based-solution that digitizes data from

documents using OCR/ICR and compares 1003 data from LOS to

enable fast and accurate credit decisions by managing data,

documents, and decisions digitally

<3

Kofax data extraction and

workflow solutionOrigination,

servicing, and

securitization

2016 The solution enables automatic data extraction or aided data

extraction from U.S. title documents, thus enhancing quality and

processor productivity. It also offers a workflow solution

<3

Credit report review

automationOrigination 2016 The solution demystifies credit reports by extracting details

automatically and performing the review with minimal manual

intervention

<3

Loan Estimate (LE)

automationOrigination 2016 The solution ensures compliance to LE correctness by integrating

details from the LOS with the third-party application that generates

LE

<3

mMortgage-Digital

OriginationsOrigination and

servicing

2015 The platform enables the loan application process. It helps to

select the most optimal and affordable product, and enables a self-

directed and user-friendly application process

3-5


Technology solutions/tools



EGR-2017-11-E-2460

Regulatory reporting support List of regulations Description No. of BPO clients

United States regulations CFPB, RESPA, TRID, HMDA,

SAFE Act, ECOA & Investor

Guide, FDCPA, FCRA, OCC,

DOD Frank, TILA, Electronic

Funds Transfer Act, TCPA,

SCRA,FACTA, USAPA, CPA,

GLBA,HOPA, CSR, and USC

The U.S. regulations that are kept in mind while

performing activities3-5

United Kingdom regulations

Not applicableEuropean Union regulations

Local regulations


Risk management & regulatory reporting

Risk management support Details No. of BPO clients

Credit risk Not applicable

Operations risk Not disclosed 3-5

Market risk Not applicable

Liquidity risk Not applicable

Regulatory risk Not applicable



EGR-2017-11-E-2460

Appendix


EGR-2017-11-E-2460

Everest Group PEAK Matrix for mortgage BPO

Vision & capability

(Vision & strategy, scope of services offered, innovation & investments, and delivery footprint)

High

Low

Low High

Leaders

Aspirants

Mark

et

imp

act

(Ma

rke

t a

doption, p

ort

folio

mix

, a

nd

va

lue

de

live

red)

Everest Group PEAK Matrix™ is a proprietary

framework for assessment of market impact

and vision & capability

Major Contenders


EGR-2017-11-E-2460

Service providers are positioned on the Everest Group

PEAK Matrix™ based on the evaluation of two key

dimensions

Measures impact created in the market –

captured through three subdimensions

Ma

rke

t Im

pa

ct Major Contenders

Leaders

Aspirants

Measures ability to deliver services successfully.

This is captured through four subdimensions

Vision for the client and itself;

future roadmap and strategy

Vision and strategy

Depth and breadth of services

portfolio across service sub-

segments / processes

Scope of services offered

Delivery footprint and global

sourcing mix

Delivery footprint

Innovation and investment in

the enabling areas, e.g.,

technology IP, industry/domain

knowledge, innovative

commercial constructs,

alliances, M&A, etc.

Innovation and investments

No. of clients, revenue base, and

YOY growth, deal value/volume

Market adoption

Diversity of client/revenue base

across industries, geos,

enterprise size class

Portfolio mix

Value delivered to the client

based on customer feedback

and other measures

Value delivered

Vision & capability


EGR-2017-11-E-2460

Everest Group confers the Star Performers title on

providers that demonstrate the most improvement

over time on the PEAK Matrix™

This slide to be used ONLY for “Star Performers”Star Performers

are identified by

top quartile

performance

improvement on

the X and Y axes

for each segment

Methodology

Everest Group selects Star Performers based on the relative YOY improvement on the PEAK Matrix

Year 1

Year 0

Mark

et

Imp

act

Vision & capability

We identify the service providers whose improvement

ranks in the top quartile and award the Star Performer

rating to those service providers with:

The maximum number of top-quartile performance

improvements across all of the above parameters

AND

At least one area of top-quartile improvement

performance in both market success and capability

advancement

The Star Performers title relates to YOY performance for a given service provider and does not reflect the overall

market leadership position, which is identified as Leader, Major Contender, or Aspirant.

In order to assess advances on market impact, we

evaluate each service provider’s performance across a

number of parameters including:

Yearly ACV/YOY revenue growth

# of new contract signings and extensions

Value of new contract signings

Improvement in portfolio mix

Improvement in value delivered

In order to assess advances on vision and

capability, we evaluate each service provider’s

performance across a number of parameters

including:

Innovation

Increase in scope of services offered

Expansion of delivery footprint

Technology/domain specific investments

ILLUSTRATIVE EXAMPLE FOR SERVICES PEAK MATRIX


EGR-2017-11-E-2460

FAQs (page 1 of 2)

Does the PEAK Matrix assessment incorporate any subjective criteria?

Everest Group’s PEAK Matrix assessment adopts an objective and fact-based approach (leveraging service provider

RFIs and Everest Group’s proprietary databases containing providers’ deals and operational capability information).

In addition, these results are validated / fine-tuned based on our market experience, buyer interaction, and provider

briefings

Is being a “Major Contender” or “Aspirant” on the PEAK Matrix, an unfavorable outcome?

No. PEAK Matrix highlights and positions only the best-in-class service providers in a particular functional/vertical

services area. There are a number of providers from the broader universe that are assessed and do not make it to the

PEAK Matrix at all. Therefore, being represented on the PEAK Matrix is itself a favorable recognition

What other aspects of PEAK Matrix assessment are relevant to buyers and providers besides the

“PEAK Matrix position”?

PEAK Matrix position is only one aspect of Everest Group’s overall assessment. In addition to assigning a “Leader”,

“Major Contender” or “Aspirant” title, Everest Group highlights the distinctive capabilities and unique attributes of all the

PEAK Matrix providers assessed in its report. The detailed metric level assessment and associated commentary is

helpful for buyers in selecting particular providers for their specific requirements. It also helps providers showcase their

strengths in specific areas

Does PEAK Matrix assessment incorporate “customer satisfaction” as an evaluation criteria/metric?

Everest Group does not have “customer satisfaction” as a separate metric in its PEAK evaluation framework. This is

primarily because it is challenging to obtain interviews with a meaningful number of reference buyers for each service

provider. Also, “customer satisfaction” is a highly subjective and opinion driven metric and there is no foolproof

methodology to normalize this input. That said, we validate our PEAK results through buyer interaction and capture

some consistent “spikes” or “lags” in performance through metrics such as “renewal rate”, etc.


EGR-2017-11-E-2460

FAQs (page 2 of 2)

What are the incentives for buyers and providers to participate/provide input to PEAK Matrix research?

Participation incentives for buyers include a summary of key findings from the PEAK Matrix assessment

Participation incentives for providers include adequate representation and recognition of their capabilities/success in

the market place, and a copy of their own “profile” that is published by Everest Group as part of the “compendium of

PEAK Matrix providers” profiles

What is the process for a service provider to leverage their PEAK Matrix positioning, or “Star Performer”

status ?

Providers can use their PEAK positioning or “star performer” rating in multiple ways including:

Issue a press release declaring their positioning/rating

Customized PEAK profile for circulation (with clients, prospects, etc.)

Quotes from Everest Group analysts could be disseminated to the media

Leverage PEAK branding across communications (e-mail signatures, marketing brochures, credential packs,

client presentations, etc.)

The provider must obtain the requisite licensing and distribution rights for the above activities through an agreement

with the designated POC at Everest Group

Does the PEAK Matrix evaluation criteria change over a period of time?

PEAK Matrix assessments are designed to serve present and future needs of the enterprises. Given the dynamic

nature of the global services market and rampant disruption, the assessment criteria are realigned as and when

needed to reflect the current market reality as well as serve the future expectations of enterprises

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, problem-

solving skills and original research. Details and in-depth content are available at

www.everestgrp.com.

Dallas (Headquarters)

[email protected]

+1-214-451-3000

Bangalore

[email protected]

+91-804-276-4533

Delhi

[email protected]

+91-124-496-1000

London

[email protected]

+44-207-129-1318

New York

[email protected]

+1-646-805-4000

Toronto

[email protected]

+1-416-388-6765

Social Media

@EverestGroup

@Everest Group

Stay connected

Website

www.everestgrp.com

Blog

www.sherpasinblueshirts.com

Sherpas In Blue Shirts

http://www.everestgrp.com/

mailto:[email protected]











https://twitter.com/EverestGroup

https://www.linkedin.com/company/everest-group

http://www.everestgrp.com/

http://www.sherpasinblueshirts.com/

Documents

Everest Group PEAK Matrix™ for Mortgage