Comerica Account Deep Dive Analysis - s3-us-east-2 ...€¦ · Comerica –Account Deep Dive Analysis October 2018. Source : DRAUP 2 2 AGENDA ... rapid expansion into wider distribution

Source : DRAUP

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Comerica – Account Deep Dive

Analysis

October 2018

Source : DRAUP

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AGENDA

➢ Comerica Overview

❑ Highlights on Comerica business overview

❑ Last 2 years revenue analysis

❑ Net Income split by geography

❑ Key operating business segment

➢ Organization Structure

❑ CXO’s and Executives

Rolodex04

Account Profile

Business & Financial Overview

Outsourcing Vendor Analysis

Globalization Footprint

Recommendations05

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Source : DRAUP

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Comerica's GEAR Up initiative is expected to drive additional annual pretax income of $270 million by the end of FY'18

Revenue in $ billion (USD)

Comerica Incorporated is a financial services company which

has retail banking operations in Texas, Michigan, Arizona,

California and Florida. Comerica reported with total assets of

$72 billion by the end of June, 2018.

About Comerica

Note – DRAUP data curated from Comerica’s financial reports published annually and updated in October, 2018

Revenue (2017):$ 3.17 billion

Headquarter:Dallas, Texas, United States

Year of Establishment:1849

Revenue (2016 & 17)

2.85

3.17

2016 2017

Revenue CAGR

(2016 - 2017):11.23%

Business Bank82%

Retail Bank8%

Wealth Management

10%

Net Income share by segment (2017)

Employees (2017):8,190

Net Income share by Geography (2017)

30%

27%

21%

7%

Michigan

California

Texas

Others

Source : DRAUP

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Comerica – Business Segments Overview

Comerica

Note – DRAUP data curated from Comerica’s financial and analysts reports published annually and updated in October, 2018

Retail BankBusiness Bank Wealth Management

Commercial Loans and

Lines of credit

Deposits

Cash Management

International Trade

Finance

Capital Market

Products

Deposit Accounts

Installment Loans

Credit Cards

Home Equity Lines of

Credit

Student Loans

Fiduciary Services

Private Banking

Retirement Services

Advisory Services

Investment

Management

Residential Mortgage

LoansInvestment Banking

Letters of Credit

Brokerage Services

Annuity Products

Long-term care

Insurance Products

Foreign Exchange

Management Services

Loan Syndication

Services

Source : DRAUP

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Comerica – Executive Leadership

Muneera S. CarrExecutive Vice President and Chief Financial

Officer

John D. BuchananExecutive Vice President and Chief Legal

Officer/General Counsel

Curtis C. FarmerPresident

Peter W. GuilfoileExecutive Vice President and Chief Credit

Officer

Note: The above analysis is based on the DRAUP’s Executive Module, updated in October, 2018.

Ralph W. Babb Jr.Chairman & Chief Executive

Officer

Michael H. MichalakExecutive Vice President and Chief Risk

Officer

Megan D. BurkhartExecutive Vice President and Chief Human

Resources Officer

Christine M. MooreExecutive Vice President and General

Auditor

Paul R. ObermeyerExecutive Vice President, Enterprise

Technology and Operations

Source : DRAUP

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KEY STRATEGIC PRIORITIES: Organizational Restructuring

Organisational Restructuring

• On September 10, 2018 Comerica appointed Kevin J. Williams as Senior Vice President and Group Manager who is responsible for the strategic development and

growth of the Middle Market banking initiatives.

• On July 25, 2018 Comerica appointed Peter L. Sefzik as Executive Vice President for Business Bank who is responsible for Comerica Bank's small business

banking function which is part of the Retail Bank.

• On July 25, 2018 Comerica appointed Brian P. Foley as President of Comerica Bank's Texas Market who oversees all business and community development efforts

in Comerica's headquarters market, including management of Middle Market and Energy Lending in Texas.

• On May 24, 2018 Comerica appointed Kim Kersten as the Director of Business Banking who is responsible for leading Comerica’s Business Banking efforts across

Michigan including growth, credit quality, customer and internal process quality measures, product development and pricing.

• On May 1, 2018 Comerica appointed Steve Richins as the President of Arizona region and SVP of Commercial Banking who oversees business and community

development efforts across the Retail, Business and Wealth Management lines of business in Arizona.

• On April 19, 2018 Comerica appointed Robert O. Muzio as the President of Regional Market of South Bay who supports the bank’s customer initiatives and overall

business and community development efforts across its Business Bank, Retail Bank and Wealth Management practices.

• On March 9, 2018 Comerica appointed Morgan Rector as the President of California Market who oversees all the business and community development efforts of

both Southern and Northern California.

Note: Analysis is based on the news articles, journals and other similar sources updated in October, 2018

Source : DRAUP

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KEY STRATEGIC PRIORITIES: Organisational Restructuring & Ecosystem Partnerships


Ecosystem Partnerships

• On July 19, 2017 The Detroit Lions and Comerica extended their partnership to include exclusive naming rights to the new Gridiron Club and Suites as a part

of The New Ford Field renovation project.

• On August 30, 2016 Comerica Bank’s Technology and Life Sciences (TLS) Division announced a new client relationship with Madison Reed to support their

rapid expansion into wider distribution channels.

• On May 17, 2016 Comerica Bank partnered with Dallas Entrepreneur Center and Tech Wildcatters to offer more smart small business solutions to the

thriving North Texas entrepreneurial community.

Organisational Restructuring Contd.

• On November 8, 2017 Comerica appointed Muneera S. Carr as the Chief Financial Officer who oversees income tax, planning and forecasting and

management information systems.

• On April 13, 2017 Comerica appointed Andrew M. Bodisco as the Regional Market President to lead Comerica's East Bay business banking team and

business development initiatives for the region.

• On June 7, 2016 Comerica appointed Sangy Vatsa as the Chief Technology Officer and Executive Vice President to lead the bank’s Information Technology.

Source : DRAUP

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AGENDA

➢ Details on Global Technology Footprint

❑ Key buying locations

❑ Region wise insights for global Technology centres – Headcount,

Activities and key products developed

Account Profile




Rolodex04

Recommendations05

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Source : DRAUP

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Summary: Comerica – Technology Globalization Footprint

Key Buying Locations➢ Greater Detroit Area, United States is the major hub with ~79% of the engineering talent involved in the implementation of

the projects using SOAP Web Services, WSDL, UDDI, JPA and SOAP which are used to communicate with other systems

using apache Axis.

Key Engagements

➢ Some of the key activities are the development of Value at Risk (VaR) models which are based on Advanced Measurement

Approach (AMA and LDA) including loss frequency, severity distribution estimation and aggregate loss Monte Carlo

simulation.

➢ Involved in the development and modification of Contact Center Technical Business Analyst IVR Voice Systems and Visio

Call Flow design diagrams for the new environments.

➢ Implementation of Angular component router for navigation and Angular services for connecting the web applications to

back-end APIs.

➢ Involved in the deployment of scalable infrastructure on Amazon web services (AWS) and configuration of management

using Ansible.

Key Stakeholders George SurduSVP & CTO

David H. WilliamsVP, Technology Operations

Tristan ValdenorVP, Application Engineer

Baiju PanickerChief Technology Officer


Source : DRAUP

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United States has 92% of major engineering workforce; Greater Detroit Area and Greater Chicago Area are the key buying centers of Comerica

Note: Global Footprint Data curated by DRAUP and updated in October, 2018

Global Technology Footprint of Comerica

6Total Number of Technology Hotspots

1,000 – 1,200Total Number of Technology workforce

Installed

2Number of Buying Centers

USA

Africa

Note: The represented data illustrates the number of centers by Geography and the bubble size is proportional to overall HC Installed in the area.

No. of Centers : 5

Head Count : 1.1K-1.2K

No. of Centers : 1

Head Count : 100-150

Source : DRAUP

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Dallas/Fort Worth Area, Greater Los Angeles Area and Greater Detroit Area are the major hubs of Comerica

Note: Global Footprint Data curated by DRAUP and updated in October, 2018

Outpost

Satellite

Hub

Greater Detroit Area

Nigeria

Dallas/Fort Worth

Area

Greater Los Angeles

Greater New York

City Area

Greater Chicago

Area

Source : DRAUP

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Greater Detroit Area, United States – Technology Center Deep Dive: Center Overview

Note: The above analysis is based on the DRAUP’s Executive Module, updated in October, 2018

Location

Greater Detroit Area,

United States

Technology Headcount

900 – 1000 FTEs

Center Level

Hub

Average Salary Cost / FTE

$ 115K / Annum

• Greater Detroit Area, United States center focuses on the enhancement of SolarWinds automation using the

SolarWinds SDK.

• Implementation of angular component router for navigation and angular services to connect the web application to

the back-end APIs.

• Design, implementation and testing of networking applications using J2EE, Spring, Hibernate, Maven, Tomcat and

Oracle.

• Design and development of automation test scripts in Selenium WebDriver using behaviour driven approach like

Cucumber.

•Development of responsive UI using Angular4 as front-end and using Web API to receive and pass the data to back-

end.

Top leaders


Major Engineering Talent Profiles

Software

Engineer

System

EngineerSangy Vatsa

Chief Information Officer & EVP

Source : DRAUP

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Greater Detroit Area, United States – Technology Center Deep Dive: Technology Leadership

Technology Leadership

13 Key Executives (Including top leaders, VP and Directors)

VP

Directors

Top Leaders

Paul ObermeyerEVP, Enterprise Technology &

Operations

Joshua ChristieDirector, Cybersecurity Architecture

& Strategy

Derek HayDirector, Infrastructure Engineering

& SVP


Note: The above analysis is based on the DRAUP’s Executive Module, updated in October, 2018

George SurduSVP & CTO

Christopher AlfaroVP & Technical Project Manager

Padmanabhan KarathaVP, SOA and Cloud Platform

Adrian KwitkowskyVP, Cybersecurity Business

Logistics


Karen SchmeeckleVP, Application Modernization

Senior Program Manager

David H. WilliamsVP, Technology Operations

Sangy VatsaChief Information Officer & EVP

Brad MaurerDirector, Application Development

and Support

Source : DRAUP

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DETAILS

Globalization Technology Footprint

Buying CentersLOCATIONTECHNOLOGY

HEADCOUNT

Note: Global Footprint data curated by DRAUP and updated in October, 2018. R&D Headcount includes research and product engineering talent

Greater Detroit Area,

United States900 – 1000

• Implementation of angular component router for navigation and angular services to connect the web application to back-

end APIs.

• Development of automation test scripts in Selenium WebDriver using behaviour driven approach like Cucumber.

• Enhancement of SolarWinds automation using the SolarWinds SDK.

Nigeria, Africa 100 – 150

• Development of integrated (strategic and tactical) category sourcing strategy which delivers strongest business value and

drives category transformation.

• Implementation of OpRisk Stress test model to provide expected loss forecasts for Regulatory Comprehensive Capital

Analysis (CCAR).

Dallas/Fort Worth Area,


• Implementation of OpRisk Stress test model to provide expected loss forecasts for Regulatory Comprehensive Capital

Analysis (CCAR), Dodd Frank Act Stress Tests (DFAST) and FRY -14A submission.

• Implementation of PPNR forecast models for year-end and mid-year stress testing using SAS and Excel.

Greater Los Angeles

Area, United States30 – 50

• Development of Infrastructure (IaaS) and Platform as a Service (PaaS) models.

• Involved in the execution of strategic sourcing and procurement initiatives for technology and banking services.

Greater New York City

Area, United States20 – 30

• Implementation of Actimize Anti-Money Laundering (AML) system to monitor suspicious transactions and to enhance

regulatory compliance.

• Implementation of AWS solutions using EC2, S3, RDS, EBS, Elastic Load Balancer and Auto scaling groups.

Greater Chicago Area,


• Involved in the architecture of real time payment methods and involved in the implementation of Fax Cloud Technology

solution.

Source : DRAUP

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AGENDA

➢ Outsourcing Vendor’s deals analysis

❑ Total headcount outsourced to service providers

❑ Key vendors working with Comerica

❑ Key Opportunity areas to target

Account Profile




Rolodex04

Recommendations05

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Source : DRAUP

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Key partners➢ Cognizant is the major strategic partner for Comerica works on ADM cumulatively contributing to ~35 % of total outsourcing

size

Key Activities

➢ ADM is the key engagement area for Comerica contributing to 56% of total outsourcing

➢ Major workloads across ADM are development of solutions that integrates cash application and support of multiple end to

end implementation process

➢ Automation testing of web applications using Selenium WebDriver with Cucumber using Java language

➢ Development of automation scripts for World Remittance and Spectrum Options application using QTP


Key Opportunity Areas ➢ Vendors should target on Cloud and automation related engagements with Comerica

Summary: Engineering / Technology Services Outsourcing

Source : DRAUP

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Vendor Analysis – Cognizant is the major strategic partner for Comerica contributing ~35% of total outsourced HC

Technology Outsourcing Split by Service Providers Split by Sub Service Segment (In HC %)

600 - 700 Workforce split across

Outsourcing Partners

22 Active Outsourcing Partners

Note - Above analysis is based on the DRAUP’s proprietary Outsourcing module, updated in October, 2018.

Cognizant35%

Fujitsu Ltd.22%

Tata Consultancy Services 6%

Accenture5%

Tech Mahindra, 3%

Cybage Software, 2%

Cyient, 2%

Hindustan Unilever

Limited, 2%

Capgemini, 2%

Zensar Technologies,

2%UST Global, 2%

Infosys, 2%Innomax IT Solutions, 2%Others, 13%

Source : DRAUP

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Application Development & Maintenance Sub-segment has the highest number of deals with different vendors

Cognizant, 50% Accenture, 6% TCS, 6%

Fujitsu Ltd., 6%

Cybage Software, 4%

Others, 28%ADM

Note - Above analysis represents the HC split of Service Providers in each Sub-segment for Comerica updated in October, 2018.

Note - Others in the above representations includes service providers having outsourcing workforce of less than 4% of the total outsourcing by each sub segment.

Fujitsu Ltd., 50%

TCS, 13%

Pricewaterhouse Coopers, 13%

Cyient, 13%

Capegemini, 11%

Digital

Fujitsu Ltd., 65%

Cognizant, 21%

TCS, 10%

Accenture, 4%IMS

Cognizant, 25% Tech Mahindra, 22% Accenture, 11%

Mentorware, 11%

Zensar Technology, 11%

Fujitsu Ltd., 11%

Hindustan Unilever Limited, 9%

R&A

Source : DRAUP

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Key Vendor Engagements Snapshot (1/5)


R&A:

• Creation and configuration of agile board, kanban board and Jira as per project requirement.

• Confluence of space creation, user management, space look and feel configuration.

ADM:

• Design and development of applications based on requirements and deploy on Cloud environment.

• Design and development of multiple applications and testing with JUNIT.

Digital:

• Integration of AWS and Azure usage into PICCO which is cloud service billing management tool.

• Development of chargeback model for cloud services using a tagging framework.

IMS:

• Installation, configuration and maintenance of IBM websphere application server 8 and 8.5, IBM HTTP server, apache web servers,

windows and Linux.

Split of Workforce by Sub Segment

HC

100 – 200

Key Delivery Locations

Bengaluru Area, Chennai

Area, Hyderabad Area,

National Capital Region,

Pune Area, Greater Detroit

Area

ADM:

• Involved in the verification of application packaging request task, verification of data moved from legacy system to MTS application, EPA

application and Channels.

• Involved in the preparation of test scenarios based on system requirements and test cases.

IMS:

• Development of SQL scripts and C#/VB.NET codes.

R&A :

• Development of base architecture and documentation process of enhancements.

• Creation and management of InfoPath forms, timer jobs and visual web parts.

• Validation of newly released MS patches, System software patches such as JAVA, SQL, Citrix and observations based on testing in test

environment.


HC

200 – 300



Area, Hyderabad Area,

Kolkata Area, Greater

Detroit Area

ADM, 79% R&A, 11% IMS, 10%

IMS, 49% Digital, 29% ADM, 14% R&A, 7%

Source : DRAUP

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ADM:

• Design and development of data model and class structure of the applications.

• Development of UI elements such as layouts, harness, sections, portal and navigation rule.

IMS:

• Migration of windows and Linux server.

• Design of lift and shift process models of front facing the customer for migration plans.

• Maintenance and configuration of web server, apache and application servers and involved in the deployment of windows server and IIS.

Digital:

• Execution of firewall connection between WAN, cloud and internet modification.

• Configuration of equinix to fast the net flow between WAN and cloud.


HC

20 – 40



Area


ADM:

• Design and implement front end UI using Angular js 1.x, Spring boot and Spring Security.

• Development of notification receiver module used to process incoming notifications from external application using Spring boot, Spring core,

Spring rest template.

R&A:

• Design and development of tableau reports, documents, dashboards and scorecards per specified requirements.

• Development of various reports as per customer requirements.

• Creation of customized and interactive dashboards using data sources and custom objects.

IMS:

• Test case preparation for unit tests and development of ETL code for unit tests.

ADM, 59% R&A, 29% IMS, 12%


HC

20 – 40



Area, Pune Area

ADM, 50% IMS, 25% Digital, 25%

Source : DRAUP

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R&A :

• Preparation and updation of project tracker and required reports.

• Development of linked tables, concatenation and solved loops issues.

• Involved in the creation of data modelling and design of dashboards and objects.


HC

20 – 40


Hyderabad Area,

National Capital Region


ADM, 100%


HC

10 – 20

Key Delivery Location

Hyderabad Area


HC

10 – 20


Pune Area

ADM :

• Identification of test scenarios, designing of test cases and test data using manual process.

• Execution of functional, usability and regression test process.

• Preparation and maintenance of test cases, execution of test cases and documentation of test results.

• Development of test scripts using descriptive programming with standards.

Digital :

• Design of automated process solutions in accordance with standard design principles and conventions.

• Configuration of new automated processes and objects using core workflow principles that are efficient, well structured, maintainable and

easy to understand.

R&A, 100%

DIGITAL, 100%

Source : DRAUP

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R&A :

• Creation of data modeling for dashboard design.

• Preparation of various business reports using various charts like bar charts and pie charts.

• Creation of dashboards style of reports using qlikview components like list box, slider, buttons, charts and bookmarks.

• Development of extensively alerts, variables, input boxes, calendar and macros.


HC

10 – 20


Bengaluru Area


DIGITAL, 100%


HC

10 – 20


Hyderabad Area


HC

10 – 20


Bengaluru Area

Digital :

• Creation of UNIX shell scripts to push data from NFS to HDFS.

• Creation of PIG scripts to process the HDFS data and calculate sentiment.

• Creation of hive scripts in order to apply business logic and transform the data received to NFS and load it into hive tables.

R&A :

• Creation of web reports using merge and combined queries.

• Design and development of web reports using break, section and charts, cross Tabs, drill down, functions and formulae.

R&A, 100%

R&A, 100%

Source : DRAUP

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ADM :

• Creation and execution of the automation scripts using selenium.

• Implementation of automation framework with web driver.

• Preparation of automation scripts, debug and execution of automation scripts.

• Execution of regression test after each modification of the application.


HC

10 – 20


Chennai Area


ADM, 100%


HC

10 – 20


Bengaluru Area


HC

10 – 20


Hyderabad Area

ADM :

• Preparation of test plan and testing strategies for the releases.

• Preparation of traceability matrix for mapping all the requirements with test cases.

• Creation, execution and reviewing of test cases.

ADM:

• Design of test cases for functional and regression tests.

ADM, 100%

ADM, 100%

Source : DRAUP

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AGENDA

➢ Key Technology Stakeholders

❑ Key Technology stakeholders & Leadership

Account Profile




Rolodex04

Recommendations05

01

02

03

Source : DRAUP

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Comerica – Technology Leadership

Sangy VatsaChief Information Officer and Executive

Vice President

Kevin BartloVP, Lead Solution Architect

Shaun AbshireVP, Principal Engineer

Kevin UrbanSVP, Technology & Life Sciences

Jeevendran JosephVP, Cyber Security and Risk


Walter WestonVP, Technology and Life Sciences

Division


Vaishali BhattVP, Enterprise Architecture Lead(Digital

Business Transformation)

Note: The above analysis is based on the DRAUP’s Executive Module, updated in October, 2018.

Mike SchlienzVP, Unix/Linux Engineer

Paul ObermeyerEVP, Enterprise Technology & Operations

Geri HanspardVP, Cyber Security, Technology

Information Risk

& Security Policy Management

Christopher AlfaroVP & Technical Project Manager

Source : DRAUP

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AGENDA

➢ Key Opportunities

❑ Artificial Intelligence in Banking

❑ TechVision2020

Account Profile




Rolodex04

Recommendations05

01

02

03

Source : DRAUP

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By analysing Comerica focus, DRAUP has identified the following key opportunity areas

Key Opportunity Segments

Note - Above analysis is based on the DRAUP’s proprietary services module, updated in October, 2018.

Artificial Intelligence in Banking

➢ Comerica focuses on the

implementation of Artificial

Intelligence in Banking for the

analysis of large quantities of data

and for the enhancement of

automated call center functions.

TechVision2020

Under TechVision2020 initiative

Comerica focuses on the following areas

➢ Deployment of new platforms for

consumer loans and mortgages

➢ Enhancement of customer contact

centers by leveraging biometric

authentication, natural language

processing and robotics.

➢ Implementation of Robust Data

Analytics tool to match their

customer’s banking habits.

Source : DRAUP

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https://twitter.com/zinnov

http://facebook.com/ZinnovManagementConsulting

https://www.linkedin.com/company-beta/30724/

https://www.youtube.com/channel/UCgEN1J9L2jTqBOlWsH65w8w

http://www.zinnov.com/

mailto:[email protected]?subject=How can we help you?

http://www.draup.com/

https://twitter.com/zinnov

http://facebook.com/ZinnovManagementConsulting

https://www.linkedin.com/company-beta/30724/

https://www.youtube.com/channel/UCgEN1J9L2jTqBOlWsH65w8w

mailto:[email protected]?subject=How can we help you?

Source : DRAUP

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Appendix

Source : DRAUP

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Service providers having outsourcing workforce each of less than 4% of Comerica’s total outsourcing

ADM , 100%

ADM , 100%

ADM , 100%

ADM , 100%

ADM , 100%

ADM , 100%

ADM , 100%

Digital Services , 100%

R & A , 100%

MicroSpark Software Solutions

Noua Infosystems

Celigo

PWC

Ellianse LLC

Pricewaterhouse Coopers

Databorough

Mentorware

Trident Software Solutions

HEADCOUNT

10 – 20

10 – 20

10 – 20

10 – 20

10 – 20

10 – 20

10 – 20

10 – 20

10 – 20

Comerica Account Deep Dive Analysis - s3-us-east-2 ...€¦ · Comerica –Account Deep Dive Analysis October 2018. Source : DRAUP 2 2 AGENDA ... rapid expansion into wider distribution

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