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Moving Beyond Labor Arbitrage in Banking

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Everest Group
Everest Group

Robert Guatelli, VP and BFSI Practice Lead at Intelenet, and Peter Bendor-Samuel, CEO at Everest, will discuss key trends in the BPO market and highlight how companies can improve value capture through an end-to-end services approach.

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Today’s webinar is brought to you by Outsourcing Center Today’s webinar Today’s webinar is presented by Moving Beyond Labor Arbitrage in Banking Robert Guatelli, VP and BFSI Practice Lead at Intelenet, and Peter Bendor-Samuel, CEO at Everest, will discuss key trends in the BPO market and highlight how companies can improve value capture through an end- to-end to end services approach approach. About Outsourcing Center Outsourcing Center is the world’s most prominent internet portal for authoritative information on outsourcing. The Center s Center’s mission is to build the industry by helping people understand how to create value through outsourcing. We serve the outsourcing community through: Trusted and objective third-party perspective Database of over 81,000 opt-in subscribers Relevant media including editorials, research, whitepapers, and the annual Outsourcing Excellence Awards For more information, contact Peter Bowes at pbowes@everestgrp.com. 1
Moving Beyond Labor Arbitrage in Banking Webinar February 2010
Everest is a leading consulting and research firm that comprehensively serves the outsourcing and offshoring market Consulting Research Comprehensive portfolio of services that spans Central source of strategic intelligence, analysis, the sourcing lifecycle and insight Deep industry and functional expertise p y p Recognized for fact-based analysis and insight into g y g Approach that joins corporate strategy and emerging issues experience-based insight Recognition as market authority in Global Sourcing and location-related topics Flexible delivery model Broad range of options for engaging with Everest in manner which best meets the needs of a situation or organization Support can range from targeted inquiries to full support for critical initiatives Everest advantage Served over 25% of the Global 250 Proven methodologies for approaching complex Extensive touch points across the sourcing value projects chain h i Recognized thought leadership – Total Value R i d th ht l d hi T t lV l Deepest primary research agenda on Global Equation (TVE), Joint Design, NASSCOM India Sourcing BPO study, and other industry-leading innovations 3 Proprietary & Confidential. © 2009 Everest Global, Inc.
The global BPO market is growing at a rapid pace Current and potential BPO market US$ billion The BPO market is at an inflection point and is p p preparing for a significant g g uptick in growth Despite negative near-term effects driven by the economy, market growth is anticipated to accelerate rapidly once the dust settles Source: Everest Research Institute (2009) 4 Proprietary & Confidential. © 2010 Everest Global, Inc.
But as the market expands, buyers are demanding increased impact from BPO solutions Buyer demands in BPO Direct impact Strategic impact Simple Complex processes processes Managed Labor arbitrage services Basic pricing Sophisticated approach pricing models 5 Proprietary & Confidential. © 2010 Everest Global, Inc.
Suppliers can position themselves to deliver increased impact in a number of different ways O ll l Overall goal B Buyer d d demands S li iti l Supplier critical success factors Domain expertise Complex processes Customer intimacy Innovation Increased Managed Accountability impact services End-to-end services Alignment to Sophisticated revenues pricing models Transaction-based pricing 6 Proprietary & Confidential. © 2010 Everest Global, Inc.
Business Process Outsourcing “Moving Beyond Labor Arbitrage in Banking” 7 Private and Confidential Intelenet Global Services Pvt. Ltd. 7
Contents • Offshoring Trends in Banking and Financial Services (B&FS) • Future of Outsourcing - Transformational BPO – Road Ahead - Outsourcing Trends – Transformational BPO • Case Studies - Top 5 Banking Client - Leading Credit Bureau • Q&A 8 Private and Confidential Intelenet Global Services Pvt. Ltd. 8
Off shoring Trends in Banking and Financial Services Survey conducted by an independent research firm AMR Research reveals that 48% of the banks surveyed, are willing to increase their expenditure on outsourcing services Everest research indicates Process Outsourcing from financial services sector to Increase 40-45 times the current size over the next 5 years The financial services industry, comprised of banking capital markets and insurance is the leading adopter of off shoring industry banking, insurance, services and accounts for 40 to 45 percent of worldwide global sourcing Offshoring Services: Sector Intelenet Revenue Growth Analysis (2009) (2003 to 2010) 300 M arket Siz e (in U S$ M illio n ) 260 250 222 BFSI 200 Other 10% 32% 150 94 Utilities 100 63 70 4% Transportation 50 30 4% 2 4 Healthcare 0 4% FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 Retail Wholesale Year 9% Manufacturing 24% Industry Specialization Horizontal Specialization Communications • Banking & Financial • Contact Center & CRM 13% Services solutions • Healthcare • Transaction Processing Other:Government, Education, Resource industries, Professional Services, • Travel & Hospitality • Finance & Accounting Consumer and recreational services • Telecom • Collections 9 • Manufacturing • Consulting BFSI: Banking, Financial Services & Insurance • Retail • Analytics Private and Confidential Intelenet Global Services Pvt. Ltd. 9
Transformational BPO – Road Ahead Transformational BPO - Delivering Beyond Cost Benefits • Committed to achieve dramatic improvements in Enterprise-level outcomes • Initiatives such as new Business venture, new product line etc • Strategic agenda • CEO Level Collaboration • Sales thru’ Operations Transformational • Straight thru’ Processing BPO • Reports & Analytics • Business Assurance Innovation • Technology Augmentation • Process Re-Engineering Managed • Process Re engineering RITY • Governance Service BPO • SIX Sigma, COPC, etc Sigma COPC etc.. Process MATUR • Resolution / Decision making • Benchmarking Optimization • Industry Best Practices Task Oriented Outsourcing O t i • “As Is” Operation Labor • Adaptive Operative Models Arbitrage TIME PROCESSES FUNCTIONS PRODUCTS BUSINESS 10 Business Cost Control Focus on Core Competencies Transformation Private and Confidential Intelenet Global Services Pvt. Ltd. 10
Breadth & Depth in Banking Operations RETAIL & BRANCH BANKING OPS. INSTITUTIONAL BANKING & MARKETS RETAIL RETAIL ASSETS VENDOR PAYMENTS CASH TRADE & LIABILITY & CREDIT MANAGEMENT PROCESSING MANAGEMENT TREASURY OPS OPERATIONS CARDS • Account • Loan • Initial set-up, • Document • Processing • Processing of Opening application testing and verification & Deposit Trade Finance operations processing Contracting authentication applications transactions • KYC & AML • Valuations and • SLA • Data entry & • Customer setup • Opening and checking Underwriting management mandate Amendments to • Remittance & • Documentary • Day-to-day preparation Lockbox LCs; Bill • Collateral and compliance coordination: (SWIFT, ACH, processing Payments Security • Statement ECS, etc) • Issuance & • Discrepancy management • Correspondent rendition, PIN & , • Payment repair y p management of handling & • Account Bank funding Miler • Funds Control Bonds, rectification maintenances • Interest, management, • NOSTRO / Indemnities & • Account • Loan CPV, Charges & Guarantees Boarding VOSTRO Fees disbursement & Reconciliation Account processing • LC Negotiations • Account closures and Document reconciliation and loan Maintenances • End to end End-to-end storage and • Collections • Correspondent processing • Customer Mortgage retrieval. scheduling, Bank query • Treasury back- lifecycle processing • Vendor reconciliation handling office management • End-to-end payment and liquidations verification & processing • Up-sell & cross Credit card processing processing sell 11 End-to-end Consulting support (Design to Migration to Offshore stabilization) Private and Confidential Intelenet Global Services Pvt. Ltd. 11
Our Differentiators 1. Over 5,000 FTE offshore with strong understanding of Retail, Institutional & Wealth management ops. 2. Proven experience in delivering complex Banking operations across multiple geographies and over 100 systems. 3. Ability to process ‘low-ticket’ transactions and recover written-off items to Bank’s P&L (e.g. Account recon, POD, etc). 4. Managed a variety of ‘Hybrid’ offshore models (e.g. BOT, pure-play 3rd party offshoring, captive setups, Consulting, etc) 5. Innovative offshore pricing models (e.g. Productivity gain-sharing, transaction pricing, FTE rate-cards, risk-sharing, etc) 6. Ability to host, integrate, manage, document, test and implement Core Banking & support systems for Banks. 12 Private and Confidential Intelenet Global Services Pvt. Ltd. 12
Case Study1: Bank Outsourcing strategy (Early stages) 2003 • Dual vendor model offshore • Adopted single vendor - Intelenet, based on merit • Build Phase • Operations outsourced to other suppliers now consolidated • Focus on performance improvement 2004 with Intelenet and a quick learning curve • Works jointly with Intelenet to stabilize -> Improve -> Transform offshore operations • Strategic Offshoring to IGS begins. • Validation of training strategy – More complex offshoring reduced learning curve by 30% 2005- – Integration of E2E processes offshore 6 – Robust BCP approach following a 2 site strategy • IGS invested in BFSI skill set increase to enable offshoring of end- – Better performance than prior to offshoring to-end process BUSINESS DRIVERS: • Cost arbitrage • Competitive pressure • Offshore delivery capability • FTE growth driven by business growth BENEFITS: • Highly accelerated offshore transition plan – Over 5,000FTE in less than 3 years. 13 • True partnership based approach – Joint planning, design & implementation between IGS and the bank. • Effective risk-sharing / gain-sharing – Enabling cost-effective offshore contracts. Private and Confidential Intelenet Global Services Pvt. Ltd. 13
Case Study1: Bank Outsourcing strategy (Present) • IGS invested in deputing Consulting resources to assist Bank in offshoring. • IGS consultants identified processes to be migrated offshore • Results: 2007 – Enabler based offshoring roadmap • Pre-transition work completed – Well documented processes onshore resulting in an accelerated migration of 750 FTE across 16 – Baselined performance processes within 12 months – Governance structures redefined • BOT setup completed by IGS and handed over. Key advantages • Migration issues handled proactively. – 2000 FTE+ strength within 1.5 2008- year from site setup • Load balancing for a better than required BCP. 9 – Load balanced across two IGS • 6000+ FTE migration across 3 large delivery centers in India. sites – End-to-end BOT setup managed by IGS BUSINESS DRIVERS: • Meeting business requirements ‘All the time in time’ • Value Added Services through g • Process Transformation / Initiatives and Consulting • Techno-Business solutions & Technology Implementation Support • Data Analytics for Enhanced Customer Experience, Reduce Cost & Enhance control. BENEFITS: • Improved sales through operations • Reduce cost of operations 14 • Enhance customer experience • Enable client’s quick to market • Achieve nil operations loss • Exceptional ratings from auditors & regulators Private and Confidential Intelenet Global Services Pvt. Ltd. 14
Case Study1: Key Achievements Inbound Customer • Training model restructure: 30% reduced learning curve Service: Direct Channels • Forecasting: Abandon rate reduced by 70% • 1200 FTE rampup within 12 months Payments Processing: • Mi ti b t Migration between l locations t achieve l d b l ti to hi load balancing. BCP i i increased up t 88% i t d of d to instead f Retail & Commercial the required 80% Banking • Inhouse digitization leading to handling additional 40% workload in same staffing and billing. • Reduction of errors - 29 million UK pounds saving. Payments Processing: • Reduction of duplicates – Improvement of TAT by 4% Wealth Payments • Loss reduction by GBP 119,000 annually. • Reengineered operating model based on industry standards Mortgage Processing • Reduced offer turnaround time from 21 to 14 days • Skill set increase leading to handling 90% volumes instead of the initially planned 30% • Reduction in disputes TAT from 15 days to 3 days Credit Cards: Fraud • Fraud analysis leading to 300% savings Ops • Improved hit ratio of intervention by 50% to 1:2 15 Private and Confidential Intelenet Global Services Pvt. Ltd. 15
Case Study2: Credit Bureau operations (Early stages) • Client was facing tight timeframes due to FACTA 2003. 2003- • Intelenet developed this capability within 6 months in a 4 completely outsourced model, offshore • Processing capability built and implemented within 6 months • Voice capability added to enable end- to-end processing offshore • Intelenet developed Image-enabled workflow system to move work offshore 2004 • Voice work transitioned. Ramp up to additional 175 voice FTEs within 3 months. BUSINESS DRIVERS: • Quick and robust deployment • Managing operations with minimal change • Enabling offshoring of paper based workflow • Compliance to FACTA guidelines BENEFITS: • Enabling movement of manual, paper based process 16 • Onshore forecasting & workforce mgmt capability was limited • Reduction of the high onshore labour costs Private and Confidential Intelenet Global Services Pvt. Ltd. 16
Case Study2: Credit Bureau operations (Present) • IGS offered FSS module to the client. This resulted in 7% FTE 2006 reduction and proportionate cost savings for the client. • Transaction based pricing implemented to help in client cash- flow • IGS offered a transaction based pricing which was readily 2008 accepted by the client. This helped the client in managing their costs well and in proportion to their revenue. BUSINESS DRIVERS: • Performance improvement by increase in efficiency and quality • New initiatives for added value to the client • Improved forecasting resulting in better management of work BENEFITS: • Over 90% of all consumer services & 100% of all back-office functions delivered offshore • Paperless process offshore 17 • Improved forecasting & workflow mgmt capability • Robust SLAs based on competitive benchmarking Private and Confidential Intelenet Global Services Pvt. Ltd. 17
Case Study2: Key Achievements Workflow & • Intelenet deployed Savvion along with inhouse software for tracking schedule adherence. Performance reporting This lead to a 37% productivity gain Quality • 100% call recording mandated to ensure quality delivery • 100% tracking of all access in and out of production area Physical Security • Paperless operations • Proactively prevented a potential operator fraud case. • Transaction based pricing proposed by Intelenet This lead to optimized costs based on Intelenet. Billing volumes for the client 18 Private and Confidential Intelenet Global Services Pvt. Ltd. 18
Transformational BPO: Client Considerations • Marketplace Drivers – Rapidly changing competitive landscape – Dynamic regulatory requirements – Continuing decline in revenue and/or profit forecast – Staffing levels reduced to business maintenance levels • Qualifying use of BPO Providers – Skills proven to match forecasted need – Proof of capabilities in specific areas of demand – Proposed time to impact (benefits) will be measured in months, not years – Client requirements are supported by BPO provider proven core competency vs. de novo service offering 19 Private and Confidential Intelenet Global Services Pvt. Ltd. 19
Recommended Engagement Model Identify early the specific Co-develop with the provider domain knowledge required to the engagement model and address your areas of need governance for the relationship leveraging in house and in-house “captive” BPO labor workforces Solicit the S li it th BPO provider t id to Validate the V lid t th provider’s l id ’ long t term provide a 3 and 5 year plan for commitment to the relationship continued mutual benefit based i.e., that the services provided on transformational activities vs. are part of its business model simply shifting work to the next (e.g. niche specificity vs. large- low cost market. market scale operations) 20 Private and Confidential Intelenet Global Services Pvt. Ltd. 20
Q&A Attendees will receive an email with a link to download today’s webinar presentation. To access a recorded audio version of this webinar, please contact Mark Williamson (mark.williamson@everestgrp.com) ( k illi @ t ) For background information on the organizations represented, please visit: www.intelenetglobal.com www.everestgrp.com gp Thank you for attending today To k T ask a question d i th Q&A session ti during the i Click the question mark (Q&A) button located on the floating tool bar in the bottom right of your screen. This will open the Q&A Panel Be sure to keep the default set to “send to a Panelist” Then, type your question in the rectangular field at the bottom of the Q&A box and click the send button to submit 21

More Related Content

Moving Beyond Labor Arbitrage in Banking

  • 1. Today’s webinar is brought to you by Outsourcing Center Today’s webinar Today’s webinar is presented by Moving Beyond Labor Arbitrage in Banking Robert Guatelli, VP and BFSI Practice Lead at Intelenet, and Peter Bendor-Samuel, CEO at Everest, will discuss key trends in the BPO market and highlight how companies can improve value capture through an end- to-end to end services approach approach. About Outsourcing Center Outsourcing Center is the world’s most prominent internet portal for authoritative information on outsourcing. The Center s Center’s mission is to build the industry by helping people understand how to create value through outsourcing. We serve the outsourcing community through: Trusted and objective third-party perspective Database of over 81,000 opt-in subscribers Relevant media including editorials, research, whitepapers, and the annual Outsourcing Excellence Awards For more information, contact Peter Bowes at pbowes@everestgrp.com. 1
  • 2. Moving Beyond Labor Arbitrage in Banking Webinar February 2010
  • 3. Everest is a leading consulting and research firm that comprehensively serves the outsourcing and offshoring market Consulting Research Comprehensive portfolio of services that spans Central source of strategic intelligence, analysis, the sourcing lifecycle and insight Deep industry and functional expertise p y p Recognized for fact-based analysis and insight into g y g Approach that joins corporate strategy and emerging issues experience-based insight Recognition as market authority in Global Sourcing and location-related topics Flexible delivery model Broad range of options for engaging with Everest in manner which best meets the needs of a situation or organization Support can range from targeted inquiries to full support for critical initiatives Everest advantage Served over 25% of the Global 250 Proven methodologies for approaching complex Extensive touch points across the sourcing value projects chain h i Recognized thought leadership – Total Value R i d th ht l d hi T t lV l Deepest primary research agenda on Global Equation (TVE), Joint Design, NASSCOM India Sourcing BPO study, and other industry-leading innovations 3 Proprietary & Confidential. © 2009 Everest Global, Inc.
  • 4. The global BPO market is growing at a rapid pace Current and potential BPO market US$ billion The BPO market is at an inflection point and is p p preparing for a significant g g uptick in growth Despite negative near-term effects driven by the economy, market growth is anticipated to accelerate rapidly once the dust settles Source: Everest Research Institute (2009) 4 Proprietary & Confidential. © 2010 Everest Global, Inc.
  • 5. But as the market expands, buyers are demanding increased impact from BPO solutions Buyer demands in BPO Direct impact Strategic impact Simple Complex processes processes Managed Labor arbitrage services Basic pricing Sophisticated approach pricing models 5 Proprietary & Confidential. © 2010 Everest Global, Inc.
  • 6. Suppliers can position themselves to deliver increased impact in a number of different ways O ll l Overall goal B Buyer d d demands S li iti l Supplier critical success factors Domain expertise Complex processes Customer intimacy Innovation Increased Managed Accountability impact services End-to-end services Alignment to Sophisticated revenues pricing models Transaction-based pricing 6 Proprietary & Confidential. © 2010 Everest Global, Inc.
  • 7. Business Process Outsourcing “Moving Beyond Labor Arbitrage in Banking” 7 Private and Confidential Intelenet Global Services Pvt. Ltd. 7
  • 8. Contents • Offshoring Trends in Banking and Financial Services (B&FS) • Future of Outsourcing - Transformational BPO – Road Ahead - Outsourcing Trends – Transformational BPO • Case Studies - Top 5 Banking Client - Leading Credit Bureau • Q&A 8 Private and Confidential Intelenet Global Services Pvt. Ltd. 8
  • 9. Off shoring Trends in Banking and Financial Services Survey conducted by an independent research firm AMR Research reveals that 48% of the banks surveyed, are willing to increase their expenditure on outsourcing services Everest research indicates Process Outsourcing from financial services sector to Increase 40-45 times the current size over the next 5 years The financial services industry, comprised of banking capital markets and insurance is the leading adopter of off shoring industry banking, insurance, services and accounts for 40 to 45 percent of worldwide global sourcing Offshoring Services: Sector Intelenet Revenue Growth Analysis (2009) (2003 to 2010) 300 M arket Siz e (in U S$ M illio n ) 260 250 222 BFSI 200 Other 10% 32% 150 94 Utilities 100 63 70 4% Transportation 50 30 4% 2 4 Healthcare 0 4% FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 Retail Wholesale Year 9% Manufacturing 24% Industry Specialization Horizontal Specialization Communications • Banking & Financial • Contact Center & CRM 13% Services solutions • Healthcare • Transaction Processing Other:Government, Education, Resource industries, Professional Services, • Travel & Hospitality • Finance & Accounting Consumer and recreational services • Telecom • Collections 9 • Manufacturing • Consulting BFSI: Banking, Financial Services & Insurance • Retail • Analytics Private and Confidential Intelenet Global Services Pvt. Ltd. 9
  • 10. Transformational BPO – Road Ahead Transformational BPO - Delivering Beyond Cost Benefits • Committed to achieve dramatic improvements in Enterprise-level outcomes • Initiatives such as new Business venture, new product line etc • Strategic agenda • CEO Level Collaboration • Sales thru’ Operations Transformational • Straight thru’ Processing BPO • Reports & Analytics • Business Assurance Innovation • Technology Augmentation • Process Re-Engineering Managed • Process Re engineering RITY • Governance Service BPO • SIX Sigma, COPC, etc Sigma COPC etc.. Process MATUR • Resolution / Decision making • Benchmarking Optimization • Industry Best Practices Task Oriented Outsourcing O t i • “As Is” Operation Labor • Adaptive Operative Models Arbitrage TIME PROCESSES FUNCTIONS PRODUCTS BUSINESS 10 Business Cost Control Focus on Core Competencies Transformation Private and Confidential Intelenet Global Services Pvt. Ltd. 10
  • 11. Breadth & Depth in Banking Operations RETAIL & BRANCH BANKING OPS. INSTITUTIONAL BANKING & MARKETS RETAIL RETAIL ASSETS VENDOR PAYMENTS CASH TRADE & LIABILITY & CREDIT MANAGEMENT PROCESSING MANAGEMENT TREASURY OPS OPERATIONS CARDS • Account • Loan • Initial set-up, • Document • Processing • Processing of Opening application testing and verification & Deposit Trade Finance operations processing Contracting authentication applications transactions • KYC & AML • Valuations and • SLA • Data entry & • Customer setup • Opening and checking Underwriting management mandate Amendments to • Remittance & • Documentary • Day-to-day preparation Lockbox LCs; Bill • Collateral and compliance coordination: (SWIFT, ACH, processing Payments Security • Statement ECS, etc) • Issuance & • Discrepancy management • Correspondent rendition, PIN & , • Payment repair y p management of handling & • Account Bank funding Miler • Funds Control Bonds, rectification maintenances • Interest, management, • NOSTRO / Indemnities & • Account • Loan CPV, Charges & Guarantees Boarding VOSTRO Fees disbursement & Reconciliation Account processing • LC Negotiations • Account closures and Document reconciliation and loan Maintenances • End to end End-to-end storage and • Collections • Correspondent processing • Customer Mortgage retrieval. scheduling, Bank query • Treasury back- lifecycle processing • Vendor reconciliation handling office management • End-to-end payment and liquidations verification & processing • Up-sell & cross Credit card processing processing sell 11 End-to-end Consulting support (Design to Migration to Offshore stabilization) Private and Confidential Intelenet Global Services Pvt. Ltd. 11
  • 12. Our Differentiators 1. Over 5,000 FTE offshore with strong understanding of Retail, Institutional & Wealth management ops. 2. Proven experience in delivering complex Banking operations across multiple geographies and over 100 systems. 3. Ability to process ‘low-ticket’ transactions and recover written-off items to Bank’s P&L (e.g. Account recon, POD, etc). 4. Managed a variety of ‘Hybrid’ offshore models (e.g. BOT, pure-play 3rd party offshoring, captive setups, Consulting, etc) 5. Innovative offshore pricing models (e.g. Productivity gain-sharing, transaction pricing, FTE rate-cards, risk-sharing, etc) 6. Ability to host, integrate, manage, document, test and implement Core Banking & support systems for Banks. 12 Private and Confidential Intelenet Global Services Pvt. Ltd. 12
  • 13. Case Study1: Bank Outsourcing strategy (Early stages) 2003 • Dual vendor model offshore • Adopted single vendor - Intelenet, based on merit • Build Phase • Operations outsourced to other suppliers now consolidated • Focus on performance improvement 2004 with Intelenet and a quick learning curve • Works jointly with Intelenet to stabilize -> Improve -> Transform offshore operations • Strategic Offshoring to IGS begins. • Validation of training strategy – More complex offshoring reduced learning curve by 30% 2005- – Integration of E2E processes offshore 6 – Robust BCP approach following a 2 site strategy • IGS invested in BFSI skill set increase to enable offshoring of end- – Better performance than prior to offshoring to-end process BUSINESS DRIVERS: • Cost arbitrage • Competitive pressure • Offshore delivery capability • FTE growth driven by business growth BENEFITS: • Highly accelerated offshore transition plan – Over 5,000FTE in less than 3 years. 13 • True partnership based approach – Joint planning, design & implementation between IGS and the bank. • Effective risk-sharing / gain-sharing – Enabling cost-effective offshore contracts. Private and Confidential Intelenet Global Services Pvt. Ltd. 13
  • 14. Case Study1: Bank Outsourcing strategy (Present) • IGS invested in deputing Consulting resources to assist Bank in offshoring. • IGS consultants identified processes to be migrated offshore • Results: 2007 – Enabler based offshoring roadmap • Pre-transition work completed – Well documented processes onshore resulting in an accelerated migration of 750 FTE across 16 – Baselined performance processes within 12 months – Governance structures redefined • BOT setup completed by IGS and handed over. Key advantages • Migration issues handled proactively. – 2000 FTE+ strength within 1.5 2008- year from site setup • Load balancing for a better than required BCP. 9 – Load balanced across two IGS • 6000+ FTE migration across 3 large delivery centers in India. sites – End-to-end BOT setup managed by IGS BUSINESS DRIVERS: • Meeting business requirements ‘All the time in time’ • Value Added Services through g • Process Transformation / Initiatives and Consulting • Techno-Business solutions & Technology Implementation Support • Data Analytics for Enhanced Customer Experience, Reduce Cost & Enhance control. BENEFITS: • Improved sales through operations • Reduce cost of operations 14 • Enhance customer experience • Enable client’s quick to market • Achieve nil operations loss • Exceptional ratings from auditors & regulators Private and Confidential Intelenet Global Services Pvt. Ltd. 14
  • 15. Case Study1: Key Achievements Inbound Customer • Training model restructure: 30% reduced learning curve Service: Direct Channels • Forecasting: Abandon rate reduced by 70% • 1200 FTE rampup within 12 months Payments Processing: • Mi ti b t Migration between l locations t achieve l d b l ti to hi load balancing. BCP i i increased up t 88% i t d of d to instead f Retail & Commercial the required 80% Banking • Inhouse digitization leading to handling additional 40% workload in same staffing and billing. • Reduction of errors - 29 million UK pounds saving. Payments Processing: • Reduction of duplicates – Improvement of TAT by 4% Wealth Payments • Loss reduction by GBP 119,000 annually. • Reengineered operating model based on industry standards Mortgage Processing • Reduced offer turnaround time from 21 to 14 days • Skill set increase leading to handling 90% volumes instead of the initially planned 30% • Reduction in disputes TAT from 15 days to 3 days Credit Cards: Fraud • Fraud analysis leading to 300% savings Ops • Improved hit ratio of intervention by 50% to 1:2 15 Private and Confidential Intelenet Global Services Pvt. Ltd. 15
  • 16. Case Study2: Credit Bureau operations (Early stages) • Client was facing tight timeframes due to FACTA 2003. 2003- • Intelenet developed this capability within 6 months in a 4 completely outsourced model, offshore • Processing capability built and implemented within 6 months • Voice capability added to enable end- to-end processing offshore • Intelenet developed Image-enabled workflow system to move work offshore 2004 • Voice work transitioned. Ramp up to additional 175 voice FTEs within 3 months. BUSINESS DRIVERS: • Quick and robust deployment • Managing operations with minimal change • Enabling offshoring of paper based workflow • Compliance to FACTA guidelines BENEFITS: • Enabling movement of manual, paper based process 16 • Onshore forecasting & workforce mgmt capability was limited • Reduction of the high onshore labour costs Private and Confidential Intelenet Global Services Pvt. Ltd. 16
  • 17. Case Study2: Credit Bureau operations (Present) • IGS offered FSS module to the client. This resulted in 7% FTE 2006 reduction and proportionate cost savings for the client. • Transaction based pricing implemented to help in client cash- flow • IGS offered a transaction based pricing which was readily 2008 accepted by the client. This helped the client in managing their costs well and in proportion to their revenue. BUSINESS DRIVERS: • Performance improvement by increase in efficiency and quality • New initiatives for added value to the client • Improved forecasting resulting in better management of work BENEFITS: • Over 90% of all consumer services & 100% of all back-office functions delivered offshore • Paperless process offshore 17 • Improved forecasting & workflow mgmt capability • Robust SLAs based on competitive benchmarking Private and Confidential Intelenet Global Services Pvt. Ltd. 17
  • 18. Case Study2: Key Achievements Workflow & • Intelenet deployed Savvion along with inhouse software for tracking schedule adherence. Performance reporting This lead to a 37% productivity gain Quality • 100% call recording mandated to ensure quality delivery • 100% tracking of all access in and out of production area Physical Security • Paperless operations • Proactively prevented a potential operator fraud case. • Transaction based pricing proposed by Intelenet This lead to optimized costs based on Intelenet. Billing volumes for the client 18 Private and Confidential Intelenet Global Services Pvt. Ltd. 18
  • 19. Transformational BPO: Client Considerations • Marketplace Drivers – Rapidly changing competitive landscape – Dynamic regulatory requirements – Continuing decline in revenue and/or profit forecast – Staffing levels reduced to business maintenance levels • Qualifying use of BPO Providers – Skills proven to match forecasted need – Proof of capabilities in specific areas of demand – Proposed time to impact (benefits) will be measured in months, not years – Client requirements are supported by BPO provider proven core competency vs. de novo service offering 19 Private and Confidential Intelenet Global Services Pvt. Ltd. 19
  • 20. Recommended Engagement Model Identify early the specific Co-develop with the provider domain knowledge required to the engagement model and address your areas of need governance for the relationship leveraging in house and in-house “captive” BPO labor workforces Solicit the S li it th BPO provider t id to Validate the V lid t th provider’s l id ’ long t term provide a 3 and 5 year plan for commitment to the relationship continued mutual benefit based i.e., that the services provided on transformational activities vs. are part of its business model simply shifting work to the next (e.g. niche specificity vs. large- low cost market. market scale operations) 20 Private and Confidential Intelenet Global Services Pvt. Ltd. 20
  • 21. Q&A Attendees will receive an email with a link to download today’s webinar presentation. To access a recorded audio version of this webinar, please contact Mark Williamson (mark.williamson@everestgrp.com) ( k illi @ t ) For background information on the organizations represented, please visit: www.intelenetglobal.com www.everestgrp.com gp Thank you for attending today To k T ask a question d i th Q&A session ti during the i Click the question mark (Q&A) button located on the floating tool bar in the bottom right of your screen. This will open the Q&A Panel Be sure to keep the default set to “send to a Panelist” Then, type your question in the rectangular field at the bottom of the Q&A box and click the send button to submit 21