Presentation to Reliance Group (ADAE) By Haribhakti Group

1
Outsourcing Opportunity Strategic Operational
Level
Mr.Shailesh Haribhakti Managing Partner CEO
Haribhakti Group
2
What is Outsourcing

• Bank's use of a third party to perform
  activities on a continuing basis that would
  normally be undertaken by the bank itself, now or
  in the future.
• Specific feature of outsourcing is that the
  direct control of these operations is shifted to
  an external service provider.

3
Emergence of Outsourcing Industry in India
Pioneers Size Driven Factors
Increasing adopters strategy factors
Bandwagon Competition Factors
Phase II 2000s
Phase I 1996-2000
Phase III 2003 - 2008
AXA, Ford, HSBC, Citibank
Captive BPOs American Express, GE Capital,
British Airways
4
Banks are under increasing pressure today.
Pressures on Banks
5
Types of Outsourcing in Banks
Types of Outsourcing
Core activities
Non-core activities
6
Draft Guidelines by RBI dated 06.12.2005
Corporate Planning
Activities that should NOT be outsourced
Management control
Compliance with KYC norms for account opening
Sanction for loans
Management of investment portfolio
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Management Structure for outsourcing
8
Outsourcing Opportunities for Banks
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Evaluation of Risks

• Poor service from the service provider, its
  customer interaction not being consistent with
  the overall standards of the bank

• The service provider may conduct business on his
  own behalf, which is inconsistent with the
  overall strategic goals of the bank

Strategic Risk
Reputation Risk
Types of Risks
Compliance Risk
Systemic Risk

• Privacy, consumer and prudential laws not
  adequately complied with

• Due to lack of control of individual banks over a
  service provider, more so when overall banking
  industry has considerable exposure to one service
  provider.

Operational Risk

• Arising due to technology failure, fraud, error,
  inadequate financial capacity to fulfill
  obligations and/or provide remedies

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The Whole Range Of Core Banking And Support
Processes

• Sample processes

• Illustrative vendors

• Retail banking (account maintenance, opening,
  check processing)

Consumer banking
Core business

• Fund administration
• Reference data management

Wholesale banking
Insurance

• Claims processing

Back office

• Benefits administration
• Payroll processing

HR/ Admin
Business process off-shoring services
Support

• A/R and A/P management
• Reconciliation

Finance Acctg.

• Database integration analytical services
• Secondary research

Research
Outbound

• Telemarketing
• Collections (bucket one)

Voice

• Telesales
• Customer service
• Technical support help desk

Inbound
Customer facing

• E-mail support
• Fax responses
• Live interaction

Non-voice
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Key Initiatives
12
Thank You
The Question is Not Whether to Outsource But What
to Outsource
Contact
Mr. Shailesh Haribhakti Managing Partner
CEO Haribhakti Group svh_at_haribhaktigroup.com
Tel [phone] Fax [phone]
6249 E-mail crg_at_haribhaktigroup.com
Address 42-43, Free Press House 215, Nariman
Point, Mumbai 400 021 URL http//www.haribhakti
group.com