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.

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.
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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
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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
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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.
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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
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• 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
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• 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
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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
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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)
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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
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