Financial Services Sourcing: Transformation and Strategies N ASSCOM India Leadership Forum 2009 NRK Raman MD and CEO Oracle Financial Services Software Ltd. (formerly i-flex solutions ltd)

The new decision drivers for BFSI Business environment Back to basics in difficult times Consolidation and integration Expansion in emerging markets Process rigor and standardization Sourcing of low cost funds, raising capital Fee based products and services Prepare for increased regulatory scrutiny, risk management and compliance Need for specialized solutions to address credit risk, market risk, capital adequacy, lending

Business environment

Back to basics in difficult times

Consolidation and integration

Expansion in emerging markets

Process rigor and standardization

Sourcing of low cost funds, raising capital

Fee based products and services

Prepare for increased regulatory scrutiny, risk management and compliance

Need for specialized solutions to address credit risk, market risk, capital adequacy, lending

The new decision drivers for BFSI (cont’d) Operations and Technology “ Live to fight another day” Improve operational efficiencies Consolidation of operating environment, platforms Standardisation & Centralisation of processes, Data Centres, Operations Medium to Long term plans for overhaul of IT infrastructure – transformational in nature Relook at architectures, move to SOA based components

Operations and Technology

“ Live to fight another day”

Improve operational efficiencies

Consolidation of operating environment, platforms

Standardisation & Centralisation of processes, Data Centres, Operations

Medium to Long term plans for overhaul of IT infrastructure – transformational in nature

Relook at architectures, move to SOA based components

How would the relationships shape up in BFSI? Sustenance based on Trust, business understanding and longevity of relationship will drive decisions in existing relationships Convergence of Services for scale - ITO, BPO and IMS Value Driven Engagements – based on Business Results, Asset Monetization and Wet Leasebacks Discretionary spend will prevail to address new and emerging opportunities with specialist providers Continued operations of Captive units - “cost-center” vs “service-center” would lead the debate

Sustenance based on Trust, business understanding and longevity of relationship will drive decisions in existing relationships

Convergence of Services for scale - ITO, BPO and IMS

Value Driven Engagements – based on Business Results, Asset Monetization and Wet Leasebacks

Discretionary spend will prevail to address new and emerging opportunities with specialist providers

Continued operations of Captive units - “cost-center” vs “service-center” would lead the debate

Critical sourcing strategies & imperatives for Indian IT industry Solution vs Services approach Rethink the basics of the business for scale and competitive advantage – domain expertise is key depth vs breadth specialized services vs general services; geography vs segment focus Flexible delivery and engagement model Niche Products and Services to address specific challenges Shedding Fat does not mean loosing talent Transform your business – new models, solution focus, value based proposition

Solution vs Services approach

Rethink the basics of the business for scale and competitive advantage – domain expertise is key

depth vs breadth

specialized services vs general services;

geography vs segment focus

Flexible delivery and engagement model

Niche Products and Services to address specific challenges

Shedding Fat does not mean loosing talent

Transform your business – new models, solution focus, value based proposition