Key Findings & Highlights:

This report focuses on analytics and reporting BPS in the banking sector. HCL started in the analytics and reporting BPS business in 2002, when it helped a leading European banking and financial services company to set up an operational delivery capability in India. It started delivering analytics services for capital markets activities as part of that engagement. Over time, HCL has grown its analytics BPS services, but most of its analytics clients are not in the financial services industry; they are consumer products firms and retailers which buy sales and marketing services, and business intelligence services.

Today, HCL's analytics and reporting BPS business is growing faster than the overall BPO business.

HCL analytics and reporting BPS in banking delivers service from four Indian delivery centers and three nearshore centers, in:

• Chennai
• Coimbatore
• Pune
• Gurgaon
• Switzerland
• U.K.
• Cary, North America.

HCL is currently seeing increased momentum in the area of risk analytics and sees this as a potential area for growth.

HCL's primary targets for analytics and reporting BPS are:

• Tier one global financial institutions (retail/commercial banks, universal banks, and capital markets firms) based in the U.S., Europe, and Australia
• Regional banks (tier one within their respective countries) based in U.S., Europe, and Australia.

HCL is committed to growing its presence in:

• Banking and capital markets BPS: which already represents most of it vertical BPS business.
• Analytics in banking: delivering data and risk management services. It will also provide marketing analytics, based on its experience delivering marketing analytics BPS in the CPG and retail industries, as banking clients request
• Reporting in banking: the existing focus of HCL's vertical banking BPS. Regulatory requirements are driving an increased demand by FIs for reporting.

HCL will grow its banking analytics and reporting BPS businesses because they are part of HCL's broader focus on data management and ITS in support of changes to client environments, to provide increased operational efficiencies.

HCL couples its reporting BPS services with strong process consulting and management services, to drive consolidation and automation into reporting processes. Today, HCL is prepared to accelerate the growth rate of its analytics and reporting BPS business by investing in its operations and expanding its scope of markets covered.

HCL uses client-owned industry standard data platforms, coupled with proprietary process management technology coupled with its robotics solution, as a differentiator in enhancing process efficiency.

Partnerships with product vendors have not been an important part of its strategy. HCL Tech does use proprietary technology as a differentiator to enhance the effectiveness of its clients' platforms. However it is beginning to develop partnerships with some solution vendors to deliver analytics BPO, where the solution vendor is unwilling to provide BPO services based on its own platforms.

The primary focus in the next 12 months will be on:

• Developing an analytics BPS offering to create fund factsheets using report templates. This is likely to be part internal development and part partnering for IP and staff (web designers)
• Acquiring a captive center in India to deliver banking BPS to an existing client, and over time to expand to additional clients for analytics services
• Expanding its presence in non-U.S. markets, primarily the U.K. (where it has a small presence currently).

New engagements are expected to involve IT consulting and services support, to automate manual processes, as lead-ins to the analytics BPO relationship.