Vendor Analysis
published on Aug 04, 2014
Report Overview:
This NelsonHall assessment analyses HCL's offerings and capabilities in reference data management BPO. HCL is one of a number of reference data management BPO companies analyzed in NelsonHall's comprehensive industry analysis programs.
Who is this Report for:
NelsonHall's Reference Data Management BPO Vendor Assessment for HCL is a comprehensive assessment of HCL's reference data management BPO (RDM BPO) offerings and capabilities, designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of capital market process outsourcing and identifying vendor suitability for RDM BPO RFPs
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the support services sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of HCL's reference data management BPO offerings, capabilities, and market and financial strength, including:
- Identification of the company's strategy, emphases and new developments
- Analysis of the company's strengths, weaknesses and outlook
- Revenue estimates
- Analysis of the profile of the company's customer base including the company's targeting strategy and examples of current contracts
- Analysis of the company's offerings and key service components
- Analysis of the company's delivery organization including the location of delivery locations.
Key Findings & Highlights:
HCL entered the RDM BPO business in 2002 when a global investment bank, headquartered in Continental Europe, wanted to establish an offshore operation in India. HCL established a joint venture with this bank and set up operations in Bangalore, scaling this to 1.5k FTEs by 2007.
The scope of the engagement was across all capital markets processes; a small but important part of this was RDM processes. In 2007, the bank decided to insource the operations as a captive; while this significantly reduced HCL's CM BPO operations with the client, HCL continued to obtain ITO work, and this financial institution remains one of HCL's largest clients.
Today, the RDM BPO business is growing faster than the overall BPO business.
Revenues have been growing since a new head of the BPO practice, who has a background in financial services, focused the business on industry-specific practices.
HCL's RDM BPO continue to grow, primarily due to growth in existing relationships, particularly the joint venture with a global custodian.
HCL's RDM BPO revenues are generated from entity data and securities data.
HCL RDM BPO delivers service from six delivery centers:
- Chennai
- Delhi
- Pune
- Coimbatore
- Australia
- U.K.
HCL's primary targets for RDM BPO are:
- Tier one financial institutions headquartered in the U.S. and Europe
- Tier two and three financial institutions with platform based BPO proposition/onboarding into a utility model.
In future HCL will continue target global institutions, but intends to add mid-tier banks and asset managers.