Our client, a prominent US-based financial services firm, specializes in investment servicing, markets and financing and investment management for institutional investors. They wanted to expand their operations to new geographies while maintaining control, ensuring branding consistency and protecting intellectual property. The project involved establishing fund accounting and TLM reconciliation processes for 550 funds, supported by a substantial workforce.
Leveraging our deep expertise in government and large enterprise sectors across APAC, we utilized strategic models to streamline processes, boost productivity and ensure the successful setup and operation of the client’s new functions.
The Challenge
Expanding operations with minimal upfront investment
Our client faced the challenge of expanding their operations to Poland and India without significant upfront financial involvement. They needed to establish a strong operational foundation and maximize outsourcing while ensuring standardization. Additionally, the nature of their services required strict regulatory supervision/control of the entities involved. To achieve transformation value while maintaining control and protecting IP, the client wanted a solution that enabled seamless transfer of operations after the initial implementation.
The Objective
Achieving cost efficiency and operational control
Our client was looking to partner with an experienced service provider to establish captive operations while achieving faster time to market, leveraging global delivery capabilities and minimizing upfront investment.
HCLTech aimed to establish operations for custodian and investment management services, providing end-to-end program management. This included facility setup, recruitment and HR assistance, support services and implementing RPA/automation solutions. Our primary objectives included:
- Achieving significant cost savings in the first year
- Rapidly scaling operations from zero to full capacity within three months
- Maintaining strong regulatory compliance and control over operations
- Ensuring zero delays in transition and maintaining high accuracy
- Implementing a business-linked pricing model to align with the client's commercial interests
The Solution
Comprehensive solution encompassing BOT and BOOT models across geographies
BOT (Build-Operate-Transfer) in Poland (2005-2007):
- Location evaluation and selection: We conducted site visits and shortlisted Krakow due to the availability of a skilled workforce, language proficiency, operating costs and other qualitative factors.
- Incubation centre setup: We leased and set up the facility within 5 months, leveraging existing partnerships for infrastructure and regulatory consultancy.
- HR services: We partnered with top Polish universities, recruited 100+ local resources within 2 months and launched branding campaigns to attract local talent.
- Initial process transition: We centralized fund accounting processes from 3 locations to Krakow, achieving faster operational efficiency by leveraging the expertise of our processing team in India.
BOOT (Build-Operate-Optimize-Transfer) in India (2012-ongoing):
- Service hub creation: We consolidated services from multiple providers and delivery centers under a single roof to achieve standardization and efficiency of scale.
- Facility Identification and build-out: We established three facilities across Chennai, Pune and Coimbatore, as well as three state-of-the-art centers in Manila, Philippines. These facilities in the Philippines leveraged digitalization to drive innovation and helped streamline and standardize systems and technology environments. This enabled us to optimize costs and enhance operational efficiency for the client.
- HR and recruitment support (competency-based staffing): We provided end-to-end HR services, including recruitment, training and payroll processing.
- Transition and risk management framework: We implemented a robust framework to ensure smooth transitions and steady-state operations.
The Impact
Significant cost savings and smooth transitions
- Cost savings: Our client achieved a 40%-45% cost reduction in the first year
- Rapid ramp-up: They scaled operations from zero to 100 employees within three months, primarily through local hires
- Zero transition delays: We ensured all transitions were completed on time and with high accuracy
- Enhanced control: We provided the client with branding and operational control, ensuring compliance with regulatory requirements
- Business-linked pricing models: We implemented pricing models aligned with business outcomes, demonstrating HCLTech's commitment and shared risk
Our capabilities
HCLTech's holistic approach and innovative solutions empowered our client to achieve seamless global expansion, significantly reducing costs while ensuring operational excellence. Our comprehensive program management, robust HR support and advanced automation solutions demonstrate our dedication to our client's success, positioning them for continued growth in new markets.
Since 2015, we have successfully established and operated delivery hubs in emerging cities such as Vijayawada, Lucknow, Nagpur, Madurai, Colombo (Sri Lanka) and Manila (Philippines). These hubs serve 250 of the Fortune 500 and 650 of the Global 2000 customers, showcasing our extensive capability and reach.
With 45 years of expertise in technology, engineering and human capital, we are the preferred strategic partner for customers looking to create, scale and deliver innovative solutions from Global Inhouse Centers (GICs) and Global Capability Centers (GCCs).
Our GIC/GCC services
Guided by our start-up DNA culture and supported by subject matter experts across various business lines, we provide services designed to build capacity and capabilities for higher productivity and innovation. Our key offerings include:
- Creating value for organizations: From operational to strategic, encompassing independent decision-making and vendor relationship management
- Establishing multi-function centers: Setting up centers in South Asia that act as power hubs for global MNCs, providing 24/7 support
- Centers of excellence: Developing large pools of talented resources for R&D within GICs
- Transforming into global sourcing hubs: Becoming a global sourcing hub for the organization's entire IT and business process needs
