GENPACT Process Re-engineering Growth Enabler 1 Confidential. All trademarks appearing herein belong to their respective owners. Agenda GENPACT Overview GENPACT Re-engineering GENPACT Re-engineering Product Offering 2 Confidential. All trademarks appearing herein belong to their respective owners. Genpact…10 years in business with a global footprint McKinsey Low Genpact Delivery Rank1 Cost Headcount Centers 1 India 1 X 19,700 10 2 China 2 X 1,700 2 3 Philippines 4 X 300 1 4 Hungary 7 X 500 2 5 Romania X 300 1 6 Poland 9 X 300 1 7 Mexico 6 X 2,300 3 8 US 900 4 9 UK 300 – 30+ nationalities, 25+ languages … spread across nine One of the Original Six countries Sigma Beta Site for GE One quality/service culture worldwide Flexibility and ability to move work between locations 3 Confidential. All trademarks appearing herein belong to their respective owners. Genpact Has Strong Presence In Its Chosen Verticals Financial Services Manufacturing Services Retail Discrete Logistics Wholesale Process Technology Insurance Auto Media Investment Others Others (Airlines, Management (Retail, CPG…) eCommerce…) 11,000+ Employees Credit application evaluation, 8,900+ Employees 4,200+ Employees customer support, lead generation, financial modeling, research, portfolio Supply chain services, forecasting & Contract management, pricing management, agent services, planning, sourcing (direct & indirect), analysis, marketing services, sales actuarial analysis, underwriting equipment monitoring, field services force training, asset monitoring, support, claims processing, policy support, logistics support, research information management admin, risk management and analytics 4 Confidential. All trademarks appearing herein belong to their respective owners. Our Horizontal Service Areas Finance & Procure to Pay, Order to Cash, Record to Report, Gen. Acct., Accounting 5,700 FTEs Hire to Retire, Treasury & Tax Sales & Marketing Market Research, Database Marketing, Credit & Risk Modeling, Analytics 1,500 FTEs Pricing Analysis, CRM Customer Online/ Inbound Customer Care, Account Service 3,700 FTEs Management, Contract Management Financial Services Risk Mgmt, Underwriting, Booking/Funding, Cash Collections / Ops 3,300 FTEs Applications, Collections Supply Chain & Procurement Services, Logistics Support, Vendor Support & Procurement 1,300 FTEs Mgmt, Spend Analysis Aftermarket Field Engineering Services, Warranty & Repair Services 1,000 FTEs Support, Parts Dispatch Services Transaction Application Processing, Claims Processing, Document Mgmt, Services 1,200 FTEs Billing Services, Order Mgmt IT End-User Computing and Remote Infrastructure Information Technology 2,400 FTEs Management Services Enterprise App Svcs & Design, Implementation & Support Solutions in ERPs, CRMs, & Program Mgmt 1,900 FTEs Content Development 5 Confidential. All trademarks appearing herein belong to their respective owners. Genpact Is An „Employer Of Choice‟ Selective Hiring (6% of All Applicants) Targeted Recruitment 2,000+ Green Belts Pre-employment Testing Competency/Cultural Assessments 500+ Blackbelts / MBBs Pre-Hire, Post Offer Orientation 600 CA / CPA High Retention (2X Industry Average) Ranked 3rd in Robust Performance Rating System the “Best Companies 2,000 MBAs to Work For in Retention Modeling & Programs India” Survey (2005) 100 PhDs & Doctors Metrics-based compensation Flexible Work Arrangements 75 Actuarial trained Best-in-Class Medical Benefits Leadership Interactions 16,500 Graduates Training Investments ~ $8 million / yr 2,000 IT Resources Attractive Career Paths (2,500+ in Programs) 800+ Insurance Certified In-house Career Opportunities 30 Nationalities Professional/Industry Certifications Education@Work… MBA/CPA 25 Languages Ranked # 9 Best STAR/Buddy/Reward Programs Managed Global Outsourcing Vendor. The analyses covers People Practices as the key assessment area. 6 Confidential. All trademarks appearing herein belong to their respective owners. Genpact‟s Process Re-Engineering Offering Our Focus Bring value to potential strategic customers through power of Process Excellence Deliver business impact and continue to deepen Relationship and increase customer confidence Our Strength We differentiate by offering Best Practices through our experience with customers from diverse industries Re-engineering – Optimal blend of Lean / Six Sigma customized for your needs Productivity gains through Process Improvements offer sustainable financial benefit Reengineering offering can be leveraged to solidify the long-term virtual captive relationship DNA (2000+ Certified GB / BBs / MBBs / QLs , 180 Lean Coaches , 400+ Six Sigma Projects, 2500 Lean Improvements) 7 Confidential. All trademarks appearing herein belong to their respective owners. Genpact‟s Process Re-Engineering Product Offering End to End Process Understand and document complete process Process diagnostic Process vs Function Understand Metrics Redesign Process Business Impact “Outside in” using process & output metrics Effectiveness & Efficiency Specific Challenge Speed of delivery Understand defects Quality of delivery Change behavior Cost per transaction Culture & Deployment Lean Training Creating a process improvement culture Six sigma training Deploy & support in sustaining business impact Change Management Risk Governance Internal Audits Controllership SOX Advisory Zero Surprises Fraud Risk Services 8 Confidential. All trademarks appearing herein belong to their respective owners. Governance Service Offerings ► Perform risk assessment ► Full Scope Audits ** ► Design business ► Standardized service delivery Internal Audit processes and controls ► Independent reporting to Audit Executive ► Support in SOx scoping ► Support in project SOx Advisory ► Process documentation/ management ** Risk control matrix ► Evaluate compliance with Regulatory ► FSA, HIPPA, AML, FCPA etc statutory requirements Compliance ► SOx IT Controls testing ► Information security solutions IT Risk ► SAS 70 documentation ► Service continuity solutions Management / testing ► Develop and define business ► Process awareness/ change Business Process processes, procedures/ policies management workshops Improvement ► Revenue risk management ► Cost management solutions ** Do not do independent attestation Dedicated Team for Substantive & Analytic Support for Onsite Audit 9 Confidential. All trademarks appearing herein belong to their respective owners. Process Re-engineering Deployment Institutionalize Quality Change Management High Knowledge transfer SWAT teams Value to the Customer Trainings Leadership development Six Sigma workshops Lean Lean workshops Six Sigma Metric Improvement Improve efficiency Cost Reduction/Revenue BPMS Uplift Metric Identification Dashboard Reporting Value Add/ Non-Value Add Project Scoping Process Mapping Baseline Low Activity 10 Confidential. All trademarks appearing herein belong to their respective owners. Nine Step Re-engineering Methodology Current State Assessment Design New Process New Process Sign-Off 1 2 3 T 4 5 6 T 7 8 9 Project Charter Process Baseline Identify Best in class New Process Additional Plan Biz Case and Mapping Operating improvements benchmarking Design Checks & Implementation Sign-off Metrics opportunities Balances Understand “As Is” Identify improvement opportunities Final Recommendations & Process & design “To Be” Process Implementation plan Define project Brainstorm sessions with ops team Consolidate data Identify stakeholders Identify VA/NVA process steps Summarize findings & Build comm. plan Map process /identify bottlenecks recommendations Understand process Identify digitization opportunities Review draft report-out with Identify customers & suppliers Identify process defects/rework project lead Identify process inputs/outputs Baseline process metrics Get business sign-off Understand process metrics (if data available) Final Report out Map process Project Tollgate Review Project Tollgate Review 11 Confidential. All trademarks appearing herein belong to their respective owners. Process Improvement Framework Process People Reduce Process Variation Improve Efficiency Increase Standardization Consolidation Opportunities Reduce Non Value Add Leveraging Geographic Spread Quick Hits Customer –Genpact Strategic Assessment Improve Platform Effectiveness Standardization of Policy Consolidation Opportunities Policy Best Practices Roadmap for Reducing Platforms Global Bench marking Technology Policy 12 Confidential. All trademarks appearing herein belong to their respective owners. Judicious mix of tools for robust solutions 13 Confidential. All trademarks appearing herein belong to their respective owners. Partnering With the Customer to Create an “Improvement Roadmap” Fix And Keep Strategy Ship And Fix Strategy Fix And Ship Strategy Critical core process De-couple Broken process Risk/Compliance issues Manually Intensive High Complexity Max. opportunity to save on-site Savings Opportunity high Fixes critical to make it “off- Not manually intensive Level of Standardization shorable” Skewed effort/benefit relationship Proximity Requirements Mid Term Immediate Immediate High BPO BPO BPO Opportunity Size (L/M/H) source Out- Medium Mid Term Mid Term Mid Term Re-engineer Re-engineer BPO Re-engineer Immediate Immediate Just- Do- Its Low Re-engineer Re-engineer High Medium Low Complexity • Apply process selection tools to determine approach (Fix & Keep / Ship & Fix / Fix & Ship) • Leverage Genpact‟s process improvement tools to retained and transitioned processes 14 Confidential. All trademarks appearing herein belong to their respective owners. Two Primary Re-Engineering Engagement Types Offer Different Value Propositions Structured Re-Engineering Engagement Characteristics Re-Engg. Team Customer org. Advantages for customer Pyramid structure leverages expert Re-Engg. Leader manages resources engagement teams Customer provides charter and VP Minimal work disruption data to Re-Engineering team Identify, prioritize improvement Team provides recommendations areas Short duration - work driven by Re- PL PL PL Robust recommendation Engineering team Resources compliment the Leverages industry experience process improvement program R1 R2 R3 R4 R5 Collaborative Re-Engineering Engagement Characteristics Advantages for customer Project selection and execution Customer team In-house domain & process facilitated by Re-Engineering team Re-Engg. Team excellence expertise Re-Engineering team provides Identify, prioritize improvement customer teams with training, PL areas guidance, and tools Works as a change agent Longer duration - work driven by Expert Knowledge resource for best customer team practice Leverages process expertise R1 R2 R3 R4 R5 Helps support strategic initiatives Can help deploy lean sigma, train people, support program Firms typically focus on one type of engagement 15 Confidential. All trademarks appearing herein belong to their respective owners. Banking Case Studies 16 Confidential. All trademarks appearing herein belong to their respective owners. GENPACT Experience in Banking Processes Project Areas # of Projects Business Impact Achieved 25% increase in Straight Through Processing of trades. End to End Equity Derivatives processes 1 (US) Over 55 action items identified for long-term process improvements. Root causes and solutions for 75% of Fixed Income breaks identified. Client Settlements and Account Servicing 2 (US) Reduced time on breaks from 40 mins to 20 mins per transaction. Improved claims mgmt with clients, yielding productivity of 6 FTEs. Corporate Actions & Dividend/ Interest 40% reduction in Fixed Income breaks. payments 2 (US), 1 (EMEA) Root causes and solutions for 80% of Equities breaks identified. Reduced defects for processing of manufactured dividends by 8%. Straight Through Processing improved from 29% to 80%. Prime Brokerage 1 (Global) 15% productivity increase. Collateral Management 1 (US, EMEA) In progress Finance Controllership and Audits 1 (Global) In progress Quick Hits to reduce defects in trade execution by 50%. Futures 1 (EMEA) Cycle time reduced from 60 mins to 25 mins. 2 (EMEA) Reduced breaks by 63%. Stock Loans Improved First Pass Yield from 82% to 95%. 1 (Global) Identified improvement areas for faster settlements FX Warrants and commission payments. Exchange Traded Funds 1 (EMEA) In progress Improved cash flow of USD 600 MM p.a. Cash Management 1 (EMEA) and FTE avoidance of USD 2 MM p.a. Over 25 Complex End to End Key Projects Undertaken With Measurable and Realized Business Impact 17 Confidential. All trademarks appearing herein belong to their respective owners. Improve wire transfer cycle time and accuracy Background Process Improvement Actions Major US bank Setup Case Study pertains to improving cycle time and accuracy Wire contract redesign – 6 pages to 1 page for wire Transfer process covering all lines of business and Error proofed contracts; info directly uploaded to ~ 15 departments database Business Case PINS sent through online banking channels Transaction Few million wires p.a. with annual revenues of >200 MM$ Error proofed front end - eliminate thousands of ABA Huge variation in cycle time for customer setup and corrections and >90% international wire payment transaction corrections every month Goal is to reduce cycle time by >80% to setup a customer Online Banking within a day and complete a transaction within 15 minutes New initiation channel to ease wire transfers for a significant portion of personal retail and small business Key drivers for high cycle time customers Complex setup form leading to errors, rework and high Center of Excellence cycle time Centralized team for handling all backroom activities – Paper intensive process leading to multiple date entry for helps build wire expertise, standardize customer customer set up; PINS sent manually to customers experience Lack of wire control points in front end leading to rework in the back-office Business Impact > 90% of international wires reworked Potential cycle time reduction by > 90%; error rework > 50% of wires corrected for formatting/other errors in front end reduction by > 75% Lack of a self serve channel for customers leading to Potential for significant customer satisfaction impact customer inconvenience and high cycle time Go GREEN – Move to a paperless environment Fragmented support activities – leading to inefficiencies Potential gross benefits of ~ $14MM and inconsistent customer experience $14 MM benefit, > 90% cycle time reduction; 75% less errors and significant increase in customer satisfaction 18 Confidential. All trademarks appearing herein belong to their respective owners. Account Reconciliations Project Executive Summary Background Process Improvement Actions Time to resolve for Open items has a very high span, Changed definition of the metric to a wing-wing one exceeding customer requirements leading to potential which is as felt by the customer. Currently cycle time exposure measured as time from closing to action plan. This The effectiveness of resolution needed improvement as per was changed to measure days from occurrence to the customer resolution Business Case Leveraged tools unique to each business’s need for tracking and resolving open items Very high cycle time to resolve open items Established a clear escalation process to track and Lack of a clear, standard process to deal with publish this data reconciliation items Set up a mechanism of more frequent reconciliations There was a need to evaluate whether the metric being to ensure volume and $ value is reduced tracked currently was the right one Set up a unique target for each business based on type of account/segment Key Problems Identified Created a unique end point as target instead of total Huge variation across different businesses cycle time (Time of occurrence +Quartile 1 days) Frequency of doing Recs – whether daily or monthly was Created a detailed SLA for each business a key driver of volume and extent of reconciliations to be done Existence of tools vs. no tools was a significant driver impacting discovery time and influencing number of reconciliation items Business Impact Lack of a clear and formal escalation process was a key factor Span for time to resolve reduced by 71% Frequency of customer review – whether weekly or Cycle time reduction by a third monthly was also a key factor impacting reconciliations Business Impact : Open items reduced to 1/3rd $ value 19 Confidential. All trademarks appearing herein belong to their respective owners. Denovo Cycle Time Brokerage Operations Business Case Business Case Inconsistent cycle time ( ~ 500 days) in new Broken processes and multiple handoffs within Branch opening process branches, TA and Financial advisors contributing Process incapable of meeting the goal of to an increase of cycle time by 50% handling 300% additional capacity a year No predetermined mechanism to measure productivity or accuracy leading to high risks for Process Improvement Actions operational losses 8 week assessment – 2 day LEAN event with 20 participants from across the business. Process Improvement Actions Identified opportunities to reduce cycle time by Single point of entry for requests, end to end 20% processing ownership by processors and designing & defining metrics Eliminated 23 process handoff’s and > 50% of NVA Steps Elimination of hold time, wait time and unnecessary hand offs. Linking processes to Determined optimal sequencing of activities “turn off overlapping steps” within the process based on critical path analysis and within departments. Clear guidelines to reduce process Increasing span of control, process inconsistencies across different regions consolidations and cross trainings Business Impact Business Impact 20% reduction in cycle time 50% reduction in cycle time, FTE reduction 20% ~ $ 21 MM due to revenue acceleration ~ $ 8 MM potential benefit 20 Confidential. All trademarks appearing herein belong to their respective owners. Thank You Contact Information P Ramakrishnan Email address: Ramakrishnan.email@example.com Telephone number: + 91 98851 70101 www.genpact.com 21 Confidential. All trademarks appearing herein belong to their owners. Confidential. All trademarks appearing herein belong to their respectiverespective owners.