outsourcing innovation in the new - “not so normal”

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Outsourcing

Innovation in

The New –

“Not so Normal”Balaji Yellavalli

VP BFSI, Wipro Ltd.

New York NY


Velocity of Innovation has Defied Even Moore’s Law…

From inter-generation Innovations...

…to Intra-Generation Innovations


Financial Services

Financial Services have been Impacted Across the Board…

Payments

SquareCheque Credit Card

Channels

Net BankingBank ATM

Trading

Hedge Funds / Algo TradingWall Street Trading Room


CIO, CFO, CRO, CMO, CXO…

Lower Growth & Profitability for Banks & Financial Institutions

What’s keeping the CIO,

CFO, CRO, CMO, CXO…

awake at night, today?

Changing

Customer Dynamics


The “Half-Life” of Innovative Ideas!

2007-2009(Stumbling but

Bouncing Back)

Cost

Arbitrage

Value &

“Variabilization”

Services

Products &

Solutions

Industry

Agnostic

Domain

Specific

Effort

Business &

Revenue

Outcomes

Globalization

“Glocalization”&

“Ancillarization”

The Death of Traditional Outsourcing as We Know It…or The “Half-Life”

of Innovative Ideas!


The Evolving New Global Operating Model

Trust

GrowthSimplification

Insights


So, What are Business Partners Looking For?..

Trust – with

customers &

regulators

Growth

– from new

products,

services &

channels

Simplification – of

processes &

technology

Insights

– turning

hindsight-

20X20 into

foresight

Achieved Through

Relevant Innovation in:

Process

Engagement

Product & Pricing

Technology


Innovation in How Engagements are Carried Out

Global Delivery +

Near Shore

Global

Delivery

Onsite

Onsite

OffshoreLimited Innovation

Client

Solutions &

Accelerators

Service Provider

& Partners

Frameworks

Service Provider

Innovation

Councils

Service Provider

Jointly with

Clients


Moving Up The Value Chain

Preliminary Offerings

1980sADM, Infrastructure,

Testing, BPO

1990s

Mature Offerings

Package

Implementation

2000s

Advanced Offerings

Systems Integration,

Consulting

2010s

Future Offerings

Utilities and

“Ancillaries”

Next Gen

Pricing Models

Traditional

Pricing Models

Time & Materials

Fixed Price

License Based

Moving Up The Value Chain Through Product & Pricing Innovation

Risk & Reward – Align with

Client’s Revenue

Transaction Based – Align

with Cost


Technology Innovation: The Key Enabler

of buyers feel

connected to

Brands that

engage

socially

56%

is the annual

value created

for

businesses by

Social Media

$1.3

Trillion

virtual

“country”

with 1.3B

users !

3rd Largest

of online sales

will be

influenced by

Social Media

50%

priority for

CIO/CFO’s in

2012

#1

of data was

created in

2011, and this

will grow 20

times by 2020

1.8 Trillion

GB

is the Market

size of

worldwide

Analytics by

2016

$51 Billion

of top

executives

see analytics

as the engine

for future

growth

50%

Penetration

Cost

Device

1%

$ 6,000

PC

1981

10%

$ 2,000

Laptop

1994

75%

$ 25-400

m-Phone

2011+

will be spent

on SaaS

platforms by

2015 if cloud

standards are

formalized

$10

Billion

of the FIs

intend to

adopt /

replace cloud

by 2016

68%

is what global

FIs will spend

on cloud by

2015

$27

Billion

will be spent

on public

cloud by 2015

if cloud

standards are

formalized

$ 9.5

Billion


Customer Value Maximization

Wipro’s Business Strategy Focuses on Customer Value Maximization

Shareholder

Value

Reduce Operating

Costs

Increase Revenue

Standardize at the core

Differentiate at the Front

Integrated consulting capability

Deep Industry and Advanced

Technology focus

Client centric Go-to-market

structure

Technology accelerator's

Automation and Non Linear

models

Process assets

Transformation

Themes

Transformation

InitiativesValue Drives


Did You Know?

Of the $1.7 trillion in mortgages originated

in the US, about 10% were originated on

Wipro’s NetOxygen platform in 2012…

Settles 1 out of 9 Cash equity Trades

globally and manages ~ 30% of the

trading volume in the Equity & OTC

Derivatives market…

Processed 115 million claims across lines

of business for a leading insurer in

2012…

Provides Authorization, Clearing and

Settlement to 50 million cards in

circulation…

Handled requests for over 25 billion card

transactions with managed receivables of

$ 60 billion in 2012


World’s Largest &

Most Complex

Banking Integration

HIGHLIGHTS

£110 trillion Balances to move

31 million accounts to move

15,000 lines in milestone plan alone

Integration required 1250 new environments

After integration it became one of the largest banks in

the UK, storing 2000 TB of data

Delivered in record time of 18 months

Achieved synergy benefits of £2bn run rate


Channel Transformation

Drives Significant Growth

in Product Sales Volume

HIGHLIGHTS

Checking: 33% increase (11 months)

CDs: 34% increase (5 months)

Savings: 7% increase (11 months)

Credit cards: 18% increase (3 months)

Channel agnostic common application platform with

instant decision making across products facilitating multi

product purchase

Cross channel collaboration by seamless hand off of

leads from online to offline channels

Moving to paperless world by use of e-signatures,

emailing of welcome kits and electronic disclosures

Guided Service delivery to enable help for the phone

channel advisor through out the sales process


Sales & Distribution

Solution For a Fortune

100 Auto Insurer

HIGHLIGHTS

338% jump in online premium in 2 years

40% reduction in elapsed time to get

online quotes

Worked with 50+ dependent applications

Implemented 3 Products (Standard Sales/ Servicing,

Non-Standard Sales/ Servicing and GBB)

Achieved 19 states roll out in 18 months


In Summary

It is important to view Innovation holistically across all 4

dimensions-engagement, technology, pricing and product

The engagement model has a significant influence on the level of

joint-innovation along with clients

Effective Leverage of new and emerging technologies-Social,

Mobile, Analytics & Cloud-is key to address Customer, Competitive

and Regulatory priorities

Shared Utility Models enabled by new technologies, will conserve

much-needed capital while bringing greater value to the operating

budget


Balaji Yellavalli

[email protected]

Vice President, BFSI

Thank You

outsourcing innovation in the new - “not so normal”

Business

inthe new

months credit cards

months cds

months savings

new environments

linesof business

new york ny

largest banks