Andy MayerAndy MayerHead of European Operations Head of European Operations Corporate and Investment Banking & MarketsCorporate and Investment Banking & MarketsHSBCHSBC

April 2005

Operations Offshoring The Feasibility Stage

• Managing the Onshore Impact

• Selecting the right process & location

• Key feasibility factors

• Key feasibility steps

Operations Offshoring

• Open and transparent communication first

• Town hall style presentation on objectives and rationale behind the group’s strategy

• Explain the process and likely timeframes

• Strong line management sponsorship with common objectives

Operations Offshoring -

Managing the Onshore Impact

Process

• End to End process reviews

• Simple functions can be deceptively complex

• Economies of scale

• Lift and Shift style migrations or Re-engineering first

Location

• Global Centres of Excellence

• Depth of Market related skills

• 24*7 Capability

Operations Offshoring - Selection

Offshoring - Key Feasibility Factors

The extent/frequency of the functions interaction with traders. The extent and style of interaction with customersProcess Interaction

Systems &Technology

Accessibility of systems remotely. Bandwidth for system responsiveness. Suitability and available of imaging and electronic workflow solutions

Service LevelsAbility to maintain or preferably enhance service quality and measure its effectiveness.

Risk Assessment Time critical factors, Data protection controls, business continuity

Resourcing/TrainingPool of available skilled staff offshore and process specialists onshore for training.

Offshoring - Key Feasibility Steps

Advice to staff. Full end to end review of potential functions to be migrated. Includes full step by step procedures documentation.

Discussion/Review

Feasibility StudyDetermines functions suitable for migration, through assessing the feasibility factors of process, systems and risk

Business Case Detailed cost/benefit analysis, contingency, regulatory and compliance planning & data protection. Includes timeline for implementation, training and outline SLA

InfrastructureIT user requirements, system connectivity, hardware acquisition

CommunicationPresentation to staff in both onshore and offshore locations of decisions and migration plans.