Captive Service is a portion of Business Process Outsourcing where an organization will use a

wholly owned subsidiary instead of a Third Party Vendor. The benefit of doing such an
arrangement would be to leverage the cost savings of using offshore resources, while
maintaining complete control over process and delivery. The costs of such an arrangement are
generally higher than using a vendor.
[1]

Captive Service Units have been in the media lately because of large financial firms tied to
the Subprime mortgage crisis. Many of the firms had captive service units and as they file for
bankruptcy, these units are being sold separately. Specifically, Lehman
Brothers, Citigroup, AIG and Merrill Lynch all have captive units that are being considered or
have already been sold off.
A shared services center a center for shared services in an organization is the entity
responsible for the execution and the handling of specific operational tasks, such as
accounting, human resources, payroll, IT, legal, compliance, purchasing, security. The shared
services center is often a spin-off of the corporate services to separate all operational type of
tasks from the corporate headquarters, which has to focus on a leadership and corporate
governance type of role. As shared services centers are often cost centers, they are quite cost-
sensitive also in terms of their headcount, labour costs and location selection criteria.
A shared service is an accountable entity within a multi-unit organization tasked with supplying
the business unit, respective divisions and departments with specialized services (finance, HR
transactions, IT services, facilities, logistics, sales transactions) on the basis of a service level
agreement (SLA) with a costs charge out on basis of some type and system of transfer price.
[1]

Shared service centers are deployed for a variety of reasons:
[2]

to reduce costs of decentralization, to increase the quality and professionalism of
support processes for the business,
to increase cost flexibility for supporting services,
to create a higher degree of strategic flexibility.
Reported cost reductions of costs of services organized in shared service center are as high as
70% of the original costs, but average about 50%.
Shared service centers are not to be confused with corporate staff departments. Different from
staff departments, shared service centers have measurable outputs (by quantity and quality),
with costs per unit of service provided. Tasks not organized in shared service centers include
corporate control, corporate legal, management development policy, IT-governance and other
support typical for the statutory duties of the executive board.
Shared services training:
Many organizations in private and public sectors use a competency-based training course to
identify and fill skill gaps. The SSO Pro course is one that looks to do that with an industry-
relevant certification.
http://www.outsourcing-law.com/sourcing-models/wholly-owned-operating-subsidiary-
captive-or-shared-services-center/
Wholly-Owned Operating Subsidiary (Captive or Shared Services Center)
Absolute Control. An enterprise may choose to establish a wholly-owned subsidiary to
perform particular services for all corporate affiliates. Such an enterprise is often referred to as
a captive or a shared services center. The enterprise controls all aspects of operations and
is able to integrate the back-office operations with its front-office customer-facing business.
Costs. The shared service or captive model has certain inefficiencies due to size and
structure.
Costs. The enterprise customers sole control causes some inefficiency and higher costs,
assuming demand for services is constant or at least predictable. By choosing a shared-
service model, the enterprise does not have any third party to share in investment in
capital equipment or operating overheads (such as high bandwidth telecom, fixed costs
of personnel who cannot be redeployed if the demand for services fluctuates). In the
case of a classic outsourcing, the service provider may quickly and easily redeploy the
work force. In the case of a wholly-owned subsidiary, redeployment may be difficult,
requiring potentially unneeded cross-training or one-time retraining, assuming new
tasks can be found. If service demand declines, the captive shared-service center may
need to terminate employees, with possible added costs of severance that an
outsourcer could avoid redeployment.
Taxation. As affiliates of the customer, each shared service center is subject to transfer
pricing rules of each jurisdiction where the customer, its affiliates and the shared service
center conduct their business. Under the OECD model income tax treaty, this might not
result in significant additional costs. However, not all countries have OECD-type bilateral
income tax treaties and not all bilateral treaties are interpreted in the same manner. In
particular, for example, the U.S.-India Double Income Tax convention has an unusual
definition of permanent establishment that tends to allow Indian tax authorities to
attribute more income to an Indian service center.
Human Resource Management. The career path of employees in a captive is more
restricted than the career path for employees of an outsourcing service provider. In a
captive, there is only one customer. In an outsourcing service provider, there are many
customers, and a promising individual can find more new opportunities for
advancement than in a captive. For this reason, attrition rates may be higher in a
captive, resulting in higher costs of replacement and inefficiencies during more frequent
replacement.
Benefits. Of source, the benefits of a shared-service model may be significant, depending on the
outsourced business processes and core business. With the flexibility of controlling its
workforce, the enterprise can redeploy its shared service centers personnel to new tasks
without having to go through the sometimes cumbersome, sometimes contentious process of
change control with a third-party supplier.
Regional Service Delivery Centers. Multinational enterprises may have several such captives,
one in each region, to perform services on a continuous 24/7 basis. Such multiple regional
captives serve functions of redundancy and handing off the baton at the moment when one
centers day ends and anothers day starts.
Exit Strategy. The enterprise may choose to sell or spin-off the captive entity to a service
provider to recoup its investment and achieve a profit, to achieve competitive pricing and to
divest a non-core operation. Such sales enable service providers to enlarge their portfolio of
service specialties and territorial footprint. Spin-offs have created a number of new service
providers.
http://www.bpmwatch.com/captive-call-centers/
Captive Call Centers in India
A company that wants to outsource work to India will either have to hire services of third-
party call centers or set up captive centers in India. There is the option of combining both these
aspects as well.
Captive call centers are basically call centers that are operated by a company to service their
own clients and not the clients of other companies. In the past few years, captive centers in
India have seen tremendous changes with some of them closing down and several other new
ones opening up.
India Home To MNC R&D Centers And Captive Units
Nasscom reports one-third of Indias $70 billion (Rs 380,000 crore) software export revenue
comes from R&D centres and captives of multinational firms.
India has 700 captive units of which 70 were setup in 2012.
Should You Setup A Captive Unit
Few questions that you need to dwell upon before deciding on starting your own center are:
1. Is it a one one-off outsourcing assignment or a long term assignment?
2. How much flexibility do you want for future downsizing or expansion?
3. Are you using any proprietary technologies? If so, captive could be better.
4. Do you want to control the day to day operation?
5. Is it better to build a captive centre from scratch or acquire one?
Some of the captive centers in India are listed below.
1. Accenture: The captive center of Accenture is located in Bangalore. The company is a
consulting, technology services as well as anoutsourcing company. They have
collaborated with clients to transform them into high-performance businesses.
2. American Express: American Express or AmEx is a company that offers global financial
services and has set up captive centers in India at Delhi and Gurgaon. The company
specializes in credit card, travelers cheque and charge card businesses.
3. BA Continuum India Private Ltd, founded in 2003 and operating from Hyderabad,
provides BPM solutions for the Bank of America branches in the banks various business
aspects such as consumer banking, small business banking, cards services, investment
management, global wealth management etc.
4. British Airways: British Airways caters to global clientele offering extensive route
network all over the world connecting several centrally-located networks. The captive
centers have employees managing error handling, passenger accounting as frequent
flier miles.
5. DELL International Services: This is the services and support division of the multinational
company which has a strong presence in India catering to PC customers. This division
has operations in Chandigarh, Hyderabad and Bangalore in India.
6. D-Link: D-Link India Ltd. is a subsidiary of D-Link Corporation. The networking company
is one the largest of its kind in India engaged in distribution and marketing of
networking products.
7. Deutsche Network Services Pvt Ltd (dNETS) functions as a part of Deutsche Bank, based
in Whitefield, Bangalore, and works on cash management and payment processing. The
business and private clients corporate division of Deutsche bank caters to financial
services and branch banking to self employed clients, medium and small customers
businesses as well as private customers across the world.
8. Fidelity Investments in Gurgaon has Europe and UK contact center and operations and
have professionals who provide customer services and operational services to investors
in Europe and UK. The Asset Management Company of Fidelity also offers customer
care.
9. GE Capital Service based in Gurgaon is a finance provider. The company also leverages
the global knowledge of TE in order to offer smart financial solution that helps in the
growth of the companys local customers.
10. Global e-Business Operations Pvt., Ltd. is a business processoutsourcing company (BPO)
founded in 2000 with their office at Bangalore. The company is a subsidiary of Hewlett-
Packard (HP) Europe BV. The company offers integrated services in human resource,
decision support, supply chain management, finance and accounting as well as business
analytics.
11. HSBC Electronic Data Processing India Pvt. Ltd., with service centers in Bangalore,
Hyderabad, Vishakhapatnam and Kolkata. The company offers global resourcing in India.
HSBC Global Resourcing is an integral part of the international strategy of HSBC. The
company serves as the largest, banking and financial and captive services offshoring
organization across the world.
12. JP Morgan: It was in 2003 that the major bank in US set up captive centers in
Technopolis Knowledge Park in Mumbai and MindSpace in Malad. The unit is
responsible for transaction processing for financial services, investment management
and investment banking as well as research activities. Another similar unit was set up in
Bangalore in 2004. The company set up their fourth global center in Hyderabad as well.
13. Morgan Stanley Advantage Services: This is a company that is fully owned by Morgan
Stanley and was incorporated in Mumbai in 2003. The company offers support services
to institutional securities businesses of Morgan Stanley world-wide. A host of specialist
services from IT development and financial modeling to research is provided by the
company.
14. Prudential Process Management Services is a subsidiary of prudential Plc which is wholly
owned. In India the company is based in Mumbai operating out of two sites with an
employee base of over 1200. The PPMS provides knowledge services, customer services,
human resources, information technology and risk management.
15. Sitel India is the second largest center of the company offshore. Established in 2000, the
companys locations in India are at Gurgaon, Mumbai, Chennai and Hyderabad. The
company services clients in diverse domains such as technology, financial services,
manufacturing, media and entertainment, communication, travel etc.
16. Visual Graphics Computing Services India has two offices in India in Trivandrum and
Chennai. The company is a fully owned McKinsey & Company subsidiary. The company
is responsible for the production and design of visual communication materials such as
charts, graphics, onscreen animated presentations, multi-media products, overhead
transparencies etc for the global offices of McKinsey.
17. Citibank has over 900 professionals who work at the banks centers of excellence located
in Bangalore, Chennai, Mumbai and Gurgaon. They handle critically sensitive projects in
transaction services, consumer banking, investment banking and risk management. The
banks operations have been planned to expand to Mumbai as well, considering the
financial talent pool available there.
18. Allstate Solutions Private Ltd. in Bangalore is a subsidiary which is fully owned by
Allstate Corporation. The company provides BPO solutions and software development
services to support Allstate Corporation. The Bangalore center was opened in Dec 12,
2012 and has hired more than 60 people and has plans of hiring more than 1700
employees in IT in the coming two or three years.
19. RBS Business Services Pvt. Ltd. is a part of the banks Business Services based in India,
offering services to different RBS group division globally. The company provides services
in different levels such as M&A advisory, credit trading, securities processing, balance
sheet preparation, voice-based processes, equity research etc.
http://www.bpotimes.com/efytimes/fullnewsbpo.asp?edid=16513
India Tops As Financial Services Outsourcing
Destination


More and more global investment banks are getting their number crunching
work done in India as it is a market that can offer mission critical as well as
complex function support services
EFY News Network

Wednesday, January 03, 2007: With the global acceptance of India
as a financial services outsourcing hub, major financial companies
are joining the offshoring bandwagon. Recently banking giant Credit
Suisse announced its plans to set up its centre of excellence in Pune
by January this year. Another US-based financial company State
Street is on the verge of setting up its support centre in Pune as
well. Gradually India is being seen as a market which can offer high-
end and mission critical support services. Functions being offshored
have graduated from the support functions such as F&A support and
voice based services to complex functions including financial
modeling, equity research support and portfolio tracking. In fact over
the last two years research and analytics has emerged as a service
area that has picked up steam.
With the growing maturity of vendors, functions with increasing complexity are being
offshored. For instance, Credit Suisse has tied up with Wipro to set up the COE, where the
vendor will provide the the necessary IT and basic operations support. State Street has a tie
up with Syntel.

More and more global investment banks are getting their number crunching work done in
India. Cost still remains the predominant driver for most of the global financial institutions
to outsource services to India. Companies have been able to realize cost savings to the tune
of 30-50 percent. According to a study conducted by NASSCOM, American BFS companies
saved $6 billion in the last four years by offshoring to India. Other crucial factors driving
offshoring to India include regulatory compliance requirements, large-scale availability of
skilled personnel, English speaking capabilities and favourable cultural issues.

They are doing that through different models of outsourcing that are in vogue currently in
the market. While captive and the third party models are being traditionally followed,
financial service companies are constantly experimenting with new models and their
innovations are likely to drive BPO sourcing as a whole in the country. The latest to emerge
is hybridisation of sourcing models that calls for multi-locational sourcing as well as
combination of captive, third party and joint venture sourcing models.

There are around 30 global financial service providers with captive set ups in India. These
include players like HSBC, AXA, Citigroup, Deutsche Bank and ABN Amro. Top tier
investment banks including Goldman Sachs, Lehman Brothers and UBS also have captive
centres in the country. Setting up of a captive centre and the related infrastructure and
manpower management involves significant financial outlay. Hence typically only the larger
players aggressively follow the captive model.

For many others, offshoring volumes are currently not large enough to make captives
viable. This springs opportunities for the third party service providers. There are more than
50 large and small third party players catering to the requirements of the BFS clients
globally. Some of the big players in the country include Genpact, IBM Daksh, ICICI
Onesource, WNS and Wipro BPO. There are some smaller niche service providers including
Amba Research, Irevna and Copal Partners that have captured the high-end research and
analytics work.

Going forward, global sourcing that follows a best-of-breed approach will find greater
acceptability as firms adopt a multiple-model, multiple-vendor and multiple-location
approach. Blended or hybrid models will be the preferred model for financial institutions.
With almost 50% of the worlds biggest banks in terms of asset size are offshoring to India,
the country remains the most preferred offshoring destination. However, India faces stiff
competition from emerging hubs in Asia Pacific and Eastern Europe. Despite such stiff
competition, India will retain its dominant position at least for the next couple of years.

http://www.sourcingnotes.com/content/view/50/73/
CAPTIVES OF BANKS - GOING THE THIRD-PARTY WAY?
Friday, 16 February 2007
Since the time American Express and Citigroup established captive centers in India two decades back, several global
financial conglomerates have made India their back office hub. Unlike other verticals such as airlines, healthcare and
telecom, banking and financial services (BFS) segment has seen a larger share of offshore captives.
Captive centers offer economies of scale and competitive advantage especially for companies that have very large
volume of work to be transferred offshore. Setting up of a captive center and the related infrastructure and manpower
management involves significant top management interest and financial outlay. Hence typically only the larger players
aggressively follow the model.
As the number of functions being offshored increases, the rationale for captives is becoming more attractive.
Corporations try to minimize cost and at the same time retain control over operations, which is important, given the
confidential nature of information.
Captive centers usually handle a wider range of processes with more complexity from their offshore centers.
Some of the major captive players are included in the table below:
Vendors Year established Services provided
ABN Amro 2002 IT and back office operations
American Express 1994 IT and transaction processing
Bank of America 2003 Transaction processing
Deutsche Bank 2002 Research and analytics, F&A
Citibank 1992
Transaction processing, research and
analytics
HSBC 2002
Electronic data processing, voice
based services, cash management
Standard Chartered 2002 IT, HR processes, F&A
UBS 2006
IT, transaction processing, research
and analytics
World Bank 2003
Research and analytics, transaction
processing
Source: ValueNotes Research
Captives offering services to third-party?
Lately, captives are seen to extend services to the third party client. Some of the captive centers such as HDPI (HSBC's
captive unit) and Scope International (Standard Chartered's captive center) are exploring the option of providing specific
services to other banks.
The rationale behind this to leverage their existing capabilities. In addition, some want to transform from a cost center to
a profit center. Captive centers have well laid out processes and have achieved maturity serving the global operations of
their parent companies. Having attained such experience and maturity, some of these captives believe they might be in
a good position to service third party clients.
Going forward
Though this trend of 'captives extending their services to third party clients' might intensify competition in the short run, it
is not likely to be a significant threat to established third party vendors. Captives of banks or financial institutions face a
disadvantage in terms of competing with their target clients - unless they are ready to alter their ownership structure.
While some banks and financial institutions might offer a few services to their peers, they will be unlikely to replicate the
Genpact (GECIS) success story.
Come June and Genpact becomes the third Indian BPO to get listed in the US. The company plans to raise $600
million from the IPO and will file an application to list its common shares under the symbol "G" on the NYSE. This will
be the biggest Indian BPO listing overseas.
WNS and EXL Service are the other two Indian BPOs listed on NYSE and NASDAQ respectively, while ETelecare
Global Solutions is the first Filipino BPO to list on NASDAQ.
From a captive outfit, Genpact has transformed itself into a leading third party service provider (WNS was also a
captive unit of British Airways) employing more than 28,000 people (as on December 2006) with FY06 revenues
reported at $613 million. While the company is positioned very strongly for growth, the key challenges will be
managing growth across destinations and reducing its dependence on the single key client GE (Genpact depends on
GE for around 74% of its revenues).
Genpact plans to use the proceeds from its IPO towards debt repayment (Genpact has around $230 million of long-
term and short-term debts), general corporate and working capital expenses and funding potential acquisitions.
The listing on foreign bourses is attracting large Indian BPO players. Other Indian BPOs exploring the listing route are
24/7 Customer, HCL BPO and Hexaware.
Name Verticals served Total
Manpower
Locations Revenues($
Mn)
IPO Size
($ Mn)
Genpact Banking & Finance,
Insurance,
Manufacturing,
Transportation &
Automotive
28,000 (India
19,700)
India
(Gurgaon,
Delhi,
Hyderabad,
Jaipur,
Bangalore,
Kolkata),
Mexico,
Romania,
Philippines,
China (Dalian,
Changchun,
Shanghai),
Hungary, USA
and UK
613 (Dec 31,
2006)
600
WNS Travel, Financial
Services, Insurance,
Healthcare, Professional
Services, Legal Services,
Manufacturing, Retail &
Logistics
14,000 (India
7,500)
India (Pune,
Nashik,
Gurgaon), Sri
Lanka, USA
219 (March 31,
2007)
255
EXL Insurance, Banking &
Financial Services,
Utilities, Healthcare &
Media
Approx 9,000 US (New York,
CA, New
Jersey), UK
(London),
India (Noida,
Gurgaon,
121.77 (Dec 31,
2006)
72
Pune),
Singapore
ETelecare
Global
Solutions
Consumer Electronics,
Telecommunications,
Financial Services,
Travel and Hospitality,
Media & Healthcare
Approx 10,000 Philippines, US 195 (Dec 31,
2006)
75
Source: ValueNotes Research
Why the foreign listing?
While a listing in an exchange abroad is an easier way of raising capital, it also provides a comfort level for the
investors and clients on the vendor companies.
Since most of the vendors cater to the US or European market, an international listing serves to build brand via
greater visibility and credibility. This provides the vendors with a good marketing presence too.
Most funding agencies (venture capitalists or private equity firms) are comfortable with international or US listings.
The listing signifies higher liquidity, lower perceived risks and better corporate governance norms.
Increasing investor interests in the fast-growing Indian outsourcing story have made foreign bourses highly
attractive for the promoters and private equity players to offload their stake. BPO companies getting listed in these
bourses have market capitalization multiple times (3 -5 times) their earnings.
Impressive investor response to the previous BPO issues has raised the comfort level of the aspiring BPO firms.
Both the EXL and WNS stocks are currently trading at premium, with their current P/E ratios hovering at 30 and 40
plus marks respectively.
Going Forward
While the larger BPOs are racing towards listing on NASDAQ / NYSE, several other vendors are eyeing acquisitions
in the US and UK. These acquisitions are primarily to acquire the marketing front-end as well as add to their clientele.
For instance Apollo Health Street, a healthcare BPO acquired a medical billing company in the US to complement its
capabilities. Aptara acquired US based Whitmont Legal Technologies, a leading litigation support and eDiscovery
services company. Infomedia bought a 100% stake in UK-based publishing BPO Keyword Group.
Either way, the BPO space is likely to witness more action, much to the delight of international investors and funding
agencies. But this also marks an opportunity-lost for the general Indian investors and the stock exchanges.
NICHE FOCUS BPOS: BURGEONING SIGNIFICANCE
Friday, 11 May 2007
With the rapid evolution of offshoring from process driven back-office jobs and call centers, to the much-talked-about
knowledge driven jobs, exciting times lie ahead for niche focused BPOs and KPOs.
With the rapid evolution of offshoring from process driven back-office jobs and call centers, to the much-talked-about
knowledge driven jobs, exciting times lie ahead for niche focused BPOs and KPOs. The high level of interest and
optimism in knowledge service companies or specialized BPOs is evident from the spate of recent M&A deals, some of
which appear hugely expensive:
Acquirer Company Acquired Segment Deal details
Ayala Corp Affinity Express
Document outsourcing,
embroidery design
100% stake for $28.6m
WNS Marketics
Research and data
analytics
100% stake for $65 mn.
WNS will pay $30 mn
towards the closing of
the deal along with $35
mn earn-out payment
over a period of 12
months
SPi Springfield
Revenue-cycle
management
100% acquisition for
$44m, with the potential
for future earn out
payments
Experian Group Hitwise
Internet marketing
intelligence
$240 m in cash
Mold-Tek Technologies
Cross Roads Detailing
Inc
Engineering and
detailing
100% acquisition for
$1.3m
Integreon CBF Group
Enterprise services to
law firms
100% stake for an
undisclosed amount
Quatrro BPO Solutions Scope eKnowledge Research
Buys out VC stake in
the company
Source: ValueNotes Research
The rising M&A activity reflects the eagerness of larger BPO companies to quickly complement/enhance specialist
capabilities, and thereby move up the value chain.
Funding fast track growth
Traditionally, only a few VCs have been investing in niche BPO players due to concerns over scalability, the emergence
of good exit options has validated the bets of these few investors. As a result, VC investments are likely to rise
significantly in such companies, a sign of the recognition of growth opportunities in under-explored and emerging
segments and geographies. Some of the recent investments include:
Sequoia Capital, Silicon Valley Bank, Light Speed Venture have invested $10.5 million in TutorVista, which focuses on
online education and content.
Quattro BPO Solutions has invested in Annik Solutions, a market Research BPO, and in Scope e-knowledge a research
BPO.
Barings Equity partners has invested in Integra, a publishing BPO
Interestingly, some players in this game have been around for many years, and after years of relatively sedate, organic
growth, are experiencing a revival in their aspirations with the growing interest of VCs/private equity investors. For
instance, Integra a Pondicherry-based publishing BPO set up in 1994 recently took VC funding from Baring Private
Equity Partners to accelerate growth. As per Anu Sriram, Co-founder and Joint MD, Integra, "Integra started in a small
way 13 years ago, and has grown today to become a significant player in the e-publishing space. We are well positioned
to increase our market size and capitalize on the current success of our business."
Of course, in any such "gold rush", there are going to be many who stumble by the way side. And any number of "me-
toos" only intensify competitive pressures. More funding in a segment will create bigger competitors, and those without
the same kind of money clout may be unable to compete. Needless to say, players need to differentiate themselves, by
virtue of either unique specialization/capabilities, robust processes, technology or productized offerings. Those that can
succeed at this will continue to attract investors as well as buyers, while the rest may find no takers at any price!

https://research.everestgrp.com/Product/ERI-2010-2-R-0472/India-Captive-Market-Landscape-
Challenging-Common-Myths-and-Ch
India Captive Market Landscape: Challenging Common Myths and
Charting Future Role
October 2010
Introduction
India has a dominant share in the Global Sourcing industry. Captives constitute an important
segment of the India offshore services market. However, due to the recent economic crisis
and maturing supplier landscape, there is a perception that the model is under threat. Stated
reasons include captives are not delivering value and are significantly more expensive than
third-party suppliers.
At the same time, mature users of captives articulate their commitment to the captive model
and reinforce its importance in their sourcing strategy and portfolio. In addition, Everests
interactions with global sourcing offices of large companies and senior leaders in prominent
captives reveal imperatives underway to expand the role of captives and strengthen their
value proposition.
This research report provides an in-depth analysis of the captive landscape in India based on
Everests proprietary captive database, the industrys most comprehensive database on
captives. The report also challenges common myths associated with captives and provides
deep insights into their evolving role and value proposition.
This research report will assist companies considering setting up a captive center to
understand the role played by captives in sourcing portfolio design and provide an
opportunity to learn from the experience of other companies. It will also help existing
captives and their parent companies to assess their evolution and growth with respect to the
overall industry, and provide pointers towards optimizing value captured from captives and
offshoring programs. In case of service provider organizations, this research will provide an
education on key trends shaping the captive landscape, and enable contextualization and
identify implications.

Scope
This research report leverages Everests proprietary captive database, the industrys most comprehensive
database on captives. From an India standpoint, the database tracks offshore captives of 240 leading
companies (e.g., Forbes 2000, Fortune 500 companies) employing ~300,000 offshore FTEs. The analysis is based
on captives providing offshore delivery of global services, and excludes Shared service centers of companies
that serve the Indian domestic market
The report also draws on Everests deep experience in advising captives, global sourcing offices of leading
companies and private equity investors on diverse set strategic issues sourcing portfolio optimization, captive
benchmarking and performance improvement, optimize captive value proposition and value capture, mergers
& acquisitions, captive set-up support, etc
The data and Everests experience have been supplemented adequately by interactions with captives and
service providers on key topical themes of the study
This report is applicable to a broad set of stakeholders - buyers, service providers, captive organizations and
industry influencers (investors, industry bodies, etc)

Contents
This report analyzes the current captive landscape and key market trends , discusses the
evolving value proposition of captives amidst a dynamic global sourcing market, and
comments on the impact on sourcing portfolio design and optimization. Finally, the report
also provides detailed profile of the India captive landscape and trends in four key industry
verticals Banking, Financial Services, and Insurance (BFSI), Manufacturing, Distribution, and
Retail (MDR), Hi-tech, and Software.
The report concludes with a section on implications for key stakeholders, including early
adopters of offshoring, India captive centers, parents of existing captives, and service
providers. The implications are tailored to each of the segments outlined above to ensure
relevance.
http://blog.mancerconsulting.com/finance-shared-service-industry-in-india/
Finance Shared Service Industry In India
January 7, 2013 in Services
Shared Services Model
Large companies worldwide operating across various verticals such as IT, banking and insurance are increasingly
adopting shared service model. An effective shared services model blends the service quality of a decentralized
system and efficiency of a centralized environment.
Today the pressure to reduce costs while improving processes remains a top priority for a number of companies. In
this situation, outsourcing may not be the right option because of number of reasons like, regulatory environment,
availability of talent pool, criticality, lack of cost justification or competing business priorities. This system has lead to
the innovative shared services model where cost efficiency of outsourcing can be achieved while keeping the tight
control on confidentiality of critical matters.
When it comes to choosing the right destination for shared service centers, India seems to be a preferred location
despite all cultural and infrastructural constraints. India has the largest number of shared services centers in the
world.
Talent Distribution in India
Choosing the right location for shared services centers is a strategic choice for the companies. Companies consider
factors like infrastructure, cost efficiency, talent availability and conduciveness on business environment. As per a
research by MANCER Consulting services, Delhi NCR has emerged as new destination for Finance Shared services
for top Global firms leaving Bangalore behind at second place. The MANCER research also states that tier 2 and tier
3 cities like Jaipur, Kochi and Coimbatore, are emerging as new preferred destinations for shared services centers.
Increasing cost of infrastructure and talent in metro cities is majorly driving this trend. Also state governments are
now formulating supportive policies which is encouraging global firms to set up their shared services centers in
second tier cities.


Shared Services Talent Distribution in India
Major Shared Services Companies in India
City wise Distribution
Delhi/NCR Bangalore Chennai Hyderabad
Metlife GOSC Tesco Shared Services Maersk HSBC Global Resourcing
Barclays Shared Services ANZ Shell Deloitte
HSBC Global Resourcing Axa Business Services Ford Amazon
RBS Global Finance Services Target Corporation Logica UBS/Cognizant
American Express HP Flextronics Thomson Reuters
Bank of America Societe Generale HP Infotech Enterprise
Maquarie E&Y Global Shared Services HSBC Global Resourcing Invesco
Intercontinental Hotel Groups Amazon Olam Information Services Infor Global Solutions
OSC Exports Siemens Scope International Dr. Reddys Laboratories
Colt Thomson Reuters Barclays Shared Services CSC
Ameriprise Financials Logica Temenos India Electronic Arts
Hewitt Associates/Aon Timken Engineering Sitel Harsco
Agilent Technologies Oracle CSC ADP
Mercer DBOI Perot Systems/Dell Franklin Templeton
Fidelity Juniper Networks Agility Global Broadridge Financial
Citi Financials Honeywell Technology Sutherland EI DuPont
GE Capgemini World Bank Virtusa
Steria Accenture Phizer Google
XL Insurance GMR Siemens Intelligroup
British Telecom Unilever McKinsey Global F & A United Health Group
Serco Monsanto HOV Services Mumbai
Cargill India ADC/Tyco Electronics Pune DBOI
Whirpool Bechtel India Axa Business Services JP Morgan
Aircel Allied Worldwide Credit Suisse Citi Corp
CPA Global Ocwen Financial Maersk WNS
Keane India/NTT Data Mach India Tata Teleservices Crisil
Xchanging Glodman Sachs Swiss Re Aegis/Essar
DLF Dell Eaton Technologies Nomura
Nestle Grant Thornton Amdocs General Mills
Bharti Airtel Misys Software Solutions Atlas Novartis
Egon Zehnder Virtusa Mphasis Prudential
Aricent Infosys Avaya Morgan Stanley
Pernod Ricard(Seagrams) Symphony Services L&T Nestle
Vertax Cambridge Solutions Ltd Sungard Technologies Reliance
Ericsson Unisys Global Bank of New York Mellon

Fluor Corporation Ahmedabad Capita India

Religare Enterprises Vodafone SSC Trivandrum

Techbooks Future Knowledge Services RR Donnelley

Ranbaxy Adani Enterprise Ltd. E&Y Global Shared Services

KPMG Kochi/Cochin Jaipur

E&Y Global Shared Services Allianz DBOI

Advance Group EXL Coimbatore

British Council Management Sutherland Robert Bosch Engineering

Convergys ACS

Eigen Technical Services Williams Lea


Career Opportunities
Growth of shared services centers in India has created ample job openings for skilled professionals across various
disciplines. Highly sought after shared services change jobs frequently which leads to high attrition rates. As per
MANCER research attrition rates in smaller cities are lower as compared to that in metro cities. This is a major long
term benefit for the firms who open shared cervices centers in smaller cities. There are some core processes and
functions in shared cervices which require extensive customer interactions. This demands for cultural and linguistic
compatibility as well as excellent communication skills of employees.
Some of the areas in Finance Shared Services in which job opportunities are to surge are:
Accounts Payable
Accounts Receivable
General Ledger
Controllership
Financial Planning & Analysis/Management Reporting
Decision Support Management
Statutory/Regulatory Reporting
Internal Control
Product Control & Other Middle Office Work(in Investment Banking)
Transitions & Migrations
Process Excellence/Change Management/Transformation
Finance Tools and Systems