Performance Attribution Offshoring & Managed Services
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The document highlights the growing significance of India's offshoring in performance analytics, emphasizing the need for careful candidate selection in pilot batches for successful process transitions. India has emerged as a preferred destination due to its skilled, cost-effective workforce, particularly in cities like Pune and Bangalore, while also acknowledging challenges like high attrition rates. The offshoring strategy has proven beneficial, enhancing operational capabilities and customer satisfaction for investment firms.
Performance Attribution Offshoring & Managed Services
- 1. 2% 5% 9% 14% 28% 37% 52% 62% 70% 58% 39% 24% 2007 2010 2013 2016 CFA/FRM/CIPM MBA/Other Post Grads Under Grads The quality of pilot batch plays a critical role in the success of new process transitions. Therefore, Project sponsors or Performance department heads should put extra efforts while picking the most deserving candidates in terms of qualifications, achievements and experience. 50% 25% 15% 5% 5% Data Management & Operations TR, EQA & Ex-post Risk reporting Technology Support Manager Research Consulting © Saurabh, Shared in larger interest Connecting the dots… 21 Buddha Performance Measurement Talent Landscape in India Workforce qualification City wise opportunities breakdown Nature of business & type of service provider Functional expertise Asset Managers and Custodian banks account for seventy four percent of the entire business. Shared service & GICs constitute almost fifty-eight percent of employers. Next frontiers: • GIPS • FIA Key Takeaway: By investing smartly in the offshoring strategy, investment firms can create a strong and scalable framework in Performance Analytics to gain a sustainable competitive advantage built on the pillars of agility, accuracy and insight. Few service providers have also been able to transform their cost centre into Centre of Excellence. Advantage India: In the last ten years, India has emerged as the most preferred destinations for offshoring Performance Analytics work for Global buy-side firms. Many Investment firms have leveraged India’s highly skilled, low-cost talent pool to reduce cost of ownership. The three leading US based Custodian banks were the first ones to set-up an operations unit for their Performance department. It started with basic transactional functions initially but over the years the service offerings have gone up the capability maturity ladder. These days, the life of a Performance measurement professional in India may entail a whole gamut of functions like loading data into systems (ETL), validating prices, FX, units, transactions, fixing corporate actions, auditing results, releasing reports, getting on-shore sign-off, writing commentaries for manager’s performance, supporting & troubleshooting Performance Calculation engines, liasioning with various stakeholders or gathering requirement for implementing a new system. For bigger clients, the shared service delivery model turns out to be more favorable in the long run due to a much higher customer satisfaction score. GICs also align well in the culture of the business entity. Delivery Framework: • Process Transition • SLAs & SOPs • Parallel run • Production • Process improvements • Cross trainings • Escalation management Strengths: • Cost arbitrage • Adds scalability • Access to skilled resources • Follow the sun advantage Weakness: High attrition rates (>60% professionals currently interested in new opportunities) • 30+ firms • 800+ professionals Key Stats The surge in the volumes and value of deliverables in Performance Measurement & Attribution over the years is testimony to the success of the offshoring strategy. India has a demographic edge with two-third of the talent pool falling in 24-30 years age bracket. More qualified professionals are entering the talent pool every year. 32% 27% 15% 14% 6% 4% 2% Pune Bangalore Mumbai Chennai Gurgaon Hyderabad Noida 1 3 1 1 11 4 1 2 6 1 Asset Management Asset Servicing Technology Manager Research Consulting Fund Research Front office GIC 3rd party MSP The opportunities have been skewed in favour of Western & Southern cities. Pune and Bangalore account for more than fifty percent of the job opportunities.
- 2. © Saurabh, Shared in larger interest Content Disclaimer This presentation has been prepared and issued on the basis of peer survey and other social media sources believed to be reliable. The information contained in this slide is for general purposes only. The information/data herein alone is not sufficient and shouldn’t be used for the development or implementation of any outsourcing, talent management or career strategy. All opinions, figures, charts/graphs and data included in this presentation are as of 31st March, 2016 and are subject to change without notice. While utmost care has been exercised while preparing the slide, the author does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The statements contained herein may include some forward-looking statements that are based on our current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Readers shall be fully responsible / liable for any decision taken on the basis of this presentation. No part of this document may be duplicated in whole or in part in any form and/or redistributed without prior written consent of the author. Acronyms: ETL: Extraction Transformation & Load process; TR: Total Return; EQA: Equity Attribution; GIPS: Global Investment Performance Standards; FIA: Fixed Income Attribution; GIC: Global In-house Centre; MSP: Managed Service Provider The views expressed here are solely those of the author in his private capacity and do not in any way represent the views of his past/current employer. Connecting the dots…