Offshoring Wave - Riding on Technology
Figure 1: Changing Growth Areas for Technology Centers
The headcount distribution across the various functions clearly indicates that the growth driver is
more in the
high end architecture and domain-specific solutions, while the low end infra support and maintenance work has seen
a clear
stagnation.
Figure 2: Headcount Distribution Across Functions
The technology centers in financial services GICs are expected to keep pace with the global trends.
With
newbanks and IBs offshoring their technology operations, it isimperative that centers in India scale up their
standard and base
level services at a rapid pace. This has been enabled by their partnerships with third-party service providers; who
have a
unique value proposition which enables them to combine operational efficiencies and domain knowledge to deliver
quality
services to their clients. The financial services GICs are now faced with an interesting conundrum both from a
business and
talent perspective. The change in the kind of work being delivered has necessitated a change in the talent strategy
for the
organizations. Their talent sourcing and acquisition strategies are changing fast. This has two implications, one
the
demographics of the organization has changed, leading to change in the pyramid structure and two the cost per FTE
for the
organization has increased. A look at the headcount (HC) distribution numbers fortechnology centers from 2012 to
2013 clearly
highlights the increasing population at the senior professional level.
Figure 3: Headcount Distribution Across Levels
If we were to dig a little deeper, the challenge for the HR professionals is evident. The
difference in the
hiring focus for the high value processes and the standard processes are different in nature and hence they pose a
separate set
of challenges
Figure 4: Hiring Focus for High Value Processes
have adopted a “buy” strategy to scale up their ability to deliver these services. Also, the focus has been on
hiringpeople
with experience to ensure that they are able to build the team capability.In contrast, the standard services have
seen a
decreasein the headcount at all levels other than the entry level. This clearly is by virtue of firms building
efficiencies
bystandardizing the processes and focusing on building talent by hiring at the lowest level.
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