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Hiring Trends in Investment Banking Captive Centers

December 20, 2012 in Services

In 2008-09, some experts had predicted the death of MNC captive centers in India, especially in the banking sector.  This assumption was fuelled by sell-offs like Citigroup had sold off most of its captive centre business to TCS and Wipro, UBS to Cognizant, AIG to Mphasis and Aviva to WNS.

But look now at the current situation and you will find an almost contrary trend. Most captives of multinational banks are expanding their base in the country, and what’s more, they are undertaking sophisticated proprietary work.

Before moving into the trends of Captive units of Investment Banks, let me give an overview of current scenario of off shoring in India. As of financial year 2011-12, India has 760 captives with an employee base of 4, 60,000 people. Their contribution to export revenue has been 21 per cent. Captive units revenues across categories — engineering research and development, business process outsourcing and IT — have grown from $3 billion in 2003 to $13.9 billion in 2011-12, with a compounded annual growth rate of 18 per cent. Following is the breakup of captives in India:


Source: Nasscom

Coming back to captive units of Investment banking firms, the same Citigroup that sold off earlier is now once again rapidly strengthening its captive center presence. It has around 900 professionals working across its centers of excellence in Mumbai, Bangalore, Chennai and Gurgaon, handling a host of regular and critically sensitive projects for consumer banking, transaction services, risk management and investment banking. Citi Bank has also planned to gradually expand its operations in Mumbai due to the availability of high quality quantitative and financial talent pool. Standard Chartered Bank, Fidelity, Deutsche Bank, Franklin Templeton and Goldman Sachs are some of the others who are said to be strengthening their India presence.

According to a survey by McKinsey & Co and Nasscom, 52 per cent of companies with captives in India intend to increase their offshore penetration by 15-30 per cent over the next two to three years.

Change in Operating Structure – No mere back office

The industry is witnessing a fundamental shift in operating structure. Captive centers are increasingly handling complex work models and increasing their footprint. Banks are following a different sourcing model where core operations remain with the captives and standardized work are outsourced to IT firms. Citi’s division of work bears that out. It outsources its regular, on-going work like data center management and transaction processing services to external service providers. Captives  concentrate on sensitive assignments at the upper end of the value chain, including credit and decision analytics, financial risk management and anti-money laundering. Such proprietary work is undertaken by Citi-owned vehicles largely out of confidentiality considerations and privacy issues to protect its domain expertise.

Taking another example, Scope International has moved up the value chain from doing non-core operations like IT technical support and data management to “something as complex as credit analytics”. Deutsche Bank has built a strong technical team over the past two years. One important reason for doing work in-house is that the powerful new technology areas such as mobile, cloud computing, social media and analytics are providing opportunities for banks to differentiate themselves from competition. They would prefer to do such proprietary work within captive centers, than through third parties. Not only this, Captive centers have moved away from being just India-centric units. Many of these have started to have centers in other regions as well. Take the example of Fidelity Worldwide International’s captive unit in India. Almost a third of its global workforce is based here. The unit has been in India for close to 10 years and had technology as its core function. It now also has centers in China and Africa, and India is playing a key role in developing these regions.  In the case of Fidelity, over the past two to three years, the India center has focused on developing research and analytical capabilities.

Talent Requirements in Investment Banking Captive Units

According to a research by MANCER Consulting, employment opportunity in captive units of major banks is expected to grow at a CAGR of 20-25% in next two three years. Though major metros like Mumbai & Pune, NCR and Bangalore will be attractive destination for new hires, tier 2 & tier 3 cities are also expected gain a significant share of the same.

The increasing importance of captive units will also lead to new employment opportunities in high end management and technical fields like Product Control, Analytics, Custody and Treasury Operations and Equity and derivatives.

As per the MANCER report some of corporate functions will also be executed by Indian captive units which will lead to highly skilled and experienced manpower requirement in these functions. Hiring in corporate communication, Legal and compliance, Transition and change management and Quality & six sigma is expected to increase by 15-20%.

The Facts of Corporate Recruiters..

December 19, 2012 in Services

There is a lot of confusion about recruitment SEO and it could be easy for an HR Professional to assume that a corporate career website will never be able to beat the job boards and agency recruiters to high page rankings.

The truth is that a well optimised career website can be more attractive to Google than a job board, for the simple reason that a corporate career website publishes original content.

Why Google wants to love your career website, but often can’t

here are 5 facts why Google wants to love your career website

  • FACT – an aggregator job board’s content is made up of adverts and syndicated content from other job boards and recruitment websites
  • FACT – a job board’s content consists of duplicated agency and corporate vacancy adverts – The multi-posting services make it so easy to advertise the same jobs on different websites
  • FACT – a corporate career website consists of original relevant content
  • FACT – vacancies are pages of fresh content (but they are often hidden in the ATS on a different domain)
  • FACT – 13-15 million people are searching for jobs each month: 50% type job titles into Google (again your vacancies are effectively hidden in the ATS)

How Knowledgeable Customers create more value

December 16, 2012 in Services

Knowledgeable customers are considered among the one of the most important intangible asset of the companies. They make informed decisions while purchasing goods. More importantly, they also provide important feedback quickly.

Knowledgeable customers create more value for organizations in following way:

1)      Knowledgeable customer always introspects and questions the clients offering. If your brand can cater to their queries it gives an impression that BRAND understands, recognizes and respects them – something which they can trust.

2)      Knowledgeable customers can offer the maximum value through referral. They spread the right word and act with utmost responsibility while getting new partners for business engagement.

3)      One informed customer can make your job more challenging than it usually is.  You need to be proactive, establish a leading market position, and capture gains smartly.

Creating knowledgeable customers is a complex process. It involves the right blend of strategy, great offering and also smart selling. Hence a lot depends on the sales team .however we need to think that do your salespeople see themselves as sales professional responsible to create as much value for the customer as possible. Also companies should create an environment where customers can easily provide feedback. Working on constructive feedback will help them in long run.

Recruitment and Sales…a difference??

December 13, 2012 in Careers

It’s said that there is thin line between Recruitment and Sales.. also  It’s an often question during the time of interviews:

  • What is the difference you find between Recruitment and Sales?OR
  • What motivated you to be a part of Recruitment function rather than Sales

Though we  know the answer very well , sometimes question goes in a tricky way.

The ideal assumptions for a difference between Recruitment and Sales are:

You should be in sales if you are:

  • A great negotiator
  • Good with handling rejection
  • Self-guided with your time management
  • Motivated by expansion potential (developing sales channels)
  • Good at cold-calling for new business opportunities
  • Enjoy making presentations and entertaining

You should be in recruiting if you are:

  • A great communicator
  • Good at relaying hard facts and picking up inferences
  • Highly organized
  • Great at Internet work and research
  • Motivated by task accomplishment (making placements)
  • Good at building relationships based upon mutual interest
  • Enjoy interviewing and networking

You can see that both sides are quite similar; both recruiting and sales professionals have to be independently driven, competitive, and motivated.

However A well trained salesperson will familiarize himself with the features and benefits of a product, learn its functions, its background and its demand in the marketplace, where Sales and Recruitment is no different.

It pays to take some time to think about the true differences between sales and recruiting and to pay close attention to how your recruitment firm values each. However in a nutshell rather than differentiating from each other  it can be supposed that sales is one of the part of recruitment function.

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