by Karen Rester
DTCC’s footprint in Asia includes a rapidly expanding India Business Center in Chennai that is a key part of the company’s technology organization.
DTCC is transforming this site into a comprehensive IT service delivery center that will add value for customers on multiple fronts. It will reduce overall cost and risk for the industry; enable DTCC to offer customers more cost-effective, high-quality services and support on a 24/7 basis; and strengthen business continuity and data security.
"We’re expanding the Chennai office to deliver maximum value to our customers while minimizing operational risks," said Adam Wysota, DTCC Chief Technology Officer. "By having a stronger base in India, we’ll be able to scale our IT organization in a cost-efficient manner, which ultimately means better service for our customers, as well as retention of knowledge with DTCC employees – something the regulatory community keeps a watchful eye on."
Benefits of the center
The multi-year plan is transforming the Chennai office, originally set up as an outsourcing center, into a hybrid model that will add more full-time staff, while continuing to leverage local vendors.
The transformation of the India Business Center will benefit the industry on multiple fronts. It will:
- Strengthen service coverage to support DTCC’s growing global presence on a 24/7 basis;
- Reduce the cost of maintaining and supporting the company’s infrastructure;
- Allow DTCC to implement a "followthe- sun" global IT workflow model;
- Add offshore resources to support U.S./U.K./Asia-Pacific-based functions;
- Enhance business continuity and data security globally;
- Leverage Chennai’s pool of IT professionals to strengthen the company’s technology organization;
- Build an in-house base of subject matter experts in India.
Growing the employee base
Launched in 2008, the India Business Center grew out of DTCC’s success with outsourcing to Chennai, a strategy that helped the organization focus its resources on leveraging its core competencies.
"Being in Chennai gives us access to one of the largest markets of IT professionals in the world," remarked DTCC Systems Director Sharad Joshi, IT Planning and Financial Management. "It’s provided us with technical and domain expertise, and mature services that are highly scalable."
Initially, the site consisted of three employees whose principal task was vendor oversight, which meant regularly evaluating DTCC’s IT service providers in Chennai to ensure they complied with the company’s risk management procedures and quality standards.
"Having a local presence allowed us to get more value out of our vendor relationships through improved operational efficiencies," said Wysota, explaining that outsourcing tends to be most successful when the team handling vendor oversight is based in the same area, and shares a similar culture and language.
In 2011, the site grew to 11 employees, which gave the company additional coverage for New York IT staff in expanding areas of the business, including Risk. This year, the India Business Center will more than triple in size to 35 employees, and over the next one to two years, DTCC’s intent is to grow to 100+ employees.
In anticipation of the growth, the Center is relocating this May to a larger office in Chennai where it can potentially acquire additional space as it expands.
The driving forces
So what’s driving the stepped up expansion in India?
From a big-picture perspective, DTCC has been broadening and strengthening its position in Europe and Asia in response to worldwide regulatory reforms and market trends, such as the focus on over-the-counter (OTC) derivatives, according to Wysota. For instance, the company recently launched a new data center in Europe, with another scheduled for later this year in Asia, to facilitate growth in this market segment.
"As DTCC continues to expand outside the U.S., we need to ensure our technology organization is structured to give our customers more efficient and better risk-managed global service delivery around the clock," Joshi remarked.
Following the sun
The India growth plan will implement a "follow-the-sun" global workflow model. This means support services will be quickly and smoothly relayed from one IT team to another – from the U.S. to Chennai and back again.
To make this possible, Chennai’s expanding employee base will complement staff in various IT areas in the U.S., Europe and Asia to ensure round-the-clock support for, and the continuity of, DTCC’s facilities.
"The follow-the-sun model will enhance service coverage," remarked Joshi, who anticipates implementation will start in the third quarter of this year. "For instance, when it’s nighttime in the U.S., our team in India will help manage and monitor the systems, and the intent is that they will be able to immediately act on any problems that may arise."
The India expansion will also allow DTCC to support its European facilities in their own time zones. "Right now, early morning at our London facility is covered by the U.S. team at night," said Joshi. "As we implement the new model, London daytime can potentially be covered by Chennai, where it will also be daytime. This is more operationally efficient and it provides London with a fully staffed service center at all times."
And as DTCC continues to expand in the Asia-Pacific region, Chennai’s growing employee base will be on hand to support its facilities in that region, too. "A larger workforce in India will lead to faster resolution times and allow us to quickly ramp up resources when we need to," Joshi said.
Another key benefit of the expansion in India is that it will enable the company to build in-house subject-matter expertise, which will further strengthen the company’s IT capabilities.
"If there’s a service disruption or a coverage issue, we’ll be in the position to handle it with in-house people, rather than relying on our IT vendors to augment our staff," said Wysota. "That translates into better service for our customers."
Joshi agreed, pointing out, "As we continue adding staff in India, we’ll be able to offer wider service coverage and greater operating efficiencies for our customers. This is what is truly driving our expansion." @