Building Analytical

Capability
in a Global
Environment

October 2007

Sandeep Tyagi
Head - Transformational
Services

Agenda

ƒ Introduction

ƒ Analytical Environment

ƒ Specific Issues & Opportunities of a Global Environment

ƒ Solution

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About EXL

Name ƒ ExlService Holdings Inc. (a Delaware “C” Corporation)

Established ƒ April 1999

Ownership ƒ Listed at NASDAQ (EXLS)

ƒ Outsourcing (insurance, banking and financial services,

utilities, transportation and telecom)
Business
ƒ Transformation Services (analytics, reengineering, risk
advisory)

ƒ ISO 9001:2000 certified for Operational Excellence

ƒ ISO 27001 & BS 7799 certified for Information Security
Credentials for EXL ƒ OHSAS 18001 certified for employee health and safety
ƒ 2007 KDD Cup Winner - Best performance
Award/Accuracy

ƒ 7 world-class service delivery centers in India

Infrastructure
(NCR/Pune)

ƒ 2006: US $ 121.8 million (Full Year)

Revenues
ƒ 2007: US $ 43 million (Second Quarter)
Workforce ƒ ~9,300

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EXL’s Vision Explained

We
We provide
provide aa competitive
competitive edge
edge to
to our
our clients
clients by
by
transforming
transforming and outsourcing business
and outsourcing business processes
processes

We
We are
are in
in the
the business
business of
of
Re P outsourcing
outsourcing business
business
s en roc
ic processes
al
yt gi es
ne s
processes forfor our
our clients
clients
An Business
y
er
in
g
Processes
Risk Assurance
We
We also
also help
help transform
transform
the
the operations
operations of
of our
our
clients
clients (whether
(whether they
they are
are
outsourcing
outsourcing oror not)
not)

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Sandeep Tyagi

ƒ Head of Transformational Services at EXL

ƒ Founder and Managing Principal Inductis, an analytical consulting

company

ƒ Partner Mitchell Madison Group – Leader of the Pricing and Product

Development Practice

ƒ For the about 15 years, I have been helping large companies make better
decisions through analysis of large amounts of data

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Analytical Environment

How many of you are responsible for doing analytics?

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Analytical Environment

How many of you are users of analytics?

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Evolution of Analytics

Specialized
Craftsman Global Centers of
Teams Excellence
(Master Cabinet
(North Carolina (Ikea furniture)
Maker)
Furniture)

Specialized Global Centers of

Craftsman Excellence
Teams
(Analytics)
(Finance) (IT)

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4
Framework for Analytics

Data Analytics Implementation

Technical Infrastructure

People

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Data – ATL, not ETL!

ƒ Data Acquisition
ƒ Internal data—(extraction)
ƒ Purchased data
ƒ Created data (market research)

ƒ Data Transformation
ƒ Data Mapping and rollups
ƒ Transformation from transactional to customer view

ƒ Data Linkage
ƒ Joining two or more datasets
ƒ Linking entities (companies, people, households)

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5
Analytics — A Driving Analogy

ƒ Reporting of
ƒ Rear View
historical events

ƒ Your spouse’s ƒ Understanding &

commentary analysis of historical
events

ƒ Looking out the ƒ Prediction of future

front window events

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Operationalization/Implementation

ƒ Quick prototyping to try out new ideas and establishing effectiveness in

shortest time with least expense

ƒ Real time, consistent availability of results to front line employees who

mostly need to convey and implement the decisions

ƒ Reusing data, logic and consistent assumptions across the organization

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Technical Infrastructure

ƒ Analysis – Analytical software like SAS

ƒ Storage – Secure, backed up platform where analytical datasets can be

stored, analyzed and archived for later use

ƒ Implementation platform – A way to implement multiple

algorithms/models into operational systems (mostly legacy)

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People

ƒ Analysts – Business problem solving

ƒ Modelers – Ensuring mathematical soundness

ƒ Programmers – Translating English to SAS, doing simpler data

management tasks

ƒ Technologists – Keeping the data safe and machines running

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Global Environment

How many have an analytical center offshore today?

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Global Environment: Issues & Opportunities

ƒ Opportunities
ƒ Cost saves
ƒ Scale
ƒ Resourcing & talent acquisition

ƒ Issues
ƒ Regulations
ƒ Intellectual property and data security
ƒ Products, markets, analytical needs
ƒ Implementation, operational environments

SO WHAT IS THE SOLUTION?

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Cost Saves

Cost of fully productive comparably educated analytical resources

is about 50-65% lower

180
160
140
120
100 US
80 India
60
40
20
0
US $K Modeler Analyst Programmer Technologist

BACK

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Scale

Analytical tasks are typically done in each market

by the marketing, finance or risk management teams

Market 1 Market 4
100 people 40 people

Market 2 Market 5 Each market an

80 people 60 people independent team.
Data is stored within
each market systems
Implementation in
front-end systems is
done in each market as
per existing technology
Market 3 Market 6
90 people 30 people

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Scale

A global Center of Excellence provides an opportunity to create a larger scale

operation which creates synergies in recruiting, training, knowledge
management and talent management
Market 1 Market 4
-20 ppl - 15 ppl
Center
Center of
of Excellence
Excellence

-All
-All Data
Data
-- All
All analytics
analytics
Market 2 -- Some
Some implementation
implementation Market 5
- 8 ppl -- Most
Most modelers,
modelers, - 12 ppl
programmers,
programmers,
technologists
technologists
-- All
All analytical
analytical platform
platform
-- 250
250 people
people

Market 3 Market 6
-12 ppl -8 ppl
Each market has some analysts & technologists.
Implementation in front-end systems is done in
each market as per existing technology BACK

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Talent Resources

700000
600K
600000
Number of Engineers

500000

400000

300000 200-350K

200000 70-220K

100000

0
China India US
Geography

BACK

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Solution--A case study
Several large financial institutions
have created a world class global infrastructure.
Here is a typical setup
COE Disguised Client Example
(Delhi)
European Business
(London)
- Some implementation
- Most modelers,
-Some analysts
programmers,
US Business & programmers
technologists
(New York) - 75 People
- 300 people

-Some analysts VPN

& programmers
- 100 People
Data Center Asia Pac Business
(Singapore)
(Phoenix)
-Some analysts
- All Data
& programmers
- Most implementation
- 50 People
- All analytical platforms
- 200 people
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How much can be globalized?

Data Analytics Implementation

(100%) (90%) (50-80%)

Technical Infrastructure (100%)

People (70-90%)

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Summary

ƒ Analytical needs are growing rapidly and becoming more specialized

(requiring trained full time resources)

ƒ Such resources are being aggregated into Analytical Groups with

specialized resources in technology and data management

ƒ Global economy makes it possible to resource each input and locate

each facility in the most effective location
ƒ Analysts close to the markets
ƒ Data in the most secure domicile
ƒ Modelers and programmers in the most cost effective and abundant
talent pools

ƒ This would involve significant restructuring of the analytical tasks.

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ƒ Thank you!

ƒ Questions?

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