2011

AN EVEREST RESEARCH INSTITUTE VIEWPOINT

HR Outsourcing (HRO) Engagement Between Credit

Suisse and Wipro
A Case Study on Global HR Transformation
Program

Everest Research Institute

EGR-2011-3-V-0570

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Rajesh Ranjan, Research Director BPO Research

Sayan Chatterjee, Senior Research Analyst BPO Research
Copyright 2011, Everest Global, Inc. All rights reserved.

HR OUTSOURCING (HRO) ENGAGEmENT bETWEEN CREdIT SUISSE ANd WIPRO

Introduction
Everest recently studied the HRO engagement between Credit Suisse and Wipro to
gain insights into the value that Credits Suisse created in partnership with Wipro.
This case study highlights key aspects of the engagement and discusses:
Scope of the engagement
Drivers behind the engagement
Criteria for selecting Wipro as a service provider
Key challenges faced and lessons learnt
Elements of value creation for Credit Suisse
Future outlook for the engagement
This case study is based on the executive-level interviews with Credit Suisse
representative Stuart Steele (Managing Director and Global Head of HR
Organizational Effectiveness) and Wipro representatives Puneet Chandra (Global
Head and VP, Corporate Business Services) and Sarada Srinivas (Global Head,
HRO Operations and Center of Excellence).

About Credit Suisse and Wipro

Credit Suisse is a global banking and financial services company with headquarters
in Zurich, Switzerland. It operates in 58 countries around the world, has nearly
50,000 employees, and reported net revenues of nearly US$34 billion in 2010.
The five major centers of operation for the company are Switzerland, US, UK, Hong
Kong, and Singapore. Credit Suisse operates in three global divisions: Private
Banking, Investment Banking, and Asset Management.
About Wipro
Wipro Technologies, the global IT business of Wipro Limited (NYSE:WIT) is a
leading information technology, consulting and outsourcing company. Wipro
Technologies has 120,000 employees and clients across 54 countries.
Wipro BPO, the business process outsourcing service line of Wipro Technologies, is
one of the largest BPO service providers on a global delivery platform. Wipro BPO
has operations in more than 28 centers in 11 countries. The services portfolio spans
industry specific solutions in customer contact center (technical and non-technical;
voice and non-voice), finance and accounting outsourcing, human resource
outsourcing, supply chain management, knowledge services including data
management and reporting, legal process outsourcing, and sales and marketing
outsourcing.

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HR OUTSOURCING (HRO) ENGAGEmENT bETWEEN CREdIT SUISSE ANd WIPRO

Scope of the Engagement

Credit Suisse embarked upon a global HR transformation program at the beginning
of 2008. A significant component of this transformation was the creation of a
number of shared service centers, focused primarily upon back office HR
operations. In support of this objective, Credit Suisse engaged Wipro to provide
specialized HRO services on a build-operate-transfer (BOT) basis. The rationale for
adopting a BOT model was primarily based upon a desire by Credit Suisse to retain
control over and ensure flexibility within their offshore service centers. In addition
Credit Suisse had limited internal experience in establish service centers and as such
the BOT model provided flexibility while minimizing risk.
The scope of this engagement included both transaction-intensive and judgmentintensive HR processes (see Exhibit 1). It included transaction-intensive processes
such as payroll, workforce data administration, time and attendance, and workforce
reporting, as well as judgement-intensive processes such as recruitment (both lateral
and campus), global mobility, and compensation. In addition to a traditional Tier-1
1 employee contact center, the scope also included the more advanced Tier-2 help
desk with specialized agents from Wipro who were authorized by Credit Suisse to
handle and approve exceptions on their behalf.
EXHIBIT

Strategy
Judgment-intensive
Transaction-intensive

The engagement involved both

HR
strategy

transaction-intensive and
judgment-intensive HR

Scope of Credit Suissewipro engagement

Employee relations
Regulatory and compliance

processes

Learning and development

Performance management
Global mobility
Recruitment and selection
Compensation
Benefits
Payroll
Employee data management
HR information systems and reporting
Employee contact center

Drivers Behind the Engagement

The engagement was envisaged to capture multiple value creation opportunities
(see Exhibit 2).

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Focus HR on more strategic activities: Credit Suisse wanted to refocus parts of its
HR organization in order to better support the business in the achievement of its
objectives. In order to facilitate this, a significant volume of transactional activity
needed to be transitioned from on shore HR Business Partners and Advisors and
to the offshore service centers.

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HR OUTSOURCING (HRO) ENGAGEmENT bETWEEN CREdIT SUISSE ANd WIPRO

The engagement was envisaged

to capture value across multiple
levels cost reduction, process
improvement, and business
impact

EXHIBIT

The engagement was envisaged

Standardization: Historically, Credit Suisse had a federated structure with a

significant volume of disparate HR processes and supporting systems in place
supporting individual business divisions and countries. This highly complex
environment had led to lower levels of operational and cost efficiency than
desired and hampered the ability to actively manage service quality and service
performance. The approach to standardization had to address these issues whilst
balancing the need for standardization and reduced complexity yet still retaining
flexibility.
Improvement in quality of HR services: The desire to introduce tangible
improvement to the quality of HR services received by external clients, internal
clients; employees, and line managers was another important driver behind the
engagement.
Greater cost-efficiency: Enhanced cost-efficiencies through creation of offshore
HR shared service centers in low cost locations, re-sizing of the HR operating
model, rationalization of HR business process, reductions in systems landscape
and complexity were additional considerations behind this engagement.

Dimensions of Everests
Total Value Equation
(TVE)

Key drivers behind the

engagement

to create value across multiple

levels

Business impact

strategic activities

Process impact

Direct-cost impact

Focus HR on more

Improvement in quality
of HR services

Process standardization

Greater cost-efficiency

Criteria for Selecting the Service Provider

Everest has witnessed increased maturity in buyers service provider selection criteria
in the HRO space. As the value proposition for outsourcing elevates from mere cost
reduction to a strategic partnership, buyers criteria for service provider selection
also become more sophisticated. Everest research indicates that beyond cost,
financial services consider quality of service delivery, flexibility, and cultural fit as
important criteria for selecting a service provider.
In the case of Credit Suisse, the company evaluated several leading service
providers. While delivery capability and cost competitiveness were important factors,
there were a host of other factors that were considered before finally awarding the
contract to Wipro.

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HR OUTSOURCING (HRO) ENGAGEmENT bETWEEN CREdIT SUISSE ANd WIPRO

There were three compelling

reasons behind Credit Suisses
decision to choose Wipro as the
preferred service provider a
customized and flexible solution,
demonstrated capability in
service centers and offshore
delivery, and existing
relationship

Credit Suisses need for flexibility and customization were answered by Wipro.
Wipro demonstrated the flexibility to enter into the BOT model structure in a manner
that Credit Suisse had envisaged. Wipros offered solution was customized to Credit
Suisses needs in terms of set up, locations, processes, etc. E.g. Wipro set up a new
delivery center in Wroclaw, Poland to serve Credit Suisses German speaking
employees.
Additionally, the nature of the support that Credit Suisse was looking for was well
matched to one of Wipros core areas of competence; the establishment of new
service centers. Credit Suisses site visits to Wipros delivery centers gave it
confidence in the latters capability and insights into operational capability. Wipros
expertise in the creation of HR shared services internally and in other functional
areas (such as Finance and Accounting) for external clients was well demonstrated.
Equally well demonstrated was its offshore delivery capability, one of the key
requirements for the engagement.
Lastly, the existing relationship between Credit Suisse and Wipro also contributed to
Credit Suisses decision to partner with Wipro in this undertaking. The two
organizations were already working together across several functional areas and
enjoyed a high-level of familiarity and comfort with each others culture, style of
functioning, and leadership. There also existed a high-level of connection at the
senior management levels.

Challenges Faced and Lessons Learnt During the

Engagement
Large HR transformation engagements usually bring about a set of challenges that
must be overcome to achieve the desired results. Everests research indicates that
stakeholder engagement and alignment, cultural integration, overall change
management, and transition-related issues are some of the major challenges faced
in such undertakings.
In the case of Credit Suisse, it had ambitious targets and aimed at an end-to-end
HR transformation exercise involving large scale change across process, people,
and technology, all of which were implemented simultaneously.
As the scope of the program involved multiple countries and business divisions, one
of the key challenges was driving standardization across the organization while at
the same time ensuring the ability to incorporate country and divisional specific
requirements. This environment required an iterative approach to design where revalidation of the design was required as implementation progressed. In addition,
the Credit Suisse organization is a matrix organization and as such this approach to
governance needed to be reflected during execution of the transformation program
and subsequent operations.

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HR OUTSOURCING (HRO) ENGAGEmENT bETWEEN CREdIT SUISSE ANd WIPRO

From a cultural standpoint, employees in the financial services industry are typically
used to a high-touch HR service model. Given the implementation of a servicecenter-based model, effective change management was crucial there would bea
perception that service quality and performance would be reduced and it was
therefore important that both HR practitioners and HR clients understood the
rational for the change but more importantly, how to access services going forward.
This understanding is key to acceptance and adoption and therefore realization of
the desired benefits.
Some of the valuable lessons from this engagement were:
The speed of change should be based on the degree and scope of change.
Large amount of change occurring too quickly can prove difficult to manage
effectively. Additionally, the importance of governance in managing the change
successfully cannot be emphasized enough. Throughout the engagement, the
governance was kept very tight and vested at a very senior level. Mechanisms
were in place to ensure a high level of interaction between Credit Suisse and
Wipro to discuss various issues on an ongoing basis.

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Communication should be to the point, targeted, and able to address issues of

direct concern to the stakeholders. It is important to avoid falling into the trap of
equating more communication with better communication, especially in a highskilled industry such as investment banking. Change agents should be identified,
and engaged early in the process, and empowered to facilitate change in their
respective spheres of influence.
Communication plays an important role on the service provider side as well. In
this case, for example, both Credit Suisse and Wipro provided constant
communication to the service center agents so that they remained motivated and
effectively handled queries in an evolving process and technology environment.
While the design and role of retained HR post transformation is important,
equally important is the execution of the same. It means making sure that the
retained HR move into specific new roles to avoid creation of shadow
organization. Failure to do so effectively may lead to unrealized cost savings
potential as well as negativity and resistance to accept changes in the new set
up.
Service center staffing needs to be carefully planned. For example, during the
initial stabilization phase, it makes sense to utilize the 3S approach (over-staff,
over-skill, and over-supervise). Using the 3S approach, Wipro & Credit Suisse
were able to effectively handle the big-bang go live and also had the
bandwidth to manage the inevitable go-live issues.
A holistic approach to service performance management is important. Instead of
focusing and measuring only that part of the process which is handled by the
provider, an end to end measurement of the process is important to identify and
fix the cause rather than the symptoms.

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HR OUTSOURCING (HRO) ENGAGEmENT bETWEEN CREdIT SUISSE ANd WIPRO

Value Delivered by Wipro

Wipro helped contribute to value creation for Credit Suisse in multiple ways.
Based on its prior experience around service centers Wipro brought in best practices
and insights into what can and cannot be achieved practically and this helped avoid
mistakes and reduce the overall time taken to implement the solution.
Wipro played a key role in the refinement of scope and methodology. Wipro utilized
its HR domain knowledge to refine the HR process taxonomy. It closely worked with
Credit Suisse to understand current issues & requirements as well as create to-be
process definition and subsequent documentation. Wipro helped rationalize and
standardize 1,230 different types of HR processes to cut process variance by 80
percent. It also developed and documented a detailed operational and support
procedures that helped smooth the transition process. Also the structure of the
service center and core interaction model was modified by Wipro post Go Live.
Individual work streams were logically clustered to minimize handoffs, improve
accountability and reduce turnaround time.
Wipro established two service centers simultaneously, one in Pune, India and the
other in Wroclaw, Poland. Setting up service centers in two locations simultaneously
to handle the complete breadth of HR services was a complex undertaking,
considering the multiple activities such as hiring, training, knowledge creation and
documentation. Wipro also had to sensitize teams in Pune and Poland to the
cultural nuances of employees being serviced in different locations. Post transition to
a live state, Wipro has operated both centers for more than two years with the same
uniform standards. It also worked to continuously improve the operational maturity
of the centers on multiple parameters such as stability, predictability, reduction in
error rates, quality management, and through integration and the further
implementation of best practices as per Wipros internal benchmarks and industry
standards.
In the last two years, Wipro has successfully consolidated the gains from the service
centers. The success of the service centers has freed up time of retained HR to focus
on more strategic activities. Overall, Credit Suisse has already achieved 70-80
percent of the targeted benefits, a significant achievement given the scope and
complexity of the engagement executed against an accelerated timeframe.

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HR OUTSOURCING (HRO) ENGAGEmENT bETWEEN CREdIT SUISSE ANd WIPRO

The Future Outlook

Having achieved an operational steady state, Credit Suisse and Wipro have
agreed to transition the centers back to Credit Suisse ownership and management
as per the BOT model. This transition will take place in a structured manner over a
six month period, concluding in the third quarter of 2011. Both Wipro and Credit
Suisse are working towards that goal to ensure a smooth transfer of knowledge,
people, and operations.
Moving forward, Credit Suisse plan to introduce additional processes and more
value added services within the shared services environment. Wipro, on the other
hand, has a proven BOT offering, especially for clients in the financial services
sector, to assist them with implementation of service centers using its transition
methodology and operations best practices.

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HR OUTSOURCING (HRO) ENGAGEmENT bETWEEN CREdIT SUISSE ANd WIPRO

About Everest Group

Everest Group is an advisor to business leaders on next generation global services
with a worldwide reputation for helping Global 1000 firms dramatically improve
their performance by optimizing their back- and middle-office business services.
With a fact-based approach driving outcomes, Everest Group counsels
organizations with complex challenges related to the use and delivery of global
services in their pursuits to balance short-term needs with long-term goals. Through
its practical consulting, original research and industry resource services, Everest
Group helps clients maximize value from delivery strategies, talent and sourcing
models, technologies and management approaches. Established in 1991, Everest
Group serves users of global services, providers of services, country organizations
and private equity firms, in six continents across all industry categories. For more
information, please visit www.everestgrp.com and www.everestresearchinstitute.com.

For more information about Everest Group, please contact:

Everest Research Institute
+1-214-451-3110
info@everestresearchinstitute.com
For more information about this topic please contact the authors:
Rajesh Ranjan, Research director, bPO Research
rajesh.ranjan@everestgrp.com
Sayan Chatterjee, Senior Research Analyst, bPO Research
sayan.chatterjee@everestgrp.com

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