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The paradigm shift

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Three core areas of the financial services industry were fundamentally changed by the global financial crisis of 2008. Firstly, the Cost-to-income Ratio (CIR) for most financial companies continues to be higher than the industry benchmark, creating a need for structural adjustments to global operations and IT models to drive cost reduction strategies. Secondly, customer expectations have increased, as customers demand a “know me” experience, something which requires continuous innovation in customer experience management financial solutions for faster time-to-relationship. And thirdly, new, stringent regulatory and compliance guidelines are forcing companies to alter their behaviour. Judiciously adopting new age technologies and investing in continuous innovation is the only route to differentiation and sustainable competitive advantage.

HCL-office-image-1Why HCL Technologies?

HCL offers a unique and evolved financial IT services portfolio to help financial companies stay ahead. The global IT services firm works with 40 of the 69 F500 financial services companies and the top two retail banks across each geography. HCL’s IT solutions for financial services rationalise and converge IT and operations across regions and business divisions, to optimise cost and bring agility, with renewed focus on regulatory compliance and customer centricity. Its financial services technology consulting can also help financial companies transform their business processes.

HCL drives success through five key areas within financial services:

  • Growing through innovative approaches

HCL’s clients — from Fortune 500 corporations right through to regional financial services companies that are a lifeline for their local communities — partner with it to discover innovative ways to adapt to shifting regulations, achieve continuous simplification of IT and operations, improve their customer experience and gain access to new products and markets.

  • Leveraging the eco-system

Co-innovation is key for technology: both parties should work together to identify end-user insights and develop ideas for a joint go-to-market. HCL undertakes co-development with partners: best-in-class products and systems integration capabilities are developed with the ambition to reduce risk and accelerate time to market. HCL also co-creates thought leadership, engaging analysts, advisors, and influencers to create business value from IT.

  • HCL-office-image-2Nurturing the value chain

HCL’s business-aligned IT offers seamless integration of business processes, applications and infrastructure, to fully serve customers. HCL’s cost-structure transformation unlocks capital from best-in-class Run The Business (RTB) processes and reinvests the savings into a transformational agenda for customers. Front-office transformation should also be added to the mix: HCL Helps banks and financial services companies address the evolving needs of the connected-customer community.

  • Expanding the business model

HCL’s joint ventures and special-purpose vehicles deliver financial value beyond traditional finance and accounting outsourcing benchmarks. Convenient models such as Day 1 Committed Cost Savings and Gain share models mean pricing is constructed to suit the customer. Customers also choose HCL for its collaborative sourcing, customer-need-based commercial structuring, benchmarked predictable SLAs, continuous reportage, and process innovation.

  • A Valuable Partner

Traditional finance and accounting outsourcing models are beginning to disintegrate in the “new normal”. CIOs and vendor management offices now seek partners who can assist them with financial services technology consulting, and financial services software and strategies that help reduce supplier fragmentation, align with business objectives, leverage outcome-based models, and seek innovation and value addition beyond the contract. This model also provides global service delivery and delivery excellence, along with simplified engagement governance.

HCL-office-image-3Getting down to business

Below those higher level benefits, on the ground there are five key actions HCL takes with financial services organisations to deliver a unique value proposition:

  1. Streamlining operations:HCL helps clients achieve greater balance by enabling savings in ‘Run-the-Bank’ activities to be channelled into ‘Change-the-Bank’ initiatives. These can include front-to-back integration (Vertical Systems Integration), Creation of Shared Services and Utilities through proprietary frameworks, such as ALT ASM™ for application maintenance utility, and Enterprise Functions as a Service (EFaaS™) for shared services, and reducing total cost of ownership through carve outs and asset monetisation.
  2. Engaging customers: HCL helps transform customer interaction touch points and processes through a focused Customer Experience Managementvalue proposition for financial services companies, which enables seamless integration across distribution channels. This helps to derive actionable business insights to chart a customer’s journey through up-sell/cross-sell opportunities and industrialised digital marketing.
  3. Innovating to stay ahead of competition: In today’s business economy, efficiency and innovation are big competitive advantages, enabling higher margins and wider play for product prices. HCL helps clients innovate while leveraging technology to deliver business impact through Front-end transformationPlatform-led transformation,and Data and Analytics led- transformation. A lot of these initiatives are brought to life in HCL’s client-specific Co-Innovation Labs as well as at HCL’s celebrated grassroots level value creation initiative – Value Portal.
  4. Managing risk: Effective data management and process discipline are the first steps toward risk control, monitoring and compliance. HCL enables this through a centralised risk governance framework. HCL helps leading financial services firms across the globe comply with the changing regulations, efficiently manage data and establish an overarching governance and risk framework through a dedicated Risk and Compliance management practice.
  5. Partnerships:HCL unlocks value and synergies for customers through multiple alliance models backed by decades of strategic partnership experience with the top Global 500 firms. These alliance models have in-built variable pricing structures and can help rationalise a bank’s balance sheets to meet regulatory and end-client requirements.


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BAE Systems eyes more growth in 2021, confident on long-term



BAE Systems eyes more growth in 2021, confident on long-term 1

By Sarah Young

LONDON (Reuters) – British defence company BAE Systems forecast another year of growth in 2021, helped by Germany’s recent order for Typhoon jets and strong demand in its Electronic Systems unit, and was confident about its longer term outlook.

Defence has so far been one of the few sectors largely unaffected by the coronavirus pandemic, with governments sticking to military and security commitments, and in some cases raising them.

BAE, which builds combat ships, submarines and fighter jets, said that underlying earnings per share would rise by between 3% and 5% in 2021.

Two big acquisitions it made last year in the United States, its biggest market, would boost its higher-margin Electronic Systems unit, which provides flight controls, electronic warfare and surveillance capabilities, it said.

Further in the future, BAE Systems is confident of more Typhoon orders and extra work in Britain, its second biggest market.

Chief executive Charles Woodburn said he expected additional orders from Germany for some Tornado replacements and said there were other European opportunities to go for, believed to include Switzerland and Finland.

“The outlook for Typhoon today is frankly the best I’ve seen it since I’ve been CEO of the business,” he told reporters on Thursday. He took on the top job in 2017.

BAE also expects to benefit from the UK’s biggest military spending increase since the Cold War, announced last November by the Prime Minister who named-checked BAE’s Tempest project.

“I mean obviously that again is very good news for one of our very important flagship long term programmes,” Woodburn said.

Tempest is a British-led project to build a new fighter jet alongside partner nations Italy and Sweden, which BAE hopes will eventually replace Typhoon at its production facilities.

Shares in BAE traded up 1% to 501.8 pence in early trading. The stock has lost 22% of its value over the last 12 months despite its strong performance during the pandemic.

For last year, BAE posted underlying earnings per share of 46.8 pence, a 2% rise on last year, and beating a consensus forecast of 43.7 pence.

Disruption at its factories due to COVID-19 was shortlived and strong growth elsewhere offset declines in sales to commercial aviation customers impacted by the pandemic.

In a year when many companies were left cash-strapped by COVID-19 and axed their dividends, BAE announced a dividend of 23.7 pence for 2020, higher than the 23.2 pence it paid out in respect of 2019.

(Reporting by Sarah Young; Editing by James Davey and Elaine Hardcastle)

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Daimler truck unit to focus on CO2-neutral technology



Daimler truck unit to focus on CO2-neutral technology 2

BERLIN (Reuters) – German luxury carmaker Daimler said on Wednesday that its plan to spin off Daimler Trucks will allow the world’s largest truck and bus maker to become more profitable and focus more on developing technologies to cut carbon emissions.

The spin-off plan, announced earlier this month, should make the unit more agile, profitable and able to develop CO2-neutral drive technologies for trucks and buses, Daimler said in a statement.

Daimler said the truck business had seen a recovery in the fourth quarter, especially in North America and Europe, selling 121,000 units, almost double that of the second quarter, when sales were hit by the coronavirus pandemic.

For 2021, Daimler Trucks forecasts revenue to be significantly above the prior-year level and is aiming for a significant increase in adjusted return on sales to 6-7%, up from 2% in 2020.

(Reporting by Emma Thomasson; Editing by Caroline Copley)

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Outsourcer Serco resumes dividend, raises 2021 outlook on NHS boost



Outsourcer Serco resumes dividend, raises 2021 outlook on NHS boost 3

(Reuters) – Serco Group Plc reinstated a dividend and raised its 2021 forecasts on Thursday, after the British outsourcer posted a 20% jump in annual revenue, bolstered by its services to the country’s COVID-19 test and trace programme and U.S. acquisitions.

Revenue is now expected to be about 4.2 billion pounds ($5.95 billion) for this year, while underlying trading profit is forecast to be around 175 million pounds, the company said, roughly 10 million pounds higher than its forecast in December.

Serco announced a shareholder payout of 1.4 pence for last year, after suspending them in 2014 as part of a restructuring drive to overcome a string of contract failures and profit warnings that ramped up debt and hurt its reputation.

Chief Executive Officer Rupert Soames said that one of the key factors in deciding to restart paying a dividend was that “any concerns we had about liquidity have proved groundless,” adding that the company has re-entered the debt market and has been cash positive.

Sales in 2020 rose to 3.88 billion pounds from 3.25 billion pounds in the 12 months ended Dec. 31, while underlying trading profit rose 36% to 163.1 million pounds.

($1 = 0.7064 pounds)

(Reporting by Pushkala Aripaka in Bengaluru; Editing by Rashmi Aich)

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