LLOYDS TSB: "We are not slaves to any particular model"

One of the more prolific outsourcers, Lloyds TSB, works with multiple vendors

in India, with multiple models. Richard Stockdale, CEO of Lloyds TSB Global

Services, its program management arm, in an interview with Balaka Baruah

Aggarwal, talks about his experience as a buyer of outsourcing services.

What are the pro cesses you have outsourced and to whom? 



There is a range: Retail Telephony, General Insurance and Cheltenham &

Gloucester (mortgage related processes) to ICICI OneSource, Card Collections

service and Scottish Widows processes to IBM and some Group IT work plus some

Scottish Widows work to Xansa.

Why did you decide to go in for a hybrid model?



We are not slaves to any particular model. The bank sensibly set up a pilot

operation in Bangalore, in a pure outsource model with IBM. The subsequent ICICI

OneSource BOT gave maximum flexibility as we planned for the future. We have a

further supplier, Xansa operating in an outsource model. Essentially the bank

chooses the model to suit its perceived need.

How long did the transition of processes take and how did you handle the

transition? Could you give us an account please?

Richard Stockdale, CEO, Lloyds TSB Global Services

There have been a range of processes migrated, so it is difficult to be

specific. Typically, we would allow between nine months to one year from the

approval of a business case to migrate a process into a live state. That would

include all the preparatory work onshore and offshore, including in the latter

case, the staff recruitment and basic and process training. Then, after

migration begins the exercise of bedding down the offshored processes into

business as usual, which typically takes several more months. However, there is

no pre-ordained time-frame across all processes. Each one is unique.

What is the learning so far? How has your experience been vis-a-vis your

expectation?



The basic learning has been as we would expect it. The ability to deliver

high service levels in India is unquestionable and the standard of Advisors is

high. There is a need, as there is anywhere else, to carefully select and train

Advisors to meet customer expectations of service in an unswerving manner and to

manage that service delivery on an ongoing basis, which is what we do.

In many areas, our experience has exceeded our expectations, in some areas it

has been met and I think it accurate to say that in no areas has it been below

expectations. Vendors themselves are obviously committed to meeting SLAs and it

is important to give ongoing feedback and support in that regard.

What is your global sourcing structure? Have you offshored anywhere else?

Have you outsourced to any other vendor onshore?



Lloyds TSB Group has a very active onshore outsourcing program, across a

range of UK-based vendors and processes. This is an area where we are

particularly experienced. As far as offshoring is concerned , India has been our

only destination to date. Although, naturally we review all alternatives on an

ongoing basis, we currently have no plans outside of the Indian market.

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