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?
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
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.