Raise the Bar TRANSFORM YOUR FINANCE FUNCTION · Raise the Bar TRANSFORM YOUR FINANCE FUNCTION ... HCL’s TMEFaaS aims to transform the FINANCE Function by improving its processes

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Raise the Bar TRANSFORM YOUR FINANCE FUNCTION Get EFaaSTM for Enterprise Cost Reduction

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• IndustrySpecializationwithafocuson FINANCIAL Services

• Benchmarking yourcompaniesEnterprise Functions to Best in ClassintheIndustry

• AligningthesefunctionstoyourCompaniesoverallStrategy

• Identifying Core functions and movingcommoditizedactivitiesintoShared Services Centers

• Control & Complianceenvironment• Modernization & Standardization of yourcompaniesERPsolution

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Asignificantamountofcostsin FinancialInstitutionsarelockedupin

OperationsandBack-Officefunctions.These costsnotonlyreduceReturnonCapitalbutalso

impactyourabilitytoinvestinmoreclient-centricandrevenuegeneratingactivities,whichareessentialtomaintainyourcompany’scompetitiveposition.

EnterprisefunctionssuchasFINANCE, Procurement, Marketing, Legal and HRformamajorcomponentoftheback-officecosts.ManagingthesecostsisakeyagendaitemforBoards,CEOsandCFO’stoday.

HCLhasdevelopedabreakthroughEnterprise Function as a Service (EFaaSTM) proposition to strategicallymanagethesecostsandimprove yourcompany’sprofitability.HCL’sEFaaSTM

focuses on:

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Key Challenges with the Enterprise FINANCE function With intense scrutiny on financial performance bymultiple stakeholders including Auditors, Regulatorsand Shareholders, FINANCE is the most critical ofEnterprisefunctions.However,thereisaninconsistencyintheefficiencyofthisfunctionacrosstheindustryHCLconductedasurveyofFINANCEprofessionalsinmajorbanking, insurance& financial institutions, to identifythechallengesthattheyfaced.Someofthefindingsofthestudyinclude:• InconsistentglobalandlocalFINANCE processes• ComplexFINANCEfunctionlandscape

THERE’SMORETOYOURENTERPRISE FINANCE FUNCTION

• LackofstandardizationofGeneralLedgers

• Multiple handoffs, reconciliations and manualintervention

• Lack of analytical capabilities that hindercustomerandbusinessinsights

• Significantresourcedeploymentinthefunction

• RiskandregulatorycompliancemanagementThese challenges result in longer book closurecycles,theriskofinaccuratedataandanincreasedcostoftheFINANCEFunction.

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HCL’s EFaaSTM aims to transform the FINANCE Functionbyimprovingitsprocessesandsimplifyingthe underlying application platforms on an end-to-end basis. Using HCL’s proprietary ToscanaTM workflow platform, HCL creates and runs Utility/Shared Service Center (SSC) for its clients,which standardize FINANCE operations, digitizeinteractions, and integrate multiple reportingplatforms. By adopting stringent process control,the SSC also improves governance and increasestheaccuracyoffinancialreportingacrossFINANCE processes such as: Cost Accounting, Internal /ExternalReporting,Book-Closingandmore

HCL’s EFaaSTM is specifically tailored to addresschallengesinFinancialReporting.InmostFINANCE organizations, group consolidation requires a lot

of manual reconciliations and normalization of theoutputfrommultipledatasourcesandledgers.Thisisanexpensiveandtimeconsumingprocess,whichsometimes also leads to inaccurate internal andexternal reporting, thus reducing the time formorevalueaddedanalysis.

ThroughEFaaSTM,HCLestablishesaglobalBusinessServicesoperatingmodel,withstandardprocessesandsystemsandastrategicgovernanceframeworkthat transforms end-to-end reporting servicesfor both internal and external stakeholders of theorganization.Thissubstantiallyimprovesthequalityand timeliness of the period end ‘close’ process,and enhances control and regulatory compliancecapabilities.

HCL’s EFaaS™ for the FINANCE function

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Key Value Add:• Reducecycletimeforbookclosure•Moreaccurateregulatorycompliancereporting• AbilityforFINANCEteamtoviewtheBalanceSheetofthefirmwithdataasoft-2days• AbilitytodrilldownBalanceSheetdatabasedonRegion,LegalVehicleSector

Sample Balance-sheet dashboard for Capital Markets Firm

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Key Value Add:• Improvedreconciliationprocessonaniterativebasisinco-ordinationwithbusiness• Improvedcomplianceconfidence• Decisionmakingcapabilitybasedon: -ExposureTypeandBalanceType e.g.:direct,SFT(securityFinancialTransaction),AFS(AvailableforSale) -ExposurebyObligor -ExposurebyFinancial/RiskSystem

HCL’s Global Centers are staffed with FINANCE professionals with deep industry knowledge and acommitmenttoclientrelationships.

Sample FINANCE Dashboard

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• HelpsmanagetheFINANCEFunctiononanend-to-end,andmovesitto“best-in-class”practices

• Facilitatestheadoptionofstandardizedchart-of-accounts

• Provides timely, accurate, and value addedreporting for internalandexternalstakeholders-eliminatesmanualreconciliation

• Consolidates multiple instances of applicationanddatawarehouseplatforms

• Enhances Governance & Control to improveRegulatoryCompliance

• Business “Outcome Based” constructs whereHCL puts its “skin in the game” to ensure thesuccessofthetransformation

HCL collaborates with global strategic partnerssuchastheGlobalBig4Consultingfirms,tohelpcreatetheseutilitiesorsharedservicescentersforclients.Thesepartnershipsensure:

• Benchmarking with world-class enterprisefunctions

• Cost/benefitsevaluation

• Performance and change managementframeworks

• Stakeholder assessments and leadershipalignment

• Effectivecommunicationsstrategy

HCL’s EFaaSTM for the FINANCE function offers the following benefits:

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BENEFITSBEYONDFINANCE FUNCTIONTRANSFORMATION GAINBUSINESSAGILITY,FLEXIBILITYANDSCALABILITY

WithHCL’sEFaaS™,financial institutionsnotonlygettoexperienceP&Limpactthroughenterprisecostreductionbut alsogainBusinessAgility, Flexibility andScalabilitybymoving fromafixedcost/Captiveoperationtoautility/orSharedServiceCentermodel.

• EnterpriseCostReduction

• TechnologyCostReduction

• ReducedTotalCostofOwnership

• OperationalAgilitytoBusinessNeeds

• IntegratedITandBusinessProcesses

• Business-alignedITSystem

• Unifiedgovernancetomanagetransformation

• IncreasedBusinessFlexibility

• Functionally-alignedSLA

• IntegratedChangeManagement

• IncreasedBusinessScalability

• RapidScaleupandScaledowntoaddressdemandvariability

P&L Impact Business Agility Business Flexibility Scalability in Operation

EFaaSTM Benefits

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DueDiligence andRisk

Transition Platform Transformation

Process Consolidation

Best in ClassProcess

Big 4 Consulting PartnerHCL

Due diligence and risk assessment includesdevelopingprocess maps,theco-governancemodel,andanintegratedIT-BPOroadmap

Transition includesrebadgingandorganizationchangemanagement

Process consolidation includesfunctionalalignment,adjustingtheresource and locationmix,andsharedservicesutilitycreation

Platform transformation includescreationofacommondatamodel,dataandplatformconsolidation,andnewplatformimplementationandanalytics

BestinClassProcessesincludesanend-statefunctionwhichisbenchmarkedtothebestintheindustry

5STEPSTOELEVATEDENTERPRISEFUNCTIONS

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RISINGABOVECONVENTIONALBUSINESSMODELSEFaaSTM: Key Differentiators

KEY

ATT

RIB

UTE

SVA

LUE

DEL

IVER

ED

• Integratingallprocesses and ITsystemsfora function

• End to End Infra,BPO&ApplicationServices

• FunctionallyAlignedSLAs

• SingleViewoftheFunction

• PrivateUtilityforLargeEnterprises

• PublicUtilityforSmall&MediumEnterprises

• HybridSharedservicewithPublic&PrivateUtility

• LowinitialInvestment

• Economiesofscale

• SpecialPurposeVehicles

• JVModel

• Joint Ownerships

• SeamlessTransformation

• RiskMitigation

• Co-Financing

• UpfrontinvestmentofGuaranteed Savingsby HCL

• Transaction based&Hybrid(Fixed+variable)pricing

• LowTotalCostofOwnership

• PredictableITSpend

Integrated Enterprise Function Services

Shared Services/ Utility Creation

Flexible Engagement Models

Innovative Commercial Construct

Innovative Commercial Construct

• Big4Consultingpartnerintheengagementtocreatesolidgovernancemodelandframeworks

• Best-in-ClassFINANCEPractices

• RobustGovernance&DeliveryModels

Best in Class Partnership

Best in Class Partnership

HCL’sEFaaSTM is a timelyresponsetotheneedsof

FinancialServicesfirmslookingtoreducethecostoftheirFINANCE

function.Byfocusingonre-engineeringtheFINANCEProcesses,standardizingtheunderlyingApplicationplatforms,andcreatingSharedServiceCenters(SSCs),HCL’sEFaaSTMsolution

providesanintegratedapproachto transformingtheFINANCE Functionsforitsclients

To know more visitwww.hcltech.com/efaas

Contact us [email protected]