Project Platform Efficiencies DD PlanV1.1

8/2/2019 Project Platform Efficiencies DD PlanV1.1

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Due Diligence Plan for the provision of

Life and pension administration and IT services

Submitted to

Lloyds Banking Group

18 June, 2010


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HCL Technologies

The Provision of Life and Pension Administration and IT Services

Lloyds Banking Group

Version No. : 1.0

Date : 18 June, 2010


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1. Due Diligence Plan .............................................................................................. 31.1. Project Platform Efficiencies ADM review: ......................................................... 31.2. Project Platform Efficiencies Testing Review: ..................................................... 31.3. Third Party Contracts ........................................................................................... 31.4. HR and Rebadging .............................................................................................. 41.5. Key artifacts to be referenced during DD: ............................................................ 4

2. Due Diligence Details .......................................................................................... 52.1. Due Diligence Timelines ..................................................................................... 52.2. DD Participants from HCL.................................................................................... 52.3. DD Location ......................................................................................................... 52.4. DD Infrastructure Requirements: ......................................................................... 52.5. Application Development, Maintenance and Testing ............................................ 62.6. Third Party Contracts ........................................................................................... 72.7. HR and Rebadging .............................................................................................. 7

3. Illustrative Questions ........................................................................................... 83.1. Application Development ..................................................................................... 83.2. Application Maintenance ...................................................................................... 93.3. Testing ............................................................................................................... 103.4. Project Organization Structure, Workflows, Processes ...................................... 113.5. Third Party Contracts ......................................................................................... 113.6. HR and Rebadging ............................................................................................ 11


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1. Due Diligence Plan

HCL has divided the Due-diligence plan in the following segments:

1.1. Project Platform Efficiencies ADM review:

Key Objectives:

To understand the Application Development and Maintenance strategy, projects, processes, SLAs.

Also study the impact of integration project to help plan resourcing needs.

Work Streams:

For every application within, the HCL DD Team plans to cover the following:

Functional Understanding

Application development projects

Application maintenance and support processes

3rd Party Arrangements

Organization Structure, Workflows, Processes

1.2. Project Platform Efficiencies Testing Review:

Key Objectives:

To understand the testing process within the scope of the project

Work Streams:

For testing, the HCL DD Team plans to cover the following:

Testing process followed

Testing tools and level of automation

Resources used and required for the future

Service levels and metrics

1.3. Third Party Contracts

Key Objectives:

To understand the current 3rd party contracts arrangements to ensure a smooth transfer of them to

HCL. HCL would like to discuss and validate the following:

List of 3rd

Party Contracts in Scope

Financial and Contractual Information

Key issues


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1.4. HR and Rebadging

Key Objectives:

To understand the existing employment contracts, skill-sets, current costs, performance elements,

and any legal and regulatory issues around re-badging.

HCL would like to discuss and validate the following if applicable:

Compensation & Benefits

HR Principles, Policies & Procedures

Employment Agreements

Legal Issues and Aspects

Human Capital Data & Information

Visa Details

1.5. Key artifacts to be referenced during DD:

The documents that have been referenced to understand the existing assets are listed below:

High level technical and functional documentation

Available Process Documentation

Project Portfolio information

Available SLA information application wise

3rd party contracts

Employee Costs and Health & Welfare Benefits


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2. Due Diligence Details

The following section describes the expected time lines, the HCL participants and the expectations

from LBG across various segments.

2.1. Due Diligence Timelines

DD Start Date : 28th

June 2010

Information Gathering : 28th

June 16th

July 2010

Review and Playback : 12th 16

thJuly 2010

BAFO Preparation : 19th 30

thJuly 2010

BAFO Submission Date : 30th

July 2010

2.2. DD Participants from HCLS. No Participant Area Location

1. Mike Hogan Bid Director Need Basis

2. Lynn Phillips Human Resources Need Basis

3. Arun Albert DD Program Manager Bristol

4. Sampath Gopalakrishnan LP&I Functional Specialist Bristol

5. Vikrant Singhai Testing Bristol

6. Subramaniam Sathakambodi P Systems, TPAM Bristol

7. Sanjay Kapoor C Systems Aylesbury

8. Process / CAPSIL Expert TBD Aylesbury

2.3. DD Location

The HCL team would be split across the following location based on the availability of LBG SME

Aylesbury

Bristol

2.4. DD Infrastructure Requirements:

Meeting room with ability to connect laptops

Telephones

Access to information via email/ SharePoint (atleast for 1 participant)


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2.5. Application Development, Maintenance and Testing

Work-stream A: Functional Solution: Coverage and Roadmap Revisit

Discussion Topics

Detailed Analysis of closed books business requirements processes of P and C systems. Detailed review of functional components and modules of asset

Revisit of functional enhancement in flight and under discussion

Work stream B: Application Development

Discussion Topics:

Application integration and migration done in last 18 months and experience sharing Asset

impact analysis and implementation

Detailed analysis and review of ADM, Testing (QA & UAT) and RM processes and respective

environments.

Detailed review of Prod and DR environment

In flight projects revisit and categorization

Application Development Process

Technology-refresh initiatives in flight or under discussion.

Work-stream C : Application Support and Maintenance

Discussion topics:

Activities and task level analysis for application support and maintenance roles

Development support cycles

Location based role and resource mapping

Tools and utilities used

Historical data around support and maintenance

Current Workflow for incidence management, problem management and CR management

Shifts management, rota and hand-off procedures

Existing Service Levels and documentation

Work-stream F: Organization Structure, Workflows, Processes

Existing Structure

Roles and Responsibility Definitions

Managing interfaces with other technology groups

Monitoring & Reportingbusiness reporting, management reporting


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Work-stream G: Testing Processes

Activities within the test cycle

Internal Test Process

Location based role and resource mapping Tools and utilities used

Historical data around testing

Defect Management

Shifts management, rota and hand-off procedures

Existing Service Levels and documentation

Test Artifacts & Metrics

Automation & Performance

Tools for automation and allied interests

Understanding of Estimation for testing projects


Work-stream E: Third Party Management

Work Deliveries

Oversight and Governance arrangements

Licenses and Novation possibilities


HR policy and Rebadging

Compensation & Benefits

HR Principles, Policies & Procedures

Employment Agreements

Legal Issues and Aspects

Human Capital Data & Information

Visa Details


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3. Illustrative Questions

In this section we have put together a few sample questions across each of the work streams. The

due-diligence would have detailed list of questions on similar lines for each of the work streams.

3.1. Application Development

Functional Understanding

Objective: To understand the business landscape and roadmap given the closed book scenario to

ensure that the technology solution is in line with the business objectives.

Application Development

Objective: To study the applications and projects currently in progress and proposed

Some of the categories and few sample questions across them are illustrated below:

Category DD Questions

In flight projects

revisit and

categorization

Details of the current enhancements and projects, their current phases, %age

completion etc.

What are the current in-flight projects for each of the assets?

Please provide these key projects attributes

o What is the current lifecycle stage of the project

o Release Dates

o Budget Allocation

o Current Schedule , Effort , Cost compliance

o Identified risks ( critical resources , technology risk , business risks etc )

Activities, task

level analysis

and associated

role mapping

Revalidate the number of active projects/enhancements planned?

What are the approved projects/initiatives in pipeline?

Please provide these key project attributes based on

o Strategic importance of the project

o Priority of the project

o Budgets allocated

o Planned start / completion dates

Identified risk ( critical staff , technology risk , business risks etc )

Study of

Development,

Testing, Prod

environment

What are the various environments on which this application is deployed and what is

the underlying H/W ,S/W, OS for these environments

o Production, Staging, QA, UAT, Development environment

Numbers of servers used in production for these application.

Study of Prod and DR environment


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3.2. Application Maintenance

Objective: To identify details of the current application management practices, baselinedata, details

on resource loading etc., to understand the financial impact if any.

Category DD Questions

Technology

Overall application architecture, technology, OS etc.

Please provide the number of instances/versions of this application that are

installed and are currently being supported.

Do the applications use any open source frameworks / components?

Please specify the total number of interfaces to other applications, services or

systems.

What is the overall technical complexity of the applications

What was the peak number of concurrent users for this application? (estimate)

Peak transaction volume for the applications for a typical business day.

Please mention if any technological challenges wrt. software, technology used,

database design

What is the quality of Inline comments in the source code for application?

Study of inventory of all applications in P and C systems

Role &

Resource

Mapping

Where are the current Support FTEs operating from?

Please rate the expected learning curve for a newly augmented staff.

Validation of data provided for current employees & contractors

How do you rate the staffing for maintenance & support for this application?

Tools and

utilities used

What are the program - project management control / tracking tools deployed?

Are the following processes defined / automated?

o Configuration Management and Change Request Management

o Release Management

o Testing and Defect Tracking

o Estimation

o Risk Management

o Disaster Recovery & Back- up

Historical

data around

support and

maintenance

Details on the critical support / maintenance tickets logged in a month.

Details on the number of adhoc/unplanned requests received in a month.

Number of planned releases / enhancements in the past 12 months?

Details of the past data in terms of SLA adherence and various metrics

Current

Support and

Maintenance

Workflows

Details on the tools, processes and workflow for current incidence, problem

management, release management, etc.

Current effectiveness, issues around these systems, dependencies, feasibility to

integrate this with HCL systems etc needs to be understood in detail.


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Estimation of FTE required to carry BAU work

Study of infrastructure in development, testing, production and BC environments.

Study of various tools used in configuration management, defect tracking,

document management, testing and build and release management

Study of security requirements, processes and audit methods

Shift

managemen

t, rota and

hand-off

procedures

Understanding of current shift management and support model

Details on the current application support team, locations, support hours, roles etc

% of support resources who are techno functional team

Skill level distribution of the staff supporting each of the assets

% of FTEs shared between support, maintenance and development

Details on the existing hand over procedures

Existing

Service

Levels and

Documentati

on

The service levels, key measurements and onetime deliverables. Study of such

implementation and trend analysis of metrics

Expected and minimum service levels for each of the service levels the baseline

data availability

Implementation of metrics (service points concept) and associated SLA

parameters through tools, viz Incident, Problem management, Project

Management dashboards etc which is currently being used to track SLA

parameters.

SLA adherence data for the past 6 months

Dependencies on SLA measurement and tracking post transition phase :

Open in flight initiatives on tools implementation and customization for datagathering and reporting

Integration feasibility analysis with HCL tools like PM Smart, BMC Remedy etc.

Other than the metrics which are tracked as a part of the SLA parameters, are

there any other metrics which needs to be tracked and reported?

Root Cause analysis report on SLA , if there are any

3.3. Testing

The questions in this category would comprise of: The types of testing followed

Structure of testing organization including current offshore team and processes

Level of automation followed

Available SLAs for testing


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3.4. Project Organization Structure, Workflows, Processes

The questions in this category would comprise of:

Existing Business and Technology Organization Structure

Roles and Responsibility Definitions

Managing interfaces with other groups

How is resource management done effectively based upon resource estimations, including

team member movement / transition & training?

How is Stakeholders commitments & issues tracked to closure?


Objective: To identify the 3rd

Party assets in use and to understand the existing arrangements with

them. As per available information, 3rd

Party tools being used by LBG for application management.

Some of the questions that HCL would like to ask LBG are:

Operational Level Agreements with vendors for the tools that are being used by LBG

Governance arrangements, PMO for 3rd

party tools and applications


Objective: To identify details of the current affected employees to be rebadged and its impact if any

on the business plan HCL requires the below mentioned details for the in-scope employees:

Category HR DD Requirements

Compensation

and Benefits

Percentage/Actual amount break up of Annual Cost in terms of Base Salary, Allowances,Benefits, etc.

Benefit Loading percentage.

Policy and data on overtime, shift, and call allowances for the last two years.

Policy and data on all kinds of perquisites being extended to in-scope employees.

Details of Bonus policy, bonus cycle, actual bonus payout for the last two years,

applicable bonus, discretionary bonus, fixed bonus, etc.

Clarification on any bonus data.

Details of salary increment including last salary increment date and percentage (%)

increase made.

Details of long term incentive plans applicable for UK employees

Employer and Employee % contribution/cost for each of the benefits extended.

Policies and

Procedures

Details of Leave Policy (covering details all kinds of leaves being extended to in-scope

employees)

Details of the Severance/ Redundancy policy applicable to UK employees.

List of in-scope employees who have contractual exceptions to severance/redundancy

and notice period policy.

Details of LBG's view on handling severance/redundancy payments for the in-scopeemployees who are being transitioned to HCL.


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Employee Manual/Handbook covering details of all benefits and policies applicable to

the in-scope group.

Employment

Agreement

Employment Agreement/Employment contracts of in-scope employees.

Non -disclosure, Non-Compete, Confidentiality agreements applicable to in-scope

employees.

Employee

Representation

Details of any recognized trade unions and/or work councils operating in the Company

that cover the in-scope employees.

Contracts of Agreements with trade unions and/or work councils.

Legal

Issues/Aspects

Details of any outstanding lawsuits, litigations, regulatory investigations, legal claims

against any in-scope employee.

Human Capital

Data &

Information

Organization chart including Employee Names, Job descriptions and Vacant Positions

for the in-scope group/s.

Details of in-scope employees including Grade, Total and Relevant years of experience,employment type (exempt/non-exempt).

Details of work hour schedule for UK in-scope employees.

List of un-availed leaves for each in-scope employee.

Performance ratings of the in-scope employees for the last two years.

Documents

Project Platform Efficiencies DD PlanV1.1