tcs_consulting_case_Export-Credit-Guarantee-Corp

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Indian Exports have grown from US $126 billion in 2006-07 to US

$155 billion in 2007-08. This increase has resulted in greater exposure

to credit risks for exporters. Companies typically use export credit

insurance to mitigate risks such as buyer default, insolvency, war,

government restrictions on money transfer and political risks that

contribute to their overall business risk.

Export Credit Guarantee Corporation of India Ltd. (ECGC) is a

Government of India Enterprise, set up to provide cost-effective

insurance and trade services to the burgeoning Indian export

market. With the onset of liberalization in India, the company was

faced with a rapidly changing market and intense competitive

pressures. As a result, ECGC undertook a technology transformation

program to respond to the new business environment.

Determined to secure its leadership position, ECGC hired TCS to

redefine its IT strategy, and develop an implementation roadmap to

ensure successful transformation into a more responsive, efficient

and customer-focused organization.

Customer

Export Credit Guarantee

Corporation of India Ltd.

Industry

Insurance

Offering

Consulting

CLIENT EXPERIENCE

Export Credit Guarantee Corporation of India Ltd.

Partners with TCS to achieve Business Agility andGlobal Competitiveness


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CLIENT EXPERIENCE

TCS Solution

TCS formulated a complete IT Strategy, focusing on IT

Policies, Guidelines, Processes, Governance, Project

Management, Architecture, and Infrastructure. The

engagement was conducted in two phases.

Phase1: The Strategy Development Phase

In this phase, TCS developed an in-depth understanding of

the companys business needs and challenges by

interviewing senior business and IT management teams.

Following these discussions and series of workshops, TCS

worked with ECGCs IT team to map the As-Is IT framework.

A To-Be state was defined with an objective to improve the

companys IT structure to address the need for improved

agility, flexibility, operational efficiency, and customer

satisfaction. Then, TCS conducted a gap analysis to identify

the disparities between the existing and target IT

frameworks. Subsequently, an IT roadmap was also

developed to plan the companys migration to the target

state.

The Strategy Development phase provided the client with

strategic options for solution design in the areas of

Processes, Architecture, and Infrastructure.

Phase1 was successfully completed in 10 weeks.

Phase2: The Solution Design Phase

With the IT framework redefined, TCS developed a Target

Operating Model that consisted of a delivery plan and

methodology to help ECGC plug the gaps identified in

Phase1, and smoothly transition to the intended final state.

The target operating model addressed the following IT

components:

1. IT Processes

2. IT Architecture

3. IT Infrastructure

IT Process Transformation

TCS helped ECGC transform its IT processes to pave way for

IT Enabled business solutions. To address the gaps identified

in phase 1, a number of projects were defined, documented

and reviewed with the client, to serve as implementation

guidelines. Select projects included:

- Formulating IT governance structures and committees

- Defining the process for translating business needs into

IT projects

ECGC was established by the Government of India

to strengthen exports by providing credit risk

insurance for export of goods and services. The

company offers credit risk cover to banks and

financial institutions to enable exporters to obtainbetter facilities from them. Additional services

include factoring services and overseas

investment insurance to Indian entrepreneurs for

their overseas investments, in the form of equities

and loans in joint ventures. The organization has

grown remarkably since its inception in late

1950s, insuring exports valued at over US$ 10

Billion in 2007-08.

Business Situation

For the last decade, market globalization has led numerous

Indian enterprises to trade globally, thus increasing demand

for export credit risk insurance. Thanks to the expanding

market and the liberalization of the Insurance sector, many

Indian insurers entered this space, offering a wider portfolio

of covers to exporters. Also, more and more exporters and

banks were looking for customized covers to meet specific

business requirements which made the competitive

marketplace even more challenging for ECGC.

To maintain its leadership position, the organization had to

improve its service delivery, accelerate time-to-market with

innovative and cost effective offerings, with high-end

automated core business processes.

The current IT set-up at ECGC was incapable of meeting

these new business requirements. Due to its limited

understanding of IT processes and industry standards, the

companys IT team was spending a large amount of time

and resources on non-core activities. It was also structuredin a way that did not support ITs active involvement in

business decision making.

ECGC chose to leverage TCSs technology experience and

consulting capabilities to drive IT enabled business

transformation to meet its medium and long term business

objectives.


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CLIENT EXPERIENCE

data center plan. The recommendations were designed to

ensure 24/7 availability and eliminate a single point of failure

scenario. TCS also advised that the company moved from

the current leased line network to a service provider MPLS

VPN (Multiprotocol Label Switching to create Virtual Private

Networks ) network to cut costs, while getting highernetwork uptime.

Streamlined Project Office

To accelerate the implementation of project management

functions and practices, TCS suggested setting-up of a

centralized Project Management Office (PMO). TCS also

recommended having a dedicated vendor manager to

monitor, measure and drive agreed upon services from all

vendors with the support of well-defined Service Level

Agreements (SLAs), and regular performance monitoring.

It took less than a year to complete Phase2.

Benefits

TCSs proposed Target Operating Model addresses ECGCs

business imperatives with

- Streamlined business operations thanks to

Standardized process maps supporting core

business functions

A Service Oriented Architecture to increase IT

flexibility and meet changing business demands

Best in class technology frameworks

- Improved decision making capability enabling faster

business turnarounds

- Better managed automated solutions

- Ease of creating customized products and services as per

ECGCs customer needs

- Improved infrastructure and availability of IT systems to

business users and external customers

- Efficient IT processes leading to faster turnarounds for IT

services

- Ability to continuously provide technology based

innovative solutions to increase customer reach

- Enhanced customer satisfaction

- Improved Business IT alignment

- Improved productivity

- Establishing project management framework

- IT service management

- Establishing communication process

- Escalation and Issue management

- Establishing vendor management functions

- Introducing status and reporting process- Establishing project office

Business Aligned Enterprise Architecture

Deployment of a Service Oriented Architecture (SOA) was

essential to increase business process flexibility and agility.

With the target Enterprise Architecture defined in Phase1,

TCS helped the organization move from the existing

two-tier monolithic architecture to an n-tier service

enabled architecture. The new architecture comprised

seven loosely coupled layers: Presentation, Business Process,Business Services, Implementation, Information, Business

Intelligence and Security.

The Service Oriented architecture was based on an

innovative modular Service Delivery Model that TCS

developed for the company to handle all customer service

requests. The modular structure ensured that changes to

business processes could be made very quickly and with

minimal business impact. It was anchored on a business

process driven approach, not on a function or application

centric approach which was the characteristic of existing

systems.

TCS also defined an Architecture Governance Framework to

continuously monitor and maintain architecture

performance.

Robust and Scalable IT Infrastructure

The current IT Infrastructure required a massive upgrade to

manage existing requirements as well as future business

demands. It was characterized by inadequate andnon-intelligent storage, outdated servers, and ad-hoc

network expansion, which created multiple challenges such

as single point of failure, deteriorating network

performance, and plummeting uptime.

After defining a high-level target infrastructure and a

network and security model in the Strategy Development

phase, TCS provided a set of recommendations including

tier classification, budgetary estimates, and a schematic


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CLIENT EXPERIENCE

About Tata Consultancy Services

Tata Consultancy Services is an IT services, business

solutions and outsourcing organization that delivers

real results to global businesses, ensuring a level of

certainty no other firm can match. TCS offers a

consulting-led, integrated portfolio of IT and

IT-enabled services delivered through its unique

Global Network Delivery ModelTM recognized as the

benchmark of excellence in software development.

A part of the Tata Group, Indias largest industrial

conglomerate, TCS has over 100,000 of the world's

best trained IT consultants in 50 countries. The

company generated consolidated revenues of

US $5.7 billion for fiscal year ended 31 March 2008 andis listed on the National Stock Exchange and Bombay

Stock Exchange in India. For more information, visit us

at www.tcs.com.

Contact

For more information about TCS consulting services,

contact [email protected] or visit

www.tcs.com/consulting.

not en

All content / information present here is the exclusive pro perty of Tata Consultancy

Services Limited (TCS). The content / information contained here is correct at the timeof publishing. No material from here may be copied, modified, reproduced,

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Copyright 2009 Tata Consultancy Services Limited

About TCS Global Consulting

PracticeTCS global consulting practice is a key

component in how TCS delivers additional

value to client business requirements. Usingour industry insight, domain and technology

expertise, we partner with enterprises

worldwide to deliver integrated end-to-end IT

enabled business transformation services. By

tapping our worldwide pool of resources

onsite, offshore and nearshore our high

caliber consultants leverage solution

accelerators, international experience and

understanding of local market demands to

effectively enable enterprises to meet their

business goals.

TCS consulting services include:

- Business Consulting

- IT Consulting

- Business Solutions

ECGC feels confident that the target

system would help transform it into acustomer-centric, operationally efficient,

flexible, agile and dynamic organization,

capable of offering superior customer

service, tailor-made solutions for customers,

well-informed decision making through

standardized / automated business

processes.

V. Ramachandran, General Manager (IT),

Export Credit Guarantee Corporation of India Ltd.

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tcs_consulting_case_Export-Credit-Guarantee-Corp