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HSBC rationalises its tech vendor list; goes big on in-house capability

HSBC's investment banking technology department has a total global headcount of around 6,500, supports 7 investment banking units

Shivani Shinde Nadhe  |  Pune 

Richard Herbert, HSBC
Richard Herbert

With becoming the core for business growth, global companies are focusing on ramping up in-house capabilities. UK's leading banking and finance firm have not only ramped up its Indian development centre but has also rationalised its vendors.

Richard Herbert, CIO, global banking and markets in an interview with Business Standard said that the bank has rationalised its vendor relationships from hundreds and is now down to 20.

"I would say we are 90 per cent in-house company when it comes to talent. We do work with a few large IT firms from Indian. I have tried to rationalise that over the last two years so that we are more focused and build a partnership with people employed by the Bank here," said Herbert.

HSBC's banking department has a total global headcount of around 6,500 and supports seven banking units; 2,500 banking technologists are based at their centre in Pune, India.

To highlight this focus on India and the work that is being done, recently held an internal conference for its teams across the world. The conference called 'GBM Does?An Enterprise Summit' saw a total participation of 135 people. While 65 were from the Pune centre, the rest were flown from across the globe.

Herbert also said that unlike several of the global bank and banks, in general, have employees working out of India, has taken a different approach. "We are changing our operating model. I do not think it's unusual for to have employees working in India, but we are changing our operating model we are not only adding more people in this part of the world but we are also changing their interface with the rest of the organisation, so that we have a much more connected organization," he added.

At present some of the operations that have a large presence out of the Pune centre include the Bank's collateral activity, India has a strong presence in the finance team, and in managing the middleware operations. "Increasingly I expect to have a large focus of market operation activity from here as well," he added.

Herbert also added that going forward, global and financial institutions may follow what is already setting-up, that is to reduce work with third-party and create in-house or captive capabilities.

"Every vendor has to make a profit, and I have to pay tax for the work that goes into them. This means that we could end up paying 100 per cent more when that same amount could invest our employees. Moreover, it's about the domain, it is about having the understanding. is about business and how you apply to it. The more people I can have in this location, I can create more career paths, and create a continuity for the business. On the way, if I lose a few that's fine. Whenever I add to that, I am diluting that opportunity," said Herbert.," said Herbert.

However, he also gives the example of how is using one of the top-five Indian IT players for its equity derivatives processing system on Sophis. "We are going through a simplification programme and we are working with one of the big five from India. Once that is done, they will maintain it. That is an example where the vendor role is more relevant for us."

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HSBC rationalises its tech vendor list; goes big on in-house capability

HSBC's investment banking technology department has a total global headcount of around 6,500, supports 7 investment banking units

HSBC's investment banking technology department has a total global headcount of around 6,500, supports 7 investment banking units With becoming the core for business growth, global companies are focusing on ramping up in-house capabilities. UK's leading banking and finance firm have not only ramped up its Indian development centre but has also rationalised its vendors.

Richard Herbert, CIO, global banking and markets in an interview with Business Standard said that the bank has rationalised its vendor relationships from hundreds and is now down to 20.

"I would say we are 90 per cent in-house company when it comes to talent. We do work with a few large IT firms from Indian. I have tried to rationalise that over the last two years so that we are more focused and build a partnership with people employed by the Bank here," said Herbert.

HSBC's banking department has a total global headcount of around 6,500 and supports seven banking units; 2,500 banking technologists are based at their centre in Pune, India.

To highlight this focus on India and the work that is being done, recently held an internal conference for its teams across the world. The conference called 'GBM Does?An Enterprise Summit' saw a total participation of 135 people. While 65 were from the Pune centre, the rest were flown from across the globe.

Herbert also said that unlike several of the global bank and banks, in general, have employees working out of India, has taken a different approach. "We are changing our operating model. I do not think it's unusual for to have employees working in India, but we are changing our operating model we are not only adding more people in this part of the world but we are also changing their interface with the rest of the organisation, so that we have a much more connected organization," he added.

At present some of the operations that have a large presence out of the Pune centre include the Bank's collateral activity, India has a strong presence in the finance team, and in managing the middleware operations. "Increasingly I expect to have a large focus of market operation activity from here as well," he added.

Herbert also added that going forward, global and financial institutions may follow what is already setting-up, that is to reduce work with third-party and create in-house or captive capabilities.

"Every vendor has to make a profit, and I have to pay tax for the work that goes into them. This means that we could end up paying 100 per cent more when that same amount could invest our employees. Moreover, it's about the domain, it is about having the understanding. is about business and how you apply to it. The more people I can have in this location, I can create more career paths, and create a continuity for the business. On the way, if I lose a few that's fine. Whenever I add to that, I am diluting that opportunity," said Herbert.," said Herbert.

However, he also gives the example of how is using one of the top-five Indian IT players for its equity derivatives processing system on Sophis. "We are going through a simplification programme and we are working with one of the big five from India. Once that is done, they will maintain it. That is an example where the vendor role is more relevant for us."

image
Business Standard
177 22

HSBC rationalises its tech vendor list; goes big on in-house capability

HSBC's investment banking technology department has a total global headcount of around 6,500, supports 7 investment banking units

With becoming the core for business growth, global companies are focusing on ramping up in-house capabilities. UK's leading banking and finance firm have not only ramped up its Indian development centre but has also rationalised its vendors.

Richard Herbert, CIO, global banking and markets in an interview with Business Standard said that the bank has rationalised its vendor relationships from hundreds and is now down to 20.

"I would say we are 90 per cent in-house company when it comes to talent. We do work with a few large IT firms from Indian. I have tried to rationalise that over the last two years so that we are more focused and build a partnership with people employed by the Bank here," said Herbert.

HSBC's banking department has a total global headcount of around 6,500 and supports seven banking units; 2,500 banking technologists are based at their centre in Pune, India.

To highlight this focus on India and the work that is being done, recently held an internal conference for its teams across the world. The conference called 'GBM Does?An Enterprise Summit' saw a total participation of 135 people. While 65 were from the Pune centre, the rest were flown from across the globe.

Herbert also said that unlike several of the global bank and banks, in general, have employees working out of India, has taken a different approach. "We are changing our operating model. I do not think it's unusual for to have employees working in India, but we are changing our operating model we are not only adding more people in this part of the world but we are also changing their interface with the rest of the organisation, so that we have a much more connected organization," he added.

At present some of the operations that have a large presence out of the Pune centre include the Bank's collateral activity, India has a strong presence in the finance team, and in managing the middleware operations. "Increasingly I expect to have a large focus of market operation activity from here as well," he added.

Herbert also added that going forward, global and financial institutions may follow what is already setting-up, that is to reduce work with third-party and create in-house or captive capabilities.

"Every vendor has to make a profit, and I have to pay tax for the work that goes into them. This means that we could end up paying 100 per cent more when that same amount could invest our employees. Moreover, it's about the domain, it is about having the understanding. is about business and how you apply to it. The more people I can have in this location, I can create more career paths, and create a continuity for the business. On the way, if I lose a few that's fine. Whenever I add to that, I am diluting that opportunity," said Herbert.," said Herbert.

However, he also gives the example of how is using one of the top-five Indian IT players for its equity derivatives processing system on Sophis. "We are going through a simplification programme and we are working with one of the big five from India. Once that is done, they will maintain it. That is an example where the vendor role is more relevant for us."

image
Business Standard
177 22

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