Client Situation
• Reliance Industries Ltd. (RIL), had de-merged its various business lines into 4 different companies

Goals for Outsourcing
• Effective handling of large volume de-merger encompassing 85 lakh shareholders , 25 different entities like ( railways, stock exchanges , depositories etc.,) within the cost / time budgets

Processing the data of 85 lakh shareholders
• Mail intimation
• Printing
• Mail intimation
• Quality check
• Franking and posting
• Corporate action for credit
• Reconciliation of capital integrity

Pre /post merger activities / controls
• Stop physical transfers after the record date
• Reconciliation of capital integrity
• Stop marking for the legal / third party disputed cases
• Listing of special pull out cases (special custodian)
• Postal ballot arrangements for 60 lakh investors

Implementation
• Rapid project management activity spanning multiple areas / domains
• Deployment of resources within 10 days - 400 people , 2 high end servers , 10 franking machines, 10 hi speed printers
• Coordination with postal department, Indian Railways , NSDL / CDSL, BSE / NSE, security stationery printers and others like bulk goods transportation companies , large scale binders etc.,

Benefits to the Client
• De-merger of 4 legal entities encompassing 85 lakh shareholder accounts within a span of 60 days

Challenges
• Identification and deployment of de-merger SMEs, other resources within a short span of time
• Handling exceptions of high volume like:
Undelivered share certificates
Investor’s queries / clarification
Change of address requests and re-dispatch of physical share certificates
Physical Transfers lodged after the Record Date
Non-receipt of share certificates
De-merger related investor queries

Client Situation
• Reliance Industries Ltd. (RIL), had de-merged its various business lines into 4 different companies
• Legacy computing platforms- fragmented data
• Disparity in service delivery across 4 SPs
• Need to support unparalleled product complexity: ULIP, retirement, micro pension, mahila and children schemes

Goals for Outsourcing
• Aggregation of multiple folios of single customer across 4 registrars for unified DSS
• Standardization of service offerings to investors and agents
• Launch of technology based solutions for effective service delivery (Website, contact centre, M commerce etc.,)
• Improve TATs
• Re-branding to attract young investors , MNC clients and FIIs
• Strong business analytics
• Cost reduction

Scope of outsourcing
• End to end registry services for investors , distributors ( including foreign distributors)
• People / IT infrastructure support at client Front offices

Implementation
• Migrated over 8 million folios / 90 million transactions and 40 million physical records
• Deployed 1,000 + resources across India

Challenges
• Digitization of legacy data from manual , semi manual platforms ( both for data and images)
• Data cleansing and sanitization
• Recreation of retro data

Benefits to the Client
• Unified customer/distributor service
• Aggregated portfolio for investors
• Launch of x-commerce platforms
• Significant cost reduction and TAT improvement due to decentralized processing
• Easy access of investor / agent data for all key stake holders at branches
• Substantial cost reduction

Value Additions
• Enhanced services to distributors with aggregate commission statements and analytics
• Internet platform to agents / sub-agents for Transaction login , portfolio management
• Lowest time to market for all new products
• Multi lingual support
• Channel management application
• CRM application for investor and distributor complaints
• Seamless fund accounting interfaces for funds reconciliation and tracking with near 0 latency / pendency
• Interfaces for ETFs

Client Situation

On March 1st 2004, Government announced the offer to divest its ten per cent stake in ONGC through public issue. The issue size is estimated at Rs.10000 crores making it the largest public issue ever. There was an excitement and huge expectations all over the place with affluent investors like Warren Buffet investing USD 1 Billion.

On March 5th 2004, ONGC IPO was oversubscribed by two times within 10 minutes of the opening as MCS, The R&T agent chosen by the ministry prepared to manage the mega public issue.

R&T Agent, MCS failed to fathom the magnitude and ended up making wrong allotments. All stakeholders realized during 2nd week of march that MCS cannot handle this alone and they needed an expert support to successfully come out of the crisis. Government’s objective of disinvestment and realization funds by 31st March 2004 completely fades away.

Scope of outsourcing
• Reconciliation of over Rs. 15,000 crores and re processing of over 2.6 lakh applications with in 7 calendar days

Challenges
• Wrong allotments, reconciliation issues
• Investor complaints

March 14th 2004
• Top brass at the Disinvestment ministry SEBI and NDSL invites Karvy to bail them out of the chaos.

Karvy’s top management, along with 6 of their SMEs meets the SEBI/NDSL officials within 3 hours of the invitation and comes up with a crisis management plan of action within 9 hours.

Karvy’s team worked round the clock for 72 hours to clean 2.6 lakh applications, reconciles over 14.26 crore rupees and executed fresh allotments. Round the clock process by a team of 20 people involved the following:

• Reversal of the entire process with a special debit corporate action process
• Data reconciliation and cleansing with help of bank schedules
• Submission of the allotment before the deadline to SEBI

Karvy had put a freeze on bank accounts and blocked access to all investors who got ONGC shares.Karvy’s top management deployed a team of 150 people to resolve the following:

• Identify the cases where investors had already bought or transferred from their accounts in the public issue
• Initiate immediate action by directly talking to the investors, through the Lead managers and through Syndicate Members
• Restore the additional shares so credited.

Karvy’s team continued to work round the clock take advantage of public holidays and completes the whole assignment to ensure realization of funds before the FY end.

• Karvy had successfully reprocessed 2.6 lakh applications, reconciled over 14.26 crore rupees and executed fresh allotments before the initial deadline of March 31st 2004.
• The prime stakeholders (Ministry, Regulators, NDSL and ONGC management) appreciated the efforts put in by Karvy and awarded the ONGC mandate permanently to Karvy.
• MCS decided to opt out of yet another large IPO by ICICI Bank as the bank also preferred to work with Karvy.

• Idea Cellular announced their IPO during March 2007 and received 6.50 lakh applications worth Rs. 19,000 crore shares.
• BigShare Services, an R & T company based in Mumbai was initially tasked with a mandate of processing the entire IPO and the subsequent refund dispatch.
• However, BigShare did not had the expertise of handling a large IPO of that scale and in turn Idea cellular started witnessing unprecedented delays.
• At that crucial hour, Karvy emerged as a natural idea for Idea cellular. Idea Cellular had requested Karvy to help BigShare Services to complete the transfer of shares and refunds in time.
• Karvy had deployed a 14-member team to BigShare who worked round the clock for 4 days to sort out the reconciliation and to avoid any allotment related problems for shareholders.
• Karvy had successfully executed the IPO and processed the refunds within the initial target stipulated by Ideal cellular.
• BigShare officials quoted that they were glad that Karvy came into the picture to help them meet their deadline of March 2, 2007, to complete the share allocation and refund dispatch process.

Reliance Consultancy Services used to manage shareholder data processing at 2 different locations (Mogra and Chembur) with around 1500 people.

Activities involved were management of allotment money, Share transfers, Conversion of Tradeble warrants, reconciliations, etc.,

RCS used to face challenges on account of tedious manual processes, lack of automation and controls, etc., and requested Karvy to migrate the operations to Hyderabad

Karvy had deployed over 450 people from Hyderabad to Mumbai to study and re-engineer various process.

Team of 450 people from Karvy (Technology, Operations, Transition, auditors, etc., ) worked round the clock for 11 months out of these 2 facilities and streamlined the activities, reconciliations and planned the relocation of investor records.

In a span of 11 months, Karvy’s IT and operations teams were able to successfully eliminate the redundant processes, reduce manual interventions and crunch the overall processing time / number of employees required to 1/3rd of its original state. Karvy had transitioned the following:

• Air lifted the Primary Data Server
• Shifted 2 huge back up servers in 2 separate trains
• Shifted the physical records using 99 container trucks

Activities involved various project and transition management techniques with several operational and IT controls.

Benefits to the Client
• Lean processes
• Reduced costs
• Seamless migration
• Substantial scalability

Client Situation
• Incomplete documentation with inaccurate subscriber data leading to huge regulatory penalties
• Customer complaints on account of incorrect personal details
• Bill delivery rejections
• Tarnished brand image for regulatory non compliance
• Regulatory compliance with evolving directives

Goals for Outsourcing
• De-risking statutory penalties
• Reduce storage expenses for inactive Forms
• Identify defective documentation scenarios and procure documentation afresh

Scope of outsourcing
• Segregation into active and inactive
• KYC compliance check
• Data validation
• Recertification for correctness
• Scanning
• Storage

Implementation
• 6 state capitals
• Pricing – per CAF

Benefits to the Client
• Compliance score increased to 98% from earlier scenario of less than 80% thereby reduced penalties
• Substantial reduction in storage costs by getting rid of inactive base

Benefits to the Client
• Set up of temporary processing hubs at short notice of 15 days
• On boarding of staff for short period at hub at short notice of 7 days
• Process training and standardization across all states
• Migration of intra circle documents
• Vernacular Forms
• Identification of non standard documents

• De-centralized and centralized process model
• Central scanning
• Multiple vendors across states / across processes
• Low control on TAT/ barring complaints
• High dependency on core system
• High incidence of statutory penalties

Goals for Outsourcing
• Cost variabilization
• Improve TATs
• Pan India vendor consolidation
• Higher level of automation
• De-risking statutory penalties

Scope of outsourcing
• Field logistics with spot audit
• Full scrutiny and express entry
• Full data capture
• Data quality check
• Scanning
• Record management services
• Telecom Enforcement, Resource and Monitoring (TERM )compliance

Implementation
• Stop physical transfers after the record date
• Reconciliation of capital integrity
• Stop marking for the legal / third party disputed cases
• Listing of special pull out cases (special custodian)
• Postal ballot arrangements for 60 lakh investors

Implementation
• All India launch for Tata Indicom
• 9 Circle launch with 84 spoke setup
• High volumes handling : 30 Lac CAF/Month
• Pricing – Per CAF

Benefits to the Client
• Cost variabilization
• Imaging at 100% locations
• Committed processing TAT – T + 7
• Accuracy – 98%
• Processing SLAs – 98% (Non Month ends)
• Reduced dependency on core system
• FTR% at >95%
• Scalable up to 1,00,000 CAFs per day
• Gross barring <1% (industry best figures)

Challenges
• Set up of Hub and spoke at short notice of 30-45 days
• On boarding of staff at hub and spoke at short notice
• Standardizing process model across all circles to achieve >98% on statutory compliance
• Migration from existing vendors
• Managing volume spikes >100% on festival/product launch days

• Imaging facilities at 25% locations
• Issuance TAT – T + 7
• Accuracy – 90%
• Processing SLAs – 85% (Non Month ends)
• FTR% at <60%
• High dependency on core system with multiple subsystems
• Limited to 3,000 transactions per day
• In house outsourced agent based model
• Manual MIS : Sales & management dash boards

Goals for Outsourcing
• Cost variablization
• 100% scanning locations
• Improve TATs
• Higher level of automation
• Single vendor across geography/process

Scope of outsourcing
• Field logistics
• Scanning
• Full scrutiny
• Cashiering
• Data capture
• Record management

Implementation
• 3 phase implementation
• 1. Pilot branches – 8
  2. Non scanning branches : 158
  3. Balance high volume branches : 40
• Pricing – per transaction

Benefits to the Client
• Complete cost variabilization and overall cost reduction by 60%
• Reduction in the NB processing time for the application to < 1 day
• FTR of application acceptance had improved to 99% from <65% before transition
• Automated process reconciliations resulting in right sizing of the whole reconciliation team
• Uniform processing standards across all branches
• Time to market reduction of up to 90%

Challenges
• Huge set-up and maintenance costs for branch infrastructure
• Recruiting , training and retaining skilled resources
• Ensuring that the proposals received are adequately checked before they are accepted which would otherwise lead to rejections and in turn increase the turn-around times.
• Costs involved in maintaining the business applications , security and network bandwidth
• Monitoring the controls remotely

• Low control on TAT/ barring complaints
• Tracking issues
• Lead management system not upto mark
• Gross mismatch between the reports and tracking business and further issuance of Business

Goals for Outsourcing
• Cost variabilization
• Improve TATs
• Pan India vendor consolidation
• Higher level of automation
• Establishing tracking mechanism

Scope of outsourcing
• Field logistics with spot audit
• Full scrutiny and express entry
• Full data capture
• Data quality check
• Scanning

Implementation
• Stop physical transfers after the record date
• Reconciliation of capital integrity
• Stop marking for the legal / third party disputed cases
• Listing of special pull out cases (special custodian)
• Postal ballot arrangements for 60 lakh investors

Implementation
• 3 phase implementation
• Pricing – Per transaction

Challenges
• No outwarding mechanism at the Bank Branches resulting into ineffective tracking of Policy Applications
• Improper Lead Updation in the Lead Management system of the General Insurance Company
• Ensuring that the proposals received are adequately matched and checked before they are accepted which would otherwise lead to rejections and in turn increase the turn-around times.
• Costs involved in maintaining the business applications , security and network bandwidth
• Monitoring the controls remotely

Benefits to the Client
• Complete Variable based costing increased saving of upto 60%.
• Reduction in the end to end processing time for the application to < 1 day from 10 to 15 days
• Complete utilization of Karvy branch network for front office services thereby saving Capex on branch setup for 203 cities.
• Single window system for efficient and effective courier dispatch management offered by Karvy provided client the much convenient and timely processing of proposals irrespective of sourcing locations.
• FTR of application acceptance had improved to 99% from <65% before transition
• 100% coding on the day of submission at Karvy branches.
• Manpower cost saving equivalent to 37 resources for managing end-to-end process at client place.
• Uniform processing standards across all branches
• Scalability of processing up to 6,000 apps with less than a weeks’ notice

Value Additions
• Devised a new tracking system for applications from branches where there was a stamp designed which had Branch Code, No of proposals, Date and Time along with the signature of Branch Operation Executive
• Pick up person before taking the delivery used to count the applications and put the same on the stamp
• At the time of in-warding the proposals were matched with the no of the envelope
• All the applications were then in-warded in the application system used to process the applications. In case of any discrepancy the same was immediately escalated through the processing system used.
• Specially designed kit containing Do’s & Don’ts chart for the Bancassurance Partners’ branches.
• Automated Calls were broadcast to all the Bank Branches Operations Manager detailing about the New Process Note
• Reduction in the NB processing time for the application to < 1 day
• SMS Notification Facility was provided to the bank branches operations managers for all ready-for-pick-up applications.
• Automated process reconciliations resulting in right sizing of the whole recon team
• Uniform processing standards across all branches

1. Huge set-up and maintenance costs for branch infrastructure
2. Recruiting , training and retaining skilled resources
3. Ensuring that the Forms received are adequately checked before they are accepted which would otherwise lead to rejections and in turn increase the turn-around times.
4. Costs involved in maintaining the business applications , security and network bandwidth
5. Monitoring the controls remotely

1. Form acceptance
2. Scrutiny
3. Indexing
4. Data capture
5. Training and exam queue management
6. Customizable data and image uploads
7. Process and decision support dashboards
8. Straight through capture into the core system

• Complete cost variabilization and overall cost reduction by 60%
• Reduction in the end to end processing time for the application to < 1 day from 10 to 15 days
• FTR of application acceptance had improved to 99% from <65% before transition
• 100% coding on the same day
• Reduction of complete team ( about 20 members) at client place*
• Uniform processing standards across all branches
• Scalability of processing up to 10,000 applications with less than 2 weeks of notice

Alliances and intermediaries were key growth drivers in the long-term strategy of the client. In order to better manage the channel behaviour and meet the organization's objectives, the ability to pay accurate and timely commissions supported by the strong Management Information System was an important element. This was considered a critical competitive edge but reckoned as the weakest link in client's back office capabilities.

Client engages over 100,000 agents and pays average monthly commission in 2 cycles.

Availability of skilled resources to process the commission in a timely and accurate manner had been a constant challenge. Added to this, attrition rates were phenomenally high which led to increased manpower hiring , training and retention costs.

Entire processing cycle involves engagement of more than 10 multiple service providers viz, processing, cheque payment, printing, mail room management and associated tracking of service deliverables.

• The existing operations comprised of manual processes using band-aid systems which were high cost and presented serious risk
• Availability of the right application to cater to various business demands and constant changes in legal/ taxation and statutory framework
• In addition to the above , business rules often change with the market dynamics which demand frequent application changes and associated activities such as testing , deployment etc.,
• Building interfaces with disparate platforms/ systems managed by multiple vendors in the queue had been a constant challenge. This fact posed a serious security threat to the confidential / market sensitive information
• The monolithic core back office system had known issues of adaptability
• Reconciliation of payments with respect to amount funded vs bank balances was never up to date.

• Dealing with multiple payment gateways for payment of commission cheques
• Turn-Around Times of service deliverables had been a major challenge due to huge competitive pressures and high service standards adopted by the Industry
• Frequent changes of the process and frequent corrections / adjustments in the commission fee had resulted in huge dissatisfaction of sales force and agents
• Significant revenue loss on account of overpayments and commission leakages

1. Referral commission
2. Agent commission
3. R & R ( Contest payouts)
4. Printing of commission cheques
5. Re-issuance of commission / referral checks
6. Mail room management
7. Processing of direct credits to agent bank accounts
8. Bank reconciliation for payment ( Cheque / Direct credit / RTGS /NEFT)

KARVY studied the current operations processes and identified improvement areas that would deliver significant benefits to the client.

• Traditional bank cheques and commission advice statements had been replaced by integrated combo- cheques. This had reduced the process / manpower requirement of printing two separate statements / cheques and collation and huge cost saving, dispatch costs and TATs
• KARVY had developed interfaces with various banks for direct credit advices which resulted in faster payment that attracted many agents to convert to direct credit mode of payment.
• KARVY had designed online dashboards and powerful MIS systems that gave real time updates on the entire processing cycle. This had resulted in better decision making capabilities and introduction of several processes and bleeding edge sales strategies.
• Fraud detection was automated and pricing flexibility provided.
• KARVY designed the modules that included automated workflow and standard messaging and system-to-system interface for third-party application integration.

The benefits of the solution include:

• Turnaround times have been reduced from 14 days to 2 day per cycle
• It enabled the client to reduce development costs and time-to-market, while improving resource scalability and expanding the knowledge base.
• Operational cost savings: Due to the improved process capabilities, client was able to process about 95% of the total volume without human intervention. It allowed the client to reduce operational costs, improve overall process efficiency and provide enhanced customer service and satisfaction levels.
• Additional products / productivity improvement: The well-defined business rules and workflow processes reduced manual tracking and monitoring of processes.
• Legacy migration: The client was able to reduce legacy system maintenance, thereby saving costs.
• Client was able to realize substantial savings on funding costs along with significant savings in other areas such as dispatch / re-dispatch , stationery /print

• De-centralized enrolments had to be undertaken Pan India with highest levels of quality

Goals for Outsourcing
• Capacity creation for Aadhaar enrolment process in the country

Scope of outsourcing
• Physical verification of KYC documents
• Full scrutiny and express entry
• Full data capture
• Data quality check
• Scanning
• Record management services
• Telecom Enforcement, Resource and Monitoring (TERM )compliance

Implementation
• In a span of 60 days….
• All India launch at all Karvy branches and camps at Govt. allotted locations
• Training and certification of operators
• Pricing – Per successful Aadhaar Number generated
• Consolidation of data from over 1300 stations to the central data hub located in Hyderabad

Benefits to the Client
• Maximize enrolments
• Positioned as one of the top registrars in the Aadhaar ecosystem
• Revenue share from residual funds

Challenges
• Set-up of enrolment stations at short notice of 30 days
• Recruitment of certified operators at short notice
• Standardizing processes across all enrolment stations
• To achieve 100% statutory compliance
• Logistics for data movement
• Managing volume spikes >100% on account of weekends/holidays/other triggered demands

• Processing TAT – T + 15 to T+30
• Accuracy – 95%
• Processing SLAs – less than 95%
• High dependency on core system with multiple subsystems
• Limited to 10,000 Forms per day
• In house based model
• Manual MIS
• No reconciliation mechanism

Goals for Outsourcing
• Processing legacy Forms of > 60 lakh Forms in 4 months
• Variable costing
• Improve TATs
• Higher level of automation
• Handling Forms from multiple vendors/BCs

Scope of outsourcing
• Receiving physical Forms from BCs/Vendors
• In-ward of physical Forms in software
• Proper reconciliation
• Standardization of quality
• Audit & Verification check
• Accept/Rejection
• Outward processed Forms to ICICI

Implementation
• In a span of 120 days, processed the entire legacy volume of 60 lakh Applications
• Provided ICICI with a full and final reconciliation of physical vs soft copy of Applications.

Benefits to the Client
• Issuance TAT – T + 3
• Accuracy – 99% (SLA 97%)
• Processing SLAs – 100%
• Reduced dependency on core system
• Scalable up to 1,00,000 Forms per day
• Daily automated MIS
• Proper MIS to each sourcing vendor

Challenges
• Standardizing work flow model
• Physical reconciliation & processing of legacy Forms
• Handling volumes from multiple vendors/BCs simultaneously
• Temporary, quality manpower of over 200 people for a period of 4 months