Assurance Services for

Banking & Financial Services Industry

CONFIDENTIAL
March 2, 2011

Banking Business is Undergoing a Paradigm Shift

Most of us went to branch to

transact
Customers had little direct touch
point with your IT systems

Hello, how can I help you?

Direct channels are driving

todays business acquisition
and servicing
Your companys business
processes and systems have a
DIRECT TOUCH POINT with the
customer
Compliance requirements
and regulatory scrutiny are
ever increasing

IT Systems should ensure seamless experience to customers and comply with

regulatory
TCS Assurance Capabilities
CONFIDENTIAL
requirements

How Often Do We Experience Such Situations

We have to
launch products
quickly in the
market

No time for UAT

Defects in IT
systems
impact
customer
experience

We
We need
need to
to
focus
on
our
focus on our
operations
operations
(Business)

Business couldnt
couldnt
Business
do UAT
UAT so
so we
we
do
couldnt
Go
Live
couldnt Go Live
on time
time
on

Unclear and
and
Unclear
changing
changing
requirements
(IT)
requirements (IT)

Improve our
our
Improve
customer
customer
experience
experience

We have
have to
to
We
reduce
our
IT
reduce our IT
costs
costs

The list could go on

TCS Assurance Capabilities

CONFIDENTIAL

Quality Imperatives

Ensure BUSINESS READINESS of your IT systems

Provide SEAMLESS CUSTOMER EXPERIENCE through DEFECT FREE IT Systems
Enable BUSINESS USERS optimize involvement in SDLC activities
OPTIMISE Cost of Quality by:

Adopting a defect prevention approach

Deploy standardized, proven test processes
Leverage test automation for non-linear productivity gains
Consolidate and centralize Quality Assurance & Testing to gain ECONOMIES OF SCALE
& SCOPE

TCS Assurance Capabilities

Centralized, Independent Testing of your
- 3 -IT Systems can help you achieve these

CONFIDENTIAL

Delivering Business Value Thro Independent Testing

Verify

Develop

Development Led Testing

Insufficient Testing
No Formal Test Artifacts
More time spent in UAT
Low Production Quality
Low Business Confidence
High Cost Elsewhere

Ensure independent test team

Early involvement of testing
Move towards defect prevention and not defect
correction approach
Standardize testing across projects ONE COMMON
WAY OF TESTING to ensure GOOD QUALITY
Define roadmap to centralize Quality Assurance &
Testing activities
Drive centralization and consolidation to harvest
benefits

Validate

Centralized Testing (BU

Level)

Project Level Testing

Standardized Test Process and

Methodology
Predictable Quality of Software
ensuring Business as Usual
Higher Levels of Automation
Reduced Speed to Market
Optimal Utilization of Resources
Centralized governance
Significant reduction in Cost of
Quality

Pockets of Excellence
Non-standardized test
processes
Limited test documentation
Low Level of Automation
Varied Tools Usage
High Cost of Quality

Centralized Testing
(Enterprise Level)

Pool of Highly Skilled

Professionals
Tools Convergence
License Rationalization

Evolving maturity for Quality Assurance & Testing in Banks

-4-

TCS Assurance Capabilities

CONFIDENTIAL

Why Early Test Involvement is Important

Software Development Lifecycle
Planning and
Requirements

Design

Development

40%

50%

10%

User
Acceptance
Testing

Testing

Deploy To
Production

Fault Origination

Fault Discovery

Improvement

6%

13%

20%

20%

36%

5%

8%

25%

35%

15%

15%

2%

Requirements
Test Planning

Design
Review

Functional
Testing

Development
Unit Testing

System
Testing

Cost Per Fault

Current Cost
Cost Savings

$6K
$8K

$13K

$20K

$101K

$25K

$35K

$76K

Production

10X

50X

$363K

$252K

$151K

$101K

Fault Stream Analysis Savings:

Source Software Engineering Institute Carnegie Mellon University ; Handbook CMU/SEI-96-HB-002;
-5-

TCS Assurance Capabilities

CONFIDENTIAL

Assurance Services @ TCS

Assurance Services Unit within TCS

BPO

ASU

ISIT

EIS

GCP

Government

Life Sciences
& Healthcare

Europe

Banking/
Financial
Services

Insurance

Energy, Resources
& Utilities

EMERGING MARKETS

UK

APAC

SMB
Manufacturing

Retail &
Consumer Goods

Telecom, Media
& Information
Services

High
Technology

Travel,
Transportation
& Hospitality

Vertical Depth

Latin
America
Middle
East
Africa

IT Strategy &
Governance

Platform
BPO

BUSINESS

North
America

TCS
FS

EMERGING

MAJOR MARKETS

Horizontal Service Delivery

Organizational Offerings

Application
Development
Maintenance

Engineering &
Industrial
Service

Infrastructure
Management

Business
Process
Outsourcing

Consulting

Assurance
Services
Unit

Enterprise testing arm rendering Assurance services to customers across industry verticals
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TCS Assurance Capabilities

CONFIDENTIAL

Assurance Services Unit An Overview

Test Consultants
500+
1500+

Test Managers/
Leads
Test Automation
Experts

2000+
9000+

Test Execution
Professionals

2000+ Completed engagements

200+ Active customers
28+ Matured Testing Center of
Excellence Engagements
10000+ Certified Test Professionals
(CBAQA, CBATE, ISTQB)
3000+ HP certified professionals
4000+ Testing professionals in BFS

Scalable
Resource
Model

Delivery
Capability across
geographies

40,000+ years of
independent
testing
experience

TCS Drivers,
Alliances
& partnerships

Strong presence in Banking (Retail

and Wholesale/Corporate
banking)and Finance Industry
(Wealth management, Asset
management and MFs, Trading etc)

Assurance
Academy

Performance
Engineering Lab
Regulatory
Compliance CoE

Automation Lab
and R&D Lab

Alliances

Partnerships

Dedicated Centers of Excellence for

Non-functional testing, Academy,
Estimation, ERP & Niche Testing
-8-

TCS Assurance Capabilities

CONFIDENTIAL

Our Solutions to Drive Quality

Consulting

Test Strategy Definition

Test Process Consulting

Test Centre of Excellence
Set-Up
Test Automation Strategy
and Product Evaluation

Test Environment
Management

Test Environment Creation

& Management
Data Management
Release Management
Configuration Management

Business as Usual

Execution
Functional
System Testing
System Integration
Testing
Regression Testing
User Acceptance
Testing
Test Automation
Non Functional
Load, Stress and
Volume Testing

Predictable and Superior Software Quality

-9-

TCS Assurance Capabilities

9
CONFIDENTIAL

Tools Expertise & Alliances

Global System Integrator Solution partner

Global System Integrator solution partner

Easy access to Customer and Technical

support

Rational CoE in collaboration with and support

from IBM

Invested in joint Performance and Testing

labs equipped with Mercury tools

1500+ experienced professionals in one or more tool set

Compuware; 45

Dedicated State of the art Automation lab for

developing point solutions, Automation Framework and assets

Segue; 75 Others; 90

Emerging alliances with ITKO, Compuware and Borland

Rational; 250

Mercury; 1000

An array of internal tools across test lifecycle

management

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TCS Assurance Capabilities

CONFIDENTIAL

TCS Value Enablers

Enterprise Level Automation
Framework & Tooling
Strategy
Improved Test Process
Right mix of people

Assurance PEG

Automation Lab
(State of the art
Tools development
for Testing)

Data Security

Non Functional Test

Accelerators

Assurance Academy
Assurance Experience
in Testing & Automation,
Best Practices

Effective Test Automation

Reduced Automation Effort

Standardized Test Processes

Performance Measurement
Metrics driven decisions (T5 & T9
Testing Metrics)

RAFT
(Automation
Framework)

Increased UI
Coverage

BVT
(Build Verification Test)

Masketeer
(Data Masking Tool)

PERC LAB, FASTEST,

WaNem

TCS Solution
Accelerators

TCS
Automation Lab
Alliances
(HP-Mercury, IBM)

Twiki KM
(Knowledge Management
portal and requirement)

Testify
(Test data
generator)

ILF
(Integrated Library
Functions)

TPI Lite
Assessment

SceGen
(Agile automated
Test Design)
Effective/ Fast
Test Data
Creation

Leverage TCS Alliance/Partnership

with Tool Vendors
Centralized Knowledge
Management
Faster Induction

Assurance PEG

Collaborative Automation
across Enterprise

Increased Requirement
Coverage and Productivity

Test Process Assessment to ascertain

Maturity & Health Check of a Project

Enabling Effectiveness and Efficiency across Test Value Chain

- 11 -

TCS Assurance Capabilities

CONFIDENTIAL

Retail/ Corporate/
Commercial Banking

Cards (Credit/ Debit/

Loyalty)

Deposits
Current, Savings Term etc.

Issuing & Acquisition

Loans and Advances

Trade Finance
Payments/ Collections
Cash Management
Treasury

Account Management &

Statements
Collections & Dispute Mgt.
Merchant Management
Clearing & Settlement
Authorization, Switching &
Routing
Proximity payments

Distribution Channels

Business Intelligence &

Analytics

Governance
Risk & Compliance

Fraud Management

Finance & Reporting

Loyalty Management

Rewards Program

Capital Markets
(Equity, Derivates, Debt &
Money market)

Third Party products

(Sample list)

FRONT OFFICE
Research & Analytics
Market Data
Portfolio Management

Fidessa

MID OFFICE

Calypso

Trade & Order Management

Risk Management
P&L Accounting
BACK OFFICE

DeaLogic
Wall Street System

Post Trade, Pre-settlement

margining

Temenos T24

Custody & Corporate Actions

Clearing & Settlement
Reporting & Compliance
Reconciliation
Reference Data
Equities, Derivatives, Forex
Fixed Income

Murex

Summit

VisionPLUS

End-to-end Testing

Business Domain

Testing Footprint in Banking & Financial Services

Flexcube
Atlas
Bloomberg

They trust TCS to ensure DEFECT FREE, GOOD QUALITY IT SYSTEMS

TCS Assurance Capabilities

CONFIDENTIAL

Engagement Models How we can Collaborate to Drive Quality

TCS offers its customers a choice of models and unparalleled flexibility to engage with for QA Services

Collaborative Model

IV&V Model

Test Planning

Test Factory
Proj 1

Test Planning

Proj 2

Proj 3

Test Planning

TCS owns test execution and

supports customers in test
planning & design
Test management is a shared
responsibility

TCS

Joint

Test Execution

Test Completion
TCS owns test design,
execution and management
Test planning is a shared
responsibility
Typically a project specific
engagement

Test Design

Test Execution

Test Completion

Test Management

Test Completion

Test Design

Test Management

Test Execution

Test Management

Test Design

Core Test Team

Test capacity to serve multiple
concurrent projects of a large
transformation program
Knowledge Management
Continuous Improvements

Recommended
Model for large
transformation
programs

Client

Increased Return on Investment for Client

Increased Business Value
- 13 -

TCS Assurance Capabilities

CONFIDENTIAL

Key Differentiators

Enablers

Test Automation Lab

Performance Test/Engineering Lab
Process Handbooks
Alliances with leading Tools Vendors
Automation tools & frameworks

Independent Verification & Validation

TCS Process and technology assets
Harmony and automation assets to
enhance the re-use of test scenarios and
test artifacts
Robust Governance and Metrics Model

Specialized Teams

TCS Key
Differentiators

Niche test offerings (ATM / BASEL II /

SEPA Testing)
Enhanced Resource flexibility with cross
trained teams
ITIL Certified Domain Experts

UAT Expertise in Banking Domain

Testing as a Service

Large pool of 600+ UAT professionals. 300+

UAT professional for retail banking
Banking domain expertise
UAT accelerators
End to End UAT ownership

On-demand / Pay-per use Service Model

Regression bed creation & Increased
Automation
Experience from setting up 25 Managed
Test Services / TCoE

TCS offers high-quality Test solutions by combining its expertise in Banking and Testing domains
- 14 -

TCS Assurance Capabilities

CONFIDENTIAL

Value Proposition

Improved software quality:

Near 0 defect IT applications
Superior customer experience
Assured BUSINESS READINESS of IT

Improve Speed to Market by 15% - 20%

Reduce Cost of Quality by at least 20% over

a 2 -3 year time frame

- 15 -

TCS Assurance Capabilities

CONFIDENTIAL

Customer Experiences

Customer Experiences A Snapshot

A Bank in
Worlds Top
5

$8.8M+ savings through various initiatives

98% to 100% of defects identified by test team
Zero schedule slippage till date
10%+ test effort reduction through deployment of in-house point solutions

Another Bank
in Worlds Top
5

$1M+ savings through test automation

Eliminated UAT resulting in lower time to market and enabling business to focus
on core operations
Zero defects identified in UAT and after Go Live

A World Leader
in Capital
Markets

$0.6M+ annual savings through process changes and automation in test

environment management
Zero post production defects
15% productivity improvement through reusability of test cases and by
deployment of TCS tools
70% Regression test cycle reduction through automation

A leading
Independent
Cards Issuer

$4M+ savings through improved quality of testing and deployment of superior test
processes
50% reduction in UAT defects
13% productivity gains through test automation
3% productivity gain through deployment of in-house tools

- 17 -

TCS Assurance Capabilities

CONFIDENTIAL

Customer Experience 1: Test CoE for a large US based Bank

Background

Engagement Highlights

The customer is one of the worlds largest US based bank. They are also among the
largest issuer of Visa and MasterCard in the world with more than 70 million
customers in 18 countries.
TCS is in involved in end-to-end testing encompassing includes testing of home
grown Mainframe & Internet applications and First data resource applications across
Lines of Businesses.
Testing teams are spread across 4 locations geographically, 3 in USA and 1 in India.
Bank follows a quarterly release cycle

TCS currently has UAT team of 50

80% offshore leverage
65% of regression test suite automated
75% of test cycle time reduction
Established 24 X 5 model to support
testing engagements
Technology stack: Mainframe, J2E, CICS,
Vsam, DB2, COBOL, Adabas, Oracle,
Domino, SQL Plus and customer proprietary
software, Rational Robot

Challenges

Internet applications were moved from old architecture to new architecture, dispute
resolutions system moved from mainframes to java based system.

Extended UAT testing durations

Migration of test scripts from QA Run to RFT

Significant manual intervention in testing activities affecting resource productivity

Non-availability of test data from production environment

Slow and unproductive testing due to absence of test environment

Poor resource productivity

- 18 -

Test tools: Rational Test Manager (TM),

Rational Manual Tester (RMT), Rational
Functional Tester (RFT),
Rational Clear Quest (CQ), Rational Clear
Case (CC)
TCoE Established: August 2005 and
ongoing

TCS Assurance Capabilities

CONFIDENTIAL

Customer Experience 1: Test CoE for a large US based Bank

TCS Solution
Deployed TCS T-CoE framework in an onsite/offshore model to address customers pain areas and enabling them to achieve their
objectives
Developed point solutions to automate manual activities and thereby reducing manual intervention
Test data manufactured using Rational RFT
TCS plays a major role in UAT testing & reduced UAT duration

TCS Solution

TCS and customer worked on setting up of Test environment to carry out testing in production like environment
Automation used for test data conditioning and regression testing
UAT test cases developed by TCS and reviewed by customer SMEs

Client Benefits
Total cycle time reduction of 42420 hours due to test automation
Customer UAT team has been eliminated
100% test effectiveness established
Zero UAT defects and zero Post production defects since the commencement of the project
100% schedule adherence from the past 6 quarters
Developed In-house test tools which
a) Saved 1400 hours by automating manual validation of transactions
b) Automates activities of 150 functionalities of First data resources applications
c) Captures screen shot when error occurs during unattended automated testing

- 19 -

TCS Assurance Capabilities

CONFIDENTIAL

Customer Experience 1: Test CoE for a large US based Bank

Automation benefits

Application

No. of Test
Scripts

*Manual Time Taken

(HH:MM:SS)

*Automation Script
Time Taken
(HH:MM:SS)

*Time Savings
(HH:MM:SS)

Mainframe

305

8479:31:30

568:30:43

7911:00:47

158220

Internet

735

11400:15:15

2464:44:08

8935:31:07

178700

FDR

120

26742:59:45

1168:27:58

25574:31:47

511480

Dollar
Savings

Total Savings = 42420 Hours

$ 848400

Y-o-Y Progress

Year1

Year2
(cumulative)

Year3
(cumulative)

No. of Functionalities automated

410

740

790

% of test cases automated

10%

22%

28%

Percentage of off-shoring

35%

60%

80%

UAT defects trend

Post production defects trend

52

84

134

Parameter

Resource ramp-up trend

- 20 -

TCS Assurance Capabilities

CONFIDENTIAL

Customer Experience 2: Test CoE for a Leading FS and Publishing Client

Background

Engagement Highlights

The customer is a member of a global Financial Services group and provides

mortgage products as part of an expansive portfolio: Banking, Insurance,
Asset management, Credit cards etc. It also covers businesses like Auto
Lending, Real Estate Lending, Student Loans
TCS is IT Test partner to the customer and setup Test Centre of Excellence
offering shared services with End to End testing for their Web , Mainframe
and Client server systems across Business Units

Project details
200 applications in scope.
Successfully carried out Knowledge Acquisition
in 6 weeks.
Automation pilot carried out on 14 Web
applications
Compatibility test lab setup at offshore for
testing applications on IE 5.0, 6.0, 7.0 web
browsers and Windows XP \ 2000 OSes

Challenges
The customer was incurring high maintenance cost due to involvement of
external contractors
Testing activities were resource intensive at onsite and unavailability of
resources trained in Performance Testing was a major hindrance
Knowledge Transition from multiple existing vendors for the applications in
scope.

Dedicated team of 37 Test Automation

resources & 4 Performance testing resources
Test estimation and Capacity Planning tools
developed by TCS to improve test efficiency
Technology stack: Delphi, Java/J2EE, VB .NET,
COBOL, VSAM, CICS, Oracle/SQL Server, ETL
(Data Junction), ASP, HTML, Mainframe, Web
sphere
Test tools: HP Quality Centre, HP QTP, HP Load
Runner, HP Win Runner

Minimal Test Automation led to increased time to market

Deployment of standardised processes across applications taken over from
disparate vendors

- 21 -

TCoE Established : March 2006

TCS Assurance Capabilities

CONFIDENTIAL

Customer Experience 2: Test CoE for a Leading FS and Publishing Client

TCS Solution
TCS deployed Test center of Excellence framework to consolidate all testing activities in a shared services model
Carry out Knowledge Transfer (KT) with TCS methodology, develop re-usable knowledge repository and make KT
team part of T-CoE core team
Test Process Assessment carried out by TCS Assurance Services Practice Consultant
Introducing Automation in a phased manner with customer specific Automation frameworks to reduce Time to
Market
Developed QC metrics dash boards to facilitate reporting mechanism to customer
Client Benefits
100% on time delivery
Over 95% defect free deliverables
80% of regression test suite automated
Up to 97% reduction in test execution time due to Automation for certain applications

- 22 -

TCS Assurance Capabilities

CONFIDENTIAL

Customer Experience 2: Test CoE for a Leading FS and Publishing Client

Business Case
Effectiveness increased from 70 to 95%
90% offshore leverage

14000000

120%

Shared services extended to 3 other Bus

Core team of about 50% and Flexi Team
of 50%

12000000

100%

Upfront productivity of 3%
8% benefit in process standardization
5% improvement on fungibility

80%

USD

8000000
60%
6000000

About 20% improvement on account of

automation

Percentage

10000000

40%
4000000

20%

2000000

0%
1

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Months

Cummulative Customer Cost

Total New Cummulative Cost

- 23 -

Total Cummulative Savings

Test Effectiveness

TCS Assurance Capabilities

CONFIDENTIAL

Discussions