Assurance - Banking

CONFIDENTIAL

March 2, 2011

Assurance Services for

Banking & Financial Services Industry

TCS Assurance Capabilities

CONFIDENTIAL

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

• Direct channels are driving today’s business acquisition and servicing• Your company’s business processes and systems have a DIRECT TOUCH POINT with the customer

IT Systems should ensure seamless experience to customers and comply with regulatory

requirements

“Hello, how can I help you?”

• Compliance requirements and regulatory scrutiny are ever increasing


CONFIDENTIAL

How Often Do We Experience Such Situations

No time for UAT

We need to

focus on our

operations

(Business)

We have to

launch products

quickly in the

market

Defects in IT

systems

impact

customer

experience

Unclear and

changing

requirements (IT)

The list could go on…

Business couldn’t

do UAT so we

couldn’t Go Live

on time

We have to

reduce our IT

costs

Improve our

customer

experience

We need to

focus on our

operations

Unclear and

changing

requirements (IT)

Business couldn’t

do UAT so we

couldn’t Go Live

on time

We have to

reduce our IT

costs

Improve our

customer

experience


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

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


CONFIDENTIAL

• Pool of Highly Skilled

Professionals

• Tools Convergence

• License Rationalization

• 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

Delivering Business Value Thro’ Independent Testing

- 4 -

Verify Develop Validate

• 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

• Pockets of Excellence

• Non-standardized test

processes

• Limited test documentation

• Low Level of Automation

• Varied Tools Usage

• High Cost of Quality

Project Level TestingCentralized Testing (BU

Level)Centralized Testing

(Enterprise Level)

• Insufficient Testing

• No Formal Test Artifacts

• More time spent in UAT

• Low Production Quality

• Low Business Confidence

• High Cost Elsewhere

Development Led Testing

Evolving maturity for Quality Assurance & Testing in Banks


CONFIDENTIAL

Why Early Test Involvement is Important

Planning and

RequirementsDevelopmentDesign

User

Acceptance

Testing

TestingDeploy To

Production

Fault Origination

10% 40% 50%

Fault Discovery6% 13% 20% 20% 36% 5%

Improvement 8% 2%15%15%35%25%

Requirements

Test PlanningProduction

System

Testing

Functional

TestingDevelopment

Unit Testing

Design

Review

10X

Cost Savings $8K $25K $76K $101K$151K

50X

$252K

Cost Per Fault

Current Cost $6K $13K $363K$101K$20K

Fault Stream Analysis Savings:

$35K

Software Development Lifecycle

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

- 5 -

Assurance Services @ TCS


CONFIDENTIAL- 7 -

Assurance Services Unit within TCS

Enterprise testing arm rendering Assurance services to customers across industry verticals

ASU BPO ISIT EIS GCP

Horizontal Service Delivery

Banking/Financial Services

InsuranceEnergy, Resources

& UtilitiesGovernment Life Sciences

& Healthcare

Manufacturing Retail & Consumer Goods

Telecom, Media & Information

Services

High Technology

Travel, Transportation & Hospitality

Vertical Depth

Organizational Offerings

MA

JO

R

MA

RK

ET

S

EM

ER

GIN

G

BU

SIN

ESS

North

America

Europe

UK

EM

ER

GIN

G M

AR

KET

S APAC

Latin

America

Middle

East

Africa

Platform

BPO

SMB

TCS

FS

IT Strategy &

Governance

Application

Development

Maintenance

Engineering &

Industrial

Service

Infrastructure

Management

Business

Process

Outsourcing

Consulting

Assurance

Services

Unit


CONFIDENTIAL

Scalable

Resource

Model

TCS Drivers,

Alliances

& partnerships

40,000+ years of

independent

testing

experience

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

Strong presence in Banking (Retail

and Wholesale/Corporate

banking)and Finance Industry

(Wealth management, Asset

management and MFs, Trading etc)

Dedicated Centers of Excellence for

Non-functional testing, Academy,

Estimation, ERP & Niche Testing

Automation Lab

and R&D LabAlliances

Partnerships

Performance

Engineering LabAssurance

Academy Regulatory

Compliance CoE

Test Consultants

Test Automation

Experts

Test Managers/

Leads

Test Execution

Professionals

500+

1500+

2000+

9000+

Delivery

Capability across

geographies

Assurance Services Unit – An Overview

- 8 -


CONFIDENTIAL9

• Functional

– System Testing

– System Integration

Testing

– Regression Testing

– User Acceptance

Testing

• Test Automation

• Non Functional

– Load, Stress and

Volume Testing

Execution

• Test Environment Creation

& Management

• Data Management

• Release Management

• Configuration Management

Test Environment

Management

• Test Strategy Definition

• Test Process Consulting

• Test Centre of Excellence

Set-Up

• Test Automation Strategy

and Product Evaluation

Consulting

Our Solutions to Drive Quality

Business as Usual Predictable and Superior Software Quality

- 9 -


CONFIDENTIAL

Tools Expertise & Alliances

• Global System Integrator Solution partner

• Easy access to Customer and Technical

support

• Invested in joint Performance and Testing

labs equipped with Mercury tools

• Global System Integrator solution partner

• Rational CoE in collaboration with and support

from IBM

• 1500+ experienced professionals in one or more tool set

• Dedicated State of the art Automation lab for

developing point solutions, Automation Framework and assets

• Emerging alliances with ITKO, Compuware and Borland

Segue; 75 Others; 90

Mercury; 1000

Rational; 250

Compuware; 45

• An array of internal tools across test lifecycle

management

- 10 -


CONFIDENTIAL

TCS Value Enablers

TCS Solution

Accelerators

Automation Lab

(State of the art

Tools development

for Testing)

Alliances

(HP-Mercury, IBM)

TPI Lite

Assessment

Assurance AcademyAssurance Experience

in Testing & Automation,

Best Practices

Twiki KM

(Knowledge Management

portal and requirement)

Non Functional Test

Accelerators

PERC LAB, FASTEST,

WaNem

• Improved Test Process

• Right mix of people

• Centralized Knowledge

Management

• Faster Induction

Leverage TCS Alliance/Partnership

with Tool Vendors

•Test Process Assessment to ascertain

Maturity & Health Check of a Project

RAFT

(Automation

Framework)

ILF

(Integrated Library

Functions)

Masketeer

(Data Masking Tool)

Testify

(Test data

generator)

SceGen

(Agile automated

Test Design)

BVT

(Build Verification Test)

TCS

Automation Lab

Data Security

• Effective Test Automation

• Reduced Automation Effort

Increased UI

Coverage

Effective/ Fast

Test Data

Creation

Increased Requirement

Coverage and Productivity

Collaborative Automation

across Enterprise

•Enterprise Level Automation

•Framework & Tooling

Strategy Assurance PEG

Assurance PEG

• Standardized Test Processes

• Performance Measurement

• Metrics driven decisions (T5 & T9

Testing Metrics)

Enabling Effectiveness and Efficiency across Test Value Chain

- 11 -

Automation Lab

(State of the art

Tools development

for Testing)

Assurance PEG


CONFIDENTIAL

Testing Footprint in Banking & Financial Services

Bu

sin

ess D

om

ain

Retail/ Corporate/

Commercial Banking

Deposits

–Current, Savings Term etc.

Loans and Advances

Trade Finance

Payments/ Collections

Cards (Credit/ Debit/

Loyalty)

Third Party products(Sample list)

Cash Management

Treasury

Distribution Channels

Governance –

Risk & Compliance

Finance & Reporting

Issuing & Acquisition

Account Management &

Statements

Collections & Dispute Mgt.

Merchant Management

Clearing & Settlement

Authorization, Switching &

Routing

Proximity payments

Business Intelligence &

Analytics

Fraud Management

Fidessa

Murex

Calypso

DeaLogic

Wall Street System

Summit

Temenos T24

VisionPLUS

Flexcube

Loyalty Management

Rewards Program

Atlas

Bloomberg

Capital Markets(Equity, Derivates, Debt &

Money market)

FRONT OFFICE

Research & Analytics

Market Data

Portfolio Management

MID OFFICE

Trade & Order Management

Risk Management

P&L Accounting

BACK OFFICE

Post Trade, Pre-settlement

margining

Custody & Corporate Actions

Clearing & Settlement

Reporting & ComplianceReconciliation

Reference DataEquities, Derivatives, Forex

Fixed Income

En

d-t

o-e

nd

Testi

ng

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


CONFIDENTIAL

Engagement Models – How we can Collaborate to Drive Quality

Collaborative Model IV&V Model Test Factory

Test Planning

Test Design

Test Execution

Te

st M

an

ag

em

en

t

Test Completion

Test Planning

Test Design

Test Execution

Te

st M

an

ag

em

en

t

Test Completion

Proj 1 Proj 2 Proj 3

Test Design

Test Execution

Test Completion

Te

st M

an

ag

em

en

t

Test Planning

• Core Test Team

• Test capacity to serve multiple

concurrent projects of a large

transformation program

• Knowledge Management

• Continuous Improvements

• TCS owns test design,

execution and management

• Test planning is a shared

responsibility

• Typically a project specific

engagement

• TCS owns test execution and

supports customers in test

planning & design

• Test management is a shared

responsibility

TCS Joint Client

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

Recommended

Model for large

transformation

programs

Increased Business Value

Increased Return on Investment for Client

- 13 -


CONFIDENTIAL- 14 -

Key Differentiators

TCS Key

Differentiators

Enablers• Test Automation Lab

• Performance Test/Engineering Lab

• Process Handbooks

• Alliances with leading Tools Vendors

• Automation tools & frameworks

Specialized Teams• Niche test offerings (ATM / BASEL II /

SEPA Testing)

• Enhanced Resource flexibility with cross

trained teams

• ITIL Certified Domain Experts

UAT Expertise in Banking Domain• Large pool of 600+ UAT professionals. 300+

UAT professional for retail banking

• Banking domain expertise

• UAT accelerators

• End to End UAT ownership

Testing as a Service• On-demand / Pay-per use Service Model

• Regression bed creation & Increased

Automation

• Experience from setting up 25 Managed

Test Services / TCoE

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

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


CONFIDENTIAL

Value Proposition

- 15 -

• Improve Speed to Market by 15% - 20%

• Reduce Cost of Quality by at least 20% over

a 2 -3 year time frame

• Improved software quality:

Near 0 defect IT applications

Superior customer experience

• Assured BUSINESS READINESS of IT

Customer Experiences


CONFIDENTIAL- 17 -

Customer Experiences – A Snapshot

• $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

A Bank in

World’s 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

Another Bank

in World’s Top

5

• $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 World Leader

in Capital

Markets

• $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

A leading

Independent

Cards Issuer


CONFIDENTIAL

Background

• 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

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

Engagement Highlights

The customer is one of the world’s 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

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

Challenges

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

- 18 -


CONFIDENTIAL

Client Benefits

TCS Solution

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

Deployed TCS T-CoE framework in an onsite/offshore model to address customer’s 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 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

TCS Solution

- 19 -



CONFIDENTIAL

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)

Dollar Savings

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

Total Savings = 42420 Hours $ 848400

Parameter Year1Year2

(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 0 0 0

Post production defects trend 0 0 0

Resource ramp-up trend 52 84 134

Y-o-Y Progress

- 20 -



CONFIDENTIAL

Background

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

• 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

TCoE Established : March 2006

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

• 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.

• Minimal Test Automation led to increased time to market

• Deployment of standardised processes across applications taken over from

disparate vendors

Challenges

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

- 21 -


CONFIDENTIAL

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

• 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

TCS Solution

- 22 -



CONFIDENTIAL

Business Case

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Months

US

D

0%

20%

40%

60%

80%

100%

120%

Perc

en

tag

e

Cummulative Customer Cost Total New Cummulative Cost Total Cummulative Savings Test Effectiveness

Effectiveness increased from 70 to 95%

90% offshore leverage

Shared services extended to 3 other Bus

Core team of about 50% and Flexi Team

of 50%

Upfront productivity of 3%

8% benefit in process standardization

5% improvement on fungibility

About 20% improvement on account of

automation

- 23 -


Discussions

Documents

Assurance - Banking