1. Andy Mayer Head of European Operations Corporate and Investment Banking & Markets HSBC April 2005 Operations Offshoring The Feasibility Stage

2. Managing the Onshore Impact Selecting the right process & location Key feasibility factors Key feasibility steps Operations Offshoring

3. Open and transparent communication first Town hall style presentation on objectives and rationale behind the group’s strategy Explain the process and likely timeframes Strong line management sponsorship with common objectives Operations Offshoring - Managing the Onshore Impact

4. Process End to End process reviews Simple functions can be deceptively complex Economies of scale Lift and Shift style migrations or Re-engineering first Location Global Centres of Excellence Depth of Market related skills 24*7 Capability Operations Offshoring - Selection

5. Offshoring - Key Feasibility Factors The extent/frequency of the functions interaction with traders. The extent and style of interaction with customers Process Interaction Systems & Technology Accessibility of systems remotely. Bandwidth for system responsiveness. Suitability and available of imaging and electronic workflow solutions Process Interaction Service Levels Ability to maintain or preferably enhance service quality and measure its effectiveness. Risk Assessment Time critical factors, Data protection controls, business continuity Resourcing/Training Pool of available skilled staff offshore and process specialists onshore for training.

6. Offshoring - Key Feasibility Steps Advice to staff. Full end to end review of potential functions to be migrated. Includes full step by step procedures documentation. Discussion/Review Feasibility Study Determines functions suitable for migration, through assessing the feasibility factors of process, systems and risk Business Case Detailed cost/benefit analysis, contingency, regulatory and compliance planning & data protection. Includes timeline for implementation, training and outline SLA Infrastructure IT user requirements, system connectivity, hardware acquisition Communication Presentation to staff in both onshore and offshore locations of decisions and migration plans.