Southern Water HRO – A Collaborative Approach Caroline Brown Global HRO Practice Head - TCS

1. Southern Water HRO – A Collaborative ApproachCaroline BrownGlobal HRO Practice Head - TCS

2. TCS HRO Background Jan 08’ • TCS HRO Payroll Rollout • TCS HRO Rollout Payroll for Global US Company Oct 07’ • The Nielsen Company • Commencement of Global WFA & US Payroll Oct 07’ • RFI/RFP • TCS HRO Engaged in a Number of Global RFI/RFP Operations Oct 07’ • TCS HRO Development • HRO Investment in Global Platform Development Aug 07’ • TCS HRO/Payroll Investment • TCS HRO Investment/ Aggressive Growth Jul 07’ • Diligenta • Diligenta HRO Live Offshore • TCS HRO Global Payroll • Commencement of Global • Payroll Template Development Mar 07’ • Southern Water • Southern Water HRO Live Jan 07’ Jan 07’ Jan 07’ • TUPE Transfer • Diligenta HR Employees Transferred to TCS HRO • DOW Chemical • India Payroll Live Oct 06’ • TCS HRO • TCS HRO Win Southern Water HRO Apr 06’ • HRO Payroll Rollout • TCS HRO SAP Payroll for 60,000 employees Global Payroll HRO HRO focus Top Tier Global HRO Provider

3. Strategy Strategy Strategy Strategy Strategy Strategy TCS HRO Offering Customer Service Delivery Self Service 1st Line Support Resourcing Services Compensation & Benefits Workforce Management Employee Services Talent Management Payroll Sourcing Compensation Admin Personnel Admin Leave/ Absence Learning Admin Pay Administration Screening Benefits Admin Disciplinary Admin Exit/ Retirement Content Sourcing Build to Gross Time & Attendance Selecting Health & Welfare Grievance Admin Expat/ Relocation 3rd Party Management Gross to Net Hiring Pensions Admin Long Service Awards Employee Assistance Performance Management Payroll Delivery On Boarding Orientation Flex Bens/ Other Long Term Sick Employee Services Competency Management Reconciliation Succession Planning Contractor Management Time & Attendance Workforce Planning Expenses Management Knowledge Management, Records Management and Data Administration Metrics Reporting and Analytics Third Party Vendor Management

4. Southern Water HRO Key Business Drivers Scope of Opportunity Business Drivers Lift and Shift • Reduce Delivery Costs • Develop strategies to improve • long term cost competitiveness • and flexibility. • Move towards a PROCESS-CENTRIC • model • Achieve a seamless business transformation:- • Day 1 Process efficiency and performance improvement utilizing the existing systems • Provide improved service level on a continuous basis through Business Transformation and Process Re-Engineering HR Operations Reward Recruitment Training Admin & Delivery HR Administration HR Query Handling Transform Continuous Improvement

5. Strategy Strategy Strategy Strategy Strategy Strategy Southern Water Service Delivery Scope Customer Service Delivery Self Service 1st Line Support Resourcing Services Compensation & Benefits Workforce Management Employee Services Talent Management Payroll Sourcing Compensation Admin Personnel Admin Leave/ Absence Learning Admin Pay Administration Screening Benefits Admin Exit/ Retirement Content Sourcing Build to Gross Time & Attendance Long Service Awards Selecting 3rd Party Management Gross to Net Long Term Sick Employee Assistance Hiring Appraisal Management Payroll Delivery Time & Attendance Employee Services On Boarding Orientation Reconciliation Contractor Management Expenses Management Knowledge Management, Records Management and Data Administration Metrics Reporting and Analytics Third Party Vendor Management

6. Hiring Administration Employee Files Data Management Learning Administration Appraisal Administration Organisation Management Termination Administration Southern Water HR Service Delivery Model Request Confirmation and Fulfillment Events and Inquiries Case Managementand Triage Complex Inquiriesand Domain Support Processes supported by Integrated Technology Delivery Center Onshore/Offshore Client location Onsite Service Channels & Service Centre Client Stakeholders Process Domains and Core Technology Employees Midland Trent Employees Mumbai Peterborough • SW Sites Managers Web/ Portal Reporting Retirees HR Profs • Local • Support: • Business • Partners • SpecialistCasework • Escalations • ClientInterfacing Client Systems 3rd Party Systems & Retained HR Corporate Staff Emails/ Images • Multiple Tier • Customer • Support: • Workflow • Case handlers • Data Entry • Admin Teams Analytics • Support • Technologies: • Workflow • Case Mgmt. • Document Mgmt. 3rd Parties Other Applicants Toll-free Phone/IVR Suppliers

7. Transition Time Line Oct 2006 Nov 2006 September 2006 Dec 2006 Jan 2007 Feb 2007 Oct 2007 Contract Agreed Sign Off Sign Off Go Live Sign Off Reverse Work shadowing Offshore/ Onshore Training & Testing Commencement Of Onsite Knowledge Capture Detailed Design Programme Set Up Resource Recruitment IT Architecture Stabilisation Set Up of Delivery Centres Provision of TCS Resources into SW Joint Transition Team

8. What Went Well! • Collaborative Approach - both TCS & SW worked closely together • Responsive to Southern Waters changing business needs • Move to a Process oriented environment from a more traditional transactional environment • Speed of Transition to Mumbai • Reverse Workshadowing • Weekly Operational and Issue Management Calls • First Point of Contact – Delivered from Southern Water site initially

9. Where Lessons Were Learnt! • There is no such thing as pure ‘Lift and Shift’ – processes will need some re-engineering • Early release of HR resources, made Knowledge Capture in some areas difficult • Transition Resources need, Process Re-engineering Experience and Workshop capability • Timescales for Implementation of IT Architecture were underestimated • Requirement to look at ‘End to End’ process, when dealing with issues – cannot take a blinkered approach. • Service Provider resources need to be encouraged to be accountable for their actions and understand how they impact the overall process • Where delivery is across multiple locations, regular communication is essential • Everyone needs to feel part of the same team

10. TCS HRO Case Study Water Utility Company • Fragmented HR process, lack of Internal controls and procedure adherence • High cost of HR administration • Absence of process standardization and documentation • Change Management - Roll out organization-wide HR policies. Company Overview: • Water Utility company Size and Scope of Deal: • 2,000 employees spread across UK Administrative Support • Recruitment • Learning & Development • HR Admin. • Absence • Leavers • MI & Analytics • Data Input Systems Used: • Trent Business Needs Business Solution Offered By TCS • Phased solution • “As–is” Transition • Implement Workflow Management • Integrate Technology Support • Performance Quality Management • Online Query Management System • Centralized HR administration functions from single delivery centre and Help line support from near shore • Strategic HR Analytics and Reporting Business Benefits • Focus on core competency • Centralized operations from SSC • Easy manageability – Single SLA • Reporting and Control • Detailed documentation of business processes • Reduced HR Operating Costs

11. Relationships Are Key

12. Thank You Questions ?