Case Study

Future state operating model helps financial services major identify US$20 million in savings

  • Facebook
  • Twitter
  • Linkedin
  • Email

Client: A US$30 billion global leader in long-term savings, insurance, banking, and investment services

Industry: Financial services

Business need: The retirement fund business had a high total annual service cost of $43 million despite helping only 75,000 members. The client also suffered from the perception that it was a fund "administrator" and not the trusted "advisor" it wished to be seen as

Genpact solution:

  • Employed a "customized methodology" to create a future state operating model
  • Used an "outside-in" Lean approach to identify the needs of B2B clients along with the needs of their end-customer; streamlined and reengineered processes based on those findings
  • Created a future state service model that leveraged the expertise Genpact had acquired while running global service and administration operations for scores of Fortune 500 enterprises
  • Did a bottom-up estimate of the future state operations model cost to gauge the go-forward spend

Business impact:

  • Service model design helped to win support for a program to cut fund administration expenses by 45%
  • Future state model-design methodology replicated in another client business line

Business challenge

The client, a $30 billion global financial services provider, had struggled to roll out a host of major strategic initiatives in recent years. Each effort followed its own methods and ignored consequences and dependencies on others. That left the client slow or unable to execute, which led to many initiatives being shelved due to budget or scheduling overruns.

Problems ran particularly deep in the company's employer-based retirement-investment management business. The business's $43 million annual spend was high in relation to the 75,000 retirement fund enrollees the company serviced. Then there was the issue of perception. Employers that retained the client's fund management services saw it as more of an "administrator" than a trusted "advisor." To remedy these problems, the client needed a service model that could simultaneously improve perception and decrease operating costs. The model also had to be readily adaptable to the client's other businesses to ensure enterprise-wide continuity and adoption.

Take a copy for yourself

Download PDF

Genpact solution

Our approach to service model design focused on future state readiness, rather than on current state improvement. Working with the client, our business process reengineering team developed the model using the following six-step approach:

  1. Define the customer's needs
  2. Define the service principle
  3. Create a service catalogue
  4. Create an operating model
  5. Create a future state cost model and
  6. Finalize a plan for executing the strategy

Initially, the emphasis was on identifying customer needs "outside-in." This meant addressing the needs of the customer's customer (the employer offering the fund) and then the needs of the customer (the employees to whom those employers were offering fund access). Next, we looked at how process stakeholders across the client's enterprise had to reorient their philosophy and approach to cater to the employers that had hired them to manage retirement funds for their employees.

Business impact

During the two months that Genpact spent on Future State modeling, it created a design that would run the fund at 45% lower cost, and come to save $20 million annually within two years of the program being fully implemented. This future state modeling effort helped the client execute its new product and new marketing strategies and increased the market share and profitability of the employer-based retirement investment business.

Finally, the impression this and other subsequent successes made led the client's Strategy & Transformation (S&T) head to become a strong enterprise-wide advocate of Genpact's services. That advocacy was instrumental in Genpact later winning a $5 million consulting engagement. The client also made Genpact a preferred partner for all transformation work.

For more information, contact: and visit,