About the client
The Renaissance Capital Banking Corporation provides banking services in Russia under the trade name Renaissance Credit. Today Renaissance Credit operates in 61 regions in Russia and has over 4.5 million customers. A leader in consumer lending, it is one of the hundred largest Russian banks.
History of cooperation
Partnership between Renaissance Capital and Jet Infosystems began in 2007 when, during a busy sales season, Renaissance Credit decided to enhance the dependability of its IT system by having Jet Infosystems assume responsibility for hardware, software and database maintenance, remote administration jobs, and onsite troubleshooting as needed.
After the global financial crisis, Renaissance Credit experienced a return to robust growth that put new demands on its IT infrastructure.
Andrey Ezrokhi, Vice-President, IT department manager at Renaissance Credit: “Our dynamic growth requires the bank to have not only a larger IT infrastructure but also a fundamentally new level of IT services availability. After a careful risk and cost assessment we decided to gradually outsource many of IT administration and maintenance tasks. We chose Jet Infosystems, an old and trustworthy partner, as our contractor.”
Renaissance Credit’s growth demanded that it have a larger IT department. It is worth noting that the bank’s IT infrastructure was fairly heterogeneous. It included solutions from Oracle, HP, IBM, Fijitsu, EMC and other vendors, each requiring special expertise. Needless to say, it was more convenient for the bank to hire an outside contractor that could provide the necessary personnel at any time than to continue to expand its own IT department.
Any financial institution needs sustainability as much as it needs growth. An in-house IT department could hardly strike a balance in this situation, as in the long run overexpansion might not be worth the investment. Renaissance Credit opted to switch its IT department to strategic issues and outsource routine IT tasks to Jet Infosystems.
Jet Infosystems’ Service Center had already developed clear-cut procedures for hardware and software support. By outsourcing maintenance of some systems to the integrator, Renaissance Credit sought maximum availability from its IT services, since any downtime in banking might lead to major financial losses and deal a serious blow to customer loyalty.
Outsourcing project: Preparation and implementation
In 2010, Renaissance Credit outsourced the IT infrastructure responsible for its lending operations and data backup system to Jet Infosystems.
Jet Infosystems’ Service Center has a clear-cut, time-tested strategy for initiating outsourcing arrangements. The first stage involves a full-scale review of outsourced systems by service engineers and other experts. With Renaissance Credit, several bottlenecks were identified and subsequently dealt with in cooperation with the client. In addition, Jet Infosystems experts used the results of the review to develop a plan for fast system recovery in case of problems.
Renaissance Credit’s lending operations infrastructure and the backup system were then connected to Jet’s centralized system, so that all subsystems could be monitored and incidents responded to quickly while still meeting business logic requirements. Jet’s Service Center engineers provide remote administration on a 24/7/365 basis.
The outsourcing of IT systems was based on best world practices. The contract included a realistic SLA prepared by Jet Infosystems after the review.
The project in numbers:
1: number of bank staff supervising entire contract
2: months required to set up monitoring system for prompt incident detection
24: hours a day for which support is provided, without holidays
25: number of staff simultaneously engaged in transfer of IT infrastructure to outsourcing
70: average number of system modifications per month made by Jet Infosystems to the bank’s IT documentation
Over 400: number of hardware units supported by the integrator
Under the terms of the SLA currently guaranteed by Jet Infosystems, a single system downtime period may not exceed 4 hours, and overall monthly downtime may not exceed 8 hours. The Service center handles over 500 maintenance requests a month and deals promptly with dozens of incidents. Thanks to scheduled maintenance, clear policies, and experienced staff, no incident has yet disrupted business.
“Outsourcing is meant to guarantee trouble-free functioning of the entire infrastructure supporting certain business operations (lending in this case), rather than just a few subsystems or servers. In this project we took advantage of our extensive experience, as well as the best IT administration and maintenance practices employed by modern banks. Mutual trust and excellent cooperation between both teams was a major success factor.” – Andrey Geshel, director of Jet Infosystems’ Service Center.
“Our primary goal in outsourcing much of our IT infrastructure was to allow our own personnel to focus on policy issues. Hiring additional full-time staff is costly, and outsourcing thus represents a logical step in our business development. It saves time and money, since many non-core tasks are now handled by the contractor.” – Andrey Ezrokhi.