Corporate Newsletter Edition II

Edition II NEWSLETTER FINANCIAL SERVICES May, 2015INSIDE 2 3-4 5-9 10 11THISISSUE A Word from Unravelling Making the Sourcing to Imarticus the Managing the Venture Case for Placement: A Recommends: Director Capital Boom Online Case Study Good Reads Education

A WORD Dear Reader, FROM OUR 2014-15 was a Rubicon moment for Imarticus Learning as we set out to strengthen our product and regional portfolio as wellMANAGING as our corporate relationships. Looking back, we have achieved more than we aimed for. Our revenues have doubled, both on DIRECTOR the back of a thriving retail business, which saw a 120% increase in our student base, as well as our Corporate Training business which saw us build mutually beneficial relationships with many of you. I thank you for continuing to believe in us, as well as our exceptionally talented team of over 100 professionals who make it possible. Human capital will only get you so far. This is where venture capital comes in to ignite and sustain startups with a pipe dream. You only have to scan the headlines of any newspaper to see that venture capital is exploding in India whether it is Tiger Global Management’s $85 million dollar investment in Delhivery, the logistics company or the mushrooming of e- commerce entrepreneurs and venture capital firms. But it takes more than just a few deals to re-create Silicon Valley and I explore the key cultural trends that are driving this renewed confidence in Venture Capital. The next notch on our goal post is Online Education and in this issue, Amit Ratanpal tackles the growing space of Online Education and e-learning. Globally, e-learning is a $56.2 billion business and that figure is expected to grow exponentially to $107 billion by 2015. With good reason: e-Learning offers cost savings, flexibility and repeatability in training and is less disruptive to corporate culture than classroom training. In this issue, we explore the learning options you can now add to your arsenal to train your employees. We are, of course, excited about the launch of our first online program on Capital Markets in June, 2015, with many more in the pipeline. Apart from Training, Imarticus also provides a range of Corporate Solutions designed to assist firms in meeting its skillset requirements. A case study showcases how we put in place the Sourcing to Placement model, a pioneering step in the professional education space, to source, train and onboard relationship managers at a leading Indian commercial bank. We are very excited about what 2015-2016 will entail and, as always, I look forward to hearing from you and hosting you at our offices in Mumbai, Bangalore and Chennai. Please do get in touch with us at [email protected] for any requirements or suggestions to serve you better. Regards Nikhil Barshikar Founder & Managing Director

After constantly being piped against China and VC always losing, it’s nice to be ahead of them for a Scoreboard change. Latest figures report that India has outpaced China in the number of deals struck by India: 69 venture capital (VC) funds in the first quarter of China: 66 2015. 69 vs. 66 is small, but we haven’t had muchUNRAVELLING to write home about in a while. THE VENTURE CAPITAL We still lag behind in value, but raising over a billion dollars in three BOOM consecutive quarters is no small feat —it’s more than a 200% gain over the previous year. Nikhil Barshikar As I write this, the Sensex crashed 723 points on the back of sustained FII outflows, lackluster industrial production numbers, worries about a delayed monsoon, and an underperforming and straitjacketed government. This is not due to Incredible India. So how has this come about? Is it hype or is our newfound love for start-ups here to stay? One big movement we have seen is the reach for scale. E-commerce firms are no longer the niche players catering to your disposable income. They want the share of your wallet that you spend on groceries (Bigbasket.com) and basic furniture (Urbanladder, Fabfurnish). That doesn’t mean niche players don’t exist but they need to ensure that the market is big enough and the value proposition, solid.“ CREATING AN Much of the success of Silicon Valley has been attributed to its ECOSYSTEM ecosystem, a culture that fosters innovation. It’s like a little village THAT FOSTERS where those who create, those who manage, and those who fund the ”INNOVATION creative process live together in a community focused solely on innovation. While we are yet to find our own little haven, some characteristics of that ecosystem have undoubtedly crept in. What are these characteristics? THE PERMISSION TO FAIL: DID YOU KNOW? The first and most important one is the permission to fail. The natural state of the Since 2010, start up is to die yet death is not looked down upon and failure is not discouraged. Today a SnapDeal number of Indian start-ups have failed. E- commerce websites shut daily, opening up changed its business again in six months time using a new avatar, better and stronger using their prior model 3 times to experience to build a stronger firm. become the retail behemoth it is today. RISK TAKING AND FOCUS ON GROWTH: Pegging the Indian business has for most part always cared Bottom line about the bottom line. Firms have repeatedly mentality: forgone growth in sales for better margins but this FLIPKART changed when Flipkart realized the only way an E- commerce logistics company would ever get big Pumping was to pump money in and gain value-conscious Money In! customers and sales through deep discounting.

Valuations have a big role to play in this as well. Between 1997 Contd.and 2008, India was ripe for private equity growth capital andfirms invested in companies on the basis of profitability UNRAVELLINGmultiples that would ensure an exit. VC firms care about scale THE VENTUREand the next round and the inevitable IPO that will make CAPITAL BOOMmillionaires. The multiples in vogue now are revenue multiplesand making losses just means you’re willing to do what it takesto be the last one standing.MONEY:Earlier entrepreneurs were poor and the salaries they offeredwere poorer. Today’s news reported that Delhivery has justraised close to $85 million in a new round of funding led byventure capital firm Tiger Global Management Llc. They broughton board former FedEx Corp. executive Suraju Dutta and Bainand Co.’s Sandeep Barasia as managing directors. Working for astart up doesn’t mean foregoing your salary and owning a startup doesn’t mean you can pay peanuts; money buys talent.Consequently MBA students from the best schools are making abeeline for ecommerce. Average One in every nine students from the 2013-15 Startup batch across 11 of India's top B-schools will Salary: join an e-commerce firm or startup after they16-20 Lacs graduate as compared to just one in 19 students in the 2012-14 batch. Salaries offered by startups have increased two fold in “ THE MULTIPLES the last couple of years, with average salaries IN VOGUE NOW in startups ranging from 16-20 lacs. ARE REVENUE MULTIPLES ANDNETWORKING VS. ‘CONTACT’: MAKING LOSSESThe era of pre-existing connections is coming to an end and JUST MEANSrightly so. There is no old boy school network here; there’s just a YOU’RE WILLING‘I have an idea’ network. Have something interesting to say? Well TO DO WHAT ITthen you just have to find the right person who wants to hear it TAKES TO BEand, hopefully, pay you some money for it. Networks like Venture THE LAST ONENursery, Mumbai Angels and the India Angels Network foster ”STANDING.conversation and have been created by venture capital firms,entrepreneurs, dealmakers and founders to meet a growing need.Today’s India, be it Mumbai or Bangalore, is teeming with VCfirms from all over the world that are willing to bring insubstantial capital. All you need a great idea and the capacity toexecute!

GROWTH IN THE ONLINE EDUCATION MARKET$51.5 With technological barriers reducing and MAKING THE priorities shifting away from traditional CASE FORBillion classroom training, online education or ONLINE eLearning has become an accepted EDUCATION (2016) training medium across the world. There seems to be universal agreement that the Amit Ratanpal Growth Rate: worldwide E-Learning market will show fast and significant growth over the next Founder and Managing 7.9% three years. Director – BlinC (2012-2016) Zenobia Sethna Global L&D Manager – ImarticuseLearning Market LearningThe worldwide market for E-Learning is growing exponentiallyfrom $35.6 billion in 2011 to an estimated $51.5 billion in 2016at a five-year CAGR of around 7.9%1.While the US and Europe dominate the eLearning consumptionlandscape currently (at 70%), it is Asia-Pacific which is thefastest growing market with eLearning revenues expected togrow at an annual rate of 20%2.Closer home, the eLearning industry in India was valued at $3.06 “THE WORLDWIDEbillion (Rs. 18.41 trillion) in 2010-20113. Increasing Internet MARKET FOR E-penetration, low-cost existing coverage and rising demand are LEARNING ISexpected to help develop this market in the near future. Estimates GROWINGsuggest that the Indian market is likely to grow at a CAGR of EXPONENTIALLY17.4% for the period 2013-183 as it transforms itself into a FROM $35.6knowledge economy. BILLION IN 2011 TO ANCorporate The Corporate-training market, among the ESTIMATED $51.5Training: most cyclical within the education industry, ”BILLION IN 2016$ 200 Bln is a $200 billion a year industry, of which $56.2 billion is attributed to eLearning4. a Year Since 1995, the percentage of US corporations using eLearning has grown from 4% to 77% in 20114.We are already seeing a drastic shift in learning delivery in thecorporate training market. While roughly 45%5 of all corporatetraining is still conducted using instructor led classroom training,we can see a drastic increase in the incorporation of eLearning inits various forms into the corporate training calendar.

The business case for eLearning gets stronger in direct proportion to the number of employees to be trained. Contd. Source: Trainingmag.comMAKING THE REASONS FOR GROWTH CASE FOR General L&D budget constraints appear to be the main drivers of the ONLINE shift towards using eLearning. However, eLearning is not merely an attractive proposition during an economic downturn. It is also an EDUCATION efficient and cost-effective solution when employees—especially those in organizations with a geographically dispersed workforce—“EFFICIENT AND need to be brought up-to-speed quickly on relevant knowledge and COST-EFFECTIVE skills. When used right, eLearning can used to drive competitive SOLUTION WHEN advantage, increase revenues and capitalize on new marketGEOGRAPHICALLY opportunities. DISPERSED Self-paced eLearning allows learners to assimilate content at their WORKFORCE NEEDS TO BE own speed — often 20% to 50% faster than in a classroom. BROUGHT UP TO Elearning also offers the benefits of flexibility (24/7 learning) and is ”SPEED . less disruptive to normal operations of a company than traditional classroom trainings that block many hours of employee’s time at a stretch. ROI Watch ELearning also ensures consistency and repeatability in training delivered, thereby ensuring your learning objectives for your $1 Spent on trainees and the resultant outcomes are more eLearning likely to be met. According to a report released by IBM, companies who utilize e-Learning tools and strategies have the potential to boost $30 worth of productivity by up to 50%. For every $1 that productivity the company spends, it's estimated that they can receive $30 worth of productivity6. Finally, we have shifts in demographics which impacts the way training is delivered. The work force is now seeing the integration of technologically savvy Generation Y or Millennials; who by 2025, will make up 75% of the global workforce4. To cater to this target audience (with Baby Boomers fast catching up – Boomers are the second highest users of the Internet7), we see a rise in demand for interactive eLearning – be it games, simulations, videos etc. Other drivers of growth for e-learning in India include the large base of English language speakers as well as the acute shortage of brick- and-mortar educational institutions for higher education, which are largely responsible for the massive uptake in online learning through MOOCs (Massive Open Online Course) internationally.

Contd. ONLINE EDUCATION 2.0 Online training today has moved beyond traditional, self-pacedMAKING THE eLearning modules known as web based learning (WBTs) that CASE FOR focused more on learner “seat time” – the time spent by the learner ONLINE to read through the WBT. Today, seat time matters very little and instead the focus is on proficiency based learning that delivers EDUCATION performance on the job. Online education today encompasses not only the traditional WBT model, but also includes newer learning paradigms such as Flipped Class Model. Due to changing demographics, we see a dramatic rise in demand for video-based learning, gamification, simulations, mobile learning, and social or collaborative learning. FLIPPED CLASS MODEL: Educators increasingly look to the Flipped Class Model to deliver learning that is effective and cost-efficient. The Flipped Class Model essentially reverses the traditional classroom setup and redefines seat time. Knowledge is imparted as homework while class time is utilized for application of knowledge learnt. Learners view short video lectures or have access to lecture content at home before they arrive in class; while class time is used for discussions, exercises and projects. The results, as tested on a batch of high school students, can be quite astonishing!“ BY 2025, LEARNING NUGGETS: One size does not fitTECHNOLOGICALLY ELearning is not “One size fits all” – Adult SAVVY learners need to be put in the driver’s seat and all! control what they learn and how they learn. GENERATION Y Accordingly, trainings need to have WILL MAKE UP personalized, competency-based learning paths that give the learner much needed flexibility. 75% OF THE Shorter attention spans also mean learning is GLOBAL compressed into bite-sized nuggets of shorter duration for easier consumption. ”WORKFORCE. GAME BASED LEARNING: Game-based training solutions have become popular in organizations on both a stand-alone basis and as part of a blended learning strategy. It is particularly useful to equip staff with knowledge and skills related to functions such as human resources management, marketing, customer relationship, etc.

VIDEO BASED LEARNING: 4500+ Video With broadband availability no Contd. Lessons on longer a constraint, videos are anKhan Academy excellent way to impart learning in a MAKING THE more dynamic fashion. Studies have CASE FOR shown that video-based learning can ONLINE be a more effective medium than text EDUCATION to enhance learner satisfaction and motivation during the learning process6.BUSINESS SIMULATIONS:Working professionals need learning that is immediate,relevant, and contextual. Business simulations fill this gap byfocusing more on application of knowledge. Simulations arecomplex training interventions that simulate, or mock up, realbusiness scenarios or issues to promote strategic thinking,decision making, and problem solving. For instance, a role-playsales encounter with customers is the perfect training groundfor your sales executives before they pitch to real clients.A MIX OF ONLINE AND CLASSROOM TRAININGThe Best of There is no doubt that online learning does Both not always replace traditional classroom training setups. But it is an excellent way to Worlds complement your classroom training –this is where blended learning comes in.Blended learning, also called Hybrid learning, mixes emerging “THERE IS ALSOtechnologies with classroom or instructor-led training based onwhat’s most appropriate for particular content. THE REALIZATION THAT ONLINEFor example, a WBT can be used as a precursor to classroomtraining for familiarization with subject matter, and also as a LEARNING DOESrefresher many months after the classroom training. A leadership NOT ALWAYScourse might start with a self-paced eLearning module on REPLACEleadership basics with some instructor-led virtual classroom TRADITIONALsessions to discuss concepts, followed by a two-day classroomsession to practice leadership skill scenarios and get feedback. ”CLASSROOMONLINE EDUCATION FOR THE FINANCIAL SERVICES SECTOR TRAINING SETUPS.Since the arrival of e-learning in the mid-1990s, the majority ofFinancial Services organizations have implemented some sort of e-learning solution although the range of what this encompassesvaries widely. Many have simply implemented point solutionswhile others have rolled out e-learning to multiple areas of theorganization.

The training requirements in the financial services sector are Contd.particularly gruelling. Organizations must typically deal withgeographically dispersed staff and rapidly changing knowledge MAKING THErequirements as well as heavy regulatory and legal compliance CASE FORobligations. ONLINE EDUCATIONThe current speed of change means that employees need to betrained constantly in order for companies to avoid the dangersof being out-thought and out-maneuvered by competitors. When Online learning, particularly as a stand-aloneOnline is learning strategy, works best when the training need is to impart knowledge on processes or Best? standards or to disseminate information widely and quickly.AML/KYC, Legal Compliance and Regulations training are prime “ THE CURRENTcandidates for WBT-based eLearning in the Financial Servicessector. Process-driven curriculum such as that of a Trade Life SPEED OF CHANGECycle would benefit from more complex interventions such as MEANS THATSimulations. EMPLOYEES NEEDOn the other hand, some trainings are not suited for eLearning TO BE TRAINEDand will require human intervention – for example, Soft Skills CONSTANTLY INtraining or those requiring live demonstrations or group ORDER FORinteraction. COMPANIES TOIt is therefore vital that we evaluate the training need and the AVOID BEING OUT-target audience before zeroing in on the medium of training THOUGHT ANDdelivery. An imperative question one needs to ask is, OUT-MANEUVERED “Which is the correct mode of training to promote an effective solution for a specific training requirement?” ”BY COMPETITORS.Knowing your available options and analyzing suitablesolutions for a learning need will help in delivering cost-effective, goal-oriented and skill-enhancing learning solutions.SOURCES:1. Docebo report, 2014 2. Sh!ft Learning 3. Docebo report, 2014 4. Shift Learning 5. Trainingmag.com 6. eLearningindustry.com 7. Deloitte MillennialSurvey, 2014 8. Choi and Johnson, 2007; Shyu, 2000

Sourcing to Placement: A Case Study BUSINESS The Business Need: CASE: A leading retail bank wanted to hire skilled resources as Relationship Managers across India in a sustainable and cost-effective manner, andEARLY 2014 was looking for partners who will take ownership in sourcing, training and onboarding fresh and experienced post-graduates. THE Job Ready Model JOURNEY BEGINS: SOURCE PRE- TRAIN SELECT HIREJUNE, 2014 SELECT THE PARTNERSHIP BEGINS The Relationship Manager Program was launched in July, 2014 with a pilot batch of 65 candidates across Mumbai, Chennai & Bangalore. CURRICULUM The program was a 2-month course that trained candidates on Retail Banking, bank-specific processes and products, and Soft & Sales Skills SOURCING CHANNELS: • RETAIL: Targeting freshers and experienced candidates • CAMPUS: Targeting freshers Students cleared 99% Students successfully placed as relationship 100% NISM Mutual Funds & managers at the bank Depositories exam In light of the remarkable success of the first batch, we immediately initiated sourcing for the second and third batch, which went live in November’14 and February’15 respectively, resulting in 200+ candidates successfully being sourced and placed in the bank. A NEW CAMPUS BATCHES THE JOURNEY CONTINUES:CHAPTER After the success of the first 2 retail MAY, 2015:NOV, 2014 batches, the bank reiterated their confidence in us with the additional Sourcing for New Programs responsibility of initiating the same on Retail Banking Sales and program at 3 select colleges. Trade FinanceSUMMARY: Sourced till date: Trained till date: Placed till date: 5000+ 500+ 450+ candidates candidates candidates

Imarticus Recommends: Good Reads THE LION WAKES: A MODERN HISTORY OF HSBC David Kynaston and Richard Roberts Acclaimed historians Richard Roberts and David Kynaston chronicle HSBC’s humble origins, its struggles as well as its successes. Meticulously researched and generously illustrated, this is a note-worthy read for anyone interested in global financial history.MORE MONEY THAN GOD:HEDGE FUNDS AND THE MAKING OF A NEW ELITESebastian MallabyDo hedge funds really make more money systematically? Do they need to beregulated? Find answers in financial writer Sebastian Mallaby’s new book aswell as insights into key players like Soros and Druckenmiller. This book tellsthe inside story of the hedge funds, from their origins to their role in thefinancial crisis of 2007-09, offering the clearest, most readable and reasoneddiscussions of the efficient-market theory and Soros' reflexivity. HEAVEN'S BANKERS: INSIDE THE HIDDEN WORLD OF ISLAMIC FINANCE Harris Irfan In this groundbreaking and globetrotting exploration, Harris Irfan, one of the world’s leading Islamic finance bankers, debunks the myths of Islamic banking, analyzes its greatest deals and looks to the future of a system that has reprioritized the very nature of money itself.INVEST WITH THE FED: MAXIMIZING PORTFOLIOPERFORMANCE BY FOLLOWING FEDERAL RESERVE POLICYRobert R. Johnson, Gerald R. Jensen, Luis Garcia-FeijooInvest with the Fed demystifies Federal Reserve policy, shows how differentinvestments are impacted by Fed policies, and provides a research-basedportfolio strategy for investors to consider Fed policies in their investmentstrategies and thereby accurately forecast security market performance. BECOMING STEVE JOBS: THE EVOLUTION OF A RECKLESS UPSTART INTO A VISIONARY LEADER Rick Tetzeli How did a young man so reckless and arrogant that he was exiled from the company he founded become the most visionary business leader of our time? If reading Isaacson’s official bio left you wanting more, this is the book to read. An excellent exposé on the growth and evolution of Steve Jobs, his triumphs, his failings, his heart, and his vision.

CORPORATE OFFERINGS AGILE HIRING Ready Placements at No Cost Key clients include majority of the large Investment Banks and Financial Services firms in relevant domainsSOURCING TO PLACEMENT2-3 month programs targeted towards onboarding specifictrained resources in large numbersKey clients include Deutsche Bank, eClerx, Goldman Sachs, HSBC, Polaris,HDFC Bank among others TEMPING 6-9 month resource staffing in Investment Banking Operations Key clients include Goldman Sachs and Morgan StanleyCORPORATE TRAINING2-10 day programs targeted towards employee skill developmenttrained resources in large numbersKey clients include BNP Paribas, Deutsche Bank, CLSA, Northern Trust,HSBC BENEFITS TO YOUSCALED & TRAINED RESOURCES JUST IN TIMEThe collaboration between Our solutions enable clients toImarticus Learning and our clients hire skilled resources just inhas created a highly skilled pool ofover 2000 job ready candidates time with their business needs.who have an in-depth In addition, the training weunderstanding of the product and provide ensures that theprocesses. employees are productive from day 1.MOVING UP THE VALUE CHAIN PARTNERING IN YOUR GROWTHWe are able to cater to recruitment needs Our ability to comprehend theirand provide our clients with highly skilled requirements and implement appropriateresources for complex functions andtransitions. This scaled capability building solutions means we are venturing intohelps our clients to offshore functions in niche areas such as bespoke learningIndia that were never considered possibleor viable before. solutions where we can contribute to the dynamic needs of our clients.

ABOUT IMARTICUS LEARNINGImarticus Learning is formed to bridge the gap between Academia and the industry. The firmprovides a range of Corporate Solutions designed to assist firms in meeting their skillsetrequirements.Headquartered in Mumbai, Imarticus has delivery capabilities across India with dedicatedcentres at Mumbai, Bangalore, Chennai, and satellite centres at Pune and Jaipur.HIGHLIGHTS Training and content delivery capability, across the areas of Investment Banking, Finance & Treasury, Capital Markets Operations, Business Analytics, Technology and Consulting.Preferred sourcing and corporate training delivery HEAD OFFICEpartner for leading Global Banks, Consulting, KPO,Technology and Analytics firms. Imarticus Learning Pvt. Ltd. 5th floor, Raaj Chambers,Range of customized delivery methods Old Nagardas Road, Andheri (E),such as instructor led training, e- Mumbai - 400 069learning, workshops and seminars foroptimal training effectiveness. Tel: 022-40792314 / 40792315 EMAIL: [email protected] BANGALORE WEBSITE: www.imarticus.org Imarticus Learning Pvt. Ltd. No.143, B 1st Floor, 60 feet road, 5th Block, Koramangala Bangalore - 560 095 Tel: 080-45129914 / 45129924 Mob: +91-9008668548 / 8971729953 CHENNAI Imarticus Learning Pvt. Ltd. 2nd floor, East West Centre, 128, Nelson Manickam Road, Chennai – 600 029 Tel: 044-43558466 / 45642104 Mob: +91-9789879741