Achieving regulatory excellence with India’s managed services 

A revolution in trade and transaction reporting 

With rising regulatory pressures and data challenges, financial institutions increasingly demand efficient trade and transaction reporting. In response, there is a noticeable shift toward managed services solutions, with India emerging as a key destination. 

India’s rise in this domain can be attributed to several factors, including a robust talent pool, cost advantages, technological innovation, and operational efficiency, organizations like Capgemini are playing a central role in transforming how trade and transaction reporting is managed. In today’s financial landscape, institutions are under mounting pressure to meet increasingly complex and evolving regulatory requirements. From trade and transaction reporting (TTR) to data reconciliation, regulatory submissions, and analytics, the operational burden is growing – and so are the associated costs. Compliance is no longer just a legal necessity; it’s a strategic imperative that demands specialized expertise, scalable infrastructure, and round-the-clock operational support. 

These challenges are compounded by the need for agility, accuracy, and cost-efficiency. Financial institutions must navigate a web of jurisdictional rules, manage vast volumes of data, and ensure timely reporting – all while keeping operational costs in check. This is where India’s value proposition becomes particularly compelling. 

India has rapidly emerged as a global hub for managed services, offering a unique blend of deep domain expertise, advanced technological capabilities, and cost-effective delivery models. Its workforce is not only technically proficient but also increasingly specialized in financial services operations, regulatory compliance, and digital transformation. 

At Capgemini, we are leveraging this strategic advantage through our Post-Trade Transaction Reporting Practice. By expanding the scope of managed services beyond reporting, Capgemini is helping financial institutions transform compliance from a cost centre into a source of strategic value. This blog explores how India is not just supporting this shift – but leading it 

Leveraging a vast talent pool 

India has long been recognized for its diverse and highly skilled workforce, and the financial services sector is no exception. With a large pool of professionals possessing a unique blend of expertise in finance, technology, and regulatory compliance, India is increasingly recognized for its ability to manage complex reporting requirements. These professionals bring a strong understanding of global financial markets, regulatory standards, and the technologies required to handle large-scale data processing, making India an ideal base for supporting trade and transaction reporting needs. 

For financial institutions, this talent pool offers deep expertise in navigating regulatory landscapes such as MiFID II, EMIR, Dodd-Frank, and SFTR. These frameworks demand stringent data reporting and reconciliation processes.  This is an area where India’s workforce excels. 

Cost-effectiveness and operational efficiency 

In addition to technical expertise, India offers a significant cost advantage, making it an attractive destination for financial institutions aiming to optimize operational costs. Institutions are under constant pressure to streamline processes and reduce overhead while maintaining compliance and reporting accuracy. Leveraging managed services in India can significantly lower operational costs, as labor expenses are considerably lower than in many Western markets. 

Moreover, the cost-effectiveness extends beyond just labor. Infrastructure and technology investments in India can be more easily scaled, allowing financial institutions to adopt cutting-edge solutions at a fraction of the cost. This provides access to best-in-class capabilities without the need for substantial capital expenditures. 

Technological innovation and automation 

India is increasingly becoming a global leader in IT infrastructure and innovation, with a focus on technologies transforming the trade and transaction reporting landscape. At Capgemini, there is a strong emphasis on integrating advanced technologies such as automation, data analytics, and AI into managed services offerings. 

AI and machine learning streamline data aggregation, reconciliation, and validation, significantly reducing manual errors and improving speed and accuracy. These technologies enable financial institutions to achieve shorter turnaround times, ensuring that they meet regulatory deadlines and respond quickly to market changes. 

As adoption of these technologies accelerates, India is becoming a key player. By partnering with Indian service providers, financial institutions can stay ahead of regulatory and technological curves as well as emerging market trends. 

24/7 operational capabilities

Financial markets operate continuously, requiring reliable, round-the-clock support for reporting functions. India, with its well-established infrastructure, offers a 24/7 operational model, ensuring financial institutions meet their reporting obligations across time zones. 

Indian teams offer continuous monitoring and rapid response. This uninterrupted support is critical for global financial institutions with operations in multiple regions, ensuring seamless compliance and reporting activities across different time zones. 

Post-trade transaction reporting and specialized expertise

One of the key areas in which India excels is in post-trade transaction reporting. This includes critical processes like data reconciliation, regulatory submissions, and compliance checks that ensure transparency and reduce market risks. By focusing on building specialized talent pools, including subject matter experts, India enables firms to navigate the complexities of global regulations, such as EMIR and the U.S. Dodd-Frank Act. 

Capgemini, for example, has established a dedicated Post-Trade Transaction Reporting Practice that helps financial institutions optimize operations by streamlining these processes. Using advanced analytics, automation, and regulatory expertise it helps clients reduce risk and ensure compliance. Centralizing these delivers cost-effective, high-quality services vital to managing regulatory obligations. 

Regulatory change management   

As financial regulations evolve globally, institutions must be agile and adapt their systems and processes in real time. Regulatory change management is a key area where Indian managed services providers add value. Changes in regulatory frameworks can be complex and costly to implement, particularly when new rules require re-architecting internal systems or updating reporting platforms. 

Capgemini offers specialized solutions to help financial institutions navigate these changes. Whether it’s adapting existing systems to meet new regulations or developing entirely new platforms for reporting, Capgemini supports its clients through every phase of the change management process. This proactive approach ensures that financial institutions remain compliant with evolving regulations while avoiding costly penalties or operational disruptions. 

Conclusion

India’s emergence as a hub for trade and transaction reporting managed services reflects a broader shift toward outsourcing and automation in the financial services industry. With a wealth of talent, cost advantages, and a strong focus on technological innovation, India is transforming the way financial institutions manage regulatory compliance and reporting.