Business Process Outsourcing - Avendus

Editorial

Dear Reader,

In line with the previous month, August and September saw a moderate number of M&A transactions in the global

outsourcing space. Key deals in the month include:

Hinduja Global’s US subsidiary buys Deloitte’s healthcare BPO business, through an asset purchase agreement

NIIT Technologies, a leading Indian IT and Outsourcing services provider acquires Sabre Holding’s Philippines

development centre, a leading provider of solutions for the travel industry

Tech Mahindra acquires Hutchison Global Services, a provider of lifecycle operations for telecom carriers

Capita acquires Whale Rock Accounting, a UK based provider of outsourced finance and accounting services

Capita acquires Expotel, a UK based hotel, business travel and conference booking agent

Capita acquires Reliance Secure Task Management, a medical assessment and justice support services firm

August and September witnessed a number of new contracts. Key contracts executed in the month include:

Capita wins a contract to service EBSCO publishing, a library resource management firm, to offer discovery and

search services

ADP wins a contract to manage the National Surgical Hospital’s HCM and HR processes across its US hospitals

Serco renews its BPO contract for 5 years with the Australian Taxation Office, to provide contact centre services

to Australian taxpayers, businesses and tax professionals across a diverse range of industries

Procurian, a provider of comprehensive procurement solutions, wins a contract from Diebold, a leader in

providing integrated self-service delivery and security systems and services, to optimize spending in areas

including human resources, information technology, capital, travel, legal, marketing, and financial services

Genpact wins a contract from Abu Dhabi based Mubudala GE Capital, a specialized commercial finance

company, for supporting its financial and portfolio management processes

arvato wins a contract from Sunrise Communications, a Swiss telecommunications firm in managing its

procurement processes for printed matter, marketing items and point-of-sale materials

Emerging Trends

Research from three global procurement outsourcing surveys conducted by sourcing advisory firm ISG showcase procurement outsourcing as having moved beyond “lift and shift” by chasing then shiniest new technologies

An analysis by BPO Outcomes highlights the entry into the Indian domestic market and utilization of online and mobile channels as key drivers for developing shared services providers in India

Everest Research reports that North American companies propelled the Multi-Country Payroll Outsourcing (MCPO) market, which saw an explosive growth of over 30 percent CAGR growth from 2008 to 2011

This edition of the newsletter also includes the Avendus BPO Composite Index updated till the 5

th of October, 2012. The

index indicates an increase in share prices of BPO companies over the month of September 2012 with a positive 5.5% monthly return, positive 28.6% quarterly return and positive 16.1% annual return.

Regards,

Amit Singh

Business Process Outsourcing Newsletter OCTOBER 2012

Disclaimer: The news contained herein has been taken from published sources as indicated under each item. Avendus will not be held liable for any erroneous data as published in the source indicated. Avendus also does not take any responsibility for any errors or omissions or results of any actions based upon this information.

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Table of Contents DEAL SUMMARY .................................................................................................................................. 3

HINDUJA GLOBAL’S US SUBSIDIARY TO BUY DELOITTE’S HEALTHCARE BPO ................................................ 3

NIIT TECHNOLOGIES ACQUIRES SABRE PHILIPPINES DEVELOPMENT CENTRE .............................................. 3

TECH MAHINDRA ACQUIRES HUTCHISON GLOBAL SERVICES ..................................................................... 3

CAPITA ACQUIRES ACCOUNTING AND COMPANY SECRETARIAL SERVICES BUSINESS, WHALE ROCK .............. 4

CAPITA ACQUIRES BUSINESS TRAVEL COMPANY, EXPOTEL ........................................................................ 4

CAPITA ACQUIRES RELIANCE SECURE TASK MANAGEMENT ........................................................................ 5

CONTRACT TRACKER ........................................................................................................................... 6

CAPITA SERVICES EBSCO PUBLISHING TO ENHANCE LIBRARY RESOURCE DISCOVERY.................................. 6

NATIONAL SURGICAL HOSPITALS TAPS ADP FOR UNIFIED HUMAN CAPITAL MANAGEMENT SERVICES ............. 6

ADP PROVIDES HUMAN CAPITAL MANAGEMENT SERVICES TO KEY ENERGY SERVICES .................................. 7

DIEBOLD SIGNS MULTI-YEAR CONTRACT SELECTING PROCURIAN TO OPTIMIZE SPENDING ACROSS THE

ORGANIZATION..................................................................................................................................... 8

SERCO SECURES BPO CONTRACT WITH AUSTRALIAN TAXATION OFFICE ..................................................... 8

MUBADALA GE CAPITAL SELECTS GENPACT BUSINESS PROCESS MANAGEMENT SERVICES ............................ 9

ARVATO TAKES OVER PRINT MANAGEMENT FOR SUNRISE ......................................................................... 9

ANGELICA CORPORATION SELECTS ADP TO DELIVER INTEGRATED HUMAN CAPITAL MANAGEMENT

SERVICES ........................................................................................................................................... 10

STIEBEL ELTRON AND ARVATO SYSTEMS SIGN “NEXT GENERATION OUTSOURCING” AGREEMENT ................ 11

CAPITA SIGNS PIP CONTRACT ............................................................................................................... 11

EXPANSION ...................................................................................................................................... 13

NCO HEALTHCARE OPERATIONS ANNOUNCES ADDITIONAL GLOBAL EXPANSION ........................................ 13

WIPRO EXPANDS ITS PRESENCE IN ANDHRA PRADESH ............................................................................ 13

ARVATO OPENS SERVICE CENTRE IN DELMENHORST - 140 NEW JOBS AT THE NORDWOLLE SITE ................. 14

SERCO STEPS UP PRESENCE IN AGRA .................................................................................................... 14

SERCO INAUGURATES FACILITY AT SHIMOGA ......................................................................................... 15

AEGIS TO ADD 1,000 JOBS IN IRVING ................................................................................................... 15

MOVERS AND SHAKERS .................................................................................................................... 16

ISGN STRENGTHENS EXECUTIVE LEADERSHIP TEAM ............................................................................... 16

UNITEDLEX STRENGTHENS MANAGEMENT TEAM IN INDIA ....................................................................... 16

TRENDS AND VIEWPOINTS ............................................................................................................... 18

PROCUREMENT OUTSOURCING READY TO SOAR ..................................................................................... 18

SHARED SERVICES SHINE IN INDIA ...................................................................................................... 18

MULTINATIONALS INCREASINGLY OUTSOURCING PAYROLL SERVICES FOR OVERSEAS LOCATIONS .............. 19

AVENDUS BPO COMPOSITE INDEX .................................................................................................... 20

OUR OFFICES .................................................................................................................................... 22

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DEAL SUMMARY

HINDUJA GLOBAL’S US SUBSIDIARY TO BUY

DELOITTE’S HEALTHCARE BPO

HINDUJA GLOBAL PRESS RELEASE [18

SEPTEMBER 2012]

BPO firm Hinduja Global Solutions Ltd's US subsidiary

Hinduja Global Solutions Inc. has signed an asset

purchase agreement with Deloitte Consulting LLP and

Deloitte Consulting Extended Business Services LLC

to purchase their healthcare revenue cycle outsourcing

business EBOS (Extended Business Office Solutions)

in an all-cash transaction, according to a BSE filing.

HGS Inc. plans to close the transaction in early

October but the deal value has not been disclosed.

The EBOS business comprises accounts receivable

processing services and insurance eligibility

verification services. It caters to several US hospitals

and post this transaction, HGS Inc. will have access to

its customer base. The transaction is expected to

result into incremental revenue of $11 million,

according to the filing.

HGS has significant presence in healthcare sector and

the transaction will further strengthen its ability to

deliver outsourcing services to hospitals/providers.

NIIT TECHNOLOGIES ACQUIRES SABRE

PHILIPPINES DEVELOPMENT CENTRE

NIIT PRESS RELEASE [11 SEPTEMBER 2012]

NIIT Technologies, a leading global IT solutions

organization today announced that it has signed an

agreement to acquire Sabre Holdings‟ Philippines

Development Centre. Sabre, a global technology

company, is the world‟s leading provider of solutions

for the travel industry and also a key customer of NIIT

Technologies.

The acquisition further deepens NIIT Technologies‟

engagement with Sabre and enhances its global

delivery capability. Manila is a proven destination for

Business Process Outsourcing (BPO) services and

NIIT Technologies will provide services to Sabre and

its other customers from this Manila centre, which has

a capacity of 200 seats with opportunity for expansion.

Commenting on the expansion, Mr. Arvind Thakur,

Chief Executive Officer, NIIT Technologies said “The

acquisition fits well with our strategy of „Focus and

Differentiate‟ and enhances our global delivery

footprint”.

"Asia-Pacific is an important growth region for Sabre

and the industry and we believe this move helps

further strengthen our established relationship with

NIIT Technologies and positions Sabre for greater

growth within APAC,” said Mr. Barry Vandevier, Chief

Information Officer, Sabre. “It also streamlines our

company's location portfolio while continuing to

provide Sabre customers with the same high level of

service”.

“We welcome Sabre‟s Manila team to NIIT

Technologies as we strengthen our Travel Services

offerings in the region,” said, Mr. Lalit Dhingra,

President, NIIT Technologies. “The acquisition will

enhance our deep domain knowledge with the

expansion in our strong talent base and bring in global

technology best practices to help corporations

effectively respond to their global IT needs”.

TECH MAHINDRA ACQUIRES HUTCHISON

GLOBAL SERVICES

TECHMAHINDRA PRESS RELEASE [4 SEPTEMBER

2012]

Tech Mahindra Limited, a leading provider of solutions

and services to the telecommunications industry, today

announced the acquisition of 100% stake in Hutchison

Global Services Private Limited for US $ 87.1 m,

payable upfront.

Hutchison Global Services (HGS) provides customer

lifecycle operations to clients in UK, Ireland and

Australia and has an associate base of over 11,500

employees. HGS operates out of Mumbai and Pune

and is among the largest captives in the Telecom

Domain.

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This acquisition builds on the significant relationship

between Tech Mahindra and the Hutchison group

across multiple countries. The acquisition will provide

significant enhancement of Tech Mahindra‟s expertise

in the customer management space and will thus be a

key component of its strategic plans going forward. In

addition, the acquisition will enable Tech Mahindra to

leverage the acquired capabilities and scale for

expanding the scope of their existing services to other

parts of the Hutchison group, and also to other

customers and verticals.

As part of the deal, the clients of Hutchison Global

Services have committed to procure services worth

US$ 845 million over a 5 year period, and have agreed

to Hutchison Global Services being their exclusive

provider of certain agreed services in India.

“This acquisition is in line with our growth plans and is

a logical next step in extending our relationship with

Hutchison. We are committed to this opportunity and

excited about the possibilities this acquisition opens

up,” said Vineet Nayyar, Executive Vice Chairman,

Tech Mahindra.

“With this acquisition, we further strengthen our

leadership position in the telecom domain. Hutchison‟s

focused service portfolio combined with our domain

knowledge, geographic spread and execution

excellence will help us become the undisputed leaders

in this space, and extend these services to other

verticals and markets” added CP Gurnani, Managing

Director, Tech Mahindra.

“This acquisition is not just strategic, but also best in

class. We are taking over an experienced work force

that will be a huge asset to our organization. We will

leverage the combined strengths of both companies to

deliver greater value to our existing customers and

explore broader opportunities for growth” said Sujit

Baksi, President, Corporate Affairs and Business

Service Group, Tech Mahindra.

CAPITA ACQUIRES ACCOUNTING AND COMPANY

SECRETARIAL SERVICES BUSINESS, WHALE

ROCK

CAPITA PRESS RELEASE [3 SEPTEMBER 2012]

Capita‟s share registration business announces that it

has acquired Whale Rock Accounting Limited and

Whale Rock Company Secretariat Limited for an

undisclosed sum. Whale Rock provides outsourced

finance, accounting and company secretarial services

to AIM listed, FTSE250 and private companies

including the subsidiaries of multinationals, with a

focus on the oil & gas and mining sectors.

Whale Rock specialises in the professional services

end of the accounting market and its range of solutions

includes outsourced financial controllers and finance

directors, management accounting and financial

modelling, corporate finance support, technical

accounting advice, Companies House returns and

governance services.

Charles Cryer, chief executive of Capita‟s share

registration business, said: “The acquisition of Whale

Rock will both provide scale and wider range to the

solutions we can offer our clients. With a strong

cultural fit and clean corporate structure it offers a

number of immediate synergy benefits. It will also

allow us to provide finance and accounting services to

Capita‟s existing client base and attract new clients,

particularly in the oil, gas and mining industries.”

James Ward, founder of Whale Rock, added:”This

acquisition by a FTSE100 company is testament to the

dedication and commitment of our staff, the quality of

our service delivery and support and longevity of our

client base.”

Alan Lewis, Whale Rock chief executive, added: ”The

backing of Capita will allow us to expand our service

offering and develop into new regions. We welcome

this move as a positive step change in the evolution of

the firm.”

CAPITA ACQUIRES BUSINESS TRAVEL

COMPANY, EXPOTEL

CAPITA PRESS RELEASE [31 AUGUST 2012]

Capita announces today that it has acquired Expotel

Group Limited (`Expotel') for a consideration of £16

million on a cash-free, debt-free basis. Expotel is a UK

hotel, business travel and conference booking agent.

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The acquisition will add reach and scale to Capita's

existing operations in the business travel market and

offer additional events and meetings management

capabilities. Expotel's current clients include National

Grid, Virgin Media, the Scottish government and BP.

Expotel made a pro forma operating profit for its

financial year to 31 October 2011 of £3.2 million on

turnover of £16.3 million.

Commenting on the deal, Paul Pindar, Chief Executive

of Capita plc, said: 'The addition of Expotel will bring

both significant additional expertise and greater scale

to our UK focused corporate travel business. Expotel

also brings considerable experience in venue and

event management, which, alongside our existing

business, creates a proposition of genuine scale and

depth in this fast growing area of the market. The

combined company will employ nearly 900 staff in 10

locations and will be able to offer both bespoke, niche

solutions and a unique end-to-end travel proposition to

its current and future clients. In particular, with the

public sector needing to drive down travel and

subsistence costs, it will be in a strong position to help

local and central government achieve these aims.

CAPITA ACQUIRES MEDICAL ASSESSMENT AND

CRIMINAL JUSTICE SUPPORT SERVICES FIRM,

RELIANCE SECURE TASK MANAGEMENT


Capita acquires medical assessment and criminal

justice support services firm, Reliance Secure Task

Management

Capita announces that it has acquired Reliance

Secure Task Management Limited (`RSTM') for £20

million on a cash free, debt free basis. This comprises

£9.7 million in purchase consideration and £5.85

million payable to the vendor group in repayment of

intra-group funding, with the balance being cash

required to fund committed capital expenditure,

pension obligations and working capital at completion.

RSTM provides forensic medical services, custody

support and secure transport services to clients

including the UK Border Agency, the Ministry of

Justice, NHS trusts and police forces.

The current level of revenues, on an annualised basis,

is £75 million. RSTM made a pro forma operating loss

for the 11 months to 31 March 2012 of £5.7 million. On

its integration into Capita the business will realise

significant synergy benefits and is expected to return

to operating profit in 2013.

Capita Group joint chief operating officer, Andy Parker,

said: 'The acquisition of RSTM will provide further

scale and depth to the range of solutions we offer the

health and emergency services, criminal justice

system and wider public and private sector clients. It

complements previous acquisitions, including SunGard

Public Sector, Beat Systems and CedarHR. It also has

significant synergies with our wide-ranging health and

wellbeing business, which provides medical

assessments in the private and public sector, including

those for the new personal independence payments

(PIP). We already work in some capacity with all police

forces in England and Scotland, extensively with NHS

trusts and, through our health and wellbeing business,

with a number of large public and private sector

organisations. These additional capabilities will allow

us to provide new solutions, on a tailored basis,

alongside our multi service offering.'

RSTM has approximately 2,000 employees, primarily

in Bristol, Heston and at client sites.

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CONTRACT TRACKER

CAPITA SERVICES EBSCO PUBLISHING TO

ENHANCE LIBRARY RESOURCE DISCOVERY

CAPITA PRESS RELEASE [26 SEPTEMBER 2012]

Capita has signed with research database and

discovery service provider, EBSCO Publishing, to offer

integrated access to extensive electronic resources

within Capita‟s existing library resource discovery

solution, Prism and EBSCO Discovery Service. Users

will be able to search their library‟s comprehensive

collection of electronic databases and physical library

stock using a single search box.

The agreement will provide users with a uniquely

powerful article search experience. Providing libraries

with access to EBSCO‟s unified index and discovery

service expands the quality and quantity of content

available to current Prism users, with the addition of

enhanced features and functionality.

Jon Peart, associate director, libraries at Capita, said:

“We are committed to continual improvement of the

discovery functionality of our software to enhance the

user experience by making all library stock, whether

electronic or physical, more accessible.

“Each library has its own ideas about what „discovery'

means. This partnership allows us to offer tailored

services to customers and help each library to provide

a bespoke service based on their own unique

„discovery‟ experience."

Users will continue to enjoy the benefits of using a

single interface to review their library account, reserve

and renew books while also accessing EBSCO‟s

content, including magazines and journal articles, e-

books and other e-content. Additionally, Prism can be

customized to match the university branding to deliver

a better, more consistent student experience.

Institutions will be able to enjoy the benefits of

surfacing their resources through a single search

interface, enhancing and simplifying the discovery

process for their students.

Executive vice president of technology and chief

information officer for EBSCO Publishing, Michael

Gorrell, commented that the agreement will help

customers who use Prism to access the rich metadata

and features that EBSCO Discovery Service offers:

“Our customers want their discovery service to provide

access to more information from a single search box

while offering librarians customization and

development options designed to fit their unique

discovery plans. Partnering with Capita allows us to

provide more and better search results to end users by

including the full featured search experience and let

customers better determine how their discovery

service will look and where end users will start their

search.”

NATIONAL SURGICAL HOSPITALS TAPS ADP

FOR UNIFIED HUMAN CAPITAL MANAGEMENT

SERVICES

ADP PRESS RELEASE [19 SEPTEMBER 2012]

ADP, a leading provider of human capital management

(HCM) services, today announced that National

Surgical Hospitals (NSH), owner and operator of 14

surgical hospitals and seven ambulatory surgery

centres across the United States, has selected ADP

Vantage HCMSM as its HCM solution.

ADP will provide NSH with a unified human capital

management solution that includes human resources

(HR), payroll, and time and labor management to

power the organization‟s growing workforce.

Leveraging an easy to use, configurable user

experience centreed on the roles and processes within

an organization, ADP Vantage HCM unifies the

notoriously disparate HR processes of large

organizations by automating and integrating them into

a real-time, end-to-end view across the HR spectrum.

ADP Vantage HCM will enable NSH to streamline its

enterprise-wide HR systems, achieve greater

efficiencies and reduce costs.

Vantage HCM also encompasses ADP‟s client-centric

service model, best practices and compliance services

to allow for the optimal combination of technology and

process support for NSH‟s employees, managers and

practitioners.

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“As a growing organization with facilities and

employees across multiple geographic locations, we

sought a complete human capital management

solution that ensures uniformity while also allowing us

to access critical, meaningful data so we can better

manage and optimize our workforce,” said Bernie

Presutti, Vice President, Human Resources. “ADP

Vantage HCM enables us to store data once within a

single shared database that provides the best of both

worlds: real-time updates and immediate access to a

single version of the enterprise. We also sleep better

knowing that ADP is providing process support and

compliance expertise as an extension of the NSH

team. Now, we can maximize efficiencies across our

organization and provide an enhanced employee

experience.”

National Surgical Hospitals‟ selection of ADP is further

evidence that ADP is fast becoming the leading

provider of human capital management tools to

organizations in the healthcare industry. Healthcare

providers throughout the United States are electing to

partner with ADP for its human resources, payroll and

benefits administration expertise, as well as its deep

industry knowledge in an era of new healthcare

regulations and reform. ADP currently serves more

than 30,000 healthcare organizations, and pays over

1.8 million healthcare employees.

“ADP Vantage HCM enables large organizations like

National Surgical Hospitals to drive efficiencies by

streamlining key human capital management

processes, and deploying rich workforce analytics to

make even more strategic, data-driven HR decisions,”

said Regina Lee, Division President, ADP. Large

organizations are recognizing the power of leveraging

our innovative, unified ADP Vantage HCM solution,

which marries technology and process in a way that‟s

completely unique in the market.”

ADP Vantage HCM is a complete, Software-as-a-

Service (SaaS) offering with processes and tasks that

are aligned to how HR practitioners want to work and

how managers and employees want to interact. The

platform is designed to “think” like a user thinks,

suggesting the next logical step in a process and

thereby saving employees and staff significant time

and energy.

In addition, ADP Vantage HCM provides employers

with real-time access to robust analytics and business

intelligence about their workforce, and enables them to

view the entire lifecycle of each employee in one spot.

Access to HR data is easier than ever, helping

business leaders to identify problem areas and deploy

the right talent to address specific challenges across

the business. As a result, business leaders can make

better informed decisions about the future of their

organizations based on a clear picture of their current

and prospective talent pool.

ADP PROVIDES HUMAN CAPITAL MANAGEMENT

SERVICES TO KEY ENERGY SERVICES

ADP PRESS RELEASE [17 SEPTEMBER 2012]


services, today announced that it has implemented a

human capital management solution for Key Energy

Services, a national leader in rig-based well services

for the oil and gas industry.

Based in Houston, Texas, Key Energy Services has

approximately 150 service locations and approximately

8,000 employees in the United States as of year-end

2011. It also conducts operations internationally in

Mexico, Colombia, the Middle East and Russia. Given

the large scale of its domestic operations, Key recently

sought out a single HCM vendor who could not only

deliver HR, benefits, payroll, and other services on

time and across diverse locations, but one that could

also provide a holistic Human Capital Management

solution with broad capabilities for addressing people-

related data. The ADP Human Capital Management

solution is designed to integrate HR, Payroll, Benefits,

Time and other crucial processes for Key while also

providing important insights into the company‟s

growing workforce.

“We are extremely pleased with the ease of the ADP

Human Capital Management solution and the

seamless way it connects critical HR processes to

enables us to focus on growing our business, said Kim

Clarke, Key‟s Senior Vice President Administration and

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Chief People Officer. “The transition to the ADP

solution has been terrific, and we value a partnership

that provides us with HCM expertise and broader

capabilities across the enterprise.”

“ADP is committed to providing the world‟s best

Human Capital Management solutions to innovative

companies and organizations like Key Energy

Services,” said Regina Lee, ADP Division President.

“The solution developed for Key exemplifies our

unique ability to leverage a broad portfolio of human

capital management services to deliver real value for

businesses around the world.”

DIEBOLD SIGNS MULTI-YEAR CONTRACT

SELECTING PROCURIAN TO OPTIMIZE SPENDING

ACROSS THE ORGANIZATION

PROCURIAN PRESS RELEASE [17 SEPTEMBER

2012]

Leading comprehensive procurement solutions

provider, Procurian, formerly ICG Commerce, today

announced its contract with Diebold, Incorporated

(NYSE:DBD), a global leader in providing integrated

self-service delivery and security systems and

services, and the largest producer of automated teller

machines (ATMs) in North America. Procurian will help

Diebold optimize spending in areas including human

resources, information technology, capital, travel,

legal, marketing, and financial services categories in

North America.

“In order to maintain our competitive position, we will

continue to innovate in terms of collaborating with our

supply partners,” said Linda Parcher, Diebold vice

president and chief procurement officer. “By leveraging

Procurian‟s built-out Specialized Procurement

Infrastructure, we can accelerate our ability to manage

indirect spend and capture significant savings that can

help fund our strategic efforts.”

Diebold is working with Procurian to establish a high-

performance capability to improve control, reduce its

cost structure and support business growth through

more effective procurement. Procurian is focused on

helping clients transform procurement into a strategic

function that fuels growth through measurable savings

and market insights that optimize spending.

Procurian‟s unique offering provides its clients access

to all the components necessary to optimize indirect

spend and achieve the highest levels of procurement

excellence, including dedicated teams of specialists

with deep category expertise, real-time market

intelligence, comprehensive processes and a

sophisticated set of proprietary tools and technology.

“The Diebold team sees the expanded role

procurement can play in helping propel their business,”

said Carl Guarino, CEO of Procurian. “We‟re excited

to help this forward-thinking market leader optimize

their discretionary spend.”

SERCO SECURES BPO CONTRACT WITH

AUSTRALIAN TAXATION OFFICE

SERCO PRESS RELEASE [10 SEPTEMBER 2012]

Serco Group plc (Serco), the international service

company, announces that it has successfully renewed

its Business Process Outsourcing (BPO) contract with

the Australian Taxation Office (ATO) to provide contact

centre services to Australian taxpayers, businesses

and tax professionals across a diverse range of

taxation and superannuation-related issues.

The five-year contract has a value of approximately

A$140m (around £90m) and two one-year extension

options. The revenue is similar to that of Serco's

existing contract.

Under the contract, Serco, in partnership with the ATO

and other suppliers, will be responsible for providing

advice and responding to enquiries relating to tax

numbers, refunds, business activity statements, debt

management, return submissions and tax information

packs. It is also anticipated that there will be

opportunities to expand these activities to support

additional communication channels.

Serco, and previously Excelior which was acquired by

Serco in November 2011, has been providing these

services on behalf of the ATO for the last four years

from its contact centres in Victoria, Queensland and

Tasmania. On average, these centres handle over a

quarter of a million customer engagements each

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month, consistently meeting their performance targets

for quality of service. In the last two months, six Serco

employees have been awarded 'Gold Call' status, the

ATO's highest accolade for this work.

Christopher Hyman, Chief Executive of Serco Group

plc, said: "I am delighted that the Australian Tax Office

has selected Serco to continue providing these

important contact services for Australian taxpayers,

businesses and tax professionals. We are committed

to continue providing high quality, efficient customer-

focused services and to exploring new ways of

engaging with the people using them. This

announcement is further recognition of the growing

reputation of Serco's global Business Process

Outsourcing capabilities, providing support to

customers in both the private and public and sectors

and across a diverse range of sectors."

MUBADALA GE CAPITAL SELECTS GENPACT

BUSINESS PROCESS MANAGEMENT SERVICES

TO HELP DRIVE BEST-IN-CLASS PROCESSES

AND SYSTEMS AS THE BUSINESS GROWS

RAPIDLY

GENPACT PRESS RELEASE [16 AUGUST 2012]

Genpact Limited (NYSE: G), a global leader in

business process management and technology

services, today announced an agreement for

supporting the financial and portfolio management

processes of Abu Dhabi-based Mubadala GE Capital

PJSC, a specialized commercial finance company that

provides structured financing solutions to businesses

including commercial lending, equipment leasing,

distribution and vendor finance, and equity capital

solutions.

Under the terms of the agreement, Genpact is working

with Mubadala GE Capital to provide support services

in the areas of finance, portfolio management,

compliance and legal functions. Genpact currently

supports a number of key functions within Mubadala

GE Capital including treasury, reporting and

reconciliations, credit reviews, reporting analytics, and

monitoring, and is in discussions to provide additional

analytics services to Mubadala GE Capital.

Established in 2010, Mubadala GE Capital is a joint

venture between Mubadala Development Company

and GE Capital.

"As Mubadala GE Capital continues to grow rapidly,

we recognize the importance of putting in place best-

in-class processes and systems," said Ron Herman,

CEO of Mubadala GE Capital. "Our company has an

established relationship with Genpact, which we are

pleased to build upon through this new agreement.

The Genpact team that supports us has become an

integral part of our business."

"We are excited to continue expanding our scope of

services with a growing financial services provider in

the Middle East like Mubadala GE Capital," said Tiger

Tyagarajan, president and CEO, Genpact. "This

engagement is critical to support our client growth

plans and it reinforces our strategy of expanding our

presence and growing in markets like the Middle East.

Genpact‟s domain expertise in high-value finance

processes for the banking and financial services

industry will enable Mubadala GE Capital to provide

enhanced services to its customers in a rapidly

growing market."

ARVATO TAKES OVER PRINT MANAGEMENT FOR

SUNRISE

ARVATO PRESS RELEASE [14 AUGUST 2012]

arvato Corporate Information Management is to take

over the procurement management for printed matter,

marketing items and point-of-sale materials for the

Swiss telecommunications firm Sunrise

Communications AG with immediate effect. In doing

so, the BPO provider is continuing to expand its

business activities in the area of print management.

The decision to work with arvato will make it possible

for Sunrise to completely outsource the purchasing

and production management for printed matter,

marketing items and point-of-sale materials. The

portfolio for which arvato will now be responsible

comprises, e.g. posters, flyers, mailings, brochures,

advertising banners but also small promotional gifts

such as bags of sweets.

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The arvato print management model will enable

Sunrise to make cost savings which will be generated

not just through cost-effective purchasing by arvato. In

particular, Sunrise will benefit from the outsourcing of

specific processes which will allow the Swiss firm to

focus on its core competences.

In the area of print management, arvato will take over

all payment processes with all suppliers. Further cost

savings will be achieved through in-house consulting

by arvato employees on site which will help Sunrise to

optimize the purchasing and production specifications.

At the same time arvato will also take over the quality

and supplier management which will also help to

reduce costs. In addition there is a so-called gain

share model which allows both sides to share the cost

savings that are achieved.

“At the moment, the model is virtually the only one

available on the market. It is success-oriented and

enables customers and service providers to benefit

equally from savings that are realized. Using criteria

that are specified in advance the cost reductions are

calculated and distributed according to a defined key.

In this way the customer provides an ongoing incentive

for the service provider to always purchase as cost-

effectively as possible as this will put the latter will be

in a better economic position. Reporting tools provide

the necessary level of transparency,” explains Bernd

Robke, Vice-President at arvato Corporate Information

Management with responsibility for the global print

management businesses. Robke adds: “We are not

afraid of such a model because we know the benefits

we can bring to a partnership.” Sunrise‟s existing

suppliers will also benefit because they will be in a

position to bid for further print management orders

from arvato´s large customer portfolio.

Klaus Linderich, Director of Strategic Purchasing at

Sunrise Communications AG in Zurich, hopes that the

partnership with arvato will create clear added value in

future: “We want to share arvato‟s expertise and in-

depth market knowledge from a qualitative and a

financial point of view. The arvato print management

model in combination with the variable, performance-

related remuneration is a real trend-setter and will

unlock profitability reserves in the area of

procurement.”

arvato is also looking forward to the cooperation with

Sunrise. Robke says: “The cooperation with Sunrise is

an important step in the telecommunications market

and represents a further milestone in our international

growth strategy.”

ANGELICA CORPORATION SELECTS ADP TO

DELIVER INTEGRATED HUMAN CAPITAL

MANAGEMENT SERVICES

ADP PRESS RELEASE [7 AUGUST 2012]


and payroll services, today announced that it has

implemented a customized, fully integrated human

capital management solution for Angelica Corporation,

a national leader in healthcare linen and medical

laundry services.

Developed to increase Angelica‟s operating

efficiencies while helping to curtail processing and

administration costs, the ADP solution provides a

seamless integration of payroll processing, benefits

administration, time and attendance tracking,

scheduling, absence management and activity

tracking. Angelica is now utilizing the ADP human

capital management solution to serve its more than

5,000 employees working in 33 healthcare laundry

locations across 29 states.

“After searching for a human capital management

partner to help streamline our company‟s various

human resources processes and requirements, ADP‟s

unique approach to integrated human capital

management services proved to be a natural fit,” said

John Fry, Controller, Angelica Corporation. “The

collaboration with ADP has been seamless and the

transition to the new solution was flawless, occurring

without any disruption to our HR and benefits

processes.”

“ADP‟s engagement with the Angelica Corporation

exemplifies our unique ability to leverage a broad

portfolio of human capital services to create distinct

solutions that deliver operating efficiencies and

11

empower large businesses around the world,” said

Regina Lee, ADP Division President. “Clients like

Angelica are increasingly turning to ADP to meet the

crucial demand for truly integrated human capital

management services.”

Angelica is the nation‟s largest healthcare linen

provider, delivering quality services to hospitals,

clinics, and long-term care facilities.

STIEBEL ELTRON AND ARVATO SYSTEMS SIGN

“NEXT GENERATION OUTSOURCING”

AGREEMENT

ARVATO PRESS RELEASE [6 AUGUST 2012]

An extensive package of outsourcing services was

offered for bidding by building and systems technology

provider STIEBEL ELTRON, who found their ideal

partner in arvato Systems. Professional and flexible full

service for the operation and support of

outsourcing/BPO operations from a single provider, if

possible, were the deciding criteria for the outsourcing

concept required by STIEBEL ELTRON. arvato

Systems fully met these criteria.

The tailor-made offer from arvato Systems precisely

mapped the customer‟s technical and commercial

needs and provided the reason for winning the bid

against renowned competitors. A five-year contract

was awarded on 25 June 2012.

“We don‟t just want to award a contract for the

technology alone, we also want to work together with a

service provider able to support us with all of our

outsourcing requirements, someone who can provide

„next generation outsourcing,‟” states Ivo Huhmann,

General Manager of STIEBEL ELTRON with regard to

awarding the contract to arvato Systems.

The extensive outsourcing solution involves the user

help desk, client services, order management, desktop

services, network services, and file and server

services areas with a focus on SAP. Besides

Germany-wide support for STIEBEL ELTRON

systems, the spectrum of services also covers the

VPN connection for eleven international locations.

Furthermore, arvato Systems will coordinate additional

services contributed by IT specialist Bechtle to the

comprehensive STIEBEL ELTRON service package.

All services will be directed and provided centrally by

arvato Systems in Gütersloh, with only locally required

systems remaining on site. The entire transition project

was already kicked off on 1 July 2012.

“Our cooperation with STIEBEL ELTRON proves that

we are able to work together with the customer and

design our services flexibly according to his needs. I‟m

very pleased that we were able to acquire such a

renowned customer,” declares Birger T. Aasland,

General Manager at arvato Systems.

STIEBEL ELTRON, located in Holzminden, Germany,

is an internationally active group of companies focused

on the areas of building services and renewable

energy. With around 3,000 employees worldwide, the

company generates sales revenue of approximately

450 million euros.

CAPITA SIGNS PIP CONTRACT


The Department for Work and Pensions has today

announced the award of three regional contracts to

deliver health and disability assessments for the new

Personal Independence Payments (PIP). Capita plc

has been awarded one of the three contracts, to

outsource and deliver assessments across central

England and Wales. The precise scope of the contract

is still being defined but it is anticipated to be worth

around £140m over 5 years.

PIP, which is part of the Government's welfare reform

agenda, will replace Disability Living Allowance (DLA)

for people of working age (16 to 64) from 8 April 2013,

and is designed to better reflect today's understanding

of disability. Assessments will be provided for new

claimants of PIP as well as existing claimants of DLA.

The assessments will be delivered through a network

of local consultation centres across central England

and Wales, utilizing both existing Capita centres and

those of disability group partners, and through home

12

visits. All assessments, the majority of which will be

face to face, will be conducted by a nurse, doctor,

physiotherapist or other trained healthcare

professional.

Capita chief executive, Paul Pindar, said: 'In

developing its solution Capita has worked with a

number of representative groups to ensure that

claimants receive a fair and independent assessment

of their ability to live independently. Capita has

established an extensive capability in health

assessment through strategic acquisitions, including

Premier Medical, now integrated into our health and

wellbeing business and, more recently, Medicals

Direct. Together with our existing operations this has

created a scalable, diverse and client focused health

and wellbeing business that utilizes a multi-disciplinary

team of general and mental health community nurses,

occupational therapists and GPs, supported by subject

matter experts where appropriate.'

13

EXPANSION

NCO HEALTHCARE OPERATIONS ANNOUNCES

ADDITIONAL GLOBAL EXPANSION

NCO GROUP PRESS RELEASE [27 SEPTEMBER

2012]

NCO, a leading global provider of best-in-class

business process outsourcing (BPO) solutions,

announced today that it has recently expanded its

global healthcare operational delivery model to

Panama. This expansion follows additional recent

healthcare services expansions in North America and

the Philippines. NCO has been providing services in

the healthcare industry for over 80 years, and this

additional expansion provides a global delivery

network to meet growing client needs.

NCO has over a 12 year history in Panama through its

roots with Star Contact. The recent expansion of its

healthcare delivery solution in Panama is anticipated

to grow by over 100 employees within its first year and

will operate under the current NCO Panama

enterprise. NCO currently provides services for over

2,000 hospitals and healthcare providers across the

world with services throughout the entire Revenue

Cycle Management (RCM) suite, including patient

access services, patient encounter and clinical

clearance, transcription and medical coding, and

accounts receivables management solutions. Each of

these RCM services is tailored to the healthcare

industry.

Commenting on the expansion, Michael Albrecht, Vice

President of NCO's Healthcare Services, stated, "Our

service model continues to expand to meet the needs

of healthcare providers and their patients throughout

the entire patient lifecycle. The continued expansion of

our delivery model throughout the world allows us to

meet the dynamic needs of the healthcare industry as

we provide world-class solutions for healthcare

providers and their patients. We are pleased to have

the opportunity to partner with our clients, grow our

solutions to better meet their changing needs, and

offer solutions for success."

WIPRO EXPANDS ITS PRESENCE IN ANDHRA

PRADESH WITH 2000 SEATER OUTSOURCING

DELIVERY CENTRE IN VISHAKHAPATNAM

WIPRO PRESS RELEASE [22 SEPTEMBER 2012]

Wipro Technologies, the Global Information

Technology, Consulting and Outsourcing business of

Wipro Limited (NYSE: WIT), today announced the

formal opening of a 2,000 seat delivery centre in

Vishakhapatnam, in Andhra Pradesh. The centre,

which is currently operational with about 100

employees, will ramp up to more than 300over the next

three months.

The campus was inaugurated by Dr. Daggubati

Purandeswari, Honorable Minister of State for Human

Resource Development (Higher Education),

Government of India. In line with the company's

commitment to developing local talent, Wipro will work

closely with several universities in the region to recruit

young graduates.

Hari Hegde, Vice President and Global Head of

Operations, Wipro said, "We have been present in

Andhra Pradesh for the last two decades, and it gives

us great pride to expand our footprint to

Vishakhapatnam, the second-largest city in the state.

The city's business friendly environment, local

infrastructure and talent pool make it an ideal location

for our business operations. This centre will support

Wipro's continued expansion in Andhra Pradesh and

contribute to creating an ecosystem that further

enhances local resources and skills."

At present, Wipro's operations are spread across

multiple facilities in Hyderabad and its employee

headcount in Andhra Pradesh is over 10,000. Wipro

has been the recipient of several awards and

accolades such as „Best Export Performance amongst

private SEZ units in Andhra Pradesh' for 2008-09 and

2009-10. The company was also recognized as the

second largest IT exporter in Andhra Pradesh for the

year 2011 by ITsAP (The IT and ITES Industry

Association of Andhra Pradesh); and for the years

2009, 2010 and 2011 by the Department of IT and

Communications, of the Government of Andhra

Pradesh.

14

ARVATO OPENS SERVICE CENTRE IN

DELMENHORST - 140 NEW JOBS AT THE

NORDWOLLE SITE

ARVATO PRESS RELEASE [14 SEPTEMBER 2012]

arvato AG, a worldwide specialist for outsourcing

services, continues to expand its national service

network. On October 1, the service provider

headquartered in Gütersloh will open a new service

centre on the Nordwolle site in Delmenhorst. Up to 140

jobs will be created there in the initial phase.

Thanks to good support from the current business

development efforts, the launch of development of the

site has been smooth,” said Oliver Carlsen, Member of

the Executive Board of arvato Customer Services. Axel

Langnau from Delmenhorst‟s organization for business

development takes a positive view of the site selection

for the new service centre. “We are delighted to have

been able to attract a company like arvato to

Delmenhorst,” Langnau said.

Training for the first employees began on August 14.

These employees will work at the Delmenhorst site,

handling customer service duties for a major German

insurance company. After further development of the

site, additional projects will be taken on in early 2013.

Delmenhorst is a traditional site for business and

industry.

The downtown Nordwolle site is considered a major

European industrial property and provides an

impressive example of the revival of what had been an

abandoned industrial brownfield. With the construction

of the arvato Service Centre, the city is continuing to

develop as a location for business.

SERCO STEPS UP PRESENCE IN AGRA

SERCO GROUP PRESS RELEASE [11 SEPTEMBER

2012]

Serco, the FTSE 100 international service company,

today announced the expansion of its Agra facility by

increasing its headcount and creating 850 new

positions. These positions are expected to service

leading clients within the telecom vertical, providing a

comprehensive range of telecom services in India.

Serco's facility is located at Bhawna Plaza, Awas

Vikas Yojna. With the addition of 850 employees at the

centre, Serco has successfully established itself as the

largest provider of BPO services with almost 2000

employees in Agra.

Commenting on the development, Mr. Bhupender

Singh, CEO of our Global Services business in the

AMEAA region said, "We are delighted to scale our

operations in Agra and recognize it as an important

business destination. The capacity built in Agra is

based entirely on clients' requirements and will

generate local employment opportunities. The

expansion of this facility augments Serco's strategy of

providing a strong domestic support to its clients,

strengthens Serco's regional footprint in North India

and further consolidates its expertise within the

telecom vertical."

Serco has been steadily expanding its presence in

India. Earlier this month Serco launched a facility in

Shimoga, Karnataka for a leading telecom service

provider and over the past year has expanded its

footprint in Karnal, Patna, Lucknow, Baroda,

Madhyamgram and Jhangipur.

Serco' BPO business is now over USD 1 billion

globally, and India has been a key contributor to this

growth. It currently services four broad groups of

vertical markets: Banking, Financial Services &

Insurance; Travel, Hospitality & Transportation; Retail,

Healthcare, Utilities, & Manufacturing; Telecom,

Technology, Online Services & Media. Serco's

expertise in these verticals, its focus on adding value

to its clients, combined with a growing regional

footprint is instrumental in achieving this growth.

The India domestic IT-BPO market is expected to grow

17 per cent to reach Rs 91,800 crore in FY2012. The

domestic BPO market is expected to reach Rs 14,900

crore, driven by demand from voice-based services

(local languages) and increased adoption by both

traditional and emerging verticals, including the

government.

15

SERCO INAUGURATES FACILITY AT SHIMOGA

SERCO GROUP PRESS RELEASE [4 SEPTEMBER

2012]

Serco, the FTSE 100 international service company,

today announced the opening of a new facility at

Shimoga in Karnataka. Located at Habeebulla

Complex, Savalanga Road, the facility will offer BPO

services to a leading private telecom service provider.

The facility is expected to generate employment

opportunities for 450 people by November; of this 300

have already been hired.

Susir Kumar, Executive Chairman, Serco Global

Services said, "Serco has been steadily expanding its

footprint in India and enjoys a predominant position in

the domestic BPO market. The launch of this facility

strengthens our regional footprint in Southern India

and further enhances Serco's India presence to 20

centres, reflecting its commitment to the domestic

marketplace."

Commenting on the development, Bhupender Singh,

CEO of our Global Services business in the AMEAA

region said, "We are delighted to partner with leading

telecom players in the country and widen the scope of

our offerings. The telecom sector is a considerable

contributor to our business and this centre further

bolsters our position in the vertical."

Serco aspires to be a USD 1 billion company by CY

2012, and India is a key contributor to this growth. It

currently has four broad groups of vertical markets:

Banking, Financial Services & Insurance; Travel,

Hospitality & Transportation; Retail, Healthcare,

Utilities, & Manufacturing; Telecom, Technology,

Online Services & Media. Serco's expertise in the

telecom vertical, combined with a growing regional

footprint is instrumental to achieve this goal. The

domestic IT-BPO market is expected to grow 17 per

cent to reach Rs 91,800 crore in FY2012.

The domestic BPO market is expected to reach Rs

14,900 crore, driven by demand from voice-based

services (local languages) and increased adoption by

both traditional and emerging verticals, including the

government.

AEGIS TO ADD 1,000 JOBS IN IRVING

AEGIS GLOBAL PRESS RELEASE [27 SEPTEMBER

2012]

Aegis, a leading outsourcing services provider and part

of the global Essar Group, announced today that it is

hiring 1,000 agents at its centres in Irving.

“Aegis is growing and creating jobs in the Dallas

Metroplex,” said Sandip Sen, Global CEO of Customer

Lifecycle Management for Aegis. “We have expanded

our engagements with existing clients, which will result

in our hiring of 1,000 agents. Not only are we hiring in

Dallas, but in all US cities in which we have

operations. When we joined the jobs4america

Coalition last year we pledged to hire more than 4,000

workers in the US over the next two years, and this is

the latest demonstration of progress toward fulfilling

that pledge.”

The company will be hiring 230 licensed full-time sales

representatives, 600 customer service representatives,

and 250 non-licensed sales representatives at its

Irving centres, which is also its Americas

headquarters. Hiring will take place over the next six

weeks to support healthcare clients. The

responsibilities of people recruited to these positions

will include presenting options available to consumers

so that they can make informed decisions regarding

their healthcare. Bilingual (English and Spanish)

speakers are encouraged to apply. There are

temporary as well as permanent positions.

16

MOVERS AND SHAKERS

ISGN STRENGTHENS EXECUTIVE LEADERSHIP

TEAM

ISGN PRESS RELEASE [24 SEPTEMBER 2012]

ISGN, a leading provider of end-to-end technology

solutions and services to the U.S. mortgage industry,

has hired three key C-level executives for its executive

leadership team, naming Amit Kothiyal as chief

operating officer (COO), Paul Y. Imura as chief

marketing officer (CMO) and Badri Narrayen as chief

human resources officer (CHRO).

“Our new hires for the senior executive team provide

ISGN with key dynamic leadership to help scale our

growth and profitability to the next level,” said Ritesh

Idnani, ISGN‟s chief executive officer. “They have

successfully managed business units to multifold

growth in revenues, market share and margins. ISGN‟s

new talented management team has a strong product

development background, which has positioned ISGN

to bring to market new solutions that enable lenders to

manage mortgage market fluctuations more profitably.

We welcome Amit, Paul and Badri to the ISGN family.”

Kothiyal, the new COO, will be responsible for the

global operations, new client implementations and

quality functions to drive profitability and scalability at

ISGN. He joins ISGN from Infosys BPO Ltd. where he

most recently served as a business unit head in

charge of one of the largest P&Ls with responsibility

across sales, solutions and operations for a diverse

portfolio of retail/consumer packaged goods, energy

and utilities, telecom, media, healthcare and life

sciences companies. Kothiyal has a decade of

experience with Infosys in global outsourcing and prior

to Infosys he worked with the HSBC group in India. He

holds a bachelor‟s degree in technology from the

Indian Institute of Technology, Madras and a master‟s

degree in business administration from XRLI in

Jamshedpur, India.

As chief marketing officer, Imura will direct global

marketing, brand creation and new product

development for ISGN. He has an extensive

background in mortgage finance having held senior

positions with mortgage insurance companies for

nearly 20 years, including Genworth Financial

Corporation, United Guaranty Corporation and PMI

Mortgage Insurance Company. Imura is a board

member of the Asian Real Estate Association of

America and most recently served as chief marketing

and product development executive for Accenture

Credit Services. Imura graduated from the University

of California, Berkeley with a bachelor‟s degree in

economics and is six-sigma certified by GE's Quality

program.

In the newly created position of chief human resources

officer, Narrayen will direct the development of global

human resources strategy at ISGN. He also will be

responsible for all human resources matters at the top

level of the company. Narrayen has extensive and

multinational human resources and business

experience, having worked for financial services,

consumer products and building material companies in

four countries. He is a member of the Society for

Human Resources Management and holds a master‟s

degree in personnel management and industrial

relations.

UNITEDLEX STRENGTHENS MANAGEMENT TEAM

IN INDIA WITH THE APPOINTMENT OF JOGINDER

YADAV AS SENIOR VICE PRESIDENT

UNITEDLEX PRESS RELEASE [11 SEPTEMBER

2012]

UnitedLex, a global full-service provider of technology

powered legal and business solutions, today

announced the extension of its leadership team in

India by the appointment of Joginder Yadav as Senior

Vice President of its Contract Solutions vertical. This

new addition will help UnitedLex meet its demanding

growth trajectory in the contracts area, in which it

already has an industry leading position.

With his distinctive blend of legal, consulting and

leadership experience, Joginder will provide UnitedLex

clients with strategic guidance, creative operational

solutions and will be responsible for operational

delivery in the Contract Solutions vertical.

17

"Joginder's extensive experience working with large

multi-national corporations in both regional and global

roles and in providing a wide variety of legal and

contracting solutions will continue to enhance the

capabilities of the UnitedLex Contract Solutions group.

He is also a strong addition to the UnitedLex

leadership team which further differentiates us in the

marketplace and allows us to provide transformational

solutions to the legal industry and our corporate

clients", said Pavan Vaish, UnitedLex's Global Chief

Operating Officer.

Prior to UnitedLex, Joginder was with Nokia Siemens

Networks (NSN) as head of the legal function for

Global Professional Services, which included its

Managed Services (MS) and Consulting and Systems

Integration (CSI) lines of business. Prior to NSN, he

worked with Cisco's worldwide services and

globalization legal team where he was responsible for

global service provider deals and also provided advice

on strategy for mega deals in Asia and other emerging

markets.

Commenting on his new assignment, Joginder said

"I'm really honored to take on this new role. I believe

the LPO industry is unique in that it is both innovative

and positively disruptive to the way legal services have

traditionally been delivered. UnitedLex is one of the

fastest growing companies in the industry and I look

forward to contributing to its future growth. Apart from

P&L management of the group, my focus will be on

providing direction to the team for designing and

implementing effective contracting solutions through

new services, better processes and more efficient

technology, for both existing and new clients, as well

as increasing people and delivery capabilities. I am

excited to work with this dynamic and talented team."

Joginder brings over 16 years of varied industry and

law firm exposure to UnitedLex, having worked with

several acclaimed organizations like IBM, Cisco, Sun

Microsystems, TMI Associates and Kochhar &

Company in the past. Joginder has rich experience in

the Asia Pacific region through his past assignments in

Tokyo, Singapore and Bangalore and is currently

based in New Delhi, India.

18

TRENDS AND VIEWPOINTS

PROCUREMENT OUTSOURCING READY TO SOAR

BPO OUTCOMES PRESS RELEASE [28

SEPTEMBER 2012]

The combined results of three global procurement

outsourcing surveys conducted by sourcing advisory

firm ISG and sponsored by procurement outsourcing

provider GEP show an area of outsourcing that has

moved beyond “lift and shift” or chasing then shiniest

new technologies and methodologies.

For example, only 7% of respondents (all procurement

executives) said brand is the most important factor in

considering/executing a BPO deal and 28% said the

executive relationship role is very important in

considering/executing a BPO deal. This shows that

procurement executives are increasingly looking

beyond the opinions of others or who their friends are

when considering outsourcing procurement functions,

and instead are focused on what providers and/or

technologies provide the best value and the best

organizational fit.

Further supporting this notion of a more mature

procurement outsourcing outlook is the fact that almost

one-third of procurement executives (32%) consider

strategic alignment to other business their key future

focus area. Another 26% rank delivering on cost

reduction targets as their key future focus area. While

clearly the basic desire to cut costs is still a big part of

procurement outsourcing (as it is in any outsourcing

niche), procurement executives have developed

enough experience to begin to look beyond cost and

higher-level value areas, such as strategic alignment.

This also shows that procurement outsourcing is

becoming less siloed

Even the most common challenges faced by

procurement executives in conducting BPO show a

growing level of maturity. For example, ISG research

indicates executives often view procurement activities

as bureaucratic and suffering from delays due to

information from the requester, and variable

turnaround times for reviewing statements of work

(SOWs) or specifications, negotiation times and legal

reviews. As annoying as this situation undoubtedly is,

it does represent an increased integration of

procurement outsourcing with the rest of the

enterprise.

And achieving cost reduction target (38%) was the

area least commonly cited as a challenge by

procurement executives, suggesting this baseline goal

has already been met in many procurement

organizations. In addition, a whopping 97% of

respondents that use transactional procurement

software have at least one active user, clearly

indicating basic transactional procurement processes

are well-covered. It‟s time for procurement BPO to fly,

whether it soars like an eagle depends on the creativity

of procurement executives and the willingness of

CFOs to sign off on transformational procurement BPO

projects.

SHARED SERVICES SHINE IN INDIA

BPO OUTCOMES PRESS RELEASE [24

SEPTEMBER 2012]

For the past three decades, shared services

organizations have been practicing the shared

services model to achieve cost reduction and

efficiency. Centralization of services in one location

has its fair share of advantages and disadvantages,

and India has definitely emerged as a preferred

destination for „value addition‟ in the shared services

industry with the highest number of shared services

centres in the world.

What‟s true for the shared services industry on the

whole is true also for Indian shared services.

Considering the shared services model has “cost” at its

core, outsourcing to a location with an ample labor

pool and availability does makes sense.

A recent Zinnov Management Consulting report

dismisses the theory of India being the sunset

destination for IT/ITES captive services. The findings

of the report, based on activities of sectors such as

automotive retail, BFSI, oil and gas, pharmaceuticals,

aerospace and defense, suggests all these industries

are on a growth path as far as shared services are

concerned, with retail taking the lead. The report also

19

suggests that the drivers for the growth in this sector

are to remain competitive.

In addition to cost reduction and a ready labor pool,

entry into the Indian domestic market and utilization of

online and mobile channels are other key drivers.

Summing up the Indian shared services, the report

qualifies the shift to India as moving from “cost and

labor arbitrage to innovation.”

Other advantages that the shared services model can

deliver include scaling up rather quickly, flexibility in

adding capacity, enhancing productivity of distribution

and improving customer experience.

A Deloitte report identifies the key challenges to

successfully providing shared services outsourcing as

keeping the staff motivated, obtaining customer buy-in,

keeping costs down and collaboration among different

business units. The outcome is therefore dependent

on how well these factors are addressed, rather than

the location being geographically close or distant.

Looking ahead, more than 80% of study respondents

think that in next three to five years, there will be an

increase in number of transactional processes,

followed by increase in number of business units

served by shared services centres.

For India, which as a country is struggling with

governance issues across governmental departments,

shared services could be the answer. Although it is still

moving at slow speed, a trend toward citizen-led

initiatives for land dealings, revenue and fiscal

management and local governance have started in bits

and parts in different areas of the country. Improving

response time to citizen complaints and requests, e-

government portals and decision support service, all

hold significant future growth potential for the Indian

shared services industry. All of these services are

futuristic in the context of India, as many of the key

customer-facing interactions are still stuck in multiple

layers of inefficient interactions to obtain simple

information.

MULTINATIONALS INCREASINGLY

OUTSOURCING PAYROLL SERVICES FOR

OVERSEAS LOCATIONS

EVEREST PRESS RELEASE [17 AUGUST 2012]

North American companies propelled the Multi-Country

Payroll Outsourcing (MCPO) market that saw

explosive growth of over 30 percent CAGR growth

from 2008 to 2011, a growth rate expected to be in the

high 20s through the next few years, according to a

new market study by Everest Group, an advisory and

research firm on global services. The firm‟s report,

Multi-Country Payroll Outsourcing – No Longer a Pipe

Dream, examines the MCPO market‟s key business

drivers, buyer adoption trends, solution characteristics,

service provider landscape and implications for buyers

and service providers.

Everest Group estimates the MCPO market at US$600

million and projects buyer adoption could boost the

market up to as much as $1.3 billion by 2014.

“Multinational companies are increasingly adopting

MCPO to cover their operations in the Asia Pacific and

EMEA (Europe, Middle East and Africa),” said Rajesh

Ranjan, vice president, Everest Group. “While we

expect the MCPO market growth to remain strong,

we‟re still in the midst of a weak economic climate that

is prompting buyers to leverage a phased adoption

approach. While phased adoption offers the flexibility

to implement third-party payroll in one region then

expand to include another, the downside is loss of

volume discounts that could be gained with a larger

contract.”

The key demand drivers of the market are cost

reduction, improved management control, risk

management and compliance and business

expansion. “The service provider landscape continues

to evolve as a result of new entrants, markets exits

and mergers and acquisitions,” said Ranjan.

“Partnerships remain an intrinsic part of providing

MCPO services.”

20

AVENDUS BPO COMPOSITE INDEX

The Avendus BPO Composite Index is designed to indicate the performance of listed BPO companies in India. While

there are a plethora of indices which highlight the performance of the Technology sector in India, we felt that there is a

need to create a separate BPO Index, given the marked differences in the nature of both the sectors.

Key Highlights

1 month return: 5.5%

1 quarter return: 28.6%

1 year return: 16.1%

Methodology

We have used the stock price date of Allsec, eClerx, EXL, Firstsource, Genpact, HOV Services and WNS weighted by

their trailing twelve month revenue. The series begins at a base value of 100 on 3rd

January 2007 with just Allsec, EXL

and WNS. As more BPO companies got listed, we have added them to the index after appropriate scaling. The index

is updated for the closing price on the first Friday of every month. We have used closing price as on Friday (05/10/12)

for this edition of the newsletter.

Avendus BPO Composite Index

16.1%

28.6%

5.5%

21

About Avendus Capital Pvt. Ltd. (“AVENDUS CAPITAL”) www.avendus.com

Avendus Capital is a leading financial services firm which provides customised solutions in the areas of financial

advisory, equity capital markets and wealth management. The firm relies on its extensive track record, in-depth

domain understanding and knowledge of the economic and regulatory environment, to offer research based solutions

to its clients that include institutional investors, corporates and high net worth families. In recent years, Avendus

Capital has consistently been ranked among the leading corporate finance advisors in India and has emerged as the

advisor of choice for cross-border M&A deals having closed 40 cross-border transactions in the past 4 years. Avendus

Securities through its Institutional Equities practice is able to offer best-in-class research-driven advice to help its

clients take investment decisions, while Avendus PE Investment Advisors manages funds raised from its investors by

investing in public markets and private equity. Headquartered in Mumbai, the firm has offices in New Delhi and

Bangalore. Avendus Capital, Inc (US) and Avendus Capital (UK) Pvt. Ltd. located in New York and London

respectively are wholly owned subsidiaries offering M&A and Private Equity syndication services to clients in the

respective regions.

For more information, please visit www.avendus.com

Some of the recent deals closed by us include

Title Month - Year Of

Announcement

Deal Value Industry

Avendus Capital advises AGS Transact Technologies Ltd.

on its equity raise from Actis

August, 2012 USD 40 mn Consumer

Avendus Capital advises BookMyShow on Accel Partner‟s

USD 18 Mn investment

August, 2012 USD 18 mn Digital Media

& Technology

Avendus Capital advises MAS Financial Services Ltd on

raising growth capital from DEG – Deutsche Investitions-

und Entwicklungsgesellschaft mbH

August, 2012 Undisclosed Financial

Services

Avendus Capital advises eClerx on its acquisition of Agilyst

Inc.

June, 2012 Undisclosed Technology &

Outsourcing

Avendus Capital advises R&R Salons on its fund raising

from Everstone Capital and Helion Venture Partners

May, 2012 Undisclosed Consumer

Avendus Capital advises Wipro on its acquisition of

analytics company, Promax Applications Group

May, 2012 USD 36 mn Technology &

Outsourcing

Avendus advises Kanoria Chemicals on its acquisition of

APAG Holding, Switzerland

April, 2012 USD 8.46 mn Industrials

Avendus Capital advises C&S Electric in its acquisition of

Etacom Group

December, 2011 Undisclosed Industrials

Avendus Capital, Inc. advises SPi Global on its acquisition

of Laserwords Private Limited

November, 2011 Undisclosed Technology &

Outsourcing

Avendus advises Eris Lifesciences on its private equity

transaction with ChrysCapital

September, 2011 Undisclosed Lifescience

Avendus Capital advises Value & Budget Housing

Corporation on its equity raise from The Carlyle Group

August, 2011 USD 26 mn Infrastructure

& Real Estate

http://www.avendus.com/

22

Avendus Capital advises AGS Transact Technologies on its

equity raise from TPG

June, 2011 USD 32 mn Consumer

Avendus Capital advised SYSTIME on its 50% stake sale to

KPIT Cummins Infosystems Limited


Outsourcing

Avendus Capital advises on Serco‟s acquisition of Intelenet

Global Services


Outsourcing

Avendus Capital advises Tega Industries on its USD 35 Mn

equity raise from TA Associates

May, 2011 USD 35 mn Industrials

Avendus Capital, Inc. advises Outsource Partners

International (OPI) on its transaction with ExlService

Holdings, Inc.


Outsourcing

Avendus advises KPIT Cummins Infosystems Limited on its

preferential allotment of equity shares to Chrys Capital

March, 2011 USD 25 mn Technology &

Outsourcing

OUR OFFICES

Avendus Capital Pvt. Ltd.

Mumbai: IL&FS Financial Centre, B-Quadrant, 5th Floor, Bandra-Kurla Complex, Bandra (East), Mumbai 400 051

Tel: +91 22 6648 0050

New Delhi: Suite 22A/B, The Aman Resort, Lodhi Road, New Delhi - 110003, Tel: +91 11 4535 7500, Fax: +91 11

4535 7540

Bangalore: The Millenia Tower, A-10th Floor, No. 1 & 2 Murphy Road, Ulsoor, Bangalore 560 008 Tel: +91 80 6648

3600

Avendus Capital, Inc

New York: 499 Park Avenue, 12th Floor, New York, NY 10022, Tel: +1 646 707 0789

Avendus Capital (UK) Pvt. Ltd.

London: 33, St James‟s Square, London SW1Y 4JS, Tel: +44 203 159 4353

Avendus Capital, Inc and Avendus Capital (UK) Private Limited are authorized and regulated by the FINRA and FSA

respectively.

“© Copyright 2011 Avendus Capital Private Limited. All rights reserved.”

Disclaimer This report is not an advice/ offer/solicitation for an offer to buy and/or sell any securities in any jurisdiction. We are not soliciting any action based on this material. Recipients of this report should conduct their own investigation and analysis including that of the information provided. This report is intended to provide general information on a particular subject or subjects and is not an exhaustive treatment of such subject(s). This report has been prepared on the basis of information obtained from publicly available, accessible resources. Company has not independently verified all the information given in this report. Accordingly, no representation or warranty, express, implied or statutory, is made as to accuracy, completeness or fairness of the information and opinion contained in this report. The information given in this report is as of the date of this report and there can be no assurance that future results or events will be consistent with this information. Any decision or action taken by the recipient based on this report shall be solely and entirely at the risk of the recipient. The distribution of this report in some jurisdictions may be restricted and/ or prohibited by law, and persons into whose possession this report comes should inform themselves about such restriction and/or prohibition and observe any such restrictions and/or prohibition. Company will not treat recipient/user as customer by virtue of their receiving/using this report. Neither Company nor its affiliates, directors, employees, agents or representatives, shall be responsible or liable in any manner, directly or indirectly, for the contents or any errors or discrepancies herein or for any decisions or actions taken in reliance on the report. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Company.

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