Business Process Outsourcing - Avendus

Editorial

Dear Reader,

In contrast to the previous month, April saw a relatively low number of M&A transactions in the global outsourcing space.

Key deals in the month include:

Genpact, a global outsourcing and BPO services provider acquires Accounting Plaza, the Danish provider of

finance and accounting, and human resources services to major international retailers

Aon, a global provider of risk management solutions and human resources outsourcing and consulting acquires

the intermediary activities for commercial insurance from ABN AMRO Bank, based out of the Netherlands

eClerx, a leading outsourcing and BPO services provider acquires Agilyst, a niche pure play back office

operational and analytics company focused on the North American media Industry

Capita's pensions business, Capita Hartshead, acquires the UK based employee benefits firm, Bluefin Corporate

Consulting

Listed business process outsourcing (BPO) firm Paxys sells off for a significant premium all of its business in

Australia, representing about two-thirds of the company’s assets, to SmartGroup Investments, a New Zealand

based investment entity

April witnessed a number of new contracts as well as contract renewals, primarily signed with the UK government. Key

contracts executed in the month include:

Genpact and Procurian wins a multi-year contract to manage global spend and transform procurement for the

Zurich Insurance Company

Serco wins a 2 year £30m agreement to operate the Anglia Support Partnership (ASP), becoming Serco's first

shared services proposition in the emerging market for middle and back office support to the UK health sector

TeleTech extends its strategic relationship with a long-term client in the communications industry, by renewing a

multi-year contract catering to improve customer experience for its client

Arvato wins a multi-year contact with Readers Digest for digital archiving and distribution its audio content

Genpact wins a multi-year agreement for learning design and development services with the Building Efficiency

division of Johnson Controls, the global leader in delivering solutions that increase energy efficiency in buildings

Serco wins a new 5 year £17m contract with Ideal Shopping to provide customer contact services for all Ideal

Shopping customers for its Ideal World, Create & Craft, Lead the Good Life and Pets & Wildlife brands. The

service will be run from the UK, with contact centre operations in Peterborough in the UK, and Mumbai in India

Emerging Trends

The multi-process Finance and Accounting Outsourcing (FAO) market is projected to rebound by 10-15 percent and top US$4 to US$4.5 billion in annual contract value (ACV) in 2012, according to the Finance & Accounting Outsourcing Annual Report 2012 published by the Everest Group

This edition of the newsletter also includes the Avendus BPO Composite Index updated till the 4

th of May, 2012. The

index indicates an increase in share prices of BPO companies over the month of April 2012 with a positive 0.3% monthly return, negative 0.2% quarterly return and negative 3.9% annual return.

Regards,

Amit Singh

Business Process Outsourcing Newsletter MAY 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

GENPACT TO ACQUIRE ACCOUNTING PLAZA ADDS RETAIL EXPERTISE, DELIVERY FOOTPRINT IN EUROPE

AND AHOLD AS MARQUEE CLIENT ........................................................................................................... 3

AON TO ACQUIRE COMMERCIAL INSURANCE ACTIVITIES OF ABN AMRO IN THE NETHERLANDS ..................... 3

ECLERX ANNOUNCES THE ACQUISITION OF AGILYST ................................................................................ 4

CAPITA TO ACQUIRE EMPLOYEE BENEFITS CONSULTANCY, BLUEFIN CORPORATE CONSULTING ..................... 4

LISTED BPO - PAXYS TO SELL OFF ASSETS IN AUSTRALIA ......................................................................... 5

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

CORELOGIC SIGNS FIVE-YEAR, MULTI-MILLION DOLLAR CONTRACT SELECTING PROCURIAN TO OPTIMIZE

SPENDING ACROSS THE ORGANIZATION ................................................................................................. 6

ZURICH SELECTS PROCURIAN AND GENPACT TO MANAGE GLOBAL SPEND AND TRANSFORM PROCUREMENT

ACROSS ORGANIZATION ........................................................................................................................ 6

SERCO SIGNS ASP SHARED SERVICES NHS STRATEGIC PARTNERSHIP ........................................................ 7

TELETECH AWARDED CONTRACT EXPANSION WITH FORTUNE 500 COMMUNICATIONS COMPANY ................... 7

READER’S DIGEST ENTRUSTS ARVATO ENTERTAINMENT EUROPE WITH ARCHIVING AND DIGITAL

SERVICES ............................................................................................................................................. 8

GENPACT SIGNS MULTI-YEAR AGREEMENT TO PROVIDE LEARNING DESIGN AND DEVELOPMENT SERVICES

TO JOHNSON CONTROLS ........................................................................................................................ 8

SERCO SIGNS CONTRACT WITH IDEAL SHOPPING TO PROVIDE CONTACT CENTRE SERVICES FOR ALL UK

CUSTOMERS ......................................................................................................................................... 9

SLOUGH BOROUGH COUNCIL PARTNERS WITH ARVATO TO DELIVER INNOVATIVE TRANSACTIONAL

SERVICES CENTRE IN SOUTH OF ENGLAND ............................................................................................ 10

EXPANSION ...................................................................................................................................... 11

ARVATO EXPANDS IN CHINA ................................................................................................................. 11

INDECOMM GLOBAL SERVICES EXPANDS U.S. EMPLOYEE BASE AS NEW REGULATIONS DRIVE MORTGAGE

ORIGINATION COSTS ........................................................................................................................... 11

MPHASIS OPENS CONTACT CENTERS IN BHUBANESWAR & MANGALORE .................................................... 12

ALORICA’S GROWTH REQUIRES MOVE TO LARGER FACILITY .................................................................... 12

MOVERS AND SHAKERS .................................................................................................................... 13

TRANSCOM APPOINTS MARCUS SÜLLMANN AS CHIEF FINANCIAL OFFICER (CFO) ....................................... 13

EXL APPOINTS ROHIT KAPOOR AS VICE CHAIRMAN OF THE BOARD AND CEO ............................................ 13

GENPACT ADDS TO LEADERSHIP TEAM TO SUPPORT FUTURE ONSHORE AND EMERGING MARKET GROWTH .. 13

MATTHEW VALLANCE STEPS DOWN AS FIRSTSOURCE CEO; RAJESH SUBRAMANIAM ELEVATED TO MD AND

CEO ................................................................................................................................................... 14

EXL NAMES NEW GLOBAL HEAD OF HR .................................................................................................. 15

TRENDS AND VIEWPOINTS ............................................................................................................... 16

F&A OUTSOURCING MARKET WILL REBOUND WITH 10-15 PERCENT GROWTH THIS YEAR FOLLOWING

SLOWDOWN IN 2011 ........................................................................................................................... 16

AVENDUS BPO COMPOSITE INDEX .................................................................................................... 17

OUR OFFICES .................................................................................................................................... 19

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DEAL SUMMARY

GENPACT TO ACQUIRE ACCOUNTING PLAZA

ADDS RETAIL EXPERTISE, DELIVERY FOOTPRINT

IN EUROPE AND AHOLD AS MARQUEE CLIENT

GENPACT PRESS RELEASE [18 APRIL 2012]

Genpact, a global leader in business process and

technology management, today announces that it has

signed a definitive agreement to acquire Accounting

Plaza, a provider of finance and accounting (F&A),

human resources (HR) services and PeopleSoft ERP

services to Ahold, a major international retailer, and

other clients in the retail, wholesale, banking and

healthcare industries. This acquisition will significantly

expand Genpact‘s domain expertise in the retail

industry in addition to its service delivery footprint in

Europe. Closing is expected within a week, and terms

of the deal are not disclosed.

With the acquisition of Accounting Plaza, Genpact will

now have a strong services delivery operations in The

Netherlands with Dutch language capabilities as well

as an expanded services portfolio in Europe including

human resources business process management, e-

invoicing and PeopleSoft ERP related services.

Genpact will also bolster its F&A services offerings for

the retail industry in areas such as store and franchise

accounting, inventory accounting, and trade

promotions.

―This deal gives Genpact domain expertise in the

retail industry, an industry which is transforming

globally. Along with finance and accounting, one of

our core capabilities, we now gain tremendous traction

in the retail industry,‖ said Tiger Tyagarajan, president

and CEO, Genpact. ―The addition of operating centres

in The Netherlands will further expand and grow our

business in Europe, especially with large European

multinational corporations. We‘re looking forward to

partnering with Ahold Europe and applying our

capabilities in smarter processes, analytics and

technology to help support their growth plans.‖

―Ahold Europe welcomes the opportunity to continue

its many years of enjoyable and professional working

relationship with the staff at Accounting Plaza in both

Wormer and Krakow. We think the new ownership of

Genpact will give our partnership a new impetus

against the background of Genpact's global

experience. We look forward to jointly add value to our

growing European operations in that partnership,‖ said

Chris Dik, CFO for Ahold Europe.

Accounting Plaza has approximately 600 full-time

employees working out of its centres in The

Netherlands, Poland, and Czech Republic. It was

founded in 2000 as the F&A and HR services provider

for Ahold. Ahold, the sixth largest retail company in the

world, owns and operates food retail and online

grocery delivery operators across the United States

and Europe. Ahold currently operates a total of 3,008

retail stores with over 2,250 of those stores located in

Europe.

Within Europe, Genpact operates three delivery

centres in Romania as well as centres in Hungary,

Poland, and Morocco, serving more than 25

languages. Genpact provides a wide range of services

from Europe and across the globe that help maximize

the effectiveness of operations for companies in

multiple industries, including procurement and supply

chain, F&A, IT help desk services, analytics, and

process reengineering.

―We welcome the Accounting Plaza team to

Genpact‘s European operations and retail business, as

they will provide tremendous value to the services we

provide to our clients,‖ said Pascal Henssen, senior

vice president and COO, Genpact Europe.

―Accounting Plaza‘s retail expertise, marquee client

base, client service-driven culture, and process-driven

experience in F&A, HR, and PeopleSoft ERP will be

well integrated into our business to provide even

stronger service delivery capabilities.‖

AON TO ACQUIRE COMMERCIAL INSURANCE

ACTIVITIES OF ABN AMRO IN THE NETHERLANDS

AON PRESS RELEASE [12 APRIL 2012]

Aon, a leading global provider of risk management

solutions and human resources outsourcing and

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consulting services (NYSE: AON), today announced its

Dutch subsidiary Aon Group Nederland B.V. intends to

acquire the intermediary activities for commercial

insurance from ABN AMRO Bank N.V. Financial terms

were not disclosed.

The proposed acquisition pertains to ABN AMRO's

insurance activities for large commercial enterprises as

well as certain activities for small and medium-sized

enterprises. This includes services such as risk

consulting, insurance brokerage and the management

of policies. In total, 78 employees will transfer to Aon

Risk Solutions, the global risk management business

of Aon.

Lex Geerdes, CEO ARS Benelux/Nordics and country

manager of Aon Nederland, said: "The insurance

activities we will be acquiring from ABN AMRO will add

to our capability to better serve our clients. They are a

perfect fit for our current services and represent an

investment in further growth in the Netherlands for

Aon."

Steve McGill, chairman and chief executive officer of

Aon Risk Solutions, added, "This acquisition brings

together two premier organizations and reinforces

Aon‘s strong commitment to the Netherlands.

Combining the best talent between the two firms

enhances our ability to deliver world-class solutions to

our clients."

ECLERX ANNOUNCES THE ACQUISITION OF

AGILYST

ECLERX PRESS RELEASE [12 APRIL 2012]

eClerx today announced that it has signed a definitive

agreement to acquire 100% of Agilyst Inc., a closely

held US based KPO Company, through its overseas

subsidiary eClerx Investments Ltd.

Post-acquisition, Agilyst Inc. will operate as a fully

owned subsidiary of eClerx and Agilyst‘s management

team will continue to manage day-to-day operations.

The transaction is expected to close in the near future

and will be EPS accretive for eClerx.

The consideration for the acquisition will be all cash

and includes a substantial earn out component based

on Agilyst‘s future performance. The transaction will be

funded from eClerx‘s internal resources and there is no

intention to raise any incremental capital.

Agilyst is a niche pure play back office operational and

Analytics Company focused on the North American

media Industry. It was founded in 2007 and employs

approximately 1,000 people, most of them in India.

The company is expected to generate just under US

$10 Mn in revenues for FY2012, and is profitable.

Agilyst‘s services include critical error identification,

customer experience analysis & end user support

services. Agilyst has a low cost delivery base in a Tier-

2 Indian city.

CAPITA TO ACQUIRE EMPLOYEE BENEFITS

CONSULTANCY, BLUEFIN CORPORATE

CONSULTING

CAPITA PRESS RELEASE [4 APRIL 2012]

Capita's pensions business, Capita Hartshead,

announces today that it is to acquire employee

benefits firm, Bluefin Corporate Consulting. The deal,

worth £50 million, will see the two businesses merge,

resulting in Capita significantly broadening its pensions

and employee benefits offering.

Bluefin Corporate Consulting provides employee

benefits consultancy to medium and large

corporations. In addition to its consultancy services,

Bluefin has developed award-winning benefits

management technology, which supports the delivery

of an increasing number of services across the group

and is used by more than 150 clients with over 80,000

employees.

Mike Addenbrooke, who will become non-executive

chairman of Capita Hartshead when the deal

completes, said: "Our clients face major challenges

over the coming months and years. These include both

the evolving legislative and regulatory landscape, such

as auto-enrolment, and continuing social and

behavioural change. This merger will add considerable

new market reach and broader expertise to our range

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of services. The deal will mean Capita has a stronger

presence in investment consultancy, the insured

pensions sector, flexible benefits and health and risk

benefits allowing us to better help our clients meet the

challenges ahead."

The deal will also see Bluefin Corporate Consulting's

chief executive Nick Burns become chief executive of

the combined business. He said: "Clients want to work

with talented people who really understand and care

about them. I believe that Capita Hartshead's strength

in pensions administration, actuarial and consulting,

together with Bluefin's award-winning employee

benefits expertise and market-leading online

technology, will combine to deliver a wide range of

client services. With the full backing of a FTSE 100

company, this new business will be able to provide

genuinely innovative solutions to the rapidly evolving

and increasingly dynamic employee benefits market."

Bluefin Corporate Consulting employs 548 people,

principally in London and across 8 further offices

throughout the UK. The acquisition excludes the

general insurance and wealth management arms of

Bluefin and is subject to approval by the FSA.

LISTED BPO - PAXYS TO SELL OFF ASSETS IN

AUSTRALIA

PAXYS PRESS RELEASE [2 APRIL 2012]

Listed business process outsourcing (BPO) firm Paxys

Inc. has announced plans to sell off for a significant

premium all of its business in Australia, representing

about two-thirds of the company‘s assets.

In a disclosure on Monday, Paxys said its wholly

owned subsidiary Paxys NV had signed an agreement

with SmartGroup Investments Pty Ltd for the sale of

Paxys Australia for 84.9 million Australian dollars.

―The sale includes all of the subsidiaries of Paxys

Australia, consisting of SmartSalary Pty Ltd,

SmartFleet Management, SeQoya Pty Ltd, PBI Benefit

Solutions, and Australian Vehicle Consultants,‖ the

listed firm said in a disclosure.

As of end 2011, the consolidated net book value of

Paxys Australia was at 34 million Australian dollars, or

about P1.5 billion. This constituted 66 percent of

Paxys‘ total consolidated net assets. Paxys shares fell

4.44 percent to close at 3.01 after the announcement

of the sale. The company‘s latest financial statement

showed that it lost P28 million from July to September

2011—a 217-percent reversal from its net income of

P24 million a year earlier.

But the loss was caused by a one-time charge related

to the impairment of certain assets. During the same

three-month period, the company said it was able to

record an operating profit of P50 million.

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CONTRACT TRACKER

CORELOGIC SIGNS FIVE-YEAR, MULTI-MILLION

DOLLAR CONTRACT SELECTING PROCURIAN TO

OPTIMIZE SPENDING ACROSS THE

ORGANIZATION

PROCURIAN PRESS RELEASE [26 APRIL 2012]

Leading comprehensive procurement solution provider

Procurian, formerly ICG Commerce, today announced

that it has been selected to deliver a comprehensive

procurement solution to CoreLogic, a leading provider

of information, analytics and business services.

Procurian will help CoreLogic continuously optimize

spending in areas including consulting, benefits,

temporary labor, postage and marketing. The five-year

contract to manage annual spending will support

CoreLogic‘s Project 30 cost reduction objectives.

―CoreLogic is focused on delivering strong revenue

and earnings growth in 2012. To help achieve this

objective, we have established aggressive cost

reduction and workflow productivity targets,‖ said

Frank Martell, Chief Financial Officer of CoreLogic.

―Because they possess deep category expertise

across some of our largest areas of spending, we

believe that Procurian is the right partner to help us

meet our cost savings commitments.‖

CoreLogic will leverage Procurian's Specialized

Procurement InfrastructureTM to enable its

procurement strategy of establishing high performance

capability to improve control, reduce its cost structure,

and support business growth through more effective

procurement. Procurian is solely focused on helping

clients transform Procurement into a strategic function

that fuels growth through measurable savings as well

as supply 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 CoreLogic team has a very progressive view of

the role of procurement and we‘re excited to help this

forward-thinking market leader take procurement to the

next level to meet their cost savings goals by

harnessing the power of their spending,‖ said Carl

Guarino, CEO of Procurian. ―This new engagement

showcases the opportunity for many companies to

significantly lower their spending in categories such as

consulting, benefits, marketing and temporary labor.―

ZURICH SELECTS PROCURIAN AND GENPACT TO

MANAGE GLOBAL SPEND AND TRANSFORM

PROCUREMENT ACROSS ORGANIZATION


Procurian, formerly ICG Commerce, and Genpact

announced today that they have been selected to

deliver a global, comprehensive Source-to-Pay

solution to Zurich Insurance Company Ltd and its

subsidiaries (Zurich), a leading multi-line insurance

provider. Together with its long-standing partner

Genpact, Procurian, the leading comprehensive

procurement solutions provider, will help Zurich reduce

costs and continuously optimize spending in the areas

of IT, professional services, marketing, HR, facilities

and travel.

Zurich will leverage Procurian's Specialized

Procurement InfrastructureTM enhanced by Genpact‘s

Smart Enterprise Processes (SEPSM) framework to

transform Zurich‘s procurement capabilities globally. In

partnership, Procurian and Genpact are focused on

helping clients transform Procurement into a strategic

function that delivers measurable savings and fuels

growth. Procurian will help drive further cost

optimizations and generate greater value for Zurich‘s

business. It brings a specialized infrastructure powered

by deep supply market intelligence while Genpact

brings a proven track record of maximizing the

effectiveness of source-to-pay processes and deep

domain expertise in the financial services and

insurance industries.

―This contract brings together all of the elements

required to extract value from a company's source-to-

pay activities on a truly global scale, including the

expertise to address all spend and capabilities and

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deploy an integrated solution across the client's

worldwide operations," said Bill Huber, Partner, ISG.

SERCO SIGNS ASP SHARED SERVICES NHS

STRATEGIC PARTNERSHIP

SERCO PRESS RELEASE [16 APRIL 2012]

Serco Group plc (Serco), the international service

company, announces today that it has signed the

agreement to operate, and has begun to operate, the

Anglia Support Partnership (ASP). ASP becomes

Serco's first shared services proposition in the

emerging market for middle and back office support to

the UK health sector. The annual revenue to Serco of

the current contracts is approximately £30m,

equivalent to an initial total contract value of £120m

over an average of four years.

Cambridgeshire and Peterborough NHS Foundation

Trust (CPFT), together with a further five partnering

NHS organizations, has operated ASP to date. There

are around 65 contracts for the provision of support

services to the Trust and partners, as well as to around

50 other public and private organizations. The support

services provided currently include: operational and

specialist IT; finance operations; employment services;

contracts management; procurement; primary care

support services; occupational health; risk

management; catering; and estates and property.

A new four-year framework agreement permits the

call-off of additional services including: commissioning

advice and related support services; cost reduction,

efficiency advice and consultancy services; and patient

administration. The framework enables, amongst

others, all NHS organizations in the new Midlands and

East Strategic Health Authority to access services

equivalent to around 25% of total NHS spend. ASP

currently employs around 620 members of staff who

will transfer as a consequence. As part of establishing

the strategic partnership, Serco's payment to the

partners, which includes acquiring the assets of ASP,

totals approximately £9m in 2012.

Dr Attila Vegh, Chief Executive of CPFT, said: "We

consider Serco to be the ideal strategic partner and

one that can offer the investment that's vital to keep

ASP's services at the cutting edge. Capitalizing on the

strengths and track record of ASP, we are looking

forward to seeing Serco modernize systems and invest

in infrastructure, while seizing other opportunities for

growing the business. This allows CPFT to

concentrate on delivering high-quality health and social

care that promotes well-being and independence and

which we are proud to recommend to our families and

communities."

Christopher Hyman, Chief Executive of Serco Group,

said: "We are delighted to be chosen to operate the

Anglia Support Partnership. This adds a further

strategic partnership to our growing health support

services and BPO operations. Under the ASP

framework, Serco will now be able to address much of

the sizeable NHS 'shared services' market, offering

member organizations both improvements in service

quality and substantial cost savings. We are combining

our breadth of skills and ability to transform public

services to build a leading health platform, and this

represents a significant milestone and early success

for our newly created Global Services division."

TELETECH AWARDED CONTRACT EXPANSION

WITH FORTUNE 500 COMMUNICATIONS

COMPANY

TELETECH PRESS RELEASE [12 APRIL 2012]

TeleTech Holdings, Inc. (NASDAQ: TTEC), a leading

global provider of technology-enabled customer

engagement and experience solutions, today

announced that it has expanded its strategic

relationship with a long-term client in the

communications industry.

Under the terms of the multi-year agreement,

TeleTech will provide this leading communications

company with innovative, technology-enabled

customer experience solutions from delivery centers in

the United States and Canada. TeleTech is committed

to increasing customer value for this client by

delivering a world-class customer experience across

all communications channels, as well as for the client‘s

variety of dynamic entertainment and communications

services. TeleTech‘s strategic thought leadership,

innovative technology and longstanding track record of

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delivering measurable outcomes on behalf of this client

were key factors in the client‘s decision to expand its

current relationship.

―As a strategic partner for more than 10 years, we are

proud to expand our relationship with this leader in the

communications industry,‖ said Judi Hand, Chief Sales

Officer at TeleTech. ―Our client is driven to stay ahead

of its customers‘ needs and to consistently provide a

superior customer experience. We will continue to

leverage our most advanced technology-enabled

solutions to help them meet these objectives while

continuing to drive brand differentiation and customer

loyalty.‖

READER’S DIGEST ENTRUSTS ARVATO

ENTERTAINMENT EUROPE WITH ARCHIVING AND

DIGITAL SERVICES

ARVATO PRESS RELEASE [12 APRIL 2012]

Reader‘s Digest, one of the world‘s leading multimedia

publishing and direct marketing companies, has

entered a multi-year agreement with arvato

Entertainment Europe for Digital Archiving, Preparation

and Digital Distribution of its audio content. With this

agreement another major content owner has elected to

use arvato Entertainment Europe‘s comprehensive

archiving and digitization services.

Jörg Pollmeyer, Vice President Audio Sales &

Customer Services at arvato Entertainment Europe

explains, with respect to this important agreement and

the services range expansion, ―With these broad

archiving and digital distribution services the long-term

cooperation with Reader´s Digest reaches a new

dimension‖. For several decades the global media

service company has been manufacturing physical

music products for Reader‘s Digest companies across

the world; with this new agreement that association is

taken into the digital age.

arvato Entertainment Europe is now entrusted with the

digital archiving of the Reader´s Digest music

catalogue - some 20,000 recordings - , the preparation

for different digital formats and the digital distribution of

content to the Apple iTunes Store, digital aggregator

The Orchard and other DSPs. ―The agreement also

includes the provision of digital content internally for

Reader´s Digest companies as well as mastering

services – collating different titles for album

compilations – and uploading the associated

metadata‖, says Wolfgang Martens, Director

Digitization & Media Archiving Services. ―The

agreement allows us to bundle different services from

one source, thus simplifying many subsequent

processes.‖

Richard Dinnadge, Product Development Director

International Music at Reader´s Digest commented:

―We are delighted to continue and to expand our long-

term partnership with arvato Entertainment Europe for

this critically important area of our digital content and

supply chain management. It will provide a solid

foundation on which to further grow our activities in the

digital space where we have already seen well over

one million downloads from the iTunes store alone‖.

GENPACT SIGNS MULTI-YEAR AGREEMENT TO

PROVIDE LEARNING DESIGN AND

DEVELOPMENT SERVICES TO JOHNSON

CONTROLS


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

business process and technology management, today

announced a multi-year agreement for learning design

and development services with the Building Efficiency

division of Johnson Controls, the global leader in

delivering solutions that increase energy efficiency in

buildings.

Under this agreement, Genpact will partner with

Johnson Controls Building Efficiency Talent

Development Team to streamline processes and

develop learning solutions across a wide variety of

employee segments including service technicians, field

engineers, technical instructors, sales, human

resources, legal teams, and project managers. These

solutions will be deployed on multiple platforms and

interfaces such as e-learning, video-based learning,

instructor-led training, eTools, workshops and

webinars, game-based learning, website development,

training content for multi-platform mobile devices, job

aids, training guides, and user manuals.

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―Genpact‘s ability to run a number of deep processes

and continuously improve them using Lean and Six

Sigma will help us drive innovation and effectiveness

in our learning programs,‖ said Suzanne Sherry,

director of Global Talent Development, Building

Efficiency, Johnson Controls. ―Genpact has proven

experience in designing, developing, and deploying

engaging learning content and programs. We look

forward to enhancing the learning experience for our

employees and customers around the world.‖

In addition, Genpact will help Building Efficiency to

deliver improved efficiencies and cost savings in

monitoring and reporting areas, content re-use,

designing for a global audience, and content

translation.

―Successful training and development programs are

core to our business, so we are excited to combine this

experience with our process expertise to provide value

to our clients like Johnson Controls,‖ said Tiger

Tyagarajan, president and CEO, Genpact. ―Genpact

will ensure that we apply our own rigorous standards

and learning processes, combined with innovative

content development for multiple platforms, to make

Johnson Controls‘ training and development program

best-in-class.‖

Genpact‘s Learning and Marcomm Services Center of

Excellence provides an end-to-end suite of innovative

learning and media services to help align business

priorities to employee learning in a cost-effective and

scalable manner. Genpact offers client support in

strategic-training and learning-needs assessment,

curriculum and training design, training development,

content development, deployment and maintenance,

training delivery, and performance measurement.

Since 2003, Genpact has won more than 21

international awards for content design excellence

including awards from the Media Communications

Association International (MCAI), the American Society

for Training & Development (ASTD), and Brandon Hall.

Genpact has also been listed on the Top 20 Training

Providers list for 2010 and 2011 by Training Industry

Inc.

SERCO SIGNS CONTRACT WITH IDEAL

SHOPPING TO PROVIDE CONTACT CENTRE

SERVICES FOR ALL UK CUSTOMERS

SERCO PRESS RELEASE [2 APRIL 2012]

Serco, the international service company, today

announces that it has signed a new contract with Ideal

Shopping. Under the 5 year contract valued at £17m,

Serco will provide customer contact services for all

Ideal Shopping customers for its Ideal World, Create &

Craft, Lead the Good Life and Pets & Wildlife brands.

The service will be run from the UK, with contact

centre operations in Peterborough in the UK, and

Mumbai in India.

Serco will deliver all aspects of customer contact

including customer acquisition, customer enquiries,

inbound and outbound sales, credit applications,

payments, order processing, and white mail and e-mail

handling. We will also have opportunities to

increasingly support web transactions and purchases

and in the future deploy innovative service solutions

including web chat and online advisers. Dedicated

sales training programmes will be implemented for

frontline staff to maximise sales effectiveness. The

contract will employ 160 people with existing members

of staff in Peterborough transferring to Serco, with their

terms and conditions protected. As well as protecting

the existing jobs, current projections indicate that 40

new jobs will be brought into the city within the first 12

months. In India, all existing contact volumes will

transfer to Serco and will be located out of new

premises in Mumbai.

"We made a strategic decision to seek a partner with a

dedicated contact centre facility, who could work with

us to improve the efficiency and effectiveness of the

overall customer contact service" says Mike Hancox,

CEO of Ideal Shopping. "We're very pleased to be

joining forces with Serco as it is a company that will

introduce best in class working practices, as well as

enhancing the customer experience through improved

service levels and service quality. The efficiencies and

effectiveness that Serco will bring to customer contact

will enable us to focus on our core TV shopping

operation."

10

Jerry Benson, Managing Director of Serco's UK and

Europe Global Services private sector business, said,

"This partnership is an exciting opportunity for Serco. It

is the first contract that will be operating out of the UK

and India as part of Serco's new Global Services

capability, and demonstrates our capabilities as a key

contact centre partner in the retail sector. Not only are

we providing customer services capability but we will

be cross-selling a range of complimentary retail and

financial products. We very much look forward to

developing our relationships with Ideal Shopping as we

continue to develop our global business process

outsourcing capability and the services that we provide

to them and our other customers around the world."

Councillor Matthew Lee, Deputy Leader of

Peterborough City Council, added, "I very much

welcome the announcement of this new partnership

and the positive economic benefits it brings to the city.

Not only is it protecting existing jobs in Peterborough,

but is also projecting to bring some 40 new jobs to

Peterborough. All of which is very much in line with

Serco's plans to develop its new operation in

Peterborough as a regional service base

SLOUGH BOROUGH COUNCIL PARTNERS WITH

ARVATO TO DELIVER INNOVATIVE

TRANSACTIONAL SERVICES CENTRE IN SOUTH

OF ENGLAND


An innovative public-private partnership between

Slough Borough Council and global business process

outsourcer arvato will go live today (2nd April 2012), in

a deal which will deliver £26.5m savings over the next

10 years and includes the transfer of 102 council

employees on their existing terms and conditions and

pension rights.

The partnership includes the establishment of a

Transactional Service Centre, one of the first of its kind

for a local authority in the South of England, which will

deliver a range of transactional services including

revenues and benefits, payroll, finance services, HR

and logistics services.

The new Centre will not only support the council‘s

services but will also be an engine for growth and

regeneration in Slough, by offering transactional

solutions to a wider range of private and public sector

organizations, providing inward investment into the

local economy, safeguarding local jobs and increasing

the number of apprenticeships for young people.

The two organizations will work closely together to

drive efficiencies and ensure that the Centre, a shared

services hub, focuses on seamless service delivery

and continual improvement.

Roger Parkin, director of customer and community

services at Slough Borough Council, said: ―Not only

will the new shared services centre reduce costs and

improve efficiency for the council, it will also bring

wealth into the local area and provide career and

training opportunities for employees.

―arvato has brought a fresh approach to our service

delivery models, along with new ways of working and

improvements to the provision of services for

residents. We believe that this model is the shape of

things to come for other councils. Standardized

operating platforms and processes bring greater

efficiencies and mean that instead of having to invest

heavily in back office support functions, councils can

spend their budgets on the services which matter most

to the public.

Rainer Majcen, managing director, public sector,

arvato UK & Ireland, said: ―Our approach in Slough is

to work closely in collaboration with the council to

develop a set of processes with local residents in

mind.

―The investment and the joint development of the

shared service centre will bring great benefits to the

local area and is an example of how public sector

organizations can start to really change the ways in

which they deliver services.‖

11

EXPANSION

ARVATO EXPANDS IN CHINA


arvato China has been tasked by China Post, the

country‘s official national postal service, with setting up

and running a new service center in Guangzhou in the

southern province of Guangdong. This move

represents a strengthening of the partnership between

China Post and arvato, which has existed since 2010.

The service center is set to begin operations in the

next two months and will offer capacity for up to 2,000

workstations. The services offered by arvato will

encompass postal and logistics services, as well as

services related to address and database marketing.

―We will pursue our close cooperation with China Post

in the new service center in Guangdong,‖ says Tony

Tian, Business Director at arvato.

arvato opened the ―11183 Service Center‖ for China

Post in Beijing back in 2010 and has operated it

successfully since then. The service center currently

employs around 1,000 staff. arvato provides support

for China Post‘s business processes with its broad

range of integrated services. These include customer

support, coordination of collection dates, consignment

tracking, customer surveys, and complaints

management. In addition, arvato manages courier

deliveries, optimizes workflows and implements quality

controls for deliveries, as well as carrying out data

analysis, reporting and strategic consulting tasks.

In the context of the cooperation, the number of courier

deliveries has increased from 26,000 to 640,000 per

month in the past two years. Tony Tian says: ―This

dynamic growth means that the service center in

Beijing will soon reach its operational limits. And that is

why arvato and China Post have decided in favor of a

new location in Guangdong.‖

With more than 100 million inhabitants, Guangdong is

the most highly populated province in China.

Expanding to South China is an important step – and

not only because of the sustained strong growth of the

Chinese courier and express market. In addition,

employees there are able to communicate better in the

prevailing dialect of Cantonese, which will put China

Post in a better position to expand into the region with

its services.

By intensifying its cooperation with China Post, arvato

is also driving its own growth in China. arvato has

been active in China since 2002 and now has ten

locations there. These include both logistics and

customer service locations. arvato currently employs

over 3.000 staff in China. arvato‘s customer base in

China includes companies from different industries e.

g. automotive, health care, consumer goods or retail.

―By growing with our customers, we are offering them

scalability and flexibility. At the same time, we are

continuously expanding our own activities and growing

organically,‖ says Tony Tian.

INDECOMM GLOBAL SERVICES EXPANDS U.S.

EMPLOYEE BASE AS NEW REGULATIONS DRIVE

MORTGAGE ORIGINATION COSTS

INDECOMM PRESS RELEASE [18 APRIL 2012]

Indecomm Global Services, a leading business

process outsourcing company, has added over 100

new employees across the United States in recent

months and its expansion plans include more than 150

additional full-time, U.S. based personnel in 2012. The

positions are needed to supply outsourcing services to

mortgage lenders under cost pressure from new

regulations and internal corporate mandates. The

regulations range from federal consent orders to

operational reviews and loan origination services such

as loan set up, processing, underwriting, compliance

and closing. The specialties include the full spectrum

of underwriters, processors, closers, compliance

experts, loss mitigation experts and quality control

specialists.

"Indecomm is committed to helping our mortgage

origination partners manage change as new

regulations and increased competition pressure their

profitability and drive up their costs," said Rajan Nair,

President, Financial Services Division, Indecomm

Global Services. "As a result, we are rapidly adding

mortgage specialists and expanding our line of

12

mortgage solutions in our lending and document

management areas. The demand on mortgage

originators for cost effective solutions that allow

variable costing and scalability is a trend we expect to

continue. Our unique technology platform-driven

outsourcing solutions combine with our flexible delivery

model to help mortgage originators address their

marketplace challenges."

Indecomm has over 400 employees in the United

States, up from approximately 200 a year ago. These

employees support mortgage client partners

throughout the United States. Their skill in managing

complex outsourcing functions provides significant

value to mortgage lenders. Indecomm has

approximately 3,000 associates across its operations

in six countries.

"The industry's growing appetite for vendor expertise in

strategic areas lies at the base of innovation in

mortgage business processing and customer service,"

Nair said. "Mastering the innovation process drives

customer market share and creates value."

MPHASIS OPENS CONTACT CENTERS IN

BHUBANESWAR & MANGALORE

MPHASIS PRESS RELEASE [17 APRIL 2012]

MphasiS, a leading IT and BPO service provider, today

announced the inauguration of two Contact Centres in

Bhubaneswar and Mangalore. MphasiS has

established these new Contact Centres towards

catering to inbound and related customer support

services requirements of Bharti Airtel, thus

strengthening its long standing and strategic

partnership with the country‘s largest telecom operator.

MphasiS has also been appointed by Bharti Airtel for

Document Management & inbound data support

services that will essentially work towards driving

Continuous improvements and optimization across

various lines of businesses.

―We are extremely happy about further extending our

strategic partnership with Bharti Airtel. By offering two

new Contact Centres for Airtel, we are delighted to

consolidate our status as a National Strategic

Partner that continues to remain committed to

contributing towards the company‘s long term growth

plans‖, said Mr. P.A. Krishnan, Executive Vice

President & Head, Emerging Geographies, MphasiS.

―We continue to value our relationship with MphasiS &

are happy to see it grow‖, said Ms Abhilasha Hans,

Chief Service officer, Consumer Business, Bharti Airtel

Limited.

ALORICA’S GROWTH REQUIRES MOVE TO

LARGER FACILITY

ALORICA PRESS RELEASE [12 APRIL 2012]

Alorica, a leading provider of customer management

outsourcing solutions, announced that it will move to a

larger facility due to client growth and expansion plans.

The new Alorica call center will be located in Fresno at

5104 N. Blythe Avenue. The company expects to

employ an additional 275 full-time, permanent

employees to fill the new site.

―Our client is thrilled with our performance and is

expanding their business with us,‖ says Site Director

John Foulk. ―I am so proud of our team; they have

worked so hard and are committed to achieving

success. The move to a larger facility also represents

a big win for our local community as we will be hiring

hundreds to support the growth,‖ added Foulk. Alorica

currently has 40 locations and has recently opened

two brand new call centers earlier this year.

The new site will be a state-of-the-art facility that

supports ongoing growth. ―We are looking to hire now!

We want to find people that want to join a growing,

winning team! The bulk of positions are for customer

service agents, but we will also have dozens of

management and support openings,‖ added Foulk.

Qualified candidates should have some service

industry experience and possess general computer

skills. Alorica provides paid training, offers benefits,

paid time off, holiday pay, 401k, tuition reimbursement

and insurance.

13

MOVERS AND SHAKERS

TRANSCOM APPOINTS MARCUS SÜLLMANN AS

CHIEF FINANCIAL OFFICER (CFO)

TRANSCOM PRESS RELEASE [26 APRIL 2012]

Transcom WorldWide S.A. today announced that

Marcus Süllmann has been appointed Chief Financial

Officer of the Company. He will take up his position

with Transcom in May 2012, replacing Aïssa Azzouzi.

A native Swede, Mr Süllmann has lived and worked in

ten countries across three continents. He has over 20

years experience in international finance, and has held

Finance Director and Group Controller positions with a

number of large international organizations, most

recently as Group Controller for the Ikano Group. His

previous positions include Director of Business Control

at Elsevier, Head of Global Controlling at DHL

Express, and Finance Director Central Europe at the

Kellogg Company.

―I am delighted to announce the appointment of

Marcus Süllmann as CFO of Transcom. Marcus is a

seasoned financial executive with a proven ability to

build, motivate and manage international teams. He

has extensive finance, accounting, tax, and regulatory

affairs experience across a wide range of geographies

and industry sectors, and I am convinced that he will

play a vital role in the continued development of

Transcom‖, commented Johan Eriksson, Transcom‘s

President and CEO.

EXL APPOINTS ROHIT KAPOOR AS VICE

CHAIRMAN OF THE BOARD AND CEO

EXL PRESS RELEASE [17 APRIL 2012]

ExlService Holdings, Inc., a leading provider of

Outsourcing and Transformation services, today

announced consolidation of its executive leadership

with the appointment of Rohit Kapoor as Vice

Chairman of the Board and Chief Executive Officer of

the Company, effective April 16, 2012. In a related

development, Pavan Bagai, currently serving as Chief

Operating Officer of EXL, was designated President

and Chief Operating Officer, and William (Bill) Bloom,

currently serving as Executive Vice President, Global

Client Services, was designated as President, Global

Client Services. Both Pavan and Bill will continue to

report to Rohit.

―I look forward to working closely on Board matters

with Rohit, whom I co-founded the company with in

1999, as he leads the company to take it to the next

level,‖ commented Vikram Talwar, non-executive

Chairman of EXL‘s Board. He further added, ―EXL has

created a strong brand name and a differentiated

position for its services in the market, and the credit for

the company‘s success goes to Rohit‘s leadership. I

am delighted to see Rohit, who has been an integral

part of the board, occupy the Vice Chairman position

of the board.‖

―I would like to thank the Board for trusting my

capabilities and assigning me the new responsibilities

as Vice Chairman,‖ said Rohit. ―I am delighted to be

assuming such a critical role at an exciting time in the

history of EXL. It is a great opportunity for me to

continue to lead EXL and take it into the future as a

company that clients love to partner with.‖

―I look forward to working closely with Pavan and Bill,

who now form the central pillars of our organization, in

executing the future strategy of EXL.‖

Pavan Bagai is the head of enterprise wide business

operations and service delivery across all the business

lines and geographies. He also leads the global

technology and infrastructure functions. Bill Bloom

leads all client-facing functions including sales,

marketing, product development, partnerships and

client management across all the business lines and

geographies.

In their new roles, Pavan and Bill will also be

responsible for creating a culture of business

development and driving overall corporate

performance with a client-centric focus.

GENPACT ADDS TO LEADERSHIP TEAM TO

SUPPORT FUTURE ONSHORE AND EMERGING

MARKET GROWTH


14

Genpact, a global leader in business process and

technology management, today announced the

appointment of Scott McConnell as senior vice

president and operating leader for the Americas region

and Vishal Pandit in a newly-created role as senior

vice president for the Middle East region. These

strategic appointments support the company's plan for

driving growth in the respective regions and continuing

to expand its services for its clients around the world.

McConnell rejoins Genpact, where he successfully led

the insurance practice for North America several years

ago. In his new role, he will work to expand Genpact‘s

onshore capabilities in the U.S. and nearshore delivery

centers in Mexico and Guatemala. As the Middle East

is one of the fastest-growing emerging markets in the

world and has been diversifying beyond its oil-based

economy, Pandit will build a strategy to help Genpact

develop a strong footprint in this region. He will work

closely with other Genpact business leaders to build

client relationships within targeted industry sectors in

the Middle East.

In welcoming McConnell and Pandit to the

management team, Genpact President and CEO

Pramod Bhasin said, ―It's never been a more critical

time for us to ensure long-term sustainable value for

our clients and to strengthen our position in the

market. With their proven leadership skills, global

perspective and vision, Scott and Vishal are key to

driving the strategy in these important regions so that

we can further drive operational effectiveness for our

clients in this ever-changing economic climate.‖

With a career spanning more than 20 years,

McConnell has extensive experience in business

development, consulting and the development of

strategic relationships with Fortune 100 companies. He

most recently joins Genpact from Xchanging where he

was the head of sales for the Americas region. In his

prior roles, he was also a partner with Ernst & Young

and held leadership positions at EDS and IBM. Based

in the Chicago area, McConnell holds both a master‘s

in business administration and a master‘s of science in

industrial engineering from the University of Miami, in

addition to a bachelor‘s of science in electrical

engineering from the Georgia Institute of Technology.

Pandit brings more than 25 years of operations,

business development and strategic business

expansion experience to Genpact, including leadership

roles in GE businesses. Most notably, he was the

president & CEO for GE Money in the India region

between 2001 and 2008, where he was responsible for

growing the business profitably by more than 40

percent per year in an extremely competitive market.

Pandit joins Genpact most recently from Hewitt

Associates where he was responsible for driving

growth in their consulting business in the India, South

Asia and Middle East markets. He played a key role in

leading the aggressive growth of their HR consultancy

business and developing a multi-solution portfolio to

expand their presence in these markets. A certified

Black Belt, Pandit has a master‘s in business

administration from the Faculty of Management

Studies, Delhi. He will be based in Dubai.

MATTHEW VALLANCE STEPS DOWN AS

FIRSTSOURCE CEO; RAJESH SUBRAMANIAM

ELEVATED TO MD AND CEO

FIRSTSOURCE PRESS RELEASE [2 APRIL 2012]

Firstsource Solutions Limited (NSE:FSL,

BSE:532809), a global provider of customized

business process outsourced (BPO) services to the

Banking & Financial Services, Telecom & Media and

Healthcare sectors, announced today that its

Managing Director and CEO Matthew Vallance has

decided to step down in order to pursue other

opportunities. Mr. Vallance‘s resignation will be

effective as of May, 15, 2012. The Board of Directors

of Firstsource has appointed Rajesh Subramaniam,

currently Deputy Managing Director and CFO, as his

successor. Post May 15, 2012, Mr. Vallance will

consult Firstsource in an Advisory capacity.

Mr. Vallance, who has been at Firstsource for 10

years, the last two years as MD & CEO, joined

Firstsource in 2002 as a result of the acquisition of

Customer Asset, and was later responsible for the

financial services, telecom and media BPO

businesses. He was appointed to the Board of

Directors as joint Managing Director in January 2010

and named MD & CEO in July 2010.

15

Mr. Subramaniam was part of the founding

management team at Firstsource in 2002 where he

served as CFO, and was instrumental in building the

Company to its IPO. He re-joined Firstsource as

Deputy Managing Director and CFO in July 2011.

―While the decision to move from Firstsource was a

difficult one, I feel the timing is right to hand over the

reins to Rajesh,‖ Mr. Vallance said. ―I am confident that

under the new leadership team the company is well-

equipped to progress in its next phase of growth.‖

―Matthew has made significant contributions to the

company in the critical years of its expansion over the

last decade,‖ said Dr. Shailesh Mehta, Chairman of the

Board of Directors at Firstsource Solutions Limited.

―We wish him continued success in his future

endeavours.‖ Dr. Mehta added, ―The Board has the

utmost confidence in Rajesh. His diverse experience

has been marked by a proven track record of

execution and deep leadership capabilities.‖

Said Mr. Subramaniam, ―I am excited to take on this

role and believe we are well positioned for greater

success.‖

EXL NAMES NEW GLOBAL HEAD OF HR

EXL PRESS RELEASE [2 APRIL 2012]

ExlService Holdings, Inc., a leading provider of

Outsourcing and Transformation services, today

announced Mohan A.V.K. as Global Head of Human

Resources. Mohan will be responsible for the overall

global HR strategy and will report to EXL's Chief

Executive Officer Rohit Kapoor.

Mohan, who will be based in Noida, India, brings 23

years of HR experience and was most recently Group

President, Global HR at Spice Group, a diversified

conglomerate operating across Mobility, Entertainment

and Information Technology businesses. Mohan was

responsible for the group's global HR strategy across

all geographies and a key executive in corporate

strategy, mergers and acquisitions based in

Singapore. Previously, Mohan worked with BAT,

Motorola, Trilogy, Hewlett Packard and India's largest

telecom company Airtel in India, the Middle East and

Asia Pacific.

"EXL invests in recruitment and capability

development on a global scale in order to design

solutions for companies across industries," Kapoor

said. "Strong employee retention and positive

feedback prove EXL employees are excited, engaged

and making a difference in their daily pursuits, and I

am confident that Mohan will continue to drive

initiatives in this crucial area."

Earlier this year in Noida, EXL opened a Center for

Talent, which is the company's first facility exclusively

dedicated to attracting the best talent, enhancing

knowledge, and developing leaders. EXL delivers

services from North America, Europe and Asia.

An avid traveler and reader, Mohan regularly

contributes to professional bodies and business

magazines. He is a post graduate from Tata Institute of

Social Sciences, India.

"I'm excited to join an organization that has proven the

willingness to invest in finding, developing and

retaining their people," Mohan said. "I look forward to

continuing the positive momentum achieved within the

global HR organization as well as finding opportunities

for new initiatives and build EXL into a global talent

brand."

Mohan replaces Sanjay Gupta as HR head. Gupta is

taking a sabbatical to spend time with family before

deciding his next professional move.

Said Kapoor, "On behalf of the Executive Committee, I

would like to thank Sanjay Gupta for his extensive

contributions to EXL. He has helped shape robust HR

practices, ranging from recruitment to learning and

leadership, which will support our business strategy in

the coming years. We wish him success as he begins

a new phase of his life."

16

TRENDS AND VIEWPOINTS

F&A OUTSOURCING MARKET WILL REBOUND

WITH 10-15 PERCENT GROWTH THIS YEAR

FOLLOWING SLOWDOWN IN 2011

EVEREST PRESS RELEASE [30 APRIL 2012]

The multi-process Finance and Accounting

Outsourcing (FAO) market is projected to rebound by

10-15 percent and top US$4 to $4.5 billion in annual

contract value (ACV) in 2012, according to the Finance

& Accounting Outsourcing Annual Report 2012

published by Everest Group, an advisory and research

firm on global services. In 2011, ACV grew 11 percent

compared to 18 percent growth in 2010, and total

contract values (TCV) of new engagements also

dropped last year compared to 2010, according to the

study. The FAO market reached US$3.8 billion in ACV

in 2011, representing about US$32 billion in total FAO

spending.

―Although the market witnessed slower than expected

growth levels last year, we nevertheless saw strong

growth with nearly 200 contracts for new, extended

and renewed contracts,‖ said Saurabh Gupta, vice

president, Everest Group. ―Along with fewer new

contracts signed and some terminations, we also saw

a drop in size of multi-process contracts largely due to

cautious buyers opting for risk-averse phased

approaches. Looking forward, we expect to see buyers

continue to focus on cost plus value proposition

solutions that are comprehensive, industry-specific,

and end-to-end process driven.‖

According to the report, F&A sourcing represents a

US$150-200 billion opportunity split equally across

third-party service providers and captives/shared

services. Current penetration of the third-party

sourcing market represents only 5-10 percent of the

overall potential, implying a significant value creation

opportunity.

Last year saw the market reach an all-time high in

contract extensions that, along with contract

expansions, represented 70 percent of ACV growth in

2011. The study predicts organic growth to continue as

contracts valued US$7.3 billion or more are up for

extension within the next three years.

Accenture, IBM and Genpact together account for 50

percent of the FAO market in terms of ACV. In 2011,

Accenture, Capgemini and Infosys BPO signed the

highest number of new contracts. Accenture, TCS, and

IBM accounted for about 50 percent of total contract

value signed in 2011, including new contracts,

renewals and extensions.

―Competition in the FAO market is gaining intensity,‖

said Gupta. ―The market share of the top three

providers has reduced from 65 percent to 50 percent

over the last five years. Over the past two years,

providers have continued to build up scale and invest

significantly across various F&A capability dimensions,

most notably around technology. However, service

providers‘ ability to understand the client context

continues to be a significant credibility gap.‖

17

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: 0.3%

1 quarter return: -0.2%

1 year return: -3.9%

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 (04/05/12)

for this edition of the newsletter.

Avendus BPO Composite Index

-3.9% -0.2%

0.3%

18

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

Avendus Capital is a leading financial services firm which provides customized solutions in the areas of financial advisory, equity

capital markets, alternative asset management and wealth management. Avendus Securities through its Institutional Equities

practice is able to offer clients best-in-class research-driven advice to help them take investment decisions, while Avendus PE

Investment Advisors manages funds raised from its investors by investing in public markets. The Group 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. Avendus Capital has consistently

been ranked among the top-five corporate finance advisors in India and has emerged as the advisor of choice for cross-border

M&A deals and has closed 40 cross-border transactions in the past 4 years. 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.

Some of the recent deals closed by us include

Title Month - Year Of

Announcement

Deal Value Industry

Avendus Capital advises Wipro on its acquisition of

analytics company, Promax Applications Group

May, 2012 USD 36 mn Technology &

Outsourcing

Avendus Capital advises eClerx on its acquisition of Agilyst

Inc.

April, 2012 Undisclosed 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

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 Diligent Power on its equity raise

from Warburg Pincus

May, 2011 Undisclosed Infrastructure

& Real Estate

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

19

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

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4535 7540

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3600

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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.”

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