Annexure: 1-Cover Page

Seminar Report on

HCL BPO
S u b m i t t e d i n Pa r t ia l Fu l fi l l me n t f o r t h e Aw a r d o f t he D i p lo ma o f Po s t G r a d ua t e D i p l o ma i n M a na g e me n t (Se s s i o n 2 0 1 0 -1 2 )

Submitted to: M r H. N . S IN G H M r Ka s h i p P a nd e y

Submitted By:

PG D M I Tr i me s t e r Se c - b

DEPART MENT OF MANAGEMENT

INSTITUTE OF MANAGEMENT STUDIES, NOIDA A UGC Recognized Institute A-8B, Plot C , Sector-62, Noida

Annexure: 2-Declaration from the student

INSTITUTE OF

MANAGEMENT STUDIES, NOIDA A UGC Recogni zed Insti tute A-8B, Plot C, Sector-62, N oida

D E C L A R AT I O N

I ____ __________bearing Roll No ___ _____

Class ____ _____of the Inst itute of

Management Studies, Noida hereby declar e that the Seminar Report-108 entit led _______________ HCL BPO________________ is an or iginal work and the same has not been submitted to any other Inst itute for the award of any other diploma. The suggest ions as approved by the faculty were duly incorporated.

Signa ture of S tuden t

Coun tersig ned Signa ture of Faculty G u ide

OVERVIEW OF BPO SECTOR

B u s i n e s s p r o c e s s o u t s o u r c i n g ( B P O ) is a s u b s e t o f o u t s o u r c i n g t ha t i n vo l v e s t he c o nt r a c t i n g o f t he o p e r a t i o ns a nd r e s p o n s i b i l i t i e s o f s p e c i f i c bu s ine ss f u n c t io n s ( o r processes) to a t hird-p art y ser v ice pro v ider.

O r i g i n a l l y, t h i s w a s a s s o c i a t e d w it h m a n u f a c t u r i n g f i r m s , s u c h a s C o c a C o la t ha t o u t s o u r c e d l a r g e s e g m e nt s o f it s s u p p l y c ha i n . [ 1 ] . I n t h e c o n t e m p o r a r y c o nt e xt , it i s p r i m a r i l y u s e d t o r e f e r t o t he o u t s o u r c i n g o f ser vic e s. BPO is t yp i c a l l y c a t e g o r i z e d int o back o ffic e o ut so urc ing w h ic h

i n c l u d e s i nt e r n a l bu s i n e s s f u n c t io n s s u c h a s hu m a n r e s o u r c e s o r f i n a n c e a n d a c c o u nt i ng , a n d fr o nt o f f i c e o u t s o u r c i ng - w h i c h i n c l u d e s c u s t o me r r e l a t e d s e r v i c e s s u c h a s c o nt a c t c e nt e r s e r v i c e s . B P O t h a t i s c o nt r a c t e d o u t s id e a c o m p a n y ' s c o u nt r y i s c a l l e d o f f s h o r e o u t s o u r c i n g . B P O t ha t i s c o nt r a c t e d t o a c o mp a n y ' s n e i g h bo r i n g ( o r n e a r b y) c o u nt r y i s c a l l e d ne a r s ho r e o u t s o u r c i n g . G i v e n t h e p r o x i m i t y o f B P O t o t he i n fo r m a t io n t e c h no l o g y i n d u s t r y, it i s a l s o c a t e g o r iz e d a s a n i n f o r m a t i o n t e c h n o l o g y e n a b l e d s e r v i c e o r I T E S . K n o w l e d g e p r o c e s s o u t s o u r c i n g ( KP O ) a nd l e g a l p r o c e s s o u t s o u r c i n g ( L P O ) a r e s o m e o f t h e s u b - s e g m e nt s o f bu s i n e s s p r o c e s s o u t s o u r c i n g i n d u s t r y.

I n d u s t ry s i z e I n d i a h a s r e v e nu e s o f U S $ 1 0 . 9 b i l l i o n [ 2 ] f r o m o f f s ho r e B P O a n d U S $ 3 0 b i l l i o n fr o m I T a n d t o t a l B P O ( e x p e c t e d i n F Y 2 0 0 8 ) . I n d i a t hu s h a s s o m e 5 - 6 % s h a r e o f t h e t o t a l B P O I nd u s t r y, bu t a c o m m a n d i n g 6 3 % s h a r e o f t h e o f f s ho r e c o m p o n e nt . T h i s 6 3 % i s a d r o p fr o m t he 7 0 % o f f s ho r e s h a r e t h a t I n d i a e n jo ye d l a s t y e a r , d e s p it e t he i nd u s t r y g r o w i n g 3 8 % i n I n d i a l a s t ye a r , o t h e r lo c a t io n s l i k e P h i l i p p i n e s , a n d S o u t h A f r i c a ha v e e m e r g e d t o t a k e a s h a r e o f t he m a r k e t [ c i t a t i o n
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a v e r y s m a l l b a s e i n t h i s i n d u s t r y. H o w e v e r , w h i l e t he B P O i n d u s t r y i s e x p e c t e d t o c o nt i n u e t o g r o w i n I nd i a , it s m a r k e t s h a r e o f t he o f f s ho r e p i e c e i s e x p e c t e d t o d e c l i n e . I m p o r t a nt c e nt e r s i n I n d i a a r e B a n g a l o r e , H y d e r a b a d , C he n n a i , Ko l k a t a , M u m b a i , P u ne a nd N e w D e l h i . T h e t o p f i v e I n d i a n B P O e xp o r t e r s fo r 2 0 0 9 - 2 0 1 0 a c c o r d i n g t o N AS S C O M a r e G e n p a c t , T C S B P O , WN S G lo b a l S e r v i c e s , W i p r o B P O , a nd Ae g i s Lt d..[3] A c c o r d i n g t o M c K i n s e y, t h e g lo b a l " a d d r e s s a b l e " B P O m a r k e t i s w o r t h $ 1 2 2 $ 1 5 4 b i l l i o n , o f w h i c h: 3 5 - 4 0 r e t a i l b a n k i n g , 2 5 - 3 5 i n s u r a n c e , 1 0 1 2 t r a v e l / h o s p it a l it y, 1 0 - 1 2 a u t o , 8 - 10 t e le c o m s , 8 p h a r m a , 1 0 - 1 5 o t h e r s a n d 2 0 - 2 5 i s f i n a n c e , a c c o u nt i n g a nd H R . M o r e o ve r , t he y e s t i m a t e t ha t 8 % o f t h a t c a p a c it y w a s u t i l i z e d a s o f 2 0 0 6 . B enefits and li mitati ons A n a d v a nt a g e o f B P O i s t he w a y i n w h i c h it h e l p s t o i n c r e a s e a c o m p a n y s f l e x i b i l i t y. H o w e v e r , s e v e r a l s o u r c e s [ w h i c h ? ] h a ve d i f f e r e nt w a ys i n w h i c h t he y p erc e ive o r g a n i z a t io n a l f l e x i b i l i t y. T he r e fo r e business process

o u t s o u r c i n g e n h a n c e s t he f l e x i b i l i t y o f a n o r g a n i z a t io n i n d i f f e r e nt w a y s . M o s t s e r v i c e s p r o v i d e d b y B P O v e nd o r s a r e o f f e r e d o n a f e e - fo r - s e r v i c e bas is[ci tat ion

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t r a n s f o r m i n g f i x e d i nt o va r i a b l e c o s t s . [ 4 ] A v a r i a b l e c o s t s t r u c t u r e he l p s a c o mp a n y r e s p o nd i n g t o c h a n g e s i n r e q u ir e d c a p a c it y a n d d o e s no t r e q u i r e a c o mp a n y
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A no t h e r w a y i n w h i c h B P O c o nt r i b u t e s t o a c o mp a n y s f l e x i b i l i t y i s t ha t a c o mp a n y i s a ble t o fo c u s o n it s c o r e c o mp e t e nc i e s , w it ho u t be in g b u r d e n e d b y t h e d e m a n d s o f bu r e a u c r a t i c r e s t r a i nt s . [ 6 ] K e y e m p l o ye e s a r e h e r e w it h r e l e a s e d f r o m p e r fo r m i n g n o n- c o r e o r a d m i n i s t r a t i v e p r o c e s s e s a nd can in ve st mo r e t ime and e ne r g y in bu ild ing the fir ms core b u s i n e s s e s . [ 7 ] T he k e y l i e s i n k n o w i n g w h i c h o f t h e m a i n va l u e d r i v e r s t o fo c u s on cu st o mer i nt i m a c y, product le a d e r s h i p , or o p e r a t io n a l

e x c e l l e n c e . F o c u s i n g m o r e o n o ne o f t he s e d r i v e r s m a y h e l p a c o mp a n y c r e a t e a c o m p e t it i v e e d g e . [ 8 ] A t h i r d w a y i n w h i c h B P O i n c r e a s e s o r g a n i z a t io n a l f l e x i b i l i t y i s b y i n c r e a s i n g t he s p e e d o f bu s i n e s s p r o c e s s e s . U s i n g t e c h n i q u e s s u c h a s l i n e a r p r o g r a m m i n g c a n r e d u c e c y c l e t i m e a nd i n v e nt o r y l e v e l s , w h i c h c a n inc re ase e ffic ie nc y a nd cut co st s[c i tati on

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w it h t h e e f f e c t i v e u s e o f s u p p l y c h a i n p a r t ne r s a n d bu s i n e s s p r o c e s s o u t s o u r c i n g i n c r e a s e s t he s p e e d o f s e v e r a l b u s i n e s s p r o c e s s e s , s u c h a s t h e t hr o u g h p u t i n t h e c a s e o f a m a n u f a c t u r i n g c o mp a n y. [ 9 ] F i n a l l y , f l e x i b i l i t y i s s e e n [ w h o ? ] a s a s t a g e i n t he o r g a n i z a t io n a l l i f e c y c l e . B P O h e l p e d t o t r a n s fo r m N o r t e l fr o m a bu r e a u c r a t i c o r g a n i z a t io n i n t o a v e r y a g i l e c o m p e t it o r [ c i t a t i o n
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w h i l e a vo i d i n g s t a nd a r d b u s i n e s s bo t t l e ne c k s . [ 1 0 ] B P O t h e r e fo r e a l lo w s f i r m s t o r e t a i n t h e i r e nt r e p r e ne u r i a l s p e e d a n d a g i l it y, w h i c h t he y w o u l d o t h e r w i s e s a c r i f i c e i n o r d e r t o be c o m e e f f i c i e nt a s t he y e xp a nd e d . I t

a v o id s a p r e m a t u r e i n t e r n a l t r a ns i t io n f r o m it s i n f o r m a l e nt r e p r e n e u r i a l p h a s e t o a mo r e bu r e a u c r a t i c mo d e o f o p e r a t io n. [ 1 1 ] A c o m p a n y m a y b e a b l e t o g r o w a t a f a s t e r p a c e a s it w i l l b e l e s s c o n s t r a i n e d b y l a r g e c a p it a l e xp e nd i t u r e s f o r p e o p l e o r e q u i p m e nt t ha t m a y t a k e ye a r s t o a mo r t iz e , m a y b e c o m e o u t d a t e d o r t u r n o u t t o be a p o o r m a t c h fo r t h e c o m p a n y o ve r t i m e . A l t ho u g h t he a bo ve - m e nt io n e d a r g u m e nt s f a vo r t he v ie w that BPO

i n c r e a s e s t h e f l e x i b i l i t y o f o r g a n i z a t io n s , m a na g e m e nt ne e d s t o be c a r e f u l w it h t h e i m p l e m e nt a t io n o f i t a s t h e r e a r e a i s s u e s , w h i c h w o r k a g a i n s t t h e s e a d v a nt a g e s . A mo n g p r o b l e m s , w h i c h a r i s e i n p r a c t i c e a r e : A f a i l u r e t o m e e t s e r v i c e l e v e l s , u nc l e a r c o nt r a c t u a l i s s u e s , c h a n g i n g r e q u i r e m e n t s a n d u n fo r e s e e n c h a r g e s , a n d a d e p e nd e n c e o n t h e B P O w h i c h r e d u c e s f l e x i b i l i t y. C o n s e q u e nt l y, t he s e c ha l l e ng e s ne e d t o be c o ns i d e r e d be fo r e a c o mp a n y d e c i d e s t o e ng a g e i n b u s i n e s s p r o c e s s o u t s o u r c i n g [ 1 2 ] A f u r t h e r i s s u e i s t ha t i n m a n y c a s e s t h e r e i s l it t le t h a t d i f f e r e nt i a t e s t h e B P O p r o v i d e r s o t he r t h a n s i z e . T he y o ft e n p r o v i d e s i m i l a r s e r v i c e s , h a v e s i m i l a r g e o g r a p h i c fo o t p r i nt s , l e v e r a g e s i m i l a r t e c h no lo g y s t a c k s , a n d h a v e s i m i l a r Q u a l it y I m p r o ve m e nt a p p r o a c h e s . [ 1 3 ] Threats R isk is t he m a jo r drawback w it h Bu sine ss Process Out so urc ing.

O u t s o u r c i n g o f a n I n fo r m a t io n S ys t e m , fo r e x a m p l e , c a n c a u s e s e c u r it y r i s k s bo t h fr o m a c o m m u n i c a t io n a n d fr o m a p r i v a c y p e r s p e c t i v e . F o r e xa m p l e , s e c u r it y o f N o r t h A m e r i c a n o r E u r o p e a n c o m p a n y d a t a i s mo r e d i f f i c u lt t o ma i n t a i n w h e n a c c e s s e d o r c o nt r o l l e d i n t h e S u b - C o nt i n e n t . Fro m a k no w le dge of per sp ect ive, ru nn ing a c h a ng i n g a nd the a t t it u d e m a jo r in r isk e m p lo ye e s , of lo sing

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R i s k s a n d t hr e a t s o f o u t s o u r c i n g m u s t t he r e f o r e b e m a n a g e d , t o a c h i e v e a n y b e n e f it s . I n o r d e r t o ma n a g e o u t s o u r c i n g in a st ruct ured wa y,

m a x i m i z i n g p o s it i v e o u t c o m e , m i n i m i z i n g r i s k s a n d a vo i d i n g a n y t hr e a t s , a B u s i n e s s c o nt i n u it y m a n a g e m e nt ( B C M ) mo d e l i s s e t u p . B C M c o n s i s t s o f a s e t o f s t e p s , t o s u c c e s s f u l l y i d e nt i f y, m a n a g e a nd c o nt r o l t he bu s i n e s s processes A no t h e r p o t e n t ia l e xp la ine d. L . W i l l c o c k s , M . L a c it y a nd G . F it z g e r a l d i d e nt i f y s e v e r a l c o nt r a c t i n g p r o b l e m s c o m p a n i e s f a c e , r a n g i n g f r o m u n c l e a r c o nt r a c t fo r ma t t i ng , t o a la ck o f u nder st and ing o f t ec hn ic a l IT- pro cesse s.[18] t ha t fr a m e w o r k , are, mo r e or fo c u s e d on can t he be outsourced.[16] process as AH P , of is

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I n f o r m a t i o n s e c u ri t y h a s e m e r g e d a s a s i g n i f i c a nt c o nc e r n fo r b a n k s , mo b i l e p h o n e c o m p a n i e s a n d o t he r b u s i n e s s e s t ha t u s e c a l l c e nt e r s o r b u s i n e s s p r o c e s s o u t s o u r c i ng , o r B P O . T he r e h a ve b e e n i n s t a n c e s o f t h e f t o f p e r s o na l d a t a r e p o r t e d fr o m c a l l c e n t e r s . B r it a i n ' s F i n a n c i a l S e r v i c e Au t ho r it y e x a m i n e d s t a nd a r d s i n I n d i a i n Ap r i l 2 0 0 5 a n d t h e B a n k i n g C o d e S t a nd a r d s B o a r d a u d it e d e i g ht I nd i a n c a l l c e n t r e s i n 2 0 0 6 , h a nd l i n g mo r e t ha n a m i l l io n c a l l s p e r mo nt h fr o m t h e U K. T h e B C S B r e p o r t s t a t e d t ha t " C u s t o m e r d a t a i s s u b j e c t t o t he s a m e l e v e l o f s e c u r it y a s i n t he U K. H i g h r i s k a n d mo r e c o m p l e x p r o c e s s e s a r e s u b j e c t t o h i g h e r l e ve l s o f s c r u t i n y t h a n s i m i l a r a c t i v it i e s o ns ho r e . "
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I n d i a ' s N AS S C O M h a s s a i d t ha t t he y t a k e br e a c h i n s e c u r it y e xt r e m e l y s e r io u s l y a nd w i l l a s s i s t t he p o l i c e i n t h e i r p r o b e

Common count ermeasu res T h e r e a r e t hr e e i d e nt i f i a b l e t yp e s o f i l l i c it a c t i v it i e s c o nc e r n i n g f r a u d e m a n a t i ng f r o m c a l l c e nt e r s :

y y

1 . C r o o k s w h o p r e t e n d t o be l e g it i m a t e c a l l c e nt r e s . 2 . H a c k e r s w h o g a i n a c c e s s t o c a l l c e nt r e i n f o r m a t io n t hr o u g h ille g a l mea ns

3 . C a l l c e nt r e a g e nt s w ho i l l e g a l l y m i s u s e t he i n fo r m a t io n t h e y h a v e a c c e s s t o i n c a l l c e nt r e s .

W h i l e it e m s 1 a nd 2 a r e mo s t l y s u b j e c t t o p o l i c e a c t io n, c a l l c e nt r e s c a n use int er na l pro ce dure s t o min imis e r isk. Suc h m it i g a t io n mea sur e s

i n c l u d e bu t a r e n o t l i m i t e d t o :
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1 . C r e a t i n g a p a p e r l e s s e n v i r o n m e nt , p r e ve nt i n g e m p lo ye e s f r o m w r it i n g d o w n a nd r e m o v i n g i n f o r m a t i o n b y e n s u r i n g t h a t a l l w o r k p r o c e s s e s a r e d o n e o n t h e c o m p u t e r , w it ho u t h a v i n g t o r e c o r d a n yt h i n g o n fo r m s o r no t e s .

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2 . P r o h i b it i n g t he u s e o f c e l l p h o ne s a n d c a m e r a s o n t he f lo o r . 3 . P r o h i b it i n g p a p e r , p e n s a n d d i g it a l r e c o r d i n g d e v i c e s f r o m b e i n g b r o u g ht o nt o t he f lo o r .

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4 . P r e v e nt i n g i nt e r ne t a c c e s s fo r e m p l o ye e s o n t h e f lo o r . 5. Limit ing f u n c t io na l it y a nd a c c e s s o f p e r s o na l c o m p u t e r s o r

t e r m i n a l s u s e d b y c a l l c e nt e r a g e nt s ( fo r e xa m p l e , d i s a b l i n g U S B p o r t s ) . C o mp a n i e s m a y a l s o u s e d a t a lo s s p r e ve nt io n s o ft w a r e t o b l o c k a t t e mp t s t o do w n lo a d , c o p y, o r t r a ns m it s e n s it i v e e l e c t r o n i c data.[2

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bu s ine ss pro ces s o ut so urc ing s er vic e s in t he o ut so urc ing indu st r y i n I n d i a , c a t e r i n g m a i n l y t o We s t e r n o p e r a t io n s o f m u lt i n a t io na l c o r p o r a t io n s (MNCs). A s o f 2 0 0 8 , a r o u nd 0 . 7 m i l l i o n p e o p l e w o r k i n o u t s o u r c i n g s e c t o r [ 1 ] ( l e s s t ha n 0 . 1 % o f I n d i a n s ) . A n n u a l r e ve n u e s a r e a r o u nd $ 1 1 b i l l io n, [ 1 ] a r o u n d 1 % o f G D P . Ar o u n d 2 . 5 m i l l i o n p e o p l e g r a d u a t e i n I nd i a e v e r y y e a r . W a g e s a r e r i s i n g b y 1 0 - 1 5 p e r c e nt a s a r e s u lt o f s k i l l s h o r t a g e . [ 1 ]

HISTORY In t he ear ly 19 80s s e vera l Euro pea n a ir line s st art ed u s ing D e lh i as a ba se fo r b a c k o f f i c e o p e r a t io n s , B r it i s h A i r w a ys b e i n g o ne a m o n g t he m. T h e B A c a p t i v e w a s f i n a l l y s p u n o f f a s a s e p a r a t e o r g a n i s a t io n c a l l e d WN S G lo b a l S e r v i c e s i n 2 0 0 2 . Amex I n t h e s e c o nd ha l f o f t h e 1 9 8 0 s , A m e r i c a n E xp r e s s c o ns o l i d a t e d it s J AP A C ( J a p a n a n d A s i a P a c i f i c ) b a c k o f f i c e o p e r a t io n s i nt o N e w D e l h i a nd N C R r e g io n [ 2 ] . T h i s c e nt e r w a s he a d e d b y R a m a n R o y, a n d h a s be e n a s o u r c e o f s e v e r a l l e a d i n g na m e s i n t he I nd i a n B P O I nd u s t r y. General Electric I n t h e 1 9 9 0 s J a c k W e l c h w a s i n f l u e n c e d b y K. P . S i n g h , ( a D e l h i b a s e d r e a lt o r ) t o lo o k a t G u r g a o n i n t he N C R r e g io n a s a b a s e fo r ba c k o f f i c e o p e r a t io n s . P r a m o d B h a s i n, t h e I nd i a h e a d o f G . E . h i r e d R a m a n R o y a n d s e v e r a l o f h i s m a n a g e m e nt f r o m A m e r i c a n E xp r e s s t o s t a r t t h i s e nt e r p r i s e c a l l e d G E C I S ( G E C a p it a l I nt e r n a t io n a l S e r v i c e s ) . R a m a n fo r t he f i r s t t i m e t r i e d o u t vo ic e o p e r a t io n s o u t o f I nd i a , t h e I n d i a o p e r a t io ns a l s o w a s t h e B e t a s it e fo r G E S i x s i g m a e nt e r p r i s e . T h e r e s u lt s m a d e G E r a m p u p t h e i r I n d i a n p r e s e n c e a nd lo o k a t o t h e r lo c a t io ns . I n 2 0 0 4 G E C I S w a s s p u n o f f a s a s e p a r a t e l e g a l e nt it y b y G E , c a l l e d G e np a c t . G E h a s r e t a i n e d a 4 0 % s t a k e a n d s o l d a 6 0 % s t a k e fo r $ 5 0 0 m i l l i o n t o t wo e q u it y c o mp a n i e s , O a k H i l l C a p it a l P a r t n e r s a nd G e n e r a l At l a nt i c P a r t n e r s . T h i rd p a r t y B P O ' s U n t i l G . E m o s t o f t h e w o r k w a s b e i n g d o ne b y " c a p t i v e s " - a t e r m u s e d fo r i n h o u s e w o r k b e i n g d o n e fo r t he p a r e nt o r g a n i s a t io n. I n 2 0 0 0 R a m a n R o y a n d s o m e t e a m m e m b e r s f r o m G E C I S q u it , a nd w it h V C f u n d i n g fr o m

C h r y s a l i s C a p i t a l s t a r t e d S p e c t r a m i n d . At t he s a m e t i m e a n o r g a n i s a t io n c a l l e d E X L s t a r t e d i n N o id a a nd E f u n d s s t a r t e d i n M u m b a i a nd G u r g a o n , a n d D a k s h i n G u r g a o n . H o w e v e r , r e c e nt l y mo s t o f t h e I n d i a n B P O ' s e v e n s m a l l e r a n d m i d - s i z e d o n e s a r e a c t u a l l y s e t t i ng - u p t he i r o ns ho r e p r e s e n c e . Most of the s e r i o u s p l a ye r s are a ct ua lly imp ro ving t he outsourced

b u s i n e s s p r o c e s s e s b y l e v e r a g i n g o n y e a r s o f e xp e r i e n c e a nd no w s o m e o f t h e m a r e d i r e c t l y c o m p e t i n g w it h t h e i r o w n o ld e r c l i e nt ba s e b y m a r k i n g t h i s t r a ns it io n t o KP O ' s . E n t ry o f I T m a j o r s I n 2 0 0 2 S p e c t r a m i n d w a s bo u g ht b y s o ft w a r e m a jo r W i p r o , a nd B P O b y t h e n h a d be c o m e m a i n s t r e a m l i k e t he I T I nd u s t r y i n I nd i a . T he t e a m t ha t h a d s e t u p S p e c t r a m i n d w e nt o n t o s t a r t Q u a t r r o i n 2 0 0 6 , a B P O s p e c i a l i s i n g i n h i g h e nd B P O / K P O s e r v i c e s . B y 2 0 0 2 a l l m a j o r I nd i a n s o ft w a r e o r g a n i z a t io n s were i nt o BPO, i n c l u d i n g I n fo s ys (Pro geo n),

I n fo r l i n x , H C L , S a t ya m ( N i p u na ) a nd P a t n i . B y 2 0 0 3 D a k s h w a s bo u g h t o ut by IB M, a nd lat er in 20 06 Mp has iS w as ac qu ire d by E DS. E ve n i n t e r n a t io n a l 3 r d p a r t y B P O p l a ye r s l i k e C o n v e r g ys a nd S it e l h a d s e t u p s ho p i n I n d i a , s w e l l i n g t he B P O mo v e m e nt t o I nd i a . T h e n s e r v i c e a r m s o f o r g a n i z a t io n s l i k e A c c e nt u r e , I B M , H e w l e t t P a c k a r d , D e l l a l s o s e t u p s h o p in I nd ia. Emergen ce of Ru ral BPO s B o o m i n g I n d i a I nc h a s l e d t o s k yr o c k e t i ng r e a l e s t a t e a n d i n f r a s t r u c t u r e c o s t s i n T i e r - 1 c it i e s . B P O i n d u s t r y h a s t hr i v e d a l l t he s e y e a r s be c a u s e o f it s a b i l i t y t o d e l i v e r s e r v i c e s a t a l o w c o s t . I nc r e a s i n g i n f r a s t r u c t u r e c o s t s , r e a l e s t a t e c o s t s , a nd s a l a r i e s h a ve r a i s e d B P O c o s t s s i g n i f i c a n t l y a n d a s a r e s u lt I nd i a n B P O s i n T i e r - 1 c it i e s a r e lo o k i n g a t T i e r - 2 a n d T ie r - 3 c it i e s fo r o p e r a t io n.

F e w e n t r e p r e ne u r s w ho h a d a v i s io n o f br i n g i n g t he r u r a l I nd i a i n t o t h e m a i n s t r e a m o f k n o w l e d g e e c o no m y h a ve fo u nd a n o p p o r t u n it y h e r e s e t t i ng R u r a l B P O s . T he t r a n s fo r m a t i o n o f r u r a l I n d i a s t a r t e d w it h t h e e m e r g e n c e o f t h e s e R u r a l B P O s . T he m a jo r h u r d l e s t ha t t h e s e B P O s f a c e d i s q u a l it y m a n p o w e r . A s a r e s u lt t he s e r u r a l B P O s h a v e r e m a i n e d t a r g e t i n g lo w e nd jo b s l i k e d a t a e nt r y. [ c i t a t i o n Effect o f g lob a l me ltdo wn on Indi an B POs A m e r i c a n f i n a n c i a l m e lt d o w n h a s b e g u n t o t a k e it s t o l l o n I nd i a ' s I T a n d o u t s o u r c i n g bu s i n e s s . [ 1 ] Cha llen ge s to outsou rcing se rvic es in India M a n y a n a l ys t s be l i e v e t h a t t he g r o w t h o f I nd i a o u t s o u r c i n g s e c t o r i s w i d e l y o p t i m i s t i c a n d it w i l l s lo w d o w n i n f u t u r e . B o t h I T a n d B P O s e c t o r i s e x t r e m e l y d e p e n d e nt i n U S A a n d i f t h e U S d o l l a r d e p r e c i a t e s c a n a d v e r s e l y i m p a c t t he e nt ir e s e c t o r . A d d it i o na l l y c o u nt r ie s l i k e C h i n a , M e x i c o a n d V i e t n a m a r e a l s o e x p a n d i ng o u t s o u r c i n g o p e r a t io n s a nd o ft e n pro vid ing c heap er ser v ic es. S i ze o f i n d u s t ry T h e i n d u s t r y ha s be e n g r o w i n g r a p i d l y. I t g r e w a t a r at e o f 3 8 % o v e r 2 0 0 5 . F o r t he F Y 0 6 f i n a n c i a l ye a r t h e p r o j e c t io n s i s o f U S $ 7 . 2 b i l l i o n wo rt h o f ser vic es pro vid ed by t his h e a d c o u nt be ing roughly 400,000 i nd u s t r y. T he b a s e i n t e r m s o f d ir e c t l y e m p lo ye d in t his
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a t 4 0 0 , 0 0 0 i s s o m e 4 0 % o f t h e a p p r o x i m a t e o ne m i l l i o n w o r k e r s e s t i m a t e d t o b e d i r e c t l y e m p lo ye s i n t he I T a nd B P O S e c t o r . T h e r e l a t e d I nd u s t r y d e p e nd e nt o n t h i s a r e C a t e r i n g , B P O t r a i n i n g a n d r e c r u it m e nt , t r a n s p o r t ve n d o r s , ( ho m e p i c k u p a n d d r o p s fo r n i g ht s h i ft s b e i n g t h e no r m i n t he i n d u s t r y) . S e c u r it y a g e nc i e s , F a c i l i t i e s m a n a g e m e n t c o mp a n i e s .

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Table 1: Global BPO Market by Industry[3] Industry Percentage (%) Information Technology 43 Financial Services 17 Communication (Telecom) 16 Consumer Goods/ Services 15 Manufacturing 9 Table 2: Global BPO Market by Geography[3] Country Percentage (%) United States 59 Europe 27 Asia-Pacific 9 Rest of the World 5 Table 3: Size of Global Outsourcing Market[3] Year Size (USD Bn) 2000 119 2005 234 2008 (est.) 310 Table 4: Size and Growth of BPO in India[3] Year Size (US$ Bn) Growth Rate (%) 2003 2.8 59 2004 3.9 45.3 2005 5.7 44.4 Currently the Indian BPO Industry employs in excess of 245,100 people and another 94,500 jobs are expected to be added during the current financial year (20052006) Table 5: Call Center Employee cost[3] Country Cost (USD/yr) USA 19,000 Australia 17,000 India 9,500 Philippines 9,050

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e s s e n t i a l bu s i n e s s p r o c e s s e s , c o n s e c u t i v e w it h i n d u s t r y b e s t p r a c t ic e s a n d m e t r i c - b a s e d Q u a l it y no r m s . T h i s i s s u p p o r t e d b y a t hr i v i n g t e c h no lo g y i n f r a s t r u c t u r e , s t r o ng h u m a n r e s o u r c e s , a c u s t o m i z e d t r a i n i n g p r o g r a m a n d t r a n s it io n f r a m e w o r k . A c c o l a d e s o f H C L B P O S e r v i c e s :

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d i f f e r e n t i a t o r s t ha t h e l p o r g a n i z a t io n s s t a y a h e a d i n a h i g h l y c o mp e t it i v e b u s i n e s s e n v i r o n m e nt . O u t s o u r c i n g t e c h n i c a l h e l p d e s k i s no lo n g e r lo o k e d u p o n a s a s h o r t - t e r m c o s t - c u t t i ng t o o l w it h t he fo c u s no w s h i ft i n g t o lo n g t e r m c o m p e t it i v e g a i n . I n o r d e r t o p r o v i d e c u s t o me r s w it h e n d - t o - e n d s u p p o r t s e r v i c e s , f ir m s m u s t d e l i v e r a s u p e r l a t i v e c u s t o m e r e x p e r i e n c e a n d a l s o f i n d w a ys t o r e d u c e t he c o s t o f o p e r a t io ns w h i l e d r i v i n g fo r n e w re ve nue s. The t ec hnic a l he lpd e sk in fr ast ruct ure c a p a b i l it i e s of t he

o f f s h o r e p a r t n e r a r e a s i g n i f i c a nt f a c t o r i n e n s u r i n g s e a m l e s s t r a ns it io n i n g o f h e l p d e s k f u nc t io n s . O f f s ho r e t e c h n i c a l s u p p o r t c e nt e r s a nd he l p d e s k s i n I n d i a a r e t h u s i n v e s t i n g i n c u t t i ng - e d g e t e c h no lo g i e s a nd s t a t e - o f- t h e a r t t e c h n i c a l h e l p d e s k . H C L B P O i s a l e a d i n g a n d r e s p e c t e d p l a ye r i n t h e T e c h n i c a l S u p p o r t S e r v i c e s s e g m e nt a nd a i m s t o r e l e nt l e s s l y d e l i v e r va l u e i n a d d r e s s i n g e a c h C l i e nt s s p e c i f i c b u s i n e s s g o a l s . H e l p d e s k mo d e l s a r e t h u s t a i lo r e d t o me e t t he n e e d s o f i nd i v i d u a l c u s t o me r s fo r s u c c e s s f u l o u t s o u r c i n g o u t c o me , a s t he o ne - s i z e - f i t s - a l l o p t io n no lo ng e r e x i s t s . A c k no w l e d g i n g t he c o nc e r n s o f t he ma r k e t t hr o u g h c o m m it m e nt a n d

c u s t o me r f e e d b a c k , t h e c o m p a n y ha s d e ve l o p e d s o l u t io n s fo r t h e e n t ir e S u p p o r t L i f e C yc l e M a na g e m e nt .

H C L T e c h no lo g i e s L t d . - B P O S e r v i c e s i s o ne o f t h e l e a d i n g p l a ye r s i n t h e B P O s e g m e nt s w it h s t r o n g d o m a i n k n o w l e d g e a n d q u a l it y d r i v e n processes. T he ser v ice s are t a i lo r e d to s u it each C l i e nt s specific

r e q u i r e m e nt a n d i nt e g r a t e d t o p r o v i d e e n d - t o - e nd s o l u t io n v i a m u lt i p l e d e l i v e r y c e nt e r s a l l o ve r t he w o r l d . O u r e xp e r t i s e i n c l u d e s F i n a n c e a n d A c c o u n t i n g S e r v i c e s , T e c h n i c a l S u p p o r t S e r v i c e s , K no w l e d g e & L e g a l S e r v i c e s , S u p p l y C h a i n M a n a g e m e nt , C u s t o me r R e l a t io ns h i p M a n a g e m e n t a n d mo r e . Tec hnic a l S uppo rt Servic e s is H C L B POs la rge st ser v ic e o ffer ing in t he B P O a r e na d e p lo ye d i n v a r io u s s e r v i c e s . T h e s e s e r v i c e s s p a n a c r o s s :

Te leco m S uppo rt Servic e s Le ve l 1 Sup po rt Service s F u n c t io n a l U s a g e S u p p o r t P r o v i s i o n i n g / I n s t a l l a t io n / C o n f i g u r a t io n E ma i l / C h a t / We b s u p p o r t s e r v i c e s Le ve l 2 Sup po rt Service s L i n e f a u lt t r o u b l e s ho o t i n g L i n e f a u lt r e p a i r ( C o o r d i n a t io n w it h f i e l d s e r v i c e t e a m )

Co nsu me r Hard ware / Pro duct Suppo rt Ser vic es I n s t a l l a t io n / C o n f i g u r a t io n S u p p o r t P r o d u c t R e g i s t r a t io n / A c t i v a t io n F u n c t io na l U s a g e S u p p o r t S e r v i c e s T r o u b l e s ho o t i ng E ng i n e e r d i s p a t c h

R M A / Wa r r a nt y S u p p o r t I T & S o ft w a r e S u p p o r t S e r v i c e s T r o u b l e s ho o t i ng L 1 / L 2 F u n c t io na l U s a g e S u p p o r t S e r v i c e s L 1 I - M - A- C : I n s t a l l , M o ve , Ad d , C h a n g e S u p p o r t L 1 / L 2 Rep a ir / Upgr ade I ssue s E ng i n e e r d i s p a t c h S y s t e m & A c c o u nt M a n a g e m e nt L 1 / L 2 W a r r a nt y/ P o s t Wa r r a nt / R M A s u p p o r t A M C / C r o s s / U p s e l l i n g o f w a r r a nt y a n d S p a r e s

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T h e f i r s t I nd i a n B P O t o e nt e r t he T e l e c o m m u n i c a t io n s E xp e n s e M a n a g e m e nt ( T E M ) m a r k e t

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L a r g e s t T e le c o m B P O s e r v i c e p r o v i d e r i n A s i a L a r g e s t B P O s e r v i c e p r o v i d e r i n N o r t he r n I r e l a n d S p e c i a l a w a r d fo r c o ns i s t e nt e xc e l l e n c e fo r o u t s o u r c i n g p r a c t i c e a c r o s s a l l d i s c i p l i n e s b y t h e N a t io n a l O u t s o u r c i n g A s s o c i a t io n (NOA 07)

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The ge ne s is o f HC L beg a n at a D e lh i " bars aat i" ( ak in t o a g arag e st art -up) i n 1 9 7 6 w h i c h e vo l v e d t hr e e d e c a d e s l a t e r i nt o a d yn a m i c U S D 5 B i l l i o n G lo b a l E m p i r e . A yo u n g t e a m o f s i x l e d b y S h i v N a d a r, t h e p io n e e r s o f H C L , b e l i e v e d i n t h e g r o w t h p r o s p e c t s I T i n d u s t r y h a d fo r I n d i a . T o d a y H C L i s o n e o f t h e l e a d i n g I T e nt e r p r i s e s e m p l o y i n g 6 0 , 0 0 0 p r o f e s s i o na l s , w it h a g lo b a l p r e s e n c e i n 2 3 c o u nt r i e s s p a n n i n g lo c a t io ns w o r ld w i d e .

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V i n e e t N a ya r i s t he C E O o f t h e $ 1 . 9 b i l l io n H C L T e c h no lo g i e s L t d , l e a d i n g a t e a m o f 5 0 , 7 4 1 p r o fe s s io n a l s i n 1 8 c o u nt r ie s t o d r i ve g r o w t h i n I T S e r v i c e s i n d u s t r y. H e a l s o s e r v e s o n t h e bo a r d o f t he c o m p a n y a s a w h o le t i m e D ir e c t o r . V i n e e t ha s i n s t i t u t e d s e ve r a l r a d i c a l p r o g r a m s t ha t b e g a n a q u i e t t r a n s fo r m a t io n a c r o s s t he o r g a n i z a t io n. H i s m a nt r a o f E m p lo ye e F i r s t a n d a s t r o ng b e l i e f i n v a l u e - b a s e d l e a d e r s h i p h a s b e e n r e c o g n i z e d g lo b a l l y. F o r t u n e M a g a z i n e h a s a r t ic u l a t e d h i s l e a d e r s h i p s t y l e a s T h e Wo r l d s M o s t M o d e r n M a n a g e m e nt a n d t he L o n d o n B u s i n e s s S c ho o l c a l l s h i m t h e l e a d e r o f o r g a n i z a t io na l I n n o v a t io n . T h e H a r v a r d B u s i n e s s S c ho o l ( H B S ) h a s w r it t e n a c a s e s t u d y o n t he T r a ns f o r m a t io n a t H C L , b a s e d o n h i s i n no v a t i v e a nd r a d i c a l l e a d e r s h i p . T h e c a s e s t u d y i s b e i n g t a u g ht i n t he S t r a t e g y a nd L e a d e r s h i p c l a s s e s a t H B S . mo r e . . .

T S R SUBRAMANI AN D ir e c t o r M r . S u b r a m a n i a n h a d a d i s t i n g u i s h e d c a r e e r i n t he I n d i a n A d m i n i s t r a t i v e S e r v i c e , w he r e he h e l d va r io u s p o s it io n s i n c l u d i n g t ha t o f C a binet

S e c r e t a r y, t he h i g h e s t p o s t i n t he I nd i a n a d m i n i s t r a t io n a nd t h e p o s t o f S e c r e t a r y i n t he M i n i s t r y o f T e xt i l e s . H e h a s a l s o w o r k e d i n t h e M i n i s t r y o f C o m m e r c e , w h e r e he d e a l t w it h t r a d e p o l i c y i s s u e s a n d m a t t e r s r e l a t i n g t o G e n e r a l A g r e e m e nt o n T r a d e a n d T a r i f f s ( G A T T ) a nd w it h U N C T A D . H i s a s s i g n m e nt s i n t h e s t a t e o f U t t a r P r a d e s h i n c l u d e d t h e h i g h e s t e xe cut ive post, Chie f Secretary of t he State.

F o r o v e r f i v e y e a r s , M r . S u b r a m a n i a n w a s a S e n io r A d v i s e r i n t h e I n t e r n a t io n a l T r a d e C e nt r e , G e n e va , a U n it e d N a t io n s O r g a n i z a t io n u n d e r t h e p u r v i e w o f G A T T , w he r e h e d e a l t w it h i s s u e s r e l a t i n g t o s m a l l a n d m e d i u m e nt e r p r i s e s ( S M E S ) a s w e l l a s e xp o r t - o r ie nt e d jo i nt ve nt u r e s . H i s w o r k c o ve r e d d e v e lo p i n g c o u nt r ie s i n A s i a , A f r i c a a n d L a t i n A m e r i c a , a s w e l l a s d e ve lo p e d c o u nt r i e s . A s C a b i n e t S e c r e t a r y t o t he G o ve r n m e n t o f

I n d i a , M r . S u b r a m a n i a n t o o k a nu m b e r o f i n it i a t i v e s t o mo d e r n i z e a n d d e v e lo p t h e i n f r a s t r u c t u r e s e c t o r i n I nd i a , e s p e c i a l l y i n t h e P o w e r , T e l e c o m a nd S u r f a c e T r a n s p o r t s e c t o r s .

ROBIN ABRAMS D ir e c t o r R o b i n A b r a m s w a s fo r m e r l y t h e C O O o f C he m d e x. S h e ha d b e e n t h e Pres id e nt of Palm Co mput ing and Senio r V ice P r e s i d e nt at 3Com

C o r p o r a t io n . S h e w a s a l s o fo r m e r l y t h e P r e s i d e nt a nd C E O a t V e r i F o n e . S h e h a s ne a r l y 2 5 ye a r s o f c o m p u t i n g a nd c o mp u t i ng s e r v i c e s e x p e r t i s e c o u p l e d w it h s t r a t e g ic p l a n n i n g a n d ma n a g e m e nt e xp e r i e n c e . I n h e r

p o s it io n w it h 3 C o m, s h e h a d b e e n a s s i g n e d t he r e s p o ns i b i l it y o f e xt e n d i n g Palm Co mput ing 's lea der ship in t he w o r ld w i d e h a nd h e l d co mput ing

m a r k e t . B e fo r e jo i n i n g V e r i F o n e i n M a r c h 1 9 9 7 , A br a m s he l d a va r i e t y o f s e n io r m a n a g e m e nt p o s it io n s w i t h Ap p l e C o m p u t e r . A s V i c e P r e s i d e nt a n d Ge ner a l M a nag er of the A mer ic a s, she o ve r s a w sa le s and c ha n n e l

m a n a g e m e nt fo r U . S . , C a na d a a nd L a t i n A m e r i c a . P r io r t o t ha t , s he w a s V i c e P r e s i d e nt a n d G e n e r a l M a n a g e r o f Ap p l e A s i a , w he r e s he w a s r e s p o n s i b l e fo r s a l e s a n d m a r k e t i ng i n A s i a fo r t w o y e a r s . A br a m s s p e n t e ig ht ye a r s w it h U n i s ys in several se nio r- le ve l p o s it io n s . Her

r e s p o n s i b i l it i e s i n c l u d e d m a n a g i n g t h e d e l i v e r y o f bu s i n e s s s o l u t io n s fo c u s e d o n b a nk i n g , a i r l i n e s , g o ve r n m e nt a nd n e t w o r k i ng . A p o r t io n o f h e r t e n u r e a t U n i s ys a l s o i n c l u d e d a f i v e - y e a r s t i nt i n A s i a P a c i f i c . SUBROTO B H AT T A C H A R Y A

D ir e c t o r M r . S u b r o t o B h a t t a c h a r ya , a C h a r t e r e d A c c o u nt a nt b y t r a i n i n g , s p e n t h i s e a r l y c a r e e r w i t h D C M L t d . , w he r e h e r o s e t o t he p o s it io n o f a D ir e c t o r o n t he b o a r d . I n t he l a t e e i g ht i e s , he jo i n e d t h e H C L G r o u p a n d s u b s e q u e nt l y j o i n e d t h e B o a r d o f t h e f l a g s h i p c o m p a n y H C L . H e a l s o s e r v e s o n t h e B o a r d o f D i r e c t o r s o f H C L I n fo s ys t e m s L t d a nd N I I T L t d . AMAL G AN G U L I

D ir e c t o r M r . A m a l G a ng u l i, a C h a r t e r e d Ac c o u nt a nt , w a s t i l l r e c e nt l y t h e S e n io r P a r t n e r o f P r i c e w a t e r ho u s e C o o p e r s I nd i a . I n a d i s t i n g u i s h e d c a r e e r s p a n n i n g ne a r l y fo u r d e c a d e s , M r . G a ng u l i w a s i n vo l v e d w it h t he I n d i a p r a c t i c e o f P r i c e w a t e r ho u s e C o o p e r s a n d i s a n a u t ho r it y o n m a t t e r s r e l a t e d t o a u d it , t a x a t io n , m e r g e r s a n d a c q u i s i t io ns , a n d c o r p o r a t e r e s t r u c t u r i ng .

PROBIR CHANDRA SEN. D ir e c t o r M r . P r o b i r C ha n d r a S e n , a g r a d u a t e o f S t . S t e p he n s C o l l e g e , D e l h i, a p o s t g r a d u a t e i n M . A. ( H i s t o r y) a nd D i p lo m a i n S o c i a l A nt hr o p o lo g y f r o m K i n g s C o l l e g e , C a m b r i d g e , U . K. a nd a M . S c ( E c o no m i c s ) d e g r e e fr o m t h e U n i v e r s it y o f S w a n s e a , U . K. , jo i n e d t h e I n d i a n A d m i n i s t r a t i v e S e r v i c e i n M a d h y a P r a d e s h C a d r e i n 1 9 6 7 . H e h a s he l d a va r i e t y o f a s s i g n m e nt s b o t h w it h t h e G o ve r n m e nt o f M a d h ya P r a d e s h a nd t h e G o ve r n m e nt o f I nd i a . H e w a s D i r e c t o r o f Ar c h a e o lo g y a nd M u s e u m s , M . P . , M a n a g i n g D i r e c t o r , M a d h y a P r a d e s h S t a t e T o u r i s m C o r p o r a t io n, P r i n c i p a l S e c r e t a r y H o u s i n g a n d E n v i r o n m e nt , P r i n c i p a l S e c r e t a r y C o m m e r c e a n d I nd u s t r y a n d I T i n t h e G o v e r n m e nt o f M a d h ya P r a d e s h, D ir e c t o r G e ne r a l , C i v i l A v i a t io n, C h a i r m a n a n d M a n a g i n g D i r e c t o r , I nd i a n A i r l i n e s , a nd C ha i r m a n, A i r Ind ia. He r e t ir e d as Secretary G e ne r a l , N a t io n a l Hu ma n R ig ht s

C o m m i s s io n i n A p r i l 2 0 0 3 a nd t o o k o v e r a s D i r e c t o r , I nd i a I nt e r na t io n a l C e n t r e f r o m M a y 2 0 0 3 o n w a r d s . M r . S e n w a s c o n f e r r e d t he ` N a t io n a l C it i z e n s Aw a r d p r e s e nt e d b y t h e P r i m e M i n i s t e r o f I nd i a , t he ` S h i r o ma n i

A w a r d p r e s e nt e d b y t h e S p e a k e r o f t he L o k S a b h a a nd t h e ` W i n g s o f

H i s t o r y Aw a r d fo r h i s t e nu r e i n I n d i a n A i r l i n e s .

D e ve lo p e d t h e f ir s t i n d i g e no u s m i c r o - c o mp u t e r a t t he s a m e t i m e a s A p p l e a n d 3 ye a r s b e fo r e I B M ' s P C i n 1 9 7 8 . T h i s m i c r o - c o mp u t e r v i r t u a l l y g a ve b i r t h t o t he I nd i a n c o m p u t e r i n d u s t r y.

H C L ' s i n - d e p t h k n o w l e d g e o f U n i x l e d t o t he d e v e lo p m e nt o f a f i n e g r a i n e d m u l t i - p r o c e s s o r U n i x i n 1 9 8 8 , t hr e e ye a r s a he a d o f S u n a n d HP. A l o ng w it h t he s w i ft l y gro w ing s o ft w a r e t e c h no lo g y

i n d u s t r y, H C L , w h i c h w a s h it h e r t o k no w n a s t he p i o ne e r in mo der n co mput ing d e v e lo p m e nt . m a d e t h e a d v e nt i nt o s o ft w a r e

H C L ' s R & D w a s s p u n o f f a s H C L T e c h no lo g i e s i n 1 9 9 7 t o ma r k t h e i r a d v e nt i nt o t he s o ft w a r e s e r v i c e s a r e na .

T o d a y, H C L s e l l s m o r e P C s i n I n d i a t h a n a n y o t he r br a nd , r u n s N o r t h e r n I r e l a n d ' s l a r g e s t B P O o p e r a t i o n , a n d m a n a g e s t h e n e t w o r k fo r A s i a ' s l a r g e s t s t o c k e xc h a n g e n e t w o r k a p a r t fr o m d e s i g n i n g z e r o

v i s i b i l i t y l a n d i n g s ys t e m s t o l a nd t he w o r ld ' s mo s t p o p u l a r a i r p l a n e . A n d t h i s it d o e s a c r o s s 2 3 c o u nt r ie s a n d a c r o s s 3 6 0 s e r v i c e lo c a t io n s i n

I nd i a

HC L BPO S er vic e s Lt d C o mp a n y P r o f i l e C o m p a n y P r o f i l e C o mp a n y P r o f i l e C o m p a n y P r o f i l e C o mp a n y Pro file Co mpa n y

P r o f i l e H C L B P O S e r v i c e s r e p r e s e nt s H C L T e c h no lo g i e s ' mo s t s i g n i f i c a n t st rat eg ic e x t e ns i o n a n d i n v e s t m e nt t o d a t e . H C L B P O S e r v i c e s c u r r e nt l y o p e r a t e s o u t o f v a r io u s l o c a t io n s i n I n d i a , M a l a y s i a a n d N o r t he r n I r e l a n d . T h e fo c u s o n a nd c o m m it m e n t t o B P O i s b a s e d o n t h e fo l lo w i n g asset s a nd at t ribut es: G lo b a l C l i e nt B a s e & R e l a t io n s h i p s - H C L - T ' s g lo b a l r e l a t io n s h i p b a s e co nsist s of a ppro ximat e ly 454 c l i e nt s , inc lud ing 61 F o r t u ne 500 bu s i n e s s

o r g a n i z a t io n s , i n s u c h h i g h p r o p e n s i t y t o a nd p o t e nt ia l o f o u t s o u r c i n g S e c t o r s a s I T / I . S / I n s u r a nc e / F i n a n c i a l S e r v i c e s / R e t a i l . G lo b a l P r e s e n c e & R e a c h - H C L - T o p e r a t e s i n 1 5 C o u nt r i e s a c r o s s 2 0 lo c a t io n s Europe and Managers Asia-P ac ific, be t w e e n dep lo ying ( o ve r o ve r 1 0 0 U . S . A, C u s t o m e r R e l a t io n s h i p 70 of

w h o m a r e lo c a t e d i n t he U . S . A) . T h i s ne t w o r k e n s u r e s e f f e c t i v e a n d respo ns ive R e l a t io n s h i p M a na g e m e nt . R e l a t e d T e c h no lo g y D o m a i n E xp e r t is e - H C L - T h a s d e v e lo p e d e xt e n s i v e e x p e r t i s e i n a w i d e r a ng e o f e m e r g e nt a nd m a i n s t r e a m T e c h no lo g y C lie nt

D o ma i n s . S o m e o f t h e s e D o m a i n s b e a r a d i r e c t r e l a t io ns h i p t o a w id e r a n g e o f B . P . O s e r v i c e s - e . g . C R M / E R P / S C M / I m a g i n g & Wo r k f lo w e t c .

R e l e v a n t I nd u s t r y P r a c t i c e s - I n a d d it i o n t o T e c h no lo g y D o ma i n e x p e r t i s e , HCL-T has a lso

d e v e lo p e d a nu m b e r o f I nd u s t r y P r a c t ic e s , i n c l u d i n g B a n k i n g / F u n d s M a n a g e m e nt / Ret a il. F u n d i n g & S c a l a b i l it y - H C L ' s B P O S e r v i c e s o p e r a t io ns ha v e b e e n t o t a l l y f u n d e d f r o m i nt e r n a l l y g e n e r a t e d r e s o u r c e s , e na b l i n g t he r a p i d r a m p - u p o f d e l i v e r y i n f r a s t r u c t u r e i n d i v e r s e lo c a t io ns a n d c o u nt r i e s a s w e l l a s s i g n i f i c a nt e n h a n c e m e nt s i n d e l i v e r y R e l i a b i l it y, S e c u r it y a n d Q u a l it y D e s i g n a t io n C u s t o me r S u p p o r t E xe c u t i v e ( C S E ) E x p e r i e n c e 0 - 3 ye a r s I n d u s t r y T yp e C R M / I T E na b l e d S e r v i c e s / B P O / M e d i c a l T r a n s c r i p t io n F u n c t io n a l BPO / KP O / Ar e a Cu st o mer ITES Serv ic e / / O p e r a t io n s / Insurance

K e y w o r d I T E S , B P O , C a l l C e nt e r , I n b o u nd , O u t bo u nd , C u s t o me r S e r v i c e Exe cut ive, C u s t o me r

C a r e E x e c u t i v e , U K P r o c e s s , U S P r o c e s s , C S E , C o nt a c t C e nt e r , C S R , C S A, Ser vic es, CCO, I nt e r n a t io na l Call IT C e nt e r L o c a t io n E na b l e d C he n n a i

R e m u n e r a t io n A s p e r I n d u s t r y S t a nd a r d s ( N e g o t i a b l e ) E d u c a t io n U G - A n y Graduate S p e c i a l i z a t io n P G - A n y P G C o u r s e - A n y S p e c i a l i z a t io n Job * * * Ma nag ing So lving and u pdat ing At t e nd i n g cu st o mer c ust o mer & c l i e nt D e s c r i p t io n i n bo u n d . quer ie s. database. Any

* A c t i ng a s a p r i m a r y i nt e r f a c e fo r a l l c u s t o me r s e r v i c e e n q u i r i e s . * E n s u r i n g a l l u n r e s o l v e d f a u lt s , q u e r i e s a n d c o mp l a i nt s a r e p a s s e d o n t o t he n e xt le ve l of

support. * F u l l y a d h e r i n g t o t he c o mp l a i n t s a n d e s c a l a t io n s ys t e m a n d p r o c e d u r e s . * Ha nd ling inq u ir ie s and re po rting to C o nc e r n e d A u t ho r it i e s .

* U n d e r t a k i n g o t he r d u t ie s a s r e q u ir e d b y t h e A s s i s t a nt M a n a g e r . Des ired *Exce llet C o m m u n i c a t io n (0-3 o ve r i nd u s t r y year s spoken will be Pro file Sk ill e xp) E ng l i s h. co nsid ere d.

* G r a d u a t e , U nd e r g r a d u a t e / P o s t g r a d u a t e * * E x c e l l e nt Exper ie nc e fro m co mma nd o t he r

* A b i l it y t o w o r k a s p a r t o f a t e a m a nd / o r o n yo u r o w n i n it i a t i v e

Mergers & Acquisitions in BPO World

Acquiree Apollo Contact Centre (British Telecom arm) Belfast, Ireland Town And Country Assistance Ipswich, UK Embrace Singapore Acquirer / VC Value Date Reason For Acquisition Onsite facility to expand services to European market. $31m revenues for three years from BT. To enter the insurance claims procesing market. To expand presence in the Asia-Pacific region. To acquire customers and consulting experience, move up the value chain and get a US delivery centre. To enter the US healthcare market. Set up US front-end and ramp up finance and accounting offering. To enter the $800m travel services market in the US. Access to blue-chip telecom and financial services firms. 5000 seats and 11 centres in the US. Establish US delivery centre. Reason For Acquisition Enter the high-margin research and analytics market. Centres in New Jersey,

HCL Tech BPO $11.5m

May 2002

WNS

Not Available

August 2002

IndiaLife Hewitt

Not Available

April 2003

Core3 Phoenix, USA

Ephinay

Not Available

July 2003

ClaimsBPO USA

WNS

Not Available

September 2003 October 2003 November 2003

CorPay Solutions Datamatics Detroit, USA Upstream Philadelphia, USA Aegis Communication Corp Texas, USA Simpata San Francisco, USA Acquiree Pipal Research Illinois, USA Source One

$9m

Godrej

$6m

Essar (with $28m Deutsche Bank)

November 2003

Indecomm Acquirer / VC ICICI OneSource [51% stake] Hinduja TMT

Not Available Value $1.25-1.5m $8.5m

December 2003 Date September 2004 September

Communication New Jersey, USA Cambridge Integrated Services Illinois, USA Accounts Solutions Group (ASG) New York, USA Devonshire Group London, UK

2004

Toronto, Manila; multilingual capabilities in French and Spanish. Enter the insurance claims processing segment, expand presence to Australia and the US. Staff strength of 500 in US delivery center to enter the high-margin, late-stage collections market. Expand capabilities to consulting and staffing services. With the acquisition of Avicis/HealthScribe, currently the nation's third largest medical transcription outsource provider, Spheris is now positioned to more rapidly expand its product and service offering of complete medical transcription technology and outsourcing services to healthcare providers throughout the U.S. and Canada.

Scandent Group $110m

September 2004

ICICI OneSource

$40-45m

October 2004

OfficeTiger

Not Available

November 2004

HealthScribe

Spheris

Not Available

December 23, 2004

Spanco Telesystems

Intelenet Global Rs 100 crore Services

Spanco's domestic BPO business will be farmed out into a separate listed subsidiary, to be owned November, 51% by Intelenet Global 2005 and 49% by Spanco's present shareholders. The Anil Ambani Group owns 14.9% of Spanco Signed in Allsec gets a strong

b2k

Allsec Tech

$3m all-cash

deal, final consideration will depend on the revenues of the company from Dec 2005March 2006 Office Tiger Acquiree RR Donnelley Acquirer / VC $250m all cash deal Value

Dec 2005, to be completed by March 2006

foothold into the technical support vertical

Signed in March 2006 Date

Donnelly to cut its own costs by outsourcing printing to OfficeTiger Reason For Acquisition Metavante has relationships with over 8,000 financial institutions, including 91 of the top 100 US banks. Metavante will be the exclusive distributor of IOneSource's BPO services in the North American banking and financial services and payments markets. The merger of the two companies came into being with Trident and Capz the two major investors of Ultralink being bought over by Bearings Private Equity the major stake holder of Secova. This merger enables the combined company to leverage technology, global delivery centers and bestin-class processes to deliver an integrated, human resources and benefits administration supply chain at a cost effective price point regardless of an

Temasek, ICICI, ICICI OneSource WestBridge Capital Partners, Metavante

Metavante picks 11.5% stake in ICICI OneSource

Signed in April 2006

Secova eServices UltraLink

Not Available

Signed in April 2006

organizations' size. GKM does back-office operations in the areas of finance, accounting and insurance claim processing. The synergy of GKM and SHCIL services would help ramp up the operations and offer a bouquet of services. EBS is a marketing services BPO and IMG is in US. EBS hopes to tap the US market better thru IMG A strategic acquisition to strengthen EXL's research and analytical vertical. Canada based Minacs has an annual revenue of $265m. Transworks wil have an combined revenues of $300m

GK Management Services India Ltd

Stock Holding Corporation of India (SHCIL)

Not Available

Signed in May 2006

IMG Group

EBS Worldwide $6-7m

Signed in May 2006

Inductis

EXL Service Holdings

$20-40m [stock-cumcash, majority in stock] $125m [sharecum-cash deal for 46.4% acquistion of promoters equity] Rs 530 crore: Infy acquired 87,50,000 equity shares, 23 per cent of Progen from Citicorp International Finance Corporation $31m Capgemini acquired 51%

Signed in July 2006

Minacs

Transworks

Signed in June 2006

Progeon

Infosys

July 2006

Armanti Financial Services, LLC Indigo

Apollo Health

August 2006 September 2006

Capgemini

Acquiree

Acquirer / VC

Value $100m

Date September 2006

Reason For Acquisition

Olympus Capital Quatrro

LiveIt Solutions Inc.

Integreon

After acquisition of shares from Connect Capital October and The View 2006 Group it will infuse $20m into Integreon October 2006 $25m December 2006 Acquisition includes BPM's two wholly owned subsidiaries - MedPlans 2000 and MedPlans Partners. Acquisition is expected to contribute over USD 25 million in revenues to the BPO business of Essar Acquisition will help HOV make an entry in new business verticals like transaction processing, healthcare and media Tata Consultancy Services is exiting its joint venture BPO, Sitel India, by selling its 40% stake for $17.73 million to Sitel Corporation. Tata International is exiting by selling 10% stake for $4.47m WNS to enhance

Affina Afinity Express

Hinduja TMT Ayala Corp

BPM Inc.

Firstsource Solutions

$30m

January 2007

Vantedge

Essar Gobal

Rs 100 Crore

January 2007

Lason

HOV Services

$148m

February 2007

Sitel India

Sitel Corporation

$22.2m

March 2007

Marketics

WNS

$65m in cash

March

2007

knowledge services business, which provides market research, business & financial research and analytics services. Reason For Acquisition The two decade old Four Lakes is a full service pre-media company with two facilities in Wisconsin and New York City. It is believed that Four Lakes project management, design and editorial development skills will combine will with Laserwords technical strength to provide on-shore, offshore and hybrid delivery models. Laserwords will have over 1000 employees post acquisition. HCCA has been acquired for its delivery capabilities in HR operations, including large scale payroll processing for clients in the BFSI sector The deal will give Wipro five data centers in the U.S. and approximately 900 employees, as well as access to Infocrossing's U.S. customers. After the acquisition, Wipro's IT infrastructure management practice will be 1.5 to 2 times larger than its nearest peers, Tata Consultancy and

Acquiree

Acquirer / VC

Value

Date

Four Lakes Colorgraphics

Laserwords

$11m

August 2007

HCCA Business Services Pvt Ltd

3i Infotech Ltd

3i acquired 51% of HCCA. August Amount Not 2007 Disclosed

Infocrossing

Wipro

$600m / 60 times August Infocrossing's 2007 earnings for the last 12 months

HCL Tech. While this will enable the company to compete more effectively in larger IT management deals. The new entity will be christened TSC Hero and will offer customers a multi-site solution, increasing market potential and growth prospects in the core markets of Europe, Asia and the US. Jhawars are investing in both new and existing international locations and plan to build facilities for a total of 2,000 contact centre seats globally (both on-shore and off-shore) that will meet the demands from major blue chip organisations and give them the choice of leveraging domestic and overseas BPO capabilities. While the GSR group companies have revenues of $3 million each, DenMed had revenues of $1.5 million. The company expects to add nearly $10 million to its topline by way of these acquisitions. This acquisition expands Cognizant's capabilities in the analytics segment and broadens our service offerings for the life

Telecom Service Centres

Hero Group

40 million

September 2007

Usha Martin

The Jhawar family, main share holders of the Usha Martin Converso September Group acquired Contact Centres 2007 76% of Converso for an undisclosed amoun

Florida based GSR Physician Billing Inc and GSR Systems Inc Accentia and OregonTechnologies based medical transcription services provider DenMed Inc

Rs 80 crore

October 2007

marketRx

Cognizant

$135m in cash

October 2007

sciences industry while providing strong synergies with our existing business intelligence/data warehousing and CRM (customer relationship management) services. The Firstsource bid was around $100 million more than that of Genpact and although Citi was keen on doing the deal with Genpact, it was caught in a bind over the bids. Dalglen has a large presence in Scotland. It is one of the largest call centres in Europe and in the UK. Post acquisition, the combined group will have clients spread across sectors like telecom, financial services, IT, retail, utilities and consumer durables. The deal covers several wholly-owned subsidiaries of Dalglen including Telecom Service Centres (TSC), TSC Credit Management, Sigdev and 9 dormant subsidiaries of TSC. Dalglen group had annual revenues of #55 million in 2007 and is growing at a 15% clip annually. It has nine sites across the UK and an employee base of 3,000. WNS is the second Warburg portfolio firm

Citi BPO

Genpact

$630m for 90% October stake 2007

Dalglen

Hero Group

#40 million (Rs December 320 crore) 2007

WNS

PE fund Nalanda India

$32-34 million March for 5.25% stake 2008

[2.2 million shares]

where Nalanda India, the India fund of Singaporeheadquartered private equity fund Nalanda Capital, is known to have invested. The $400million fund, which has a mandate to invest only in publicly-listed companies, had picked up a 14.9% stake in Jaipurbased Vaibhav Gems. Date Reason For Acquisition McGladreys has some $18 million in billings and its 600 or so staffers, including 200 in the U.S. Quatrro has 1600 employees A new legal entity has been carved out from the merger of Quatrro's own finance and accounting practice and RSMs FPO unit. John Keells has picked up 44% stake in this new entity As part of the transaction, which is being funded by DE Shaw, the New Yorkbased investment group is picking a minority stake of around 5-10 per cent in Quatrro for an undisclosed sum. Besides this, DE Shaw will also hold a minority stake in Babel and will provide leverage finance for the acquisition. Quatrro will hold a majority stake in the UK-based firm. Acquired Aviva Global

Acquiree

Acquirer / VC

Value

RSM McGladrey Quatrro

$50 million

April 2008

Quatrro

John Keells $5.72 million Holdings (JKH) for 44% stake

April 2008

Babel Media

Quatrro

$100-125m

June 2008

Aviva Global

WNS

$230m

June 2008

Services

Services, the UK-based insurance giant's captive BPO in India and Sri Lanka, for $230 million. WNS has beaten Aviva's other vendors EXL and 24/7 Customer to clinch the deal. The deal will also see WNS securing UK-based insurance giant Aviva's committed $1 billion outsourced work over an eight-year period. The buyout will bring over 6,500 employees of Aviva Global Services spread across Bangalore, Pune, Noida, Chennai and Colombo under the WNS fold. The deal gives Allied Digital access to a ready customer base for remote infrastructure management services and a base in the US to expand its presence. This is Essar's 11th BPO acquisition since 2005. PeopleSupport has annual revenues of around $141 million and Aegis, which is unlisted, has revenues of $320 million. The acquisition gives Aegis a sizeable presence in Philippines, which is a key region for BPO players servicing the US market, as well as presence in Costa Rica. The Costa Rica facility gives it a nearshore

En Pointe Global Allied Digital Services Services

80% for $24m

July 2008

PeopleSupport

Aegis Communication $250m Corp

July 2008

presence to US. Aegis gets about 8,500 employees from the acquisition. Control Point Solutions is a privately-held voice, data & wireless telecom expense management (TEM) service provider. Under the deal, HCL will acquire four delivery centres in US with over 200 professionals. The strategic acquisition of Control Point Solutions is in line with HCL BPOs goal to make strategic, platform-based acquisitions which give us sustainable competitive advantage in chosen verticals. This acquisition enhances HCLs ability to become an end-to-end provider of business process outsourcing services in the attractive TEM space The addition of Cambridge Solutions to Xchanging delivers greater scale, broader international reach and a number of platforms for significant future growth. In particular, the Acquisition brings the following strategic advantages: 1. processing capabilities and a strong market presence in the

Control Point Solutions

HCL Tech BPO $20.8m

August 2008

Cambridge Solutions

83 million (Rs 686.84 crore) Rs 371.2 crore in cash and issue 15,249,998 New Xchanging October Xchanging PLC Shares. The 2008 New Xchanging Shares amount to 7% of the Company's current issued ordinary share capital.

2.

3.

4.

5.

USA, which can serve as a springboard for future growth; the addition of scale to Xchangings Indian BPO platform and the creation of offshore critical mass; the addition of a strong Australian business and a platform for Xchangings growth in the region; the addition of scale and the enhancement of the Xchanging Groups IT capabilities; and the opportunity to create a truly international insurance processing business with significant combined revenues.

Citigroup Global TCS Services (CGSL)

$505 m

October 2008

This deal marks the largest buyout of a foreign captive BPO in India. The largest captive BPO acquisition till date was WNS's take over of Aviva BPO for $230 million. Citigroup BPO handles services such as credit cards, consumer

finance, retail banking, capital markets & banking as well as global transaction services. The Citi BPO has EBIT margins of 20% and is expecting the revenues to touch $278 million this year. The transaction is expected to be closed by last quarter of FY08. Merrill Lynch was the advisor to TCS on the deal. TCS said in a statement that the acquisition will broaden its portfolio in the end-to-end IT and BPO services in the global banking and financial services sector. TCS said that it will leverage on capabilities of Citi BPO to serve large global banks. Analysts say it makes good sense for investor to look at IT & BPO firms due to the drop in their valuations. Earlier valued at four times their revenue or 14 times their operating profits, these firms are now trading at half those multiples. As per the last disclosed shareholding pattern of EXL prior to this transaction, Oak Hill Strategic Partners held a 36.5% stake in the BPO firm, followed by Fidelity (15%). BlackRock

Fidelity Investments

EXL Service Holdings

$10m for additional 6.77% stake, total of 21.77%

November 2008

Financial Management is the other leading shareholder with an 8.2% stake. Founders Rohit Kapoor and Vikram Talwar hold 6.9% and 6.2% respectively. InfoVision group has about 10,000 personnel and 60 clients. Serco, which offers a whole spectrum of support services but did not have a presence in the BPO space prior to the InfoVision acquisition, plans to have a workforce of 20,000 in the next 2-3 years. The cash deal would allow Wipro to get $500 million worth of assured business in software services and infrastructure management over the next six years. The acquisition will help position the company to work in a hybrid onshore/offshore model, capable of delivering design, editorial and project management capabilities in the US. With this acquisition, Aegis will have operations in India, Philippines, the United States, Costa Rica, Kenya and Australia. The unit provides finance and accounting services

InfoVision

Serco Group

$75m / Rs 240 crore

November 2008

Citi Technology Services Ltd (Citos)

Wipro

$127m

December 2008

LaurelTech Integrated Publishing Solutions

DiacriTech

Undisclosed

Feb 2009

UCMS Group Ltd

Aegis Communication A$54m (Rs 200 April 2009 Corp, BPO arm crore) of Essar EXL Service Holdings

Schneider National, Czech

Approx $40m

July 2009

Republic

to logistics firms in Europe in multiple languages such as English, German , French, Italian and Spanish. Through this acquisition EXL has a presence in Eastern Europe. Eastern Europe is an attractive BPO destination both due to the language capabilities and the nearshore advantage for catering to markets in Europe As part of the transaction, financial services provider UBS and Cognizant have entered into a multi-year services pact, under which Cognizant will provide business process outsourcing (BPO), knowledge process outsourcing (KPO), IT and remote infrastructure management services to UBS divisions globally. The UBS unit, called UBS India Service Centre (UBS ISC), employs about 2,000 associates Reason For Acquisition EXL gained around $160 million outsourcing contract spread over eight years. EXL has 10,500 employees, AmEX travel BPO has 800.

UBS BPO Unit, Hyd

Cognizant

Approx $75m

October 2009

Acquiree

Acquirer / VC

Value

Date

AmEx Travel Services Captive India

EXL Service Holdings

$30m

October 2009

McCamish Systems

Infosys BPO

$38m, Expected additional $20m Dec 2009 based on targets

Source: Media Reports

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