EditorialDear Reader,November and December saw moderate deal activity in the global outsourcing space. Key deals in November andDecember include: iQor, a global provider of intelligent customer interaction and outsourcing solutions acquires the CCT group, a USand Philippines based provider of dedicated, shared and hybrid contact centre outsourcing solutions Bain Capital acquires Atento, one of the worlds leading BPO and CRM companies, for €1,051 million Sutherland Global Services, a provider of integrated portfolio of analytics-driven back-office and customer facingsolutions acquires Apollo Health Street, a leading Healthcare service provider with comprehensive informationtechnology and business process integrated solutions FirstSource fully redeems FCCBS of US$ 237 Mn, partly by way of the investment made by Spen Liq – theinvestment vehicle of the RP-Sanjiv Goenka Group MphasiS acquires Digital Risk, one of the largest independent providers of Risk, Compliance and TransactionManagement solutions CBPE Capital, a European private equity fund acquires Xafinity, a pension administration and outsourcing andshare registration provider Cognizant acquires Medicall, a leading provider of outsourced clinical services to various health care markets,including workers’ compensation and groupNovember and December witnessed a number of new contracts. Key contracts executed in these months include: Accenture secures a 5 year contract to provide human resources (HR) BPO services to Unilever Capgemini wins a contract with Unilever, to provide Finance and Accounting services, across 130+ countries TCS wins a multi-year agreement with Mitchells & Butlers (M&B), one of the UK’s leading hospitality businesschains to streamline the management of its HR and payroll operations Genpact wins a 5 year contract from Centrica, one of the leading energy companies in the world, to streamlineand manage finance and accounting (F&A) and management reporting processesEmerging Trends Everest Research found that the number of new BPO contracts worldwide dropped year-on-year in the thirdquarter, with contract values also decreasingThis edition of the newsletter also includes the Avendus BPO Composite Index updated till the 4thof January, 2013. Theindex indicates a decrease in share prices of BPO companies over the month of December 2012 with a negative 4.5%monthly return, negative 8.9% quarterly return and positive 4.7% annual return.Regards,Amit SinghBusiness Process Outsourcing Newsletter JANUARY 2013Disclaimer:The news contained herein has been taken from published sources as indicated undereach item. Avendus will not be held liable for any erroneous data as published in thesource indicated. Avendus also does not take any responsibility for any errors oromissions or results of any actions based upon this information.
2Table of ContentsDEAL SUMMARY ..................................................................................................................................3IQOR TO ACQUIRE CCT GROUP, ENHANCING LEADERSHIP IN CUSTOMER CARE............................................3ATENTO EMBARKS ON A NEW ERA WITH BAIN CAPITAL .............................................................................3FIRSTSOURCE FULLY REDEEMS FCCBS OF US$ 237 MN..............................................................................4SUTHERLAND GLOBAL SERVICES TO ACQUIRE APOLLO HEALTH STREET......................................................4MPHASIS TO ACQUIRE DIGITAL RISK LLC FOR USD $175 MILLION..............................................................5EQUINITI GROUP SELLS XAFINITY CONSULTING TO CBPE CAPITAL .............................................................6SPI GLOBAL PURSUES K-12 OPPORTUNITIES WITH ACQUISITION...............................................................7MEDICALL HAS BEEN SOLD TO COGNIZANT .............................................................................................7CONTRACT TRACKER...........................................................................................................................9CAPITA SIGNS CONTRACT WITH STAFFORDSHIRE COUNTY COUNCIL ..........................................................9ACCENTURE SECURES FIVE YEAR HR BPO CONTRACT WITH UNILEVER ........................................................9CAPGEMINI SIGNS A NEW FINANCE & ACCOUNTING OUTSOURCING CONTRACT WITH UNILEVER ................. 10MITCHELLS & BUTLERS OPTIMIZES HR AND PAYROLL PLATFORM FROM TCS .............................................. 10MCCAIN FOODS SIGNS CONTRACT SELECTING PROCURIAN ..................................................................... 11MERCY MEDICAL CENTRE SELECTS ADP FOR UNIFIED HUMAN CAPITAL MANAGEMENT ................................ 11NORTHGATEARINSO ANNOUNCES FIVE-YEAR CONTRACT EXTENSION WITH CA TECHNOLOGIES .................. 12THE DEPARTMENT OF HEALTH CHOOSES CGI FOR DELIVERY OF PAYROLL FOR ITS ARMS LENGTH BODIES.... 12XCHANGING SECURES LLOYDS CLAIMS REPORTING CONTRACT............................................................... 13GENPACT TO MANAGE FINANCE AND ACCOUNTING FOR CENTRICA........................................................... 14EXPANSION ......................................................................................................................................15CONVERGYS ANNOUNCES OPENING OF NEW CONTACT CENTRE IN MANILA’S MEGAMALL ............................ 15NCO FINANCIAL SYSTEMS INC. EXPANDING OPERATIONS IN CHARLESTON COUNTY................................... 15CONVERGYS CONTINUES TO EXPAND ITS PRESENCE IN COSTA RICA ........................................................ 15MINACS PARTNERS WITH QUALFON TO LAUNCH MEXICO CENTRE............................................................. 16INTEGREON OPENS LEGAL DOCUMENT REVIEW CENTRE IN LONDON......................................................... 16TELETECH TO OPEN SECOND CUSTOMER EXPERIENCE CENTRE IN PADUCAH, KENTUCKY............................. 17CAPGEMINI EXPANDS BPO OPERATIONS IN BRAZIL................................................................................. 17XCHANGING UNVEILS PLANS FOR FURTHER OFFICES AND SERVICES IN APAC ........................................... 18MOVERS AND SHAKERS ....................................................................................................................19FIRSTSOURCE APPOINTS SENIOR STRATEGY ADVISOR TO FOCUS ON FINANCIAL SERVICES SECTOR ........... 19ACHIM BERG APPOINTED NEW CEO OF ARVATO...................................................................................... 19EXL NAMES NEW HEAD OF UK AND EUROPE ........................................................................................... 20XCHANGING HIRES HEWLETT PACKARD VP TO HEAD ITS GLOBAL INSURANCE SERVICES BUSINESS ............ 20TRENDS AND VIEWPOINTS...............................................................................................................22OUTSOURCING CONTRACTS DOWN BY 19 PERCENT ................................................................................ 22AVENDUS BPO COMPOSITE INDEX....................................................................................................23OUR OFFICES....................................................................................................................................25
3DEAL SUMMARYIQOR TO ACQUIRE CCT GROUP, ENHANCINGLEADERSHIP IN CUSTOMER CAREIQOR PRESS RELEASE [20 DECEMBER 2012]iQor, a global provider of intelligent customerinteraction and outsourcing solutions, todayannounced it has acquired the CCT Group, a globalprovider of dedicated, shared and hybrid contactcentre outsourcing solutions, from majority investorHeadland Capital Partners.―The acquisition of the CCT Group is part of ourstrategic plan to apply our technology-enabledsolutions and deep analytics capabilities to a broaderplatform,‖ said Norm Merritt, President and CEO ofiQor. ―Clients are demanding the latest sophisticatedtechnology, processes and methods along withactionable insights from cutting-edge analytics andbusiness intelligence tools. We believe acquiring CCTwill expand our abilities to offer our respective clients awider range of technology-enabled solutions and BigData analysis into the increasingly complex customerexperience.‖CCT has a blue-chip customer care client base thatcomplements and extends iQor‘s client profile in keyverticals, including Telecommunications, Retail, andBusiness Services. The acquisition also bolsters iQor‘stechnology offerings while expanding its globalfootprint in Latin America and the Philippines, allowingclients to take advantage of a broader set of skills andlabor markets across the world.―We look forward to joining the iQor team,‖ saidRichard Eychner, current CEO of CCT. ―iQor and CCTshare a vision and culture of using the best technologyand the best talent around the globe to deliver world-class customer service to their customers. Bycombining our strong global brand, service culture andreputation, and large and loyal customer base withiQor‘s technology platform and analytics capabilities,we believe we can continue to build and bringsolutions to the market that place customerrelationships at the centre."CCT has 4,500 employees and maintains twocustomer care brands. Interactive ResponseTechnologies (IRT) was founded in 1993 as a softwarecompany for the call centre industry before it beganoperating contact centres on behalf of its Fortune 500clients. Cyber City Teleservices, founded in 1999,provides call centre outsourcing solutions to some ofAmerica‘s leading brands from operations in Panamaand the Philippines.The terms of the transactions were not disclosed. iQoris acquiring CCT free of its existing debt with thesupport of iQor‘s equity owners, Huntsman Gay, CVCIand Starr Principal Holdings."Our additional investment today underscores ourbelief in iQor‘s opportunity to transform the BPOindustry,‖ said Gary Crittenden, Managing Partner ofHuntsman Gay Global Capital, a majority investor iniQor. ―CCT brings an exceptional track record incustomer care and will enhance iQor‘s growth as aleader in the BPO space.‖ATENTO EMBARKS ON A NEW ERA WITH BAINCAPITALATENTO PRESS RELEASE [12 DECEMBER 2012]Today sees a further milestone in Atentos history ofgrowth with the entry of Bain Capital as majorityshareholder. On 12thDecember the deal was closedbetween Telefónica and Bain Capital for theacquisition of Atento for €1,051 million euros."I would like to begin this new stage by thankingTelefónica for its continued support and contribution tothe development and growth of what is today one ofthe worlds most important BPO and CRM companies.Telefónica has played a crucial role in thetransformation our Company has undergone over ashort period of time" said Alejandro Reynal, AtentoGlobal CEO, on the closing of the deal. "Bain Capitalsdecision to invest in Atento is a vote of confidence forour company, business model, product portfolio andour management team. I am very excited to be a partof this new era that represents a unique opportunity forgrowth and a challenge for us to strive to improve our
4service offer for our clients who drive our ambition todeliver excellence" stated Mr. Reynal."We are delighted to be Atentos partner on its nextphase of growth. We look to invest and supportmarket-leading companies and Atento is the marketleader in Latin America and the second largestcompany globally in the sector. We have a unique andexceptional track record of helping companies growfollowing separation from larger groups as well asgrowing companies in this industry and we lookforward to helping Atento deliver best-in-class servicesand added value to its impressive client portfolio", saidMelissa Bethell, Managing Director for Bain Capital.Atento has become one of the worlds most importantcompanies in the BPO/CRM sector, an industry that isforecast to grow at a CAGR of 5.7% over 2011-2015.The company has posted double-digit growth overrecent years, is one of the sectors most profitablecompanies and closed the 9-month period ending inSeptember this year with accumulated revenue of 1.41billion euros, an increase of 5.3% in comparison to thesame period of the previous year. In terms of profits,Atento posted an OIBDA of 172 million euros, anincrease of 26.9% compared to the same period forthe previous year. The company is also acknowledgedaround the world for its people management, with over150,000 employees it is the only company in theindustry to be listed in the top 25 best companies towork for in the world.FIRSTSOURCE FULLY REDEEMS FCCBS OF US$237 MNFIRSTSOURCE PRESS RELEASE [12 DECEMBER2012]Firstsource Solutions Limited (NSE:FSL,BSE:532809), one among India‘s leading BusinessProcess Outsourcing (BPO) companies todayannounced that it has fully repaid its outstandingFCCB liability of $237mn on the due date of 4thDecember, 2012.The repayment was funded by way of the Company‘scash reserves augmented with the preferentialallotment of shares made to Spen Liq Private Limited(The investment vehicle of the RP-Sanjiv GoenkaGroup) and external borrowings.Commenting on the development RajeshSubramaniam, Managing Director & Chief ExecutiveOfficer, said, ―We had proactively embarked on severalstrategies that would enable us to deal with the FCCBsituation. The full repayment was the desired outcomeand our ability to fulfill this obligation to our bondholders has been achieved. With this financialdeleverage of the company, we are now in a strongerposition to look ahead and drive strategies toaccelerate growth and profitability.‖SUTHERLAND GLOBAL SERVICES TO ACQUIREAPOLLO HEALTH STREETAPOLLO PRESS RELEASE [11 DECEMBER 2012]The board of directors for Apollo Hospitals Groupannounced today the acquisition of their outsourcingbusiness, Apollo Health Street, by Sutherland GlobalServices based in Rochester, N.Y. The transaction isexpected to close by February 2013, subject tocustomary regulatory and other conditions.This acquisition will position the combined organizationas a leading Healthcare service provider withcomprehensive information technology and businessprocess integrated solutions and consolidate itspresence as a dominant player in the $38B USHealthcare business process outsourcing (BPO). Thisalso fosters Apollo Hospitals‘ strategic intent offocusing and growing its core healthcare deliveryservices.Established in 1986, Sutherland offers an integratedportfolio of analytics-driven back-office and customerfacing solutions that support the entire customerlifecycle. It is one of the largest, independent BPOcompanies in the world serving global leaders in majorindustry verticals. The company has over 30,000employees globally working out of 35 operationscentres in the United States, Philippines, India, UAE,Egypt, Bulgaria, UK, Canada, Jamaica, Mexico, andColombia.
5Dr. Prathap C. Reddy, Founder Chairman of ApolloHospitals, one of Asia‘s premier Healthcare groupscommented, ―In order to drive Apollo Health Streetsgrowth to the next stage of its evolution, it wasessential to find the right strategic partner. InSutherland Global Services, we have found the idealpartner with a proven track-record of excellence inservices, technology, and leadership. The combinedcapabilities of both companies will create a compellingvalue proposition for our clients.‖Apollo Health Street‘s outcome-based BPO, as well asinformation technology solutions and clinical domainexpertise, supports US hospitals, physicians andhealth plans to not only improve their currentoperations but also address the challenges andopportunities created by on-going healthcare reformsin the United States, including Meaningful Use, HealthInsurance Exchanges (HIX), ICD-10, and AccountableCare Organizations (ACOs).Ms. Sangita Reddy, Managing Director, Apollo HealthStreet added, ―Over the years, Apollo Health Streethas established a very successful suite of technologyplatform driven solutions for its marquee list ofhealthcare clients. We are pleased that a strategicplayer like Sutherland Global Services is acquiringApollo Health Street and will expand and enhance oursuccessful operations. Apollo & Sutherland are bothcommitted to ensuring customer success, smarttechnology, and employee growth.‖Apollo‘s global clients will now be able to leverageSutherland‘s secure and scalable global infrastructurewith full access to Sutherland‘s suite of analytics-enabled services. Additionally, Sutherland will utilizeApollo‘s domain driven technology, best practices, andglobal resources to expand and secure its leadershipposition by providing integrated solutions to addressthe challenges and opportunities in the healthcaremarket as well as complex compliance and regulatorymandates.―We have been extremely impressed by Apollo HealthStreet‘s deep domain understanding and world-classplatform based delivery capabilities,‖ said Mr. Dilip R.Vellodi, Founder Chairman & CEO of SutherlandGlobal Services, ―With this acquisition, Sutherlandaddresses the central challenge facing major NorthAmerican and European healthcare Providers andPayers - to provide exceptional service to patients in acost effective manner. Apollo‘s expertise, combinedwith our proven capabilities, strengthens our portfolioof Payer, Provider, and Health IT solutions in drivingsignificant value to our client base.‖MPHASIS TO ACQUIRE DIGITAL RISK LLC FORUSD $175 MILLIONMPHASIS PRESS RELEASE [3 DECEMBER 2012]MphasiS (an HP Company) today announced adefinitive agreement to acquire Orlando, Florida, USAbased Digital Risk LLC. Digital Risk is one of thelargest independent providers of Risk, Compliance andTransaction Management solutions to the UnitedStates mortgage market. The acquisition is an all cashdeal valued at USD$ 175 million with an additionalearn-out component.Digital Risk provides highly specialized Risk,Compliance and Transaction Management solutionsfor the mortgage industry. Digital Risk‘s proprietaryMaking Mortgages Safe™ solutions suite is deployedby over 15 blue chip clients across key mortgageconstituencies – Originators, Insurers, Issuers andInvestors. Digital Risk is licensed to operate in 46states in the United States.In August 2012, Digital Risk was named as one ofAmerica‘s entrepreneurial growth leaders by Inc.Magazine. Digital Risk ranked number 11 among thefastest growing private financial services companies inthe US, in 2012 Inc. 500 list.Digital Risk is expected to register revenues of USD$127 million in CY2012. The company has grown atrevenue CAGR of 70% in the last 3 years.―We began our journey of transformation in 2010focusing on the Financial Services Industry. Thisacquisition is central to our strategy of offeringspecialized services in chosen segments. Digital Riskoffers highly specialized services in risk andcompliance area, specific to mortgage industry. Their
6analytics platform combined with 1500 mortgagespecialists makes them unique and differentiated. I amdelighted to have Digital Risk with their strong brandjoin our family.‖ said Ganesh Ayyar, Chief ExecutiveOfficer – MphasiS.―The need for risk management in the mortgagemarket is not only a US issue but also a globalnecessity. This acquisition provides the industry andclients a unique offering,‖ said Peter Kassabov,Chairman and Chief Executive Officer - Digital Risk.―We‘ve developed proven processes, analytics andtechnology that are making mortgages safe and thisexpertise applies to markets outside the U.S. We arethrilled to merge our talent and expertise with that ofMphasiS to set a global standard for makingmortgages safe.‖ said Peter.The transaction is currently expected to close byJanuary 31, 2013 subject to regulatory approvals andother customary closing conditions. Upon completionof the transaction, Digital Risk will operate as astandalone business unit retaining its brand identity.Digital Risk‘s founders will continue to lead thecompany, with Peter Kassabov reporting to GaneshAyyar, CEO MphasiS. Digital Risk‘s, managementteam and employees will remain with the company andcontinue serving their customers. This acquisitionsignificantly enhances MphasiS‘ onshore presence inthe US. MphasiS has plans to expand its footprint inUnited States creating up to 500 new US jobs in thenear future.―The subprime mortgage crisis set off a chain of eventsfrom rising mortgage losses, to a decline in mortgage-backed securities issuance to increased federal andstate regulation,‖ said Craig Focardi, Senior ResearchDirector - CEB TowerGroup. "From 2009-2011, perloan origination costs increased by 40 percent andservicing costs increased by 36 percent, according toMortgage Bankers Association. Risk management andcompliance activities such as quality control, loanpurchase due diligence, loan portfolio surveillance andanalytics are a large share of these cost increases. Toreduce internal fixed costs, financial institutions needto make improvements in these areas, which isessential for producing defect free loans and restoringsustainability to US residential mortgage marketingand securitization."EQUINITI GROUP SELLS XAFINITY CONSULTINGTO CBPE CAPITALEQUINITI PRESS RELEASE [16 NOVEMBER 2012]The Equiniti Group is pleased to announce that it hasreached agreement to sell its Xafinity Consultingbusiness to CBPE Capital LLP. The transactionremains subject to certain conditions, includingregulatory approvals, and is expected to close duringthe first quarter of 2013. Terms of the transaction havenot been disclosed.The Group was created in 2010 by bringing togetherthe Xafinity pension administration and consultingbusiness with the outsourcing and share registrationprovider Equiniti. Its forward strategy is to develop itsBusiness Process Services (BPS) offering under theEquiniti Group brand with a focus on larger scalecomplex administration and financial processingcontracts. The Group‘s market-focused divisions are:Pensions Solutions, Shareholder Solutions andCommercial Solutions.The sale of Xafinity Consulting is consistent with thisstrategy to refine the Group‘s core focus. XafinityConsulting, comprising Actuarial, Pensions, Healthcareand Employee Benefit Consulting and administrationas well as, Self Invested Pensions and IndependentTrusteeship, will continue to operate under the Xafinitybrand. Paymaster and Claybrook remain within theEquiniti Group.The pension market continues to be central to theEquiniti Group‘s BPS strategy. It currently administersthe pension benefits of nearly three million schememembers, pays over 30% of UK pensioners andsupports over 10 million pension scheme memberswith its software applications.In April 2012 the Equiniti Group‘s Paymaster businessbecame the private sector partner for the mutual jointventure, MyCSP, administering pensions for 1.5 millionCivil Service Pension Scheme members.
7The Equiniti Group is committed to further invest inopportunities to extend and enhance its service range.Recent acquisitions included peterevans - leadingprovider of technology solutions for the financialservices industry - and the Corporate and EmployeeServices from NatWest Stockbrokers.Wayne Story, Equiniti Group Chief Executive said:―Our strategy is to develop the Equiniti Group as amarket leading specialist Business Process Servicesprovider. Having considered the strategic alternatives,we believe that separating the Xafinity Consultingbusiness now is the right course of action for bothXafinity Consulting and the wider Equiniti Group,enabling each to a have a clear focus. We fully expectboth businesses to continue to work in closepartnership in key areas of mutual interest in thepensions market.‖Robert Birmingham, Managing Director of XafinityConsulting said: ―Xafinity Consulting will continue toconcentrate on its existing markets within which wehave significant ambitions to develop and expand ourrange of services and products. The expertise, fundingand supportive approach of our new owners will set usup well to achieve these ambitions to the benefit of ourclients and our business.‖SPI GLOBAL PURSUES K-12 OPPORTUNITIESWITH ACQUISITIONSPI GLOBAL PRESS RELEASE [9 NOVEMBER 2012]SPi Global, through its subsidiary Laserwords, hasacquired Tighe Publishing Services, a full-serviceeducational development house in the K-12educational marketplace. This acquisition positionsLaserwords to take advantage of the burgeoningopportunities in the educational publishing business inthe United States.―Tighe‘s editorial, design, and content developmentcapabilities will complement Laserwords‘ strength inproduction with conversion, digital, and technologyservices for educational publishers,‖ said MichaelO‘Brien, Executive Vice President of Laserwords/SPiGlobal.―The acquisition of Tighe allows Laserwords tobecome a leading supplier in the educationalpublishing arena,‖ said O‘Brien. ―Clients of bothcompanies see this acquisition as a welcomedevelopment for the future of their businesses.‖O‘Brien added that before the acquisition, Laserwordshad established itself with school publishers. However,Laserwords needed an experienced editorial anddesign team to compete for major publishing projects.The acquisition of Tighe fills that gap, with Laserwordsnow being positioned to compete for larger educationalprograms.Suzanne Tighe, President of Tighe, recognizedLaserwords‘ vast experience in digital contentdevelopment, offshore and conversion services, andnew offerings and services for mobile content anddigital services. ―Laserwords‘ areas of expertiseconstitute advantages for Tighe because theycomplement our strengths in content development anddesign,‖ said Tighe.Maulik Parekh, SPi Global President and CEO, said,―In strengthening SPi Global‘s content business, astrong foundation is essential for sustainable growth.We can now focus on further building our digitalservice lines with the addition of a top-rate contentdevelopment house. By combining Laserwords andTighe, SPi Global continues to reinforce its leadershipposition in the global content solutions space.‖MEDICALL HAS BEEN SOLD TO COGNIZANTMEDICALL PRESS RELEASE [7 NOVEMBER 2012]Headquartered in Pleasanton, California, with primaryoperations in the Philippines, MediCall is a leadingprovider of outsourced clinical services to varioushealth care markets, including workers‘ compensationand group health. MediCall has multiple URACaccreditations and, through its fully compliant andclinician licensed workforce of over 750 certifiedprofessionals, the Company delivers customized costcontainment services and solutions to its U.S.-basedhealth care clients.
8This transaction provides Cognizant with a fullyaccredited, international clinical services platform toserve the growing demand for health care costcontainment solutions. Cognizant‘s robust globaldelivery model, analytics capabilities, innovativetechnology platforms, and scale, combined withMediCall‘s medical management capabilities andregulatory insights, will help provide superior value tohealth care clients. Cognizant (NASDAQ: CTSH) is aleading global provider of information technology,consulting, and business process outsourcingservices. With approximately 145,200 employees and$7 billion in revenue, Cognizant is a Fortune 500company and is ranked among the top performing andfastest growing companies in the world.
9CONTRACT TRACKERCAPITA SIGNS CONTRACT WITHSTAFFORDSHIRE COUNTY COUNCILCAPITA PRESS RELEASE [20 DECEMBER 2012]Capita plc (`Capita) can confirm that it has now signeda contract to provide educational support services tothe Staffordshire County Council. The contract, willinitially deliver a range of educational support servicesfor schools and academies in the Staffordshire region.These services are expected to generate revenues ofapproximately £85m per annum over 20 years.It will additionally focus on achieving significant growththrough securing new local authority, school, academyand further and higher education clients across theUK. With the UK schools education support servicesmarket currently estimated to be worth around £16bnper year, the venture is targeting total revenue of atleast £2bn over the first 10 years.To support the delivery of these key services, around3,800 Council employees will TUPE transfer to thecontract from 1 April 2013.Capita previously announced that it had been selectedas preferred bidder by Staffordshire County Council on27 November 2012.ACCENTURE SECURES FIVE YEAR HR BPOCONTRACT WITH UNILEVERACCENTURE PRESS RELEASE [19 DECEMBER2012]Accenture (NYSE: ACN) has won a new five-yearcontract with Unilever (FTSE: ULVR) to provide humanresources (HR) business process outsourcing (BPO)services that benefit more than 130,000 Unileveremployees in over 100 countries and introduce aseries of service improvements focused on enhancingthe user experience. Financial terms of the contractwere not disclosed.Under the terms of the contract, Accenture will workwith Unilever to continue to improve the quality andeffectiveness of its HR services. The scope of thecontract includes recruitment, reward and core HRadministration, and learning services covering contentsourcing and development, program planning anddelivery, learning system hosting, payrolladministration, and management and administrativeservices.As part of the renewed contract, Accenture will closelyalign the services it delivers with Unilever‘s TalentAgenda. With the introduction of a number ofinnovations, the services Accenture provides will focuson delivering business-relevant results in line withUnilever‘s key business priorities. The program willdrive greater efficiencies and an improved userexperience. The enhanced contract will include anumber of new elements.For example, as part of a revitalized ServicePerformance Model, Accenture and Unilever will gobeyond traditional operational service-levelagreements and team to achieve outcomes relevant toUnilever‘s business targets.Additionally, Accenture will introduce a more proactiverecruiting approach, including the expanded use ofsocial media. Proactive sourcing tools will supportmore effective, forecasting-led recruiting methods andwill result in a broader, more appropriate candidatepool for Unilever.Learning services will be expanded by Accenture tosupport Unilever‘s focus on developing future leadersand will incorporate professional skills buildingmodules into a refreshed learner curriculum. Throughthe delivery of courses from the functional to strategic,Accenture will help develop the next generation oftalent within Unilever.The new agreement aligns HR services with Unilever‘ssustainability agenda. For example, learning programswill make greater use of virtual instructor-led training(VILT), while recruitment services will increase the useof technology where possible, reducing environmentalcosts.―This contract renewal represents a new milestone inAccenture‘s 10-year collaboration with Unilever, and is
10testament to the work that we have delivered,‖ saidTeo Correia, a senior managing director in Accenture‘sConsumer Goods & Services practice who leadsAccenture‘s work with Unilever. ―Unilever strivescontinually to find new ways of improving its HRfunction to enhance the skills and abilities of its globalworkforce, and this contract is key to achieving futuresuccess and higher performance. We look forward tohelping Unilever achieve its goals.‖Accenture will deliver the services through its GlobalDelivery Network, using multiple centres across theUnited States, Europe, and Asia Pacific.CAPGEMINI SIGNS A NEW FINANCE &ACCOUNTING OUTSOURCING CONTRACT WITHUNILEVERCAPGEMINI PRESS RELEASE [19 DECEMBER2012]Following a comprehensive global tendering process,Capgemini has been selected to provide Finance andAccounting services, across more than 130 countries.This builds upon a relationship established in 2005, tobring about process harmonization and increasedproductivity. Furthermore, Capgemini has beenappointed as one of Unilever‘s Strategic Businesspartners.Hubert Giraud, CEO for Global Business ProcessOutsourcing at Capgemini said: ―This major contract isa result of two very focused companies demonstratingtheir ongoing commitment to one another. Capgemini‘songoing innovation continues to drive value forUnilever. This win is testament to the team‘scommitment and our ability to create a winning solutionbased on process harmonization and above all, astrong strategic partnership. Unilever is clearly asignificant customer for us and it‘s fantastic to see thatview reciprocated. We look forward to continuing ourlong and successful relationship with Unilever.‖Christian Kaufmann, Unilever Vice President FinanceServices added ―If we are to achieve the continuousimprovement we need to help the business remaincompetitive and to reach our goal of doubling the sizeof our business while halving our environmentalimpact, we need leading-edge financial services. Wecarried out a competitive tendering process to achievea ‗best-in-class‘ solution and now look forward toworking with Capgemini as a strategic partner.‖The new contract will commence in January 2013, withservices being delivered from Chile, Brazil, Guatemala,India, Singapore and China.MITCHELLS & BUTLERS OPTIMIZES HR ANDPAYROLL PLATFORM FROM TCSTCS PRESS RELEASE [12 DECEMBER 2012]Tata Consultancy Services (TCS), (BSE: 532540,NSE: TCS) a leading IT services, consulting andbusiness solutions organization, today, announced thatit has entered into a multi-year agreement withMitchells & Butlers (M&B). The UK‘s leading hospitalitybusiness chain is partnering with TCS to streamlinethe management of its HR and payroll operations,which serve 38,000 employees across 1600restaurants and pubs across the country.Martin Taylor, Director of Business Change &Technology, Mitchells & Butlers, said, ―In the last 12months we have successfully upgraded our corenetwork and replaced our old data centre infrastructureby moving into the cloud, whilst introducing a utility-based services model. We are now at the excitingstage of taking advantage of this foundation byimplementing TCS‘ HCM core HR and Payroll solutionthat will streamline our support processes, benefit ouremployees and place our guests at the heart ofeverything we do.‖―We are delighted to partner with Mitchells & Butlersand are confident that our cloud-based Human CapitalManagement solution will help align M&B‘s currentbusiness operations to deliver best-in-class services totheir employees and customers,‖ said ShankarNarayanan, Head, TCS UK & Ireland.Susan Martindale, Group HR Director, Mitchells &Butlers, said, ―We want to improve the level of HRservices that we have available to our employees, andthe TCS HCM system will help us on our journey to
11enhance our capabilities in the areas of peopledevelopment, reward, resourcing and engagement.‖―The TCS HCM Platform is a result of several years ofresearch and investment by TCS. It provides ourcustomers with an integrated, scalable and globalsolution, which is not just cost-effective, but also helpscustomers move away from siloed approaches totalent development, payroll and employee lifecyclemanagement,‖ said Raj Agrawal, Global Head, TCS‘Platform Solutions.The agreement underscores TCS‘ non-linear growthstrategy in key markets. TCS‘ HCM Platform is anintegrated and global solution that encompasses keyareas of payroll, time management, workforceadministration, compensation, recruitment, learningmanagement and performance management. It comeswith full self-service, actionable analytical reportingand comprehensive mobile enablement. Customershave the choice to adopt the platform under SaaS,BPaaS (SaaS + BPO Process Delivery) or a hybridmodel.MCCAIN FOODS SIGNS CONTRACT SELECTINGPROCURIAN TO OPTIMIZE SPENDING ACROSSGLOBAL ORGANIZATIONPROCURIAN PRESS RELEASE [10 DECEMBER2012]Leading comprehensive procurement solutionsprovider Procurian, formerly ICG Commerce, todayannounced that it has signed an agreement withMcCain Foods, a leading supplier of frozen potato andsnack food products for the home and food servicesmarket. Procurian will deliver a comprehensiveprocurement solution to help the company optimizeand manage its spending in several categories acrossits global operations.Procurian is solely focused on helping clientstransform procurement into a strategic function thatfuels growth through measurable savings as well assupply market insights that optimize spending.Procurian‘s unique offering provides its clients accessto all the components necessary to optimize indirectspending across over 350 subcategories and achievethe highest levels of procurement excellence.―The team at McCain has a very progressive approachto optimizing procurement and increasing its impact onthe organization, and we‘re excited to help thisforward-thinking market leader harness the power oftheir spending,‖ said Carl Guarino, CEO of Procurian.―This new engagement showcases the opportunity formany companies to rethink how they view indirectspending, focusing not only on process compliance,but continuously optimizing the business impact oftheir investments. We look forward to helping McCainbuild on their success and take procurement to thenext level to meet their strategic goals.‖MERCY MEDICAL CENTRE SELECTS ADP FORUNIFIED HUMAN CAPITAL MANAGEMENTADP PRESS RELEASE [6 DECEMBER 2012]ADP, a leading provider of global human capitalmanagement (HCM) services, today announced thatMercy Medical Centre (MMC), a full service medicalcentre delivering a comprehensive range of healthservices, has selected ADP Vantage HCMSM as itshuman capital management solution.ADP will provide MMC with a centralized, fully unifiedhuman resource, payroll, time and labor managementsolution to power the organization‘s growing HRfunction. Leveraging a configurable user experiencecentered on the roles and processes within anorganization, ADP Vantage HCM unifies thenotoriously disparate HR processes of largeorganizations by automating and integrating them intoa real-time, end-to-end view across the HR spectrum,enabling organizations like MMC to streamlineenterprise-wide HR systems, achieve greaterefficiencies and reduce costs.―With thousands of staff and facilities across theregion, we were intent on finding the right humancapital management solution to enable us to functionat maximum efficiency,‖ said John Topper, ChiefFinancial Officer, Mercy Medical Centre. ―ADPVantage HCM enables us to quickly and easily supplyinformation across the enterprise, providing a
12complete, 360-degree view. We take great comfort inknowing that ADP is providing process support andcompliance expertise as an extension of the MMCteam. As a result, we can maximize efficienciesacross our organization and provide an enhancedemployee experience.‖Vantage HCM also encompasses ADP‘s leadingoutsourcing, best practices and compliance services toallow for the optimal combination of technology andprocess support for MMC‘s employees, managers andpractitioners.Mercy Medical Centre‘s selection of ADP is furtherevidence that ADP is fast becoming the leadingprovider of human capital management tools toorganizations in the healthcare industry. Healthcareproviders throughout the United States are electing topartner with ADP for its human resources, payroll andbenefits administration expertise, as well as its deepindustry knowledge in an era of new healthcareregulations and reform. ADP currently serves morethan 30,000 healthcare organizations, and pays over1.8 million healthcare employees.―Large organizations such as Mercy Medical Centrecan benefit from ADP Vantage HCM‘s ability to helpdrive efficiencies and simplify human capitalmanagement processes so that HR decisions can bebased on more strategic, data-driven insights,‖ saidRegina Lee, Division President, ADP.NORTHGATEARINSO ANNOUNCES FIVE-YEARCONTRACT EXTENSION WITH CATECHNOLOGIESNORTHGATE ARINSO PRESS RELEASE [27NOVEMBER 2012]NorthgateArinso (NGA), a leading global HR processprovider, announced the extension of its six-yearpartnership with CA Technologies to continueproviding premier HR solutions through 2018. Throughthe extended partnership, NGA will continue tomaintain CA Technologies employee database andprovide document management services, in addition toproviding process refinement across global HRsystems.CA Technologies, an IT management and softwaresolutions company, began its work with NGA in 2007when it saw a need to engage a HR outsourcingpartner to help improve its HR processes worldwide.Serving CA Technologies workforce of 13,900, NGA isable to leverage its best practices related to SAP andHR processing , while driving operational effectivenessand employee satisfaction.Given the breadth and nature of CA Technologiesneeds, NGA was selected as the HR provider ofchoice due to its deep knowledge of SAP, ability toprovide global support and in-depth knowledge of CATechnologies HR processes.―Continuing our relationship with NGA was an easydecision,‖ said Julian Hardy, Vice President of GlobalHR Operations, CA Technologies. ―Over the years ourrelationship with NGA has turned into a truepartnership. They fully understand our processes --and have the capabilities to support our HR systemsglobally.‖―Employee satisfaction and engagement is of criticalimportance to our clients and we are committed toleveraging our command of SAP, global reach anddedicated executives to help our clients become evenbetter employers,‖ said Mike Ettling at NGA. ―We arehonored to continue our work with CA Technologies asthey work to provide their employees with the HRresources necessary for success.‖THE DEPARTMENT OF HEALTH CHOOSESLOGICA, NOW PART OF CGI FOR DELIVERY OFPAYROLL FOR ITS ARMS LENGTH BODIESCGI PRESS RELEASE [9 NOVEMBER 2012]CGI Group Inc. (TSX: GIB.A) (NYSE: GIB), a leadingprovider of information technology and businessprocess services and McKesson UK, a trustedhealthcare technology solutions and services provider,today announced that they have been selected aspreferred supplier to provide fully managed payrollservices to the Department of Health (DH)‘s ArmsLength Bodies (ALBs).
13This announcement is in line with the Governmentpolicy of delivering efficiencies through the sharing ofback office functions. It is expected to deliver anexcellent level of support to DH‘s ALBs, which enablethe NHS to operate effectively. These organizationswill employ over 30,000 staff (headcount) and includethe Health Protection Agency and the NHSCommissioning Board.CGI was chosen through Logica‘s inclusion as solesupplier under the highly successful GovernmentProcurement Services framework for payroll, HR andfinance and will provide full end-to-end payrollprocesses and services, alongside McKesson UK,using the NHS Electronic Staff Record (ESR) system.ESR is an Oracle-based, DH led initiative; it is theworld‘s largest integrated HR and payroll system andthe solution spans the NHS in England and Wales.Paula Sussex, Vice-President Public Sector, UK, CGIsaid, ―The GPS framework is an extremely effectiveway for the public sector to both make cost savings butalso to ensure a consistently high level of serviceacross organizations. Our partnership with McKessonto deliver an accurate and reliable payroll service thatwill allow the Arms Length Bodies to get on with theirkey roles in delivering the UK‘s health services withouthaving to worry about a back office function.‖Frank Rutley, Vice President, UK Workforce Solutions,McKesson UK, said, ―Achieving efficiencies and costsavings in the public sector is no longer abouttechnology alone. In today‘s environment, it is criticalthat providers work together to share expertise andknowledge to the benefit of the customer. McKesson isdelighted to have been selected as a partner to CGI.McKesson will offer the depth and breadth of technicaland project management resource to ensure asuccessful project delivery, ongoing cost savings andefficiency benefits.‖The managed payroll services implementation willbegin immediately, with an option for DH to evaluatehow DH‘s ALBs can further modernize and streamlineback office services using the GovernmentProcurement Service‘s Framework.The seven year contract for DH‘s ALBs builds on CGI‘sexperience in delivering payroll systems and servicesfor organizations across the UK public sector. It nowprovides payroll services to over 90 GovernmentProcurement Services framework clients.XCHANGING SECURES LLOYDS CLAIMSREPORTING CONTRACTXCHANGING PRESS RELEASE [8 NOVEMBER2012]Xchanging, the business process, procurement andtechnology services provider and integrator has beenawarded a contract to build the platform for the LloydsClaims Reporting Suite (CRS).Xchanging will develop an environment whichcomprises 10 on-line dashboards which will provideLloyds and managing agents with consistent,benchmarked, claims management informationdelivered against a market agreed set of keyperformance indicators.The dashboards will be compiled from a combinationof data that is currently held in the Claims DataWarehouse and the markets electronic claimsplatform, CLASS. The dashboards will be delivered inthree tranches in March, April and May 2013.Geoff Kennard, Electronic Services Director atXchanging comments: "We are delighted to beannouncing this contract today and to continueworking with the market in the delivery of sophisticatedreal time claims information. The level of detail thatthese dashboards are able to deliver will supportLloyds in their vision to be the global centre forspecialist insurance and reinsurance."Mike East, Head of Operations at Canopius andmarket sponsor of this project, said: "This is anotherimportant step in further improving how the Lloydsmarket manages claims. The Claims Reporting Suitewill help make sure that the Lloyds market has accessto information that is clearly defined and one version ofthe truth. This means we will have more of theinformation we need and, just as importantly, it will bethere when we need it."
14GENPACT TO MANAGE FINANCE ANDACCOUNTING FOR CENTRICA, ONE OF THEWORLD’S LEADING ENERGY COMPANIESGENPACT PRESS RELEASE [6 NOVEMBER 2012]Genpact Limited (NYSE: G), a global leader inbusiness process management and technologyservices, today announced a five-year agreement withCentrica, one of the leading energy companies in theworld. Centrica is a top 30 company on the FTSE 100Index with operations predominantly in the UK andNorth America. Under the terms of the agreement,Genpact will streamline and manage finance andaccounting (F&A) and management reportingprocesses for British Gas, which serves 13 millionhouseholds and 1 million businesses in the UK, and forits sister company, Direct Energy, which serves 6million customers across Canada and the UnitedStates.Genpact will drive end-to-end process excellencethrough its proprietary Smart Enterprise Processes(SEPSM) framework and be Centrica‘s strategicpartner in providing F&A and management reportingservices. Genpact will deliver and ensure continuousimprovement in those processes, reduce operationalrisks and improve financial controls while helping bothBritish Gas and Direct Energy manage these costs andtake these processes to best in class. This will supportCentrica‘s strategic objectives of growth, building anintegrated North American business, and drivingoverall superior financial returns."We are looking forward to the development of ourbusiness relationship with Genpact," said Ian Peters,MD, Energy for British Gas. "We chose Genpactbecause of their track record in F&A and reporting,combined with their commitment to process excellenceand optimization that was truly a differentiator.""We look forward to a very long term partnership withCentrica. Our framework and approach using the‗science of process‘ called SEPSM is what we willdeploy to drive leading end-to-end processes that willdeliver improvements in outcomes," said TigerTyagarajan, president and CEO, Genpact. "It is vital intoday‘s competitive marketplace that energy providersmaximize the value that effective business processescan create, especially in terms of the insights they canbuild for their customers, the improvement in customerservice, and the bottom-line impact they can create."
15EXPANSIONCONVERGYS ANNOUNCES OPENING OF NEWCONTACT CENTRE IN MANILA’S MEGAMALLCONVERGYS PRESS RELEASE [21 DECEMBER2012]Convergys Corporation is pleased to announce theopening of a new contact centre in Manila in Januaryof 2013. Convergys will occupy over 180,000 squarefeet on four floors within the SM Megamall, one of thelargest shopping centres in the world. This is an ideallocation, where employees can benefit from theconvenience of being at the epicenter of activity in thecity. In addition, a new bus terminal is located at thebase of the building, providing safe, convenient, andreliable transportation for employees to travel betweentheir homes and work.This expansion marks the 18th centre in thePhilippines for Convergys, the largest private employerin the Philippines. Named BPO Employer of the Yearat the ICT Awards—Philippines in 2012, Convergys isrecognized for significant contributions to the local andnational ICT industry. This new centre will soon beginrecruiting to fill hundreds of positions to support clientsin multiple industries.NCO FINANCIAL SYSTEMS INC. EXPANDINGOPERATIONS IN CHARLESTON COUNTYNCO PRESS RELEASE [7 DECEMBER 2012]NCO Financial Systems Inc., a leading global providerof best-in-class business process outsourcing (BPO)solutions, today announced that it will expand itscurrent operations in Charleston County due to newbusiness development. In conjunction with theexpansion, the company will be seeking to fill 75 newpositions.―It‘s exciting to have the opportunity to expand our callcentre facility in Charleston County. South Carolinahas provided us with an excellent environment inwhich to do business, and provided us with exceptionalworkforce talent. We look forward to growing here, andwe appreciate all the support we‘ve received fromstate and local officials,‖ said Jay King, Co-Head ARMOperations, of NCO Financial Systems.NCO Financial Systems will expand its call centreoperation, located at 4275 Bridge View Drive, in NorthCharleston, SC. The centre handles accountsreceivable services for utilities and telecom revenueclients and currently employs more than 600 people.The expansion is scheduled to be completed inJanuary 2013. The new positions are primarily for callcentre representatives.―When existing businesses in South Carolina chooseto expand, it‘s a good indication our economicdevelopment efforts are on the right track. Wecelebrate NCO Financial Systems‘ decision to grow inNorth Charleston and create 75 new jobs,‖ saidGovernor Nikki Haley.NCO operates a global network of more than 100operations centres running on a centralized dataplatform with the flexibility to respond to the changingmarketplace, and to tailor operations to meet clientspecifications. NCO‘s services include accountsreceivable management, revenue cycle managementand order-to-cash BPO services. NCO providesservices across multiple vertical markets through acombination of voice, chat, email, voice automation,back-office, social media and self-help portals.―NCO Financial Systems is a world-class company andthis expansion in Charleston County is great news.Every one of these jobs will have impact in NorthCharleston. Announcements like this one showcompanies continue to see the Palmetto State as theright place to do business,‖ said Secretary ofCommerce Bobby Hitt.CONVERGYS CONTINUES TO EXPAND ITSPRESENCE IN COSTA RICACONVERGYS PRESS RELEASE [6 DECEMBER2012]Convergys Corporation (NYSE: CVG), the globalprovider of customer management staffing solutions,today announced the launch of a new 7,000 square-meter operations centre in Boulevard de Rohrmoser, in
16San Jose. This facility becomes the company‘s fourthoperations centre in the country, and will offer jobs to500 new employees that will join the more than 2,000that the company currently employs in three centres inHeredia and San Jose.The launch event was attended by PresidentChinchilla, who underlined the significant growth ofConvergys and its consolidation as one of the ten mainemployers of the service sector in Costa Rica,according to data from CINDE.After only three years of deploying in Costa Rica, thecompany has made four significant expansions,making it one of the largest employers in the servicesector, with 2,400 job positions. The employmentopportunities that Convergys adds to this sector havebeen very important and marked by the offering ofhundreds of job opportunities with stable income, goodsalaries and interesting prospects for personal andprofessional growth to Costa Ricans. With theexpansion we are celebrating today, the companyreaffirms the vote of confidence it has placed in ourcountry and particularly in the skills of our people,"said the President.For his part, the Deputy Minister of Foreign Trade,Fernando Ocampo said that, in addition to being anexample of growth, Convergys is also an example ofthe evolution that the service sector has had in CostaRica."Convergys has helped increase the impact that theservices sector has in the countrys economy. In 2011,exports and business information services such aswhat is offered by Convergys represented 5.8% of theGDP in Costa Rica. This figure is equal to thatachieved by agricultural exports and places us asleaders in Latin America in the export of services,information technology and communications," saidOcampo.MINACS PARTNERS WITH QUALFON TO LAUNCHMEXICO CENTREMINACS PRESS RELEASE [26 NOVEMBER 2012]Aditya Birla Minacs, a global business solutionscompany (subsidiary of Aditya Birla Nuvo), todayannounced that it has set up a new centre in MexicoCity, Mexico in partnership with Qualfon, a leadingglobal BPO provider with proven LATAM contactcentre experience. This centre will provide customersupport services to Minacs‘ clients in North America.The 600-seat centre will offer a wide range of facilitiesto employees in a world-class working environment.Qualfon will partner with Minacs to provide customerservice support in English and Spanish to its clients.Senior Minacs executives will provide leadershiponsite to ensure the delivery of a world-class serviceexperience to customers.Commenting on the new partnership with Qualfon andthe focus of the Mexico City delivery centre, AnilBhalla, COO, North America and Europe at AdityaBirla Minacs said, ―With this new centre, we arestrengthening our LATAM presence and solutionoffering to add to Minacs‘ presence in Jamaica and theDominican Republic. This enables our clients to beeven closer to their customers. Combined with Minacs‘Value Partnering strategy, our Mexico location willensure that we better support the achievement ofbusiness outcomes that our clients are seeking.Qualfon is a highly respected outsourcing servicesprovider in the LATAM market, and we are delighted topartner with them. I am confident that the synergiesbetween our two companies will deliver immense valueto our clients.‖―We are pleased to be working with such a respectedcompany like Aditya Birla Minacs and to support itshigh quality customer lifecycle solutions,‖ said MikeMarrow, the Chief Executive Officer (CEO) of Qualfon.―Minacs‘ customized client solutions based on its deepdomain expertise in its focus industries, combined withQualfon‘s LATAM experience and our highly-engagedand highly-tenured workforce will indeed providesuperior solutions for clients and their customers.‖INTEGREON OPENS LEGAL DOCUMENT REVIEWCENTRE IN LONDONINTEGREON PRESS RELEASE [26 NOVEMBER2012]
17Integreon, a leading global provider of outsourcedlegal, research and business services, todayannounced the opening of a 100 seat legal documentreview centre in the City of London. The London centreis the second UK facility Integreon has opened thisyear, with the initial Bristol centre opening in January.These onshore locations complement the company‘soffshore review centres in India and the Philippinesand further extend Integreon‘s leadership position inthe UK for onshore and offshore service delivery.―Client interest in the UK for Integreon‘s onshore legaloutsourcing services has never been higher and weare committed to investing and growing our businessin this market,‖ said Brent Larlee, Global Head, LegalServices at Integreon. ―Our London review centreoffers UK law firms and corporations a high qualityservice experience and outsourcing cost benefits,while providing clients with the ability to balance dataprotection requirements, if work is required by theclient or by law to be carried out in a UK facility.‖Clients choose Integreon‘s document review servicesto gain crucial cost certainty and predictability, and toachieve higher quality results through structured,tightly controlled review processes that provide adefensible, risk management framework. Integreonoffers clients unrivalled choice of global servicedelivery for any blend of on location, onshore, oroffshore review, including access to specializedexpertise such as foreign language fluency for mostEuropean and Asian languages.―We‘ve worked with Integreon for offshore and onshorereview and appreciate their professionalism andconsistent attention to quality,‖ said Vince Neicho,Litigation Support Manager at Allen & Overy LLP.―The opening of our London facility is timely, sincemany UK organizations are preparing for the April2013 implementation of new rules on disclosure aspart of the Jackson Reforms,‖ said Juliet Hanna, Headof Document Review Services at Integreon. ―Discoverycosts will be subject to closer scrutiny by the courtsand we are very pleased to be able to offer a lowercost option for managed review right on the doorstepof most of our UK clients.‖TELETECH TO OPEN SECOND CUSTOMEREXPERIENCE CENTRE IN PADUCAH, KENTUCKYTELETECH PRESS RELEASE [20 NOVEMBER 2012]TeleTech Holdings, Inc. (NASDAQ: TTEC), a leadingglobal provider of technology-enabled customerexperience solutions, today announced that it isexpanding its presence in Kentucky by opening asecond state-of-the-art customer experience center inPaducah. In May, TeleTech announced a site openingin Hopkinsville.The Paducah customer experience center will occupytwo separate buildings: one in the historic downtownarea and the second building will be built in thecommerce park area. Construction on the 30,000square foot building in the commerce park is expectedto begin in January 2013.―We‘re excited to expand our commitment to the stateof Kentucky,‖ said Kenneth Tuchman, chairman andchief executive officer of TeleTech. ―The talented laborforce in the state will help us deliver exceptionalsupport to our Fortune 1000 clients and theircustomers.‖CAPGEMINI EXPANDS BPO OPERATIONS INBRAZILCAPGEMINI PRESS RELEASE [15 NOVEMBER2012]Capgemini, one of the world‘s foremost providers ofconsulting, outsourcing, and technology services, hasannounced it has set up a new office for BusinessProcess Outsourcing in Blumenau, Santa Catarina inBrazil. The new centre is part of the company‘sstrategy to significantly expand its Brazilian operations.The company has already opened its doors employing400 professionals (with the capacity to expand to1,200) to support major clients such as Algar.Serving a number of leading players in the country, inaddition to the unit in the southern region, CapgeminiBusiness Process Outsourcing (BPO) counts onanother office in Campinas, Sao Paulo employing atotal of 1,100 team members. It expects to reach 3,000BPO employees in Brazil by 2015. Capgemini‘s BPO
18services are characterized by long-term contracts (7-13 years) for large companies, which can behighlighted by its work with Unilever, Syngenta, Avon,Nokia Siemens and Algar Group.Roberto Cerqueira, Capgemini BPO Vice President,says Santa Catarina is a strategic delivery location forthe company. ―Together with the Campinas office, thenew unit will allow us to serve our customersthroughout the globe, with the intent to generatesignificant value to them. The Vale do Itajaí regionprovides a large pool of talent, since it is home tomany universities and offers a high quality workforce‖.Aiming to expand its Brazilian BPO operationssignificantly, Capgemini is a member of AssociaçãoBrasileira de Provedores de Serviços de ApoioAdministrativo (ABRAPSA), and holds a StrategyDirector role. ―We are working hard to show the valueof Business Process Outsourcing in the country‖, saysCerqueira.Capgemini provides extensive global BPO solutions forthe execution of business processes in Finance andHuman Resources, as well as Procurement andSupply Chain.XCHANGING UNVEILS PLANS FOR FURTHEROFFICES AND SERVICES IN APACXCHANGING PRESS RELEASE [1 NOVEMBER2012]Xchanging, the business process, procurement andtechnology services provider and integrator todayannounces its intention to open new delivery centres attwo locations in Asia.On the back of its strong Asia presence, alreadyoperating out of 11 locations in APAC, Xchanging issetting up two centres in the Philippines and China.The centres are being established to cater to theglobal demand for BPO, ITO & Procurement servicesin the insurance, real-estate, BFS and other verticals.Xchanging is further enhancing its offering to theAPAC market by adding new services lines. These willinclude cloud computing services in conjunction withYTL delivery insight. Xchanging Malaysia is the jointventure between Xchanging and YTL Communicationsthat is setup to provide cutting edge cloud services,Telco & 4G services, Infrastructure management andBSS / OSS services.APAC is a not only a core market for Xchanging andone that it is actively expanding, it is also a keydelivery hub, given the availability of scalable talent incountries like India, Philippines & China. Our strategyis in line with analyst predictions that the businessprocess outsourcing market in Asia-Pacific is on paceto reach US$6.45 billion this year and hit US$9.5billion by 2016, with many growth opportunities stilluntapped.Currently Xchanging has 4,500 staff at 18 officesacross APAC, servicing over 250 clients. XchangingsAsia Pacific business includes Singapore, Australia,Malaysia, India, China and Japan with clients also inThailand and Indonesia. It is a major interface providerfor all Lloyds China insurance transactions andmanages over 60,000 claims annually in Australia.Julie Lynch, Head of Relations at Xchanging said:"APAC is a key market for us as we continue to growour business globally. The new locations and servicesbuild on an already broad range of services we providefor customers across the region. APAC is obviously avery diverse region culturally but the issues there arethe same as other territories and Xchanging is veryproud to be at the heart of this exciting region, which isundergoing transformational expansion."
19MOVERS AND SHAKERSFIRSTSOURCE APPOINTS SENIOR STRATEGYADVISOR TO FOCUS ON FINANCIAL SERVICESSECTORFIRSTSOURCE PRESS RELEASE [17 DECEMBER2012]Firstsource Solutions has announced that as part of itsstrategy of developing and growing its banking &financial services sector business, Tim Franklin, formerChief Operating Officer of the Co-Operative BankingGroup, has been appointed as a Senior StrategyAdvisor.―We are delighted to welcome Tim Franklin to ourfinancial services team in the UK,‖ commented IainRegan, Head of Global Sales & Marketing forFirstsource. ―Tim has a wealth of experience andknowledge in the financial services sector and he willhelp us to build on our existing expertise that we havedeveloped through working for our UK banking andfinancial services clients.‖Tim Franklin has a distinguished career in the financialservices sector, having served as COO of the Co-Operative Banking Group between August 2009 –December 2011. Previously, he was ManagingDirector of Britannia Building Society and has alsoworked for Barclays Bank in several senior roles. Timhas also served as a non-executive director fororganizations including the Post Office, HM LandRegistry, Reclaim Fund, Western Mortgage Services,Mutual Plus, and Link Cash Machines.ACHIM BERG APPOINTED NEW CEO OF ARVATOARVATO PRESS RELEASE [30 NOVEMBER 2012]Achim Berg (48) has been designated as the new CEOof arvato AG and a member of the BertelsmannExecutive Board. The Supervisory Board ofBertelsmann Management SE today appointed Berg tothe Executive Board of the international media andservices company, with effect from April 1, 2013. Hesucceeds Rolf Buch (47), who will step down from thearvato management and resign his seat on theBertelsmann Executive Board, by mutual agreementand on the best of terms, at the end of the year. RolfBuch and the shareholders have jointly arrived at theconclusion that the responsibility for arvato‘s upcomingstage of growth, for which Buch laid the foundations,should be reassigned.Gunter Thielen, Chairman of the BertelsmannSupervisory Board, comments: ―In his more thantwenty years at Bertelsmann and especially at thehelm of arvato, Rolf Buch has achieved a great dealfor our company. I thank him for this and wish him allthe best for the future. Among Rolf Buch‘s remarkableand enduring achievements are the building of arvato‘sFrench business, which is one of the company‘s mostimportant mainstays to this day, the establishment ofInfoscore, and the expansion of the group‘s worldwideservices business.‖ Thielen continued: ―Achim Berg isthe best possible choice for leading arvato into aprosperous future and putting the company‘s strategyinto practice. He has a wealth of experience and top-notch networks in the IT and services segments thatare so important for arvato. Moreover, he is anexcellent manager.―Bertelsmann CEO Thomas Rabe welcomed Berg‘sappointment to the Executive Board of the company,saying: ―We look forward to Achim Berg‘s internationalexpertise and perspective. Above and beyond hisprofound understanding of technology, he brings withhim extensive management know-how from a globalgroup like Microsoft and other noted companies. Hewill further enhance our Executive Board team, and willresolutely align the Group‘s growth engine arvato toour four new strategic guidelines: beyondstrengthening arvato‘s core business he will providecrucial impetus in the division‘s digital transformation,advance the building of growth platforms within arvato,and accelerate its expansion in our defined growthregions across the world.‖Rabe added: ―Achim Berg will be able to build on thework done by Rolf Buch, whom I would like to sincerelythank at this point. He and I spent many good yearstogether on the Bertelsmann Executive Board. RolfBuch is one of the most successful entrepreneurs inour group. No other colleague has won the covetedBertelsmann Entrepreneur Award, which we present in
20honor of the year‘s best performances, more oftenthan he did.‖Achim Berg has served as Corporate Vice President,Worldwide Operator Channels at Microsoft Inc. inSeattle, WA (USA) since 2011, having initially joinedMicrosoft in 2007 and overseen the company‘sGermany business among other things. Prior to this,the Business IT graduate held executive positions atcompanies including the Telekom subsidiary T-Comand the computer manufacturers Dell and FujitsuSiemens. Berg is regarded as both an eminentauthority on the distribution and marketing of ITservices, and a well-versed expert on informationtechnology. He is married and has a 14-year-old son.Rolf Buch is leaving Bertelsmann after more than 20years. In 1991, he had joined what was thenBertelsmann Distribution GmbH as an assistant to themanagement. This was followed by successivemanagerial positions across what is now arvato. Hetook a seat on the arvato Executive Board in 2002, andwas appointed its Chairman in January 2008. Sincethen, he has successfully repositioned arvato with aclear-cut growth strategy.As a global service provider, arvato supports B2Bcustomers around the world in optimizing theircustomer relationships. Its more than 68,000employees develop and deliver bespoke solutions forbusiness processes across integrated service chains.arvato AG is a wholly owned subsidiary ofBertelsmann. In 2011, it generated revenues of €5.4billion and its operating EBIT was €341 million.EXL NAMES NEW HEAD OF UK AND EUROPEEXL PRESS RELEASE [28 NOVEMBER 2012]ExlService Holdings, Inc. (NASDAQ: EXLS), a leadingprovider of outsourcing and transformation services,today announced the appointment of Leo Curran asSenior Vice President, Head of UK and Europe. Thisappointment is among other investments planned togrow EXL‘s business in the region.―With Leo, EXL gains an outsourcing veteran wellrespected among buyers, analysts and advisors whowill be instrumental in providing both internal andexternal leadership,‖ said Bill Bloom, President, GlobalClient Services, EXL. ―Our client relationships withinthe UK and Europe are among our best, and EXL as acompany has produced some of its most innovativesolutions on behalf of our clients there. Our plan is tobuild a strong brand off the foundation of thesetremendous assets in order to aggressively grow ourbusiness.‖Curran joins EXL from a leading IT outsourcingcompany, where he was Head of BPO for the UK andIreland. In his previous role, he oversaw go-to-marketBPO strategies and developed a strategic propositionfor integrated BPO and ITO services, while increasingrevenue and profitability. He will be based in London.―I am extremely excited about the opportunity that EXLhas to expand its reach into the UK and Europeanmarkets," Curran said. ―I am particularly impressedwith the organizations focus on meeting clientsincreasingly complex business needs. Working withour existing team, I look forward to showcasing howglobal services delivery, whether through operationsmanagement or decision analytics services, will helpcompanies in this market achieve their goals.‖XCHANGING HIRES HEWLETT PACKARD VP TOHEAD ITS GLOBAL INSURANCE SERVICESBUSINESSXCHANGING PRESS RELEASE [28 NOVEMBER2012]Xchanging, the business process, procurement andtechnology services provider and integrator hasappointed Adrian Guttridge as Executive Director,Insurance Services.Reporting directly to group CEO Ken Lever, Adrian willassume responsibility for the activities and growth ofXchanging‘s global Insurance Services business.He joins from Hewlett Packard (HP), where he held theposition of Vice President of business processoutsourcing, Europe, the Middle East and Africa. HP‘sBPO business generates global revenues in excess of$2.5bn Adrian has previously held roles as HP Vice
21President and Managing Director for the financialservices sector in the UK and Ireland, and ChiefExecutive of HP subsidiary EISIS, a companydelivering FSA regulated services to its clients.Before HP, Adrian was director of IT systems at AbbeyNational with responsibility for software delivery acrossall of its mortgage, banking and insurance brands.As such Adrian brings an accomplished technologybackground and extensive insurance experience to therole, having also previously held senior positions in thesector at Accenture and Marlborough Stirling.His appointment follows the departure in May 2012 ofJane Tutoki, whose executive responsibility for theInsurance Services business was temporarily assumedby Jon Stratford, group Director of CorporateDevelopment and Strategy.Commenting on Adrian‘s appointment CEO Ken Leversaid: ―At Xchanging Adrian will be focussed on theglobal growth of our Insurance Services business aswell as building on the strong position we areprivileged to hold in the London and Lloyd‘s markets.We warmly welcome someone of Adrian‘s caliber toXchanging and, on behalf of the Executive Board, Iwish him every success in his new role. I would alsolike to thank Jon Stratford who has done anoutstanding job in the role in the interim.‖
22TRENDS AND VIEWPOINTSOUTSOURCING CONTRACTS DOWN BY 19PERCENTEVEREST PRESS RELEASE [7 NOVEMBER 2012]The number of new business process outsourcingcontracts worldwide dropped year-on-year in the thirdquarter, with contract values also decreasing, aresearch firm said.Everest Group, which had reported a drop of 20percent year-on-year in the second quarter, said thenumber of contracts was down to 381 in the thirdquarter from 472 in the same quarter last year.The dip in number of contracts in the third quarter ismore worrying than the slowdown reported in thesecond quarter, because the third quarter is usuallythe busiest period in the outsourcing industry, saidSalil Dani, practice director for global sourcing atEverest, on Tuesday.The drop came largely because of economic problemsin key markets like the U.S. and Europe, but there wasalso uncertainty about offshoring among U.S.customers, as keeping jobs in the country became akey issue in the U.S. presidential election campaign,Dani said.Banks in the U.S. in particular delayed decisionsrelating to offshoring to locations like India and thePhilippines because a number of them have takenfunding from the government, and didnt want to beseen as offshoring while the political rhetoric was at itshottest, Dani said.Offshoring is a key part of outsourcing, and about 47percent of the contracts in the quarter had an elementof offshoring. About 38 percent of the contracts werefor delivery from India and other locations in Asia, headded.Everest said its estimate of outsourcing contracts isbased on publicly disclosed data, and included entirelynew transactions as well as some renewals of earlierdeals. Dani said that if estimates of contracts that werenot made public were included, the numbers of newcontracts were still lower in the third quarter than fromthe same quarter a year earlier.The total annualized value of new reported contractshas also been falling, particularly in business processoutsourcing, and was down to US$1.5 billion in thethird quarter from $2.7 billion in the same quarter lastyear, Dani said. Annual contract value is the value of acontract divided by its duration. The deal sizes aregetting smaller across most industry verticals, headded.
23AVENDUS BPO COMPOSITE INDEXThe Avendus BPO Composite Index is designed to indicate the performance of listed BPO companies in India. Whilethere are a plethora of indices which highlight the performance of the Technology sector in India, we felt that there is aneed to create a separate BPO Index, given the marked differences in the nature of both the sectors.Key Highlights 1 month return: -4.5% 1 quarter return: -8.9% 1 year return: 4.7%MethodologyWe have used the stock price date of Allsec, eClerx, EXL, Firstsource, Genpact, HOV Services and WNS weighted bytheir trailing twelve month revenue. The series begins at a base value of 100 on 3rdJanuary 2007 with just Allsec, EXLand WNS. As more BPO companies got listed, we have added them to the index after appropriate scaling. The indexis updated for the closing price on the first Friday of every month. We have used closing price as on Friday (04/01/13)for this edition of the newsletter.Avendus BPO Composite Index4.7% -8.9%-4.6%
24About Avendus Capital Pvt. Ltd. (“AVENDUS CAPITAL”) www.avendus.comAvendus Capital is a leading financial services firm which provides customised solutions in the areas of financialadvisory, equity capital markets, wealth management and alternative asset management. The firm relies on itsextensive track record, in-depth domain understanding and knowledge of the economic and regulatory environment, tooffer research based solutions to its clients that include institutional investors, corporates and high net worth families.In recent years, Avendus Capital has consistently been ranked among the leading corporate finance advisors in Indiaand has emerged as the advisor of choice for cross-border M&A deals having closed over 40 cross-bordertransactions in the past 4 years. Avendus Securities through its Institutional Equities practice is able to offer best-in-class research-driven advice to help its clients take investment decisions, while Avendus PE Investment Advisorsmanages funds raised from its investors by investing in public markets. Headquartered in Mumbai, the firm has officesin New Delhi and Bangalore. Avendus Capital, Inc (US) and Avendus Capital (UK) Pvt. Ltd. located in New York andLondon respectively are wholly owned subsidiaries offering M&A and Private Equity syndication services to clients inthe respective regions.For more information, please visit www.avendus.comSome of the recent deals closed by us includeTitle Month - Year OfAnnouncementDeal Value IndustryAvendus advises KPIT Cummins Infosystems Limited onpreferential allotment of equity shares to CX Partners andChrysCapitalDecember, 2012 USD 30 mn Technology &OutsourcingAvendus Capital advises MphasiS Ltd on its acquisition ofDigital Risk LLCDecember, 2012 USD 202 mn Technology &OutsourcingAvendus Capital advises AGS Transact Technologies Ltd.on its equity raise from ActisAugust, 2012 USD 40 mn ConsumerAvendus Capital advises BookMyShow on Accel Partner‘sUSD 18 Mn investmentAugust, 2012 USD 18 mn Digital Media& TechnologyAvendus Capital advises MAS Financial Services Ltd onraising growth capital from DEG – Deutsche Investitions-und Entwicklungsgesellschaft mbHAugust, 2012 Undisclosed FinancialServicesAvendus Capital advises eClerx on its acquisition of AgilystInc.June, 2012 Undisclosed Technology &OutsourcingAvendus Capital advises R&R Salons on its fund raisingfrom Everstone Capital and Helion Venture PartnersMay, 2012 Undisclosed ConsumerAvendus Capital advises Wipro on its acquisition ofanalytics company, Promax Applications GroupMay, 2012 USD 36 mn Technology &OutsourcingAvendus advises Kanoria Chemicals on its acquisition ofAPAG Holding, SwitzerlandApril, 2012 USD 8.46 mn IndustrialsAvendus Capital, Inc. advises SPi Global on its acquisitionof Laserwords Private LimitedNovember, 2011 Undisclosed Technology &Outsourcing