Business Process Outsourcing Newsletter AUGUST 2010

Editorial

Dear Reader,

There has been a growing interest amongst outsourcing service providers in the healthcare space, driven by the expected rise in outsourcing volumes due to the significant impact of healthcare reforms. Continuing the trend, the month of August saw another deal closure in the healthcare BPO space. The TriZetto Group, a leading healthcare information technology company to the healthcare payer industry, announced that it has acquired Tela Sourcing, a Baltimore-based business process outsourcing services company that offers combined U.S. and India-based outsourcing capabilities to the healthcare industry. In Europe, Teleperformance, a global leader in the outsourced contact center market, announced the acquisition of UK-based call center service provider beCogent. In another transaction announced in the call center space, Alorica Inc. and Florida-based PRC, LLC, both leaders in the customer contact solutions industry, announced that the parties have entered into a strategic agreement wherein Alorica has become the parent company of PRC, LLC.

Significant contracts awarded during the month included, Genpact being awarded a seven-year mortgage services contract with MERSCORP, the mortgage finance industry's electronic loan registry system. In a major domestic BPO contract announced during the month, Global Group, one of India's leading business groups engaged in the Network Services and Telecom Tower Infrastructure business, engaged Infosys BPO, the business process outsourcing subsidiary of Infosys Technologies, to provide services with regard to setting up of its Shared Service Centre. In another publication, WNS, a leading provider of global business process outsourcing services, announced a multiyear contract to deliver analytics and customer care services for IHG (InterContinental Hotels Group). In the automotive space, Hyundai Motor America announced that it has selected Minacs Marketing Solutions to develop and manage all parts and service direct marketing.

Expansions announced in the month included Hinduja Global Solutions, a leading global provider of BPO services, inaugurating its second center at Durgapur in West Bengal. This is the 30th Global Delivery Center of the company. Highlighting the growing movement of service providers towards Tier II locations, Aditya Birla Minacs, announced the strengthening of its operations in Eastern India, via the launch of its new delivery centers in Kolkata and Ranchi respectively. 24/7 Customer, a global leader in predictive interaction solutions, announced the launch of its contact center in Managua, Nicaragua. This is company’s tenth center world-wide, to deliver voice based inbound customer support service. Bullish on strong growth prospects in India, global IT consultancy Capgemini announced its plans to recruit another 7,000 people in India by the year-end.

This edition of the newsletter includes the Avendus BPO Composite Index updated till the 3rd of September, 2010. The index indicates an increase in share prices of BPO companies over the previous month with a 9.2% monthly return and 4.2% quarterly return.

Regards,

Amit Singh

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

TABLE OF CONTENTS

DEAL SUMMARY ...... 3 TRIZETTO ACQUIRES TELA SOURCING TO EXPAND CAPABILITIES ...... 3 TELEPERFORMANCE ACQUIRES BECOGENT IN THE UK ...... 3 CAPGEMINI BRAZIL ACQUIRES SONDA PROCWORK BPO FACILITY ...... 4 ALORICA INC. AND PRC, LLC SIGN STRATEGIC AGREEMENT...... 4

CONTRACT TRACKER ...... 5 WNS AWARDED MULTI-SERVICES CONTRACT WITH INTERCONTINENTAL HOTELS GROUP ...... 5 ACCENTURE AWARDED SUPPLY CHAIN BPO CONTRACT EXTENSION BY ETS ...... 5 DILIGENTA AWARDED £250 MILLION LIFE AND PENSIONS BUSINESS WINS ...... 6 HYUNDAI MOTOR AMERICA SELECTS MINACS MARKETING SOLUTIONS ...... 6 MAJOR NATIONAL LOTTERY SELECTS CONVERGYS SOLUTIONS ...... 7 SOURCECORP AWARDED DOCUMENT MANAGEMENT BPO CONTRACT ...... 7 MERS AWARDS SEVEN-YEAR MORTGAGE SERVICES CONTRACT TO GENPACT...... 8 INFOSYS BPO WINS SHARED SERVICE CENTRE DEAL FROM GLOBAL GROUP ...... 8 CSC SIGNS 10-YEAR CONTRACT EXTENSION WITH SWISS RE ...... 9

EXPANSION ...... 10 HGSL ANNOUNCES INAUGURATION OF ITS SECOND CENTRE AT DURGAPUR ...... 10 COGNIZANT EXPANDS DELIVERY CENTRE IN MANILA ...... 10 ADITYA BIRLA MINACS EXPANDS OPERATIONS IN EASTERN INDIA ...... 11 24/7 CUSTOMER OPENS ITS STATE OF THE ART CONTACT CENTER IN NICARAGUA ...... 11 CAPGEMINI INDIA HIRES 10,000 PEOPLE IN 2010, TO RECRUIT 7,000 MORE ...... 12

MOVERS AND SHAKERS ...... 13 HINDUJA GLOBAL SOLUTIONS EXPANDS TOP MANAGEMENT ...... 13 STREAM GLOBAL SERVICES NAMES KATHRYN MARINELLO CHIEF EXECUTIVE OFFICER ...... 13 XAFINITY APPOINTS EXPERT TO GROW OVERSEAS PAYMENTS BUSINESS ...... 14 INNODATA ISOGEN SELECTS JIM LEWIS TO HEAD BUSINESS DEVELOPMENT TEAM ...... 14 GENPACT NAMES SANJEEV PRASAD AS NEW CIO ...... 15 GENPACT EXPANDS LEADERSHIP IN ASIA TO DRIVE GROWTH ...... 15 APTARA ANNOUNCES NEW EDITORIAL DIRECTOR ...... 16

TRENDS AND VIEWPOINTS ...... 17 INDIAN DOMESTIC PROCESS MANAGEMENT SERVICES MARKET TO GROW 31 PERCENT IN 2010.. 17 OUTSOURCING MARKET ACTIVITY LED BY BANKING SECTOR, BPO SERVICES, AND NA BUYERS ... 18

AVENDUS BPO COMPOSITE INDEX ...... 19

ABOUT AVENDUS CAPITAL ...... 20

2

DEAL SUMMARY

TRIZETTO ACQUIRES TELA SOURCING TO BPO capability that can provide the flexibility, EXPAND CAPABILITIES capacity and cost efficiency to meet a wide range TRIZETTO PRESS RELEASE [26 AUGUST 2010] of customer needs.‖

The TriZetto Group, Inc. today announced that it TELEPERFORMANCE ACQUIRES BECOGENT has acquired all of the voting stock of privately IN THE UK held Tela Sourcing, Inc., a Baltimore-based BECOGENT PRESS RELEASE [17 AUGUST 2010] business process outsourcing (BPO) services company that offers combined U.S. and India- Teleperformance, the world leader in the based outsourcing capabilities to the healthcare outsourced contact center market, announced industry. TriZetto is expanding its BPO today the acquisition of 100% of the equity of capabilities to help its 350 payer customers more UK-based beCogent. Based in Scotland, beCogent easily meet the cost challenges and new has recognized expertise and deep experience in customer opportunities created by healthcare numerous industry sectors, with an emphasis on insurance reform. The combination of Tela‘s U.S. the Retail, Financial Services and Telco/ISP and Indian operations with TriZetto‘s current BPO industries. beCogent has around 3,000 capabilities in Baltimore is expected to add scale, employees at its four call centers in Airdrie, scope and efficiency to the company‘s BPO Erskine, Kilmarnock and Glasgow and forecast capabilities. 2010 revenue of approximately £50 million. With this new operation in Scotland, a region known ―The significant impact of healthcare reform on for its technologically skilled and multi-lingual payers and others in the healthcare supply chain workforce, Teleperformance is significantly means an increasing need for outsourcing extending its geographic footprint in the UK. In solutions,‖ noted Mike Jenner, TriZetto‘s becoming the second largest operator of executive vice president who leads the outsourced contact centers in the UK, company‘s services. ―Tela represents a significant Teleperformance will be able to serve all parts of expansion of both the range of BPO services we the UK more effectively and deliver the most can offer, as well as increasing our capacity and comprehensive offer in the market. flexibility to blend on-shore and off-shore capabilities to fit customer needs.‖ Jeff Smith, Chief Executive and Chairman of Teleperformance UK, said: ―Teleperformance is ―Interest by health insurers in business process really happy to expand its footprint in the UK and outsourcing (BPO) services blossomed in 2009 to gain a strong foothold in Scotland. We plan to under the shadow of an economic downturn, use the combined strength of beCogent and demands for increased regulation and a renewed Teleperformance Group to develop yet more focus on healthcare reform,‖ noted Gartner strongly our UK presence, taking advantage of analyst Maureen O‘Neil in a January 2010 report. our incomparable strength across both our Added Brij Sharma, Tela Sourcing‘s CEO who will onshore and offshore networks.‖ Dermot lead TriZetto‘s combined BPO operations, ―In Jenkinson, the Founder and Executive Chairman today‘s environment, outsourcing is a strategic of beCogent, said: ―The contact centre world has choice made by payers to help contain premiums, always been a very dynamic and rapidly changing improve customer service and increase industry. Although I was confident that beCogent administrative efficiency. We have worked with as a well established business with a very strong several TriZetto clients. The combined TriZetto reputation could continue to prosper BPO team will now have more than 700 independently, I believe that the DNA of professionals in the U.S. and India, dedicated to beCogent combined with the strength and scale delivering business rules configuration, front-end, of Teleperformance will create a truly world class claims administration, enrollment and billing business in the UK and allow us to take solutions that meet the business and operational advantage of the opportunities that will present needs of health plans and TPAs. Together, we will themselves in both the private and public sectors have a world-class, industrial-grade end-to-end over the next few years.

3

CAPGEMINI BRAZIL ACQUIRES SONDA wherein Alorica has become the parent company PROCWORK BPO FACILITY of PRC, LLC. The strategic agreement supports CAPGEMINI PRESS RELEASE [05 AUGUST 2010] planned growth strategies for both companies and helps position the companies for future Capgemini, one of the world‘s foremost providers expansion as a leading global solutions provider. of consulting, technology and outsourcing services, and Sonda Procwork, the Brazilian unit With this strategic initiative, Alorica now counts of Chilean IT systems integrator Sonda , today across its entire enterprise nearly 20,000 announced that Capgemini Brazil has acquired employees in 34 locations. It will operate under Sonda Procwork‘s facility in Gaspar, in the state the leadership of Alorica's Chairman and CEO, of Santa Catarina, Brazil and will now deliver BPO Andy Lee. Alorica now has one of the largest U.S. services to global clients in the region who were workforce teams of any customer contact previously serviced by Sonda Procwork. provider, a global footprint that extends to India, the Philippines and Central America, and will be The acquisition of this facility is in line with the largest Minority Business Enterprise (MBE) Capgemini‘s Latin America expansion strategy, provider in the BPO industry. and also supports client needs in support of global finance operations by providing a full- The client base of both Alorica and PRC going range of finance and accounting (F&A) services forward will be able to leverage the combined from global delivery centers. More than 200 resources of the two companies while being able employees will transfer to Capgemini and will to maintain the same operational and account continue to support the F&A and Human team leaders that are dedicated to each customer Resources Outsourcing (HRO) needs of today. Capgemini clients globally and in the Latin America region. Strategic Benefits of the Transaction -- the advantages yielded by the combination of Alorica "With the acquisition of this new Brazilian center and PRC include: as well as the establishment of our other Latin American centers, Capgemini continues to A large-scale organization with a broader expand our global delivery capabilities, with the operating platform leveraging Alorica's potential for more than 2,000 seats in the history of stability, strength and growth region," said David Poole, vice president and Continued commitment to service head of Americas Business Process Outsourcing, excellence and client satisfaction, as well Capgemini. "We‘re leveraging Capgemini‘s unique as employee satisfaction and career approach, which utilizes business insight methods development and solutions, combined with our deep Combined workforce of nearly 20,000 knowledge of the F&A market, to service our employees geographically positioned to clients, including several multinational flexibly respond to client needs businesses, allowing us to drive efficiencies and New client capabilities in Direct Marketing yield significant cost savings for our clients‘ and Sales within B2C and B2B channels businesses." Enhanced client offerings in Social Media, Digital Marketing, Reverse Logistics and Fulfillment, Customer Service, Customer ALORICA INC. AND PRC, LLC SIGN Care and Technical Support STRATEGIC AGREEMENT Broader global reach and expanded ALORICA PRESS RELEASE [03 AUGUST 2010] resources to address increasingly complex needs of Fortune 500 clients Alorica Inc. and Florida-based PRC, LLC, both global leaders in the customer contact solutions PRC's location in Plantation, FL will continue to industry, are pleased to announce today that the house key functions and operations. parties have entered into a strategic agreement

4

CONTRACT TRACKER

WNS AWARDED MULTI-SERVICES outsourcing (BPO) agreement. The contract was CONTRACT WITH INTERCONTINENTAL signed in May 2010. HOTELS GROUP WNS PRESS RELEASE [31 AUGUST 2010] Under the agreement, which was entered originally in 2005, Accenture will continue to WNS (Holdings) Limited (NYSE: WNS), a leading manage all aspects of ETS‘ supply chain, provider of global business process outsourcing including the printing, publishing, warehousing, services, today announced a contract to deliver distribution, tracking and shipping of tests and analytics and customer care services for IHG test materials to more than 10 million test takers (InterContinental Hotels Group) [(LSE: IHG), in 160 countries every year. This allows ETS to (NYSE: IHG) (ADRs)]. Under this multi-year continually improve the control, accuracy and agreement, WNS will deliver customer care integrity in its operations. services in several languages including German, Italian, French and Spanish to IHG's entities ―Working with Accenture these past five years, across Europe. WNS is also providing a dedicated we have saved millions of dollars in print, analytics team to support IHG's consumer transportation and supply chain costs – savings marketing programs. that we have been able to pass on to our customers, while continuing to provide them "IHG is committed to meaningful and lasting world class service,‖ said Diane Bailey, Vice customer relationships through outstanding President Production and Logistics, ETS. customer service, relevant communications, and memorable customer experiences. Our success ―We are privileged to have the opportunity to rests on our ability to understand the needs and continue providing vital supply chain and wants of all our guests, allowing us to treat each customized BPO services to ETS‘ global guest as a valued individual. We chose WNS organization,‖ said Rob D‘Avanzo, a managing because of their deep understanding of the travel director in Accenture‘s Communications & High industry, strong customer care capabilities, Tech group. ―An efficient and simplified supply insightful customer analytics, and their global chain process will help ETS continue to achieve delivery footprint," said Steve Sickle, Senior Vice control and efficiency over its entire operation.‖ President for Distribution and Relationship Marketing at IHG.

"This engagement with IHG is testimony to WNS's reputation as a world-class provider of business processes in the travel and hospitality industry. We are fully committed to IHG's goal of making their brands the first choice for guests and hotel owners," said Keshav Murugesh, Group CEO, WNS Global Services.

ACCENTURE AWARDED SUPPLY CHAIN BPO CONTRACT EXTENSION BY ETS ACCENTURE PRESS RELEASE [31 AUGUST 2010]

Educational Testing Service (ETS), the leading provider of education assessments and psychometric research, has awarded Accenture (NYSE: ACN) a seven-year, $160M contract extension to continue managing its end-to-end supply chain, under a business process

5

DILIGENTA AWARDED £250 MILLION LIFE HYUNDAI MOTOR AMERICA SELECTS AND PENSIONS BUSINESS WINS MINACS MARKETING SOLUTIONS TCS PRESS RELEASE [31 AUGUST 2010] MINACS PRESS RELEASE [27 AUGUST 2010]

Diligenta, a leading business process outsourcing Hyundai‘s owner Connect Marketing Manager, (BPO) provider in the UK and a subsidiary of Tata Dan Kulik, has announced that Hyundai Motor Consultancy Services (TCS), the leading IT America has selected Minacs Marketing Solutions services, business solutions and outsourcing firm, to develop and manage all parts and service today, announced major business wins with The direct marketing. For nearly 30 years, Minacs has Phoenix Group and Old Mutual International specialized in automotive database marketing, following the transfer of Unisys Insurance providing a range of customer relationship Services Limited‘s (UISL) UK life and pensions products and services. services business to Diligenta. Diligenta‘s new contract with The Phoenix Group has been ―Partnering with Minacs Marketing Solutions for extended by an additional six years until 2018, this important assignment was a clear choice,‖ and both contracts will generate £250 million in said Barry Ratzlaff, Director of Service Operations revenue for the company over that period, for Hyundai Motor America. ―Minacs reinforcing Diligenta‘s position as one of the demonstrated their understanding of both largest BPO providers in the UK. customers and dealers. This program is founded on providing dealers with a robust solution plus Diligenta will begin delivering the services enhanced integration with Hyundai national currently provided to UISL‘s clients on September programs. It is designed to increase traffic, 1, 2010. Diligenta was selected as the preferred revenue and profits while also strengthening bidder following a rigorous selection process by Hyundai ownership satisfaction. We find Minacs‘ UISL‘s largest client, The Phoenix Group. ability to generate detailed metrics, reports and precise calculation of return on investment to be This deal secures Diligenta's position as a leading a particular strength.‖ provider within the UK‘s life and pensions BPO market and will see Diligenta managing further ―We are honored to be working on behalf of books of business owned by The Phoenix Group Hyundai Motor America,‖ indicated Paven Bratch, and acquiring a third client, Old Mutual Senior VP and Global Business Unit Leader for International. The number of policies Diligenta Minacs Marketing Solutions. now administers will rise from 3.6 million to over 5 million. The Retailer (dealer) Services Group will provide one-to-one marketing consultation between Phiroz Vandrevala, Chairman, Diligenta and Minacs and Hyundai dealers. A Minacs team Executive Director, TCS, stated that the new member will work exclusively with designated contract reinforced the company‘s commitment dealerships, developing a relationship focused on to providing transformational services to the UK tailoring the program to individual retailer and life and pensions market. ―TCS set up Diligenta to consumer needs. Minacs successfully manages specialize in the provision of business process parts and service marketing for several other outsourcing services for the UK life and pensions automotive manufacturers. industry. These new wins further cement the company‘s position amongst the largest providers ―Experience counts, giving us platforms and of such services in the UK market and products to successfully blend quantifiable data demonstrates our ability to closely partner with with creative insights,‖ Mr. Bratch said. ―That our customers. Diligenta has grown from combination has increased revenue for another strength to strength since it was set up in 2006, client by $640 million over the last five years. We and today marks yet another milestone as we expect to achieve similar results with Hyundai. cross the five million mark for policies under We understand the science of data and leverage administration. This is a very exciting time for our talented strategic and creative teams to the company and for all involved.‖ design communications that drive purchase behavior.‖

6

MAJOR NATIONAL LOTTERY SELECTS CONVERGYS SOLUTIONS Blue Cross and Blue Shield of North Carolina CONVERGYS PRESS RELEASE [17 AUGUST 2010] (BCBSNC) today announced that it will outsource some claims data entry work and related Convergys Corporation (NYSE: CVG), a global functions as part of its ongoing effort to reduce leader in relationship management, announced administrative costs, resulting in annual savings today that a top European national lottery has of approximately $1.6 million to $2.1 million. signed a multi-year licensing, support, and maintenance contract to implement Convergys The outsourcing will result in the elimination of Smart BSS Solutions, including Convergys Rating 80 to 90 BCBSNC jobs over the next nine and Billing Manager, to support its dealer billing months, with most of the job cuts expected to and commissioning. occur between January and May of 2011. The jobs do not involve customer service calls or This national lottery manages games of chance direct contact with BCBSNC customers. including lottery, scratch card, and sport gambling games, and sells and collects revenue This action is consistent with BCBSNC plans to through thousands of resellers nationwide. reduce its current operating costs by 20 percent by 2014 to keep premiums competitive and to This new Convergys client required a invest in improvements. For years BCBSNC has sophisticated billing and commissioning solution outsourced certain functions, such as pharmacy that would enable it to quickly launch new and benefit management and security for its office innovative games and commissioning schemes to buildings. retain and attract new lottery agents. With Convergys‘ integrated portfolio of Smart BSS BCBSNC has selected SOURCECORP for this Solutions, the lottery determined that it would work. SOURCECORP, which is based in Dallas, receive the flexibility it needed to expand its Texas, has extensive experience in records market share in the newly liberalized and management, business processing outsourcing increasingly competitive European gaming and consulting. Its 4,100 clients include 14 market. ―In every industry, it is critical that health plans. companies meet the demands of their customers in order to succeed. This strategic win with a The work being outsourced will be done by new client in a new vertical market for Convergys SOURCECORP employees in North Carolina and is no exception, and with our Rating and Billing the Philippines. Data entry work for the State Manager, this national lottery will be able to Health Plan will remain in North Carolina. surpass its customers‘ expectations and speed time to market for complex new reseller offers to SOURCECORP was chosen because the company help drive continued revenue growth,‖ said Bob can do the work more economically while Lento, President, Information Management, for maintaining high levels of quality. Convergys. BCBSNC President and CEO Brad Wilson stated, ―Following our entry in into the utility market, ―This is a difficult decision that will affect good this win confirms Convergys‘ belief that our employees whom we care about. It is part of our Smart BSS Solutions portfolio is uniquely ongoing work to reduce our costs to keep positioned to meet the demands of complex real- premiums as affordable as possible for our time billing across multiple industries and customers and to remain competitive as a multiple vertical markets, including gaming,‖ said company. Lento. ―We have met with these employees and we will do all we can to treat them with fairness, respect SOURCECORP AWARDED DOCUMENT and sensitivity as we make the transitions in the MANAGEMENT BPO CONTRACT months to come,‖ Wilson added. SOURCECORP PRESS RELEASE [12 AUGUST 2010]

7

MERS AWARDS SEVEN-YEAR MORTGAGE framework around processes, Smart Enterprise SERVICES CONTRACT TO GENPACT Processes (SEPSM), to drive customer service GENPACT PRESS RELEASE [05 AUGUST 2010] quality up for MERS. Genpact is honored to be MERS' new outsourcing partner through this Genpact Limited (NYSE: G), a global leader in critically important engagement." business process and technology management, today announced that it will provide mortgage services support and member-facing helpdesk INFOSYS BPO WINS SHARED SERVICE services for MERSCORP, Inc. (MERS), the CENTRE DEAL FROM GLOBAL GROUP mortgage finance industry's electronic loan INFOSYS PRESS RELEASE [04 AUGUST 2010] registry system. More than 60 percent of all newly-originated mortgages are registered on Global Group, one of India's leading business MERS. groups engaged in the Network Services and Telecom Tower Infrastructure business, has Under this significant seven-year agreement, decided to engage Infosys BPO, the business Genpact will perform business process services in process outsourcing subsidiary of Infosys the United States for MERS, including managing Technologies, to provide services with regard to the receipt, identification and delivery of setting up of its Shared Service Centre (SSC). mortgage-related correspondence on behalf of MERS 2,500 members while working to improve As part of the deal, Infosys BPO will provide the quality and accuracy of the underlying consulting and implementation services across business processes. Typical mortgage-related key functions such as finance & accounting, correspondence includes physical and electronic human resources, sourcing & procurement, sales receipt and delivery of recordable documents, & fulfilment, legal services & IT. The scope notices of foreclosure or bankruptcies and includes assessment, design and implementation requests for discharge of a mortgage. Genpact services coupled with operational support, to be will also manage the MERS helpdesk operations provided for an estimated 20 months. Post the and drive improvement in service quality to MERS completion of the set up of this SSC, it is member companies while lowering costs. expected that the unit would accommodate more Genpact will begin providing the services in than 1000 personnel. The SSC will be housed December 2010. with Global ProServ Ltd. a Global Group Enterprise. "In keeping with our mission, we are constantly looking at ways to further improve the quality of Commenting on the deal, Mr. Ravi Pandit, Group our critical services to members," said R.K. CFO of Global Group said "Telecom Industry has Arnold, president and CEO,MERS. "Genpact become one of the most competitive and presented us with a compelling solution, and we dynamic industries. We need to remain focussed felt our commitment to service excellence and on improving and enhancing our business process quality could be heightened by taking advantage efficiencies and optimising our cost structures. of Genpact's end-to-end process thinking and The SSC is a step in this direction and we are methodology as well as their recognized happy to be associated with Infosys BPO as our mortgage services capabilities. "MERS and strategic partner. We would like to leverage Genpact have been working on a highly Infosys BPO's strength of a strong service coordinated transition plan and MERS members proposition coupled with world-class technology should expect no disruption in service as a result offerings. This initiative will help add value to our of the planned migration," Arnold added. customers and create a differentiator for us in the market". Commenting on the win, S "MERS has long been recognized as a critical Vaitheeswaran, Business Unit Head, India provider to its mortgage industry members," said Business, Infosys BPO, said, "Winning this deal is 'Tiger' Tyagarajan, COO of Genpact. "It has been significant as it is our first full scope SSC at the forefront of making the industry more implementation in the domestic market. This deal efficient and transparent. We are really excited reiterates our focus on the domestic business in that we can bring our unique and proprietary India".

8

CSC SIGNS 10-YEAR CONTRACT EXTENSION unparalleled levels of industry service and WITH SWISS RE competitive pricing,‖ said Michael W. Risley, CSC PRESS RELEASE [03 AUGUST 2010] president of CSC‘s Life Insurance and Annuity Division. ―Insurers of all sizes can benefit from CSC (NYSE: CSC) today announced a 10-year our dual focus on technology advancements and extension to its business process outsourcing insurance industry expertise, which enable (BPO) services agreement with Swiss Re, one of continuous process improvements and long-term the world‘s largest and most diversified cost performance.‖ reinsurers. Under the extension, CSC will continue to provide industry-leading In December 2003, Swiss Re and CSC entered administration for Swiss Re‘s direct life insurance into a 10-year BPO arrangement that surpassed business through July 2020. industry benchmarks for service capability and quality. To date, Swiss Re has successfully Building on a relationship that began in 1995, acquired and transitioned more than 40 U.S. life CSC supports Swiss Re‘s Admin Re® business insurance blocks into CSC‘s Life and Annuity BPO unit in the United States, one of the highest operations for full policy and claims growth areas for Swiss Re‘s global life and health administration. segment. Through its Admin Re® programs, Swiss Re provides capital and risk solutions to primary life insurance carriers by acquiring blocks of life insurance business, enabling these primary insurers to release capital and gain access to future profit streams from in-force portfolios. This strategic renewal solidifies the global market leadership and commitment of both organizations in providing cost-efficient alternatives for life insurance policy administration.

To strengthen the combined offering, CSC and Swiss Re have jointly outlined innovation strategies to drive even greater efficiencies in administration, improved customer service and enhanced system alignment across the business. As part of this initiative, the team will be incorporating new features of CSC‘s CyberLife, Customer Service Accelerator and Claims

Management Accelerator software to provide additional e-delivery and self-service capabilities and enhancements to claims processing. ―Having worked with CSC for 15 years, we know the team understands our unique strategic goals,‖ said Donna Kinnaird, president, Swiss Re Life & Health America Inc. ―Our renewed agreement positions Swiss Re to continue pursuing Admin Re® acquisition opportunities and to benefit from CSC‘s insurance processing expertise and system capabilities.‖

―We continue to help Swiss Re achieve its business, service and cost goals through

9

EXPANSION

HGSL ANNOUNCES INAUGURATION OF ITS COGNIZANT EXPANDS DELIVERY CENTRE IN SECOND CENTRE AT DURGAPUR MANILA HGSL PRESS RELEASE [16 AUGUST 2010] EFY NEWS NETWORK [04 AUGUST 2010]

Hinduja Global Solutions (HGS), a leading global Cognizant, a leading provider of consulting, provider of BPO services, has announced the technology, and business process outsourcing inauguration of its second center at Durgapur in services, today announced the expansion of its West Bengal. This is the 30th Global Delivery recently opened global delivery center in Manila, Center of the company, which serves over 80 Philippines, to meet the needs of its global clients through its centers in India, United States, clients. Cognizant, which currently has about 200 Canada, UK, Mauritius and Philippines. professionals in Manila, has taken up additional space that can accommodate about 600 This centre is aimed at meeting the price-volume professionals. commitments of the company. It will primarily cater to expansion in the telecom customer The Manila center, which currently provides high- contact center operations. Located about 1 km end operational and contact center business away from the first site, this 8500 sq ft facility process services to global clients—including one has 220 ergonomically designed seats and uses of the world‘s largest communications companies state of the art electronic facilities. The capacity and a leading global financial services can be substantially scaled up to meet future institution—will continue to leverage the rich demands. HGSL is present in Durgapur for three talent pool available in the region and scale up to years now and employs 1700 local employees in provide a range of other services, including IT this steel city. It is among the first movers in the Infrastructure Services, to Cognizant‘s clients domestic BPO space and is now taking its around the globe. vernacular engagement to the next level. Like all of Cognizant‘s delivery centers, the With India firmly out of the global financial crisis, Manila center leverages Cognizant 2.0, a Web most of the domestic sectors are witnessing 2.0-based platform that enables Cognizant accelerated growth and increased demand. HGSL associates worldwide to virtually collaborate and is focusing on building cost effective offerings, deliver significant time-to-market, cost and penetration across all the verticals and innovation transformational value to clients. through re-engineering for developing the domestic market. It is in this context that HGSL ―Within months of opening our Manila center in has recently opened a new Marketing Office at October 2009, we have steadily grown our New Delhi to serve as the focal point of all its presence and investment in the Philippine capital, marketing efforts in North India. and have moved into a larger facility,‖ said R Chandrasekaran, President and Managing CEO‘s Message: ―Durgapur has provided us Director, Global Delivery, Cognizant. ―Our Manila multiple advantages in terms of access to good center will continue to strengthen our integrated talent, cost arbitrage and considerably lower global delivery capabilities, as our investments in levels of attrition. This new centre will enable us new global, regional, and local delivery centers to take care of increased domestic business help our clients harness specialized talent demands. I am sure both the centres will witness globally in order to meet their requirements and continued growth and sustained excellence‖, said risk preferences, as well as provide business Mr. Partha De Sarkar, the CEO of Hinduja Global continuity. We are committed to working closely Solutions. ―The marketing office at New Delhi with the academic community in the Philippines underscores our commitment to broad-base our to develop talent across our full range of domestic presence,‖ he added. services.‖

10

ADITYA BIRLA MINACS EXPANDS than 600 by early next year from the current 425 OPERATIONS IN EASTERN INDIA associates. In the Ranchi facility too, we will have MINACS PRESS RELEASE [03 AUGUST 2010] close to 600 employees by mid-next year from the current 115.‖ The Ranchi center will act as a Aditya Birla Minacs, a global business solutions spoke in the eastern region working with the company (subsidiary of Aditya Birla Nuvo), today Kolkata hub. The two centers, focusing on achieved another milestone in its Connect India servicing Telecom clients initially, deliver a wide expansion plans. Strengthening its operations in range of services supporting the entire customer Eastern India, Minacs today announced the lifecycle in a variety of regional languages viz. launch of its new delivery centers in Kolkata and Hindi, Bengali, Oriya, Assamese and Khasi. Ranchi respectively. Both the facilities were inaugurated by Mr. Navanit Narayan, Chief Service Delivery Officer, IDEA Cellular Ltd. 24/7 CUSTOMER OPENS ITS STATE OF THE ART CONTACT CENTER IN NICARAGUA Speaking at the launch, Mr. Navanit Narayan 24/7 CUSTOMER PRESS RELEASE [02 AUGUST said, ―Yet another step in our growing 2010] partnership and engagement with Minacs, the launch of these two centers will help us address 24/7 Customer, the global leader in predictive the customer and business requirements of Idea interaction solutions, announced the launch of its in Eastern India. The talent available in both contact center in Managua, Nicaragua. The Kolkata and Ranchi along with Minacs' robust company set up its tenth center world-wide, to Connect India model will further augment our deliver voice based inbound customer support customer service in the region.‖ Mr. Milind service. Located in Accedo Technology Park, it Godbole, President – APAC, Aditya Birla Minacs currently employs nearly 150 people with plans said, ―The launch of these two centers aligns with to ramp up to 1000 people in the next 12-18 our strategic effort toward creating business months. solutions that meet our clients‘ needs. Emerging as customer acquisition hubs, Kolkata and Ranchi P V Kannan, Co-founder and CEO of 24/7 are strategic locations for Minacs‘ pioneering Customer Inc said: ―The opening of the new Connect India model in eastern India. These new delivery center in Managua is an integral part of state-of-the-art centers will provide our clients a our global expansion plan and emphasizes our competitive business advantage in the region.‖ focus in the ‗Americas‘ (Latin & Central America). Nicaragua as a country has displayed great A path-breaking outsourced customer potential to be the next preferred outsourcing relationship management (CRM) services delivery destination in the contact center industry. We are model providing access to the economically amongst the first to set up operations here. The vibrant Indian hinterland, Connect India deploys positive response from our clients to this region hubs in tier 1 and 2 cities, which are connected as a preferred near shore destination has been to smaller centers as ―spokes‖ in neighboring tier the key factor in setting up this new center.‖ 3 and 4 towns. This allows Minacs‘ clients to form ―The local population possesses an excellent a mesh for decentralized but integrated customer understanding of the American culture and there services. Connect India addresses the basic need is an abundance of talented English speaking of disaster recovery and business continuity graduates- -two key factors that drive the planning in the technical architecture itself and success in the contact center industry― said Kapil drives the cost of service delivery lower. Connect This center in Managua is tenth global center for India (which Minacs launched in September 24/7 Customer. The other nine centers are 2009) currently has operating centers in located in Bangalore, Hyderabad, Guatemala Bangalore, Mumbai, Chennai, Vadodara and City, Shanghai and Manila. Aurangabad.

Commenting on the hiring plans for the new centers, Milind Godbole says, ―We plan to grow the employee base at the Kolkata facility to more

11

CAPGEMINI INDIA HIRES 10,000 PEOPLE IN 2010, TO RECRUIT 7,000 MORE CAPGEMINI PRESS RELEASE [01 AUGUST 2010]

Bullish on strong growth prospects in India, global IT consultancy Capgemini has hired 10,000 people so far in 2010 and plans to recruit another 7,000 by the year-end. "We have already hired more than 10,000 people as of July. We plan to recruit further 7,000 within this year," Executive Chairman Salil Parekh said. Placing emphasis on the importance of the Indian market in the group's growth strategy, Parekh said,"Capgemini India is an important resource centre to drive Capgemini's Rightshore model and is also the main innovation hub for the group." "Additionally, the domestic market in India has also seen a lot of traction. We have added more than 40 clients in the last 18 months. With such a lot of growth, we need to be in a position to service this and, hence, have stepped up the recruitment process," he said.

Capgemini India's employee strength was at 26,000 in June 2010. It has a strong presence across seven cities in India, primarily Mumbai, Bangalore, Hyderabad, Kolkata, Chennai, Pune and Delhi. The outsourcing firm reported its second quarter and first half earnings result this week. It stated that the main markets, in which the group operates, saw steadily improving activity levels, despite the lingering effect of the global economic crisis on IT services. The group's second quarter revenue increased by 5.2 per cent to 2.15 billion euros over the first quarter of this year. Booking volumes also confirmed a positive trend with outsourcing services recording the highest rise of 37 per cent in bookings, thanks to the early renewal or extension of several major contracts.

Optimistic about companies' boosting their technology spend, Capgemini has raised its 2010 targets. The group now forecasts revenue growth of 3-5 per cent in the second half of 2010. Present in more than 30 countries, Capgemini employs over 95,000 people worldwide, and its Indian employee strength represents 27 per cent of the global head count.

12

MOVERS AND SHAKERS

HINDUJA GLOBAL SOLUTIONS EXPANDS succeeds R. Scott Murray, who has decided to TOP MANAGEMENT step down from the Company. BUSINESS STANDARD [20 AUGUST 2010] Marinello most recently served as Chairman and Hinduja Group's BPO arm Hinduja Global CEO of Ceridian Corporation, a $1.4 billion Solutions today announced the expansion of its human resources outsourcing company. During top management team with the induction of her tenure at Ceridian, Marinello substantially Srinivas Palakodeti as chief financial officer and improved customer satisfaction and employee Anthony Joseph as global head, human engagement and created significant value for resources. shareholders. Previously, Marinello served in a wide variety of senior roles over 10 years at Sridhar Krishnamurthy has been inducted as General Electric, leading global, multi-billion global head- strategic initiatives, a company dollar financial and services businesses, including release said. The new appointees would be a part large international call center operations. At GE, of the core group, which is responsible for the she was also responsible for numerous overall corporate strategic planning. consolidating strategic acquisitions. Prior to GE, Marinello served in senior leadership positions at Srinivas Palakodeti has held various positions in First Data Corporation, US Bank, Chemical Bank, the Hinduja Group before taking up his new role, Citibank and Barclays. it said. Anthony Joseph prior to taking up his new role as global head-human resources in Hinduja ―Kathy brings exceptional industry experience, Global Solutions has worked with DCM Shriram particularly through her successful tenure at Group, it said. Ceridian, and has a strong track record throughout her career of driving growth and Sridhar Krishnamurthy was serving as the Global creating value for shareholders, customers and Operations-Head at 3i Infotech, it said. "We are employees at large and complex services extremely pleased to welcome Srinivas, Anthony companies,‖ said David Kaplan, a member of and Sridhar to HGSL's management team. I am Stream‘s Board and a Senior Partner at Ares sure they will drive forward our unrelenting focus Management, one of Stream‘s largest investors. on building customer value and maintain our ―Stream remains focused on becoming an track-record of financial excellence and business industry-leading, multi-service BPO company prudence," Hinduja Global Solutions CEO Partha through a combination of operational excellence, De Sarkar said. The company currently employs organic growth and acquisitions. Kathy‘s superb over 16,000 people worldwide and has 20 global experience and leadership skills make her the delivery centres. It had reported revenues of ideal candidate to lead this next phase of $196 million in 2009-2010, the statement added. growth.‖

Marinello commented, ―I am pleased to join STREAM GLOBAL SERVICES NAMES Stream, an exceptional BPO service provider and KATHRYN MARINELLO CHIEF EXECUTIVE a trusted advisor to many leading companies OFFICER around the world. I share Stream‘s commitment STREAM PRESS RELEASE [20 AUGUST 2010] to the highest standards of operational performance and belief that customer satisfaction Stream Global Services, Inc. (NYSE/AMEX: SGS) and employee engagement are the keys to (―Stream‖), a premium business process building value for all stakeholders over the long- outsource (BPO) service provider specializing in term. Stream clearly has a very talented team of customer relationship management for Fortune employees, and I look forward to working with 1000 companies, today announced that its Board them and the Board to continue growing Stream of Directors has named Kathryn V. Marinello and meeting the expanding needs of companies Chief Executive Officer, a Director of the around the world for high caliber sales, customer Company and Chairman of the Board. Marinello care and technical support services.‖

13

XAFINITY APPOINTS EXPERT TO GROW leadership positions with responsibility for global OVERSEAS PAYMENTS BUSINESS sales, marketing, strategy and operations. XAFINITY PRESS RELEASE [13 AUGUST 2010] He served as President, CEO and a member of Leading pension administration, payments and the board of directors for NYSE-listed Berlitz collections firm, Xafinity Paymaster, has International (GlobalNet). Prior to that, he was announced the appointment of Tracie Colin- President of GlobalLink, an AMEX-listed company, McKenzie as a Business Development lead in its and Vice President of Marketing for MAXM Insurance and payroll management division. Systems, a network technology company. He has also worked as International Vice President at Tracie joins Xafinity Paymaster having previously Landmark Systems, a mainframe software been at Citibank with 25 year‘s service where she developer and as Director of International held a variety of global sales and client Operations for Peter Norton Computing. management roles, within various sectors of the Global Transaction Services (GTS) division, Lewis also served as President of Princeton Sales including heading up a number of specialist sales Partners, a sales training consultancy, which he teams. In her new role, Tracie‘s focus will be to founded to help clients in North America, Europe expand the existing Xafinity Paymaster overseas and Asia implement revenue-improving sales payments business which currently focuses on processes. Most recently, Lewis served as EVP of pensioners living abroad (over 45,000 pensioners Sales and Marketing at Netrics, a search paid in over 100 different countries every optimization and data matching company, which month). She will be looking at growing the was acquired by TIBCO earlier this year. portfolio of corporate clients who make sizeable and regular amounts of overseas payments and "Jim has an impressive record building and who wish to reduce the cost burden of these leading high-performance sales teams at strong payments by outsourcing the execution and growth companies," said Jack Abuhoff, Chairman reconciliation to Xafinity Paymaster. and CEO of Innodata Isogen. "I‘m confident that his hands-on, in-the-field approach – along with Tracie commented on her new role: ―Having his extensive understanding of how to improve worked in the financial sector for many years, it the buying experience for clients – will enable us is an exciting opportunity for me to develop and to drive growth and serve a progressively wider expand an overseas payment proposition for base. We‘re excited to have Jim on board." companies that maybe do not have access to the international banks‘ products. Xafinity Paymaster Lewis holds a BA in economics and government is a renowned financial process outsourcing from St. Lawrence University and attended the company and I am greatly looking forward to EA executive management program at Stanford. being part of their development team.‖ Lewis is a certified instrument-rated pilot and a member of Angel Flight, for which he flies INNODATA ISOGEN SELECTS JIM LEWIS TO financially needy medical patients to healthcare HEAD BUSINESS DEVELOPMENT TEAM facilities across America, as well as a certified INNODATA PRESS RELEASE [12 AUGUST 2010] Homeland Security Pilot First Responder.

INNODATA ISOGEN, INC. (NASDAQ: INOD), a leading provider of outsourced services to media, information services and publishing companies, today announced that Jim Lewis has joined the company as Senior Vice President, Sales & Marketing.

Lewis has more than 25 years of experience successfully managing high-profile, high-growth companies, and has served in a number of senior

14

GENPACT NAMES SANJEEV PRASAD AS NEW GENPACT EXPANDS LEADERSHIP IN ASIA CIO TO DRIVE GROWTH GENPACT PRESS RELEASE [11 AUGUST 2010] GENPACT PRESS RELEASE [04 AUGUST 2010]

Genpact Limited (NYSE: G), a global leader in Genpact Limited (NYSE: G), a global leader in business process and technology management, business process and technology management, today announced that Sanjeev Prasad has been announces that it has bolstered its leadership named Chief Information Officer effective team in Asia to strengthen its growth strategy in immediately. In his new role, Prasad will be China and Japan, including a focus on the China- responsible for delivering enterprise applications to-China market. Charles Hunting has been and services, and driving IT innovation for the appointed chief executive officer, Asia, reporting company. to President and CEO Pramod Bhasin. Hunting brings more than 17 years of services experience Prasad will be specifically focused on to Genpact and will focus specifically on growing utilizingtechnology such as Business Process as a the China and Japan markets. Mitsuru Maekawa, Service (BPaaS), virtualization and cloud one of the pioneers of the business process computing in order to provide cost-effective, management industry in China, will be returning highly-scalable and quick-to-market solutions, to Japan as vice chairman, Japan for Genpact. products, and platforms for clients. He will lead the strategy and partnerships for BPaaS products Hunting will focus on driving business growth for in key vertical markets such as manufacturing, this region and further leveraging key domain financial services and health care while building a strengths across the company to anticipate client strong product engineering and implementation needs. He joins Genpact most recently from organization. This effort will help Genpact target Accenture, where he was responsible for the new markets such as mid-size organizations outsourcing business in China and was part of the while also providing technology for the firm's Asia-Pacific regional leadership team company's Smart Enterprise Process (SEPSM) focusing on growth. A native of Australia, Hunting offering. has been based in China for the past three years and brings an extensive understanding of the A respected industry veteran, Prasad brings more Asia Pacific market as he has worked in most than 25 years of functional expertise in delivering economies in the region since 2000. Hunting has complex projects across multiple verticals and also worked in India as country lead for possesses deep knowledge of diverse IT products Accenture's outsourcing business there. He holds and tools. He joined Genpact in 2006 as an IT a bachelor's degree in information technology leader supporting a key North American financial from Queensland University of Technology in services company where he successfully Australia. transitioned over 40 processes and set up IT operations for their Mexico facility. In his most As CEO of Genpact China and Japan over the past recent role as the CIO of Genpact's India and eight years, Maekawa-san's vision has helped put Philippines operations, he was responsible for IT Dalian on the global map. Under his leadership, solutions, transitions and technology landscape Genpact received several prestigious awards from for Genpact. Prasad was also instrumental in the China government and industry forums, setting up the 'products' organization and including most recently being named one of the ushering in transformational technologies for "Top 10 Global Service Providers in China" at the Genpact customers. 3rd China International Service Outsourcing Cooperation Conference. Since Genpact opened Prior to joining Genpact, Prasad was an the first BPM center in China in 2000, the entrepreneur for 10 years and owned a company has expanded its China operations to successful IT company, STG International, which four cities throughout the country, namely went public in 2000. He has also worked for U.S.- Dalian, Changchun, Shanghai, and Beijing, with based Fortune 500 companies including Nortel over 3,000 employees. and Amdahl. Prasad holds a postgraduate degree in engineering from the University of Texas.

15

APTARA ANNOUNCES NEW EDITORIAL DIRECTOR APTARA PRESS RELEASE [03 AUGUST 2010]

Aptara, Inc., a global leader in digital content production, today announced that it has strengthened its Publishing Services team with the addition of David George as Editorial Director.

George brings a strong combination of industry experience and functional expertise from across the scholarly, professional, educational, and trade publishing industries. He has worked as Managing Editor at IEEE, a freelance editor for professional/scholarly and educational publishers, Associate Managing Editor in Wiley‘s STM division, Senior Managing Editor in the STM Division at Pearson/Prentice Hall Higher Education, and, most recently, as the Director of Business Operations for Bloomberg Press.

―David possesses a keen understanding of the marketplace and the compelling and diverse interests and goals of publishers,‖ said Dev Ganesan, President and CEO of Aptara. ―His broad industry insight, clear vision and proven training and mentoring abilities will enhance Aptara‘s core proficiencies, taking our reputation for publishing services excellence to a new level. Under David‘s leadership we will be able to accelerate expansion to meet growing customer demand, while maintaining the highest quality editorial standards.‖

―There may be a multitude of new delivery mediums and formats, but there will always be one constant − the need to produce content that meets the requirements of its creators and end- users,‖ remarked George. ―In this rapidly evolving digital age, it‘s never been more important for publishing service companies to be closely aligned with their customers and to pursue a path of continuous innovation and improvement - both technologically and editorially.‖

16

TRENDS AND VIEWPOINTS

INDIAN DOMESTIC PROCESS MANAGEMENT inefficiencies built into the system. Hence, SERVICES MARKET TO GROW 31 PERCENT outsourcing of such processes to third party IN 2010 specialists would bring in advantages of GARTNER PRESS RELEASE [18 AUGUST 2010] efficiency, efficacy and cost thereby increasing the competitive edge. India domestic process management services segment forecast to reach $683 million in 2010, ―From a service line perspective, India domestic a 31.1 percent increase from 2009 revenue of market is still heavily dominated by voice-based $521 million, according to Gartner inc. The services. Most of the BPO work is around contact market will experience steady growth through center type of work catering to customer care 2014 when process management services and sales/marketing services. This would revenue in India will reach $1.6 billion. comprise almost 65-70 percent of the market, ―said Mr. Roy. ―This is likely to expand into other Large scale outsourcing of process management service lines such as HR process outsourcing, will bring in the next wave of growth in the finance and accounting, analytics and other niche Indian domestic IT/IT-enabled services (ITES) services. BPO is in the emerging stages. As industry. High economic growth, competitive adoption increases, and it becomes adolescent, pressure, agility, time to market, innovation and the provider landscape would also change with adoption across verticals and breadth of services much larger, sophisticated and specialist will be driving this high growth rate in this providers playing in the space. This would further segment. drive the expansion of the service lines within BPO.‖ In 2009, the Indian IT Services/business process outsourcing (BPO) market showed resilience with greater interest from corporate level executives in outsourcing decisions. Prioritization for outsourcing spending aligned with organizations' agility, scalability and cost focus. Cautious buyers, cost containment were evident in mature verticals.

―IT services spending will continue to shift from discrete spending to outsourcing in 2010. New avenues of growth will open in the mid-market and in up-selling,‖ said Arup Roy, senior research analyst at Gartner. ―The entry of new hybrid providers will blur the lines between product and IT services and offerings will move from traditional to utility, ‗as-a-service‘ to cloud-based delivery models.‖

Currently process management services are restricted largely to telecommunications and banking and financial services sectors. However moving forward it is likely to be adopted in verticals such as government, utilities, healthcare and retail. These are high growth verticals with high degree of transaction processing work requirement. Such transactional processes, although crucial, are not core to the activities of those organizations. There are high degrees of

17

OUTSOURCING MARKET ACTIVITY LED BY Offshore activity saw 32 delivery centers BANKING SECTOR, BPO SERVICES, AND NA established in the second quarter, the BUYERS majority in Asia followed by Eastern EVEREST RESEARCH PRESS RELEASE [04 Europe and Latin America AUGUST 2010] China moved into the category of ―mature location,‖ an elite group previously Outsourcing contracts signed by banking, comprised of only India and the financial services and insurance firms (BFSI Philippines sector) in the second quarter this year Consolidated revenues increased across represented the highest volume of activity since offshore-centric suppliers whereas the fourth quarter of 2008 and significantly traditional global suppliers saw revenues contributed to a third consecutive quarter of drop during the quarter. Operating increased transaction volumes in the outsourcing margins dropped for both classes of industry, according to Everest, a global suppliers consulting and research firm. The global M&A activity increased with 12 outsourcing market saw a 12 percent increase in acquisitions compared to nine in the first transaction volumes with continued growth led by quarter as well as 61 alliances compared Business Process Outsourcing (BPO) services, to 52 in the previous quarter BFSI sector deals contributing one-fifth of overall global market activity, and North America and ―The overall services sourcing market remains on Europe driving three-fourths of all global a slow and steady growth path marked by transactions. indicators such as sustained transaction activity, Everest‘s Market Vista: Q2 2010, a quarterly captive activity, delivery center growth, and report on global outsourcing and offshoring renewals and restructuring of contracts,‖ said activity, reports global transaction volumes for Eric Simonson, managing partner of Research, the second quarter were valued at US$3 billion in Everest. ―Now, there exists a sizeable number of annual contract value (ACV). North American mature, large buyers who are focused on transaction activity in the second quarter evolving and optimizing hybrid sourcing increased 3 percent but ACV declined by 16 strategies that leverage offshore, onshore and percent compared to the previous quarter. captive models with less emphasis on mega deals.‖ Other second quarter 2010 findings include: BPO market activity increased by 15 and 33 percent in transaction volumes and ACV respectively. IT Outsourcing (ITO) registered a decline in ACV by 22 percent The BFSI vertical saw a 41 percent increase in transactions. Most contracts were signed in the banking sub-vertical; volume was double over the previous quarter The MDR (manufacturing, distribution, retail) vertical witnessed decreased activity but increases were found in healthcare, technology and telecommunications sectors A healthy captive market witnessed a fourth consecutive quarter of robust growth with 38 new announcements and no divestments, signaling the captive model remains an important component of sourcing portfolios

18

AVENDUS BPO COMPOSITE INDEX

The Avendus BPO Composite Index is designed to indicate the performance of listed BPO companies in India. While there are a plethora of indices which highlight the performance of the Technology sector in India, we felt that there is a need to create a separate BPO Index, given the marked differences in the nature of both the sectors.

Avendus BPO Composite Index

Key Highlights 1 month return: 9.2% 1 quarter return: 4.2% 1 year return: 25.2%

Methodology We have used the stock price date of Allsec, eClerx, EXL, Firstsource, Genpact, HOV Services and WNS weighted by their trailing twelve month revenues (for year ending 30th September 2009 or 31st December 2009). The series begins at a base value of 100 on 3rd January 2007 with just Allsec, EXL and WNS. As more BPO companies got listed, we have added them to the index after appropriate scaling. The index is updated for the closing price on the first Friday of every month. We have used closing price as on Friday (03/09/10) for this edition of the newsletter.

19

ABOUT AVENDUS CAPITAL

Avendus Capital is a leading institutional financial services firm with strong transaction track record and relationships with corporates and investors. Avendus uses its unique domain and industry focused approach to businesses like M&A advisory, Private Placements for growing companies, Structured Products Advisory, Equity Capital Markets, Institutional Broking and Asset Management. Avendus Capital has closed 66 deals between 2005 and 2008 and has been rated as among the top 5 investment banks in India by Bloomberg. Avendus has executed several marquee cross border and domestic transactions for multiple clients in USA, Europe and India. Headquartered in Mumbai (India) Avendus has offices in New Delhi, Bangalore, New York and London.

Some of the recent deals closed by us include

Title Month - Year Of Closure Deal Value Industry Avendus advised shareholders of Accutest to October, 2010 Undisclosed Healthcare sell controlling stake to the PE fund, Greater Pacific Capital

Sole Advisor to BDK Engineering Industries September, 2010 Undisclosed Industrials Ltd. on its strategic sale of Valves Business to Weir Group PLC

Sole advisor to Alva Brothers Entertainment August, 2010 Undisclosed Consumer in acquiring JV stakes from Turner Asia Pacific Ventures

Sole advisor to Eastern Condiments Private July, 2010 Undisclosed Consumer Limited in the divestment of minority stake to McCormick & Company Inc

Sole advisor to Lambda Therapeutic July, 2010 Undisclosed Healthcare Research in its acquisition of Biovail‘s Contract Research Division

Advisor to Tejas Networks for its acquisition June, 2010 Undisclosed Technology of Ethos Networks & Outsourcing

Book Running Lead Manager for Parabolic June, 2010 USD 45 mn Healthcare Drugs IPO

Sole advisor to Parixit Industries on its June, 2010 Undisclosed Industrials strategic alliance with Emtelle Holdings

Sole arranger for Trust fund for International May, 2010 USD 36 mn - Asset Reconstruction Company Ltd.

20

Advisor to Famy Care on a transaction in April, 2010 USD 50 mn Healthcare which AIF Capital acquired a minority stake

OUR OFFICES

Mumbai: IL&FS Financial Centre, B-Quadrant, 5th Floor, Bandra-Kurla Complex, Bandra (East), Mumbai 400 051 Tel: +91 22 6648 0050 Delhi: Suite 22A/B, The Aman Resort, Lodhi Road, New Delhi - 110003, Tel: +91 11 45357500, Fax: +91 11 45357540 Bangalore: The Millenia Tower, A-10th Floor, No. 1 & 2 Murphy Road, Ulsoor, Bangalore 560 008 Tel: +91 80 6648 3600 USA: 100 Park Avenue, 16th Floor, New York 10017, Tel: +1 212 351 5066 London: 32 Brook Street, London W1K 5DL, Tel: +44 20 7647 7700

21