Business Process Outsourcing Newsletter

Table of Contents DEAL SUMMARY ...... 3 SOURCEHOV’S NEW EQUITY INVESTOR, CITI VENTURE CAPITAL INTERNATIONAL, PARTNERS WITH HOVS ...... 3 ECHO BUYS CALLCREDIT INFORMATION GROUPS BRISTOL BASED CONTACT CENTRE ...... 3 THE GORES GROUP ACQUIRES OUTSOURCING SERVICES BUSINESS FROM DAVIS + HENDERSON CORPORATION ...... 4 STREAM ACQUIRES UNITED KINGDOM-BASED LBM HOLDINGS ...... 4

CONTRACT TRACKER ...... 6 ORICA CHOOSES NORTHGATEARINSO FOR GLOBAL HR SERVICES IN THE CLOUD ...... 6 CHARLES SCHWAB SIGNS CONTRACT WITH DST OUTPUT ...... 6 EQUINITI RENEWS OUTSOURCING CONTRACT WITH PRUDENTIAL ...... 7 INTEGREON EXTENDS BUSINESS SERVICES ENGAGEMENT WITH SNL FINANCIAL ...... 7 ARVATO AWARDED UK CENTRAL GOVERNMENT CONTRACT TO OPERATE FIRST OUTSOURCED SHARED SERVICE CENTRE ...... 8 STATOIL EXTENDS OUTSOURCING CONTRACT WITH CGI ...... 8

EXPANSION ...... 10 ISGN MOVES TO NEW, LARGER HEADQUARTERS TO SUPPORT CORPORATE GROWTH ...... 10 MINACS TO HIRE 250+ IN RICHMOND, VA ...... 10 ALORICA STRENGTHENS PRESENCE IN CEBU, CREATES JOBS ...... 10 INFOSYS EXPANDS FOOTPRINT IN LATIN AMERICA ...... 11 SERCO GLOBAL SERVICES LAUNCHES NEW CENTRE IN SOUTH AFRICA ...... 12

MOVERS AND SHAKERS ...... 13 INDECOMM GLOBAL SERVICES APPOINTS MICHAEL FROTTEN, DIRECTOR OF BUSINESS DEVELOPMENT ...... 13

TRENDS AND VIEWPOINTS ...... 14 RPO MARKET PROJECTED TO GROW 12-17 PERCENT IN 2013 ...... 14

AVENDUS BPO COMPOSITE INDEX ...... 15

OUR OFFICES ...... 17

DEAL SUMMARY and public sector, is delighted to announce the acquisition of Callcredit Information Group’s, Bristol SOURCEHOV’S NEW EQUITY INVESTOR, CITI based, contact centre. VENTURE CAPITAL INTERNATIONAL, PARTNERS WITH HOVS Phil Newland, Echo’s Managing Director said “The SOURCEHOV PRESS RELEASE [19 MARCH 2013] addition of the Bristol office to the Echo group of companies is an excellent strategic fit for our business SourceHOV, a leading provider of business process as they share our approach to offering clients high outsourcing (BPO) and Knowledge Process quality, value added service, dealing primarily with Outsourcing (KPO) solutions, today announced that complex contact management requirements. They also Citi Venture Capital International (“CVCI Private share our commitment to achieving business growth. Equity”) is investing in the Company as a new equity Echo continues to achieve strong growth despite partner with HOVS (“HandsOn”). The transaction challenging economic conditions and the acquisition of contemplates that CVCI Private Equity will purchase all the Bristol team complements our growth strategy by of the ownership interests of affiliates of Apollo Global allowing us to look beyond our traditional sectors and Management (“Apollo”) and certain minority holders’ in further strengthen our complex contact management SourceHOV. offering to existing clients.”

This exciting new HandsOn and CVCI Private Equity The Bristol based contact centre teams provide multi- partnership positions the Company for accelerated channel, multi-functional complex contact growth through industry leading advisory formed by a management to both public sector and blue chip tenured investment team with specialized technology clients. Their services include inbound contact and service industry experience. HandsOn has never handling, helplines, database management and been more confident in the Company’s growth campaign planning, automated call handling and prospects and is excited to continue driving the subscription services. By combining highly trained staff Company towards expansion of technology-enabled with high specification technology the team ensure that services with CVCI Private Equity as a strategic excellent service is delivered to both clients and partner. consumers.

CVCI Private Equity is a leader in international private Following a strategic review Callcredit concluded that, equity investing, and currently manages over $7 billion although the contact centre remained a strong in equity investments and committed capital. CVCI performing part of the business, it was no longer Private Equity has an internationally integrated considered a core part of its portfolio with the strategy investment team with over 50 professionals worldwide moving forwards focusing on data and analytics. and a local presence in New York, Singapore, Mumbai, New Delhi, Hong Kong, London and Christopher Savage, Managing Director of Callcredit Santiago. CVCI Private Equity has made investments Marketing Solutions said, “We have undertaken a of over $1.2 billion in 13 different Business Services comprehensive process to find the best owner of our and Cross-Border Outsourcing companies operation and we have found the ideal organisation in Echo. It was critical to us that we identified the right ECHO BUYS CALLCREDIT INFORMATION partner for our clients and the best home for our staff. I GROUPS BRISTOL BASED CONTACT CENTRE am delighted that we will have a close working ECHO PRESS RELEASE [15 MARCH 2013] relationship with Echo as we collaborate on several joint projects as they continue to provide services to Echo Managed Services, the leading customer Callcredit”. process management services provider to UK utilities

As part of the transaction all staff currently employed STREAM ACQUIRES UNITED KINGDOM-BASED within the Bristol based contact centre will transfer LBM HOLDINGS across to Echo Managed Services. STREAM GLOBAL PRESS RELEASE [1 MARCH 2013] THE GORES GROUP ACQUIRES OUTSOURCING SERVICES BUSINESS FROM DAVIS + Stream Global Services, today announced that the HENDERSON CORPORATION company has completed its acquisition of all the GORES GROUP PRESS RELEASE [8 MARCH 2013] outstanding share capital of LBM Holdings Limited and related LBM group companies. The Gores Group, a leading Los Angeles-based investment firm, today announced that it has entered LBM is a premier demand and lead generation into a definitive agreement to acquire three business solutions provider that designs and delivers complete units in Canada from the Davis + Henderson customer lifecycle solutions for U.K. and global Corporation (TSX:DH), focused on (i) business business-to-consumer and business-to-business process outsourcing, (ii) coupon and rebate brands. LBM has approximately 2,500 employees processing, and (iii) real estate software. Terms of the across six locations in the United Kingdom, providing transaction, which was led by The Gores Small solutions for companies in a range of industries, Capitalization Partners, were not disclosed. including telecommunications, financial services, utilities, automotive and retail. These business units will be operated under the newly formed Millennium Process Group, Inc, which is Stream is a global business process outsourcing headquartered in East Mall, Ontario. Regional offices services firm that provides sales, customer care, and located in Saint John, New Brunswick and London, technical support services to many of the best-known Ontario will remain in place servicing the Canadian Fortune 1000 companies. Stream operates more than coupon and real estate markets. 50 service centers globally with more than 37,000 employees worldwide. "The Gores Group is excited about the formation of Millennium Process Group as a result of the Stream expects the acquisition to enhance its sales acquisition of these D+H assets," said Victor C. Otley, and revenue generation service offerings. The Managing Director for The Gores Group. "This platform transaction will allow Stream to offer a full suite of will provide current and future customers a stable demand and lead generation capabilities to clients and service delivery platform focused on the Canadian prospective business partners. Stream currently market. The current operating teams will continue to delivers sales and related services through its manage these business units as we look to expand proprietary StreamSELLER service offering. By adding both the scope and depth of service offerings. We look the LBM lead generation capability, Stream expects to forward to working with management and employees deliver a more comprehensive sales solution for the as we build out our services and capabilities company’s global clients. independently from D+H." “This transaction is about delivering greater value to Brian Kyle, CFO of Davis and Henderson said, “The our clients and long-term growth for our company,” Gores Group has an outstanding reputation in carving said Stream Chairman and CEO Kathy Marinello. out and operating non-core assets. We are confident “LBM has proven experience in creating highly precise that the customers will see no degradation in the target lists of people who will be more inclined to buy quality of service being provided.” products and services, which will further enhance the StreamSELLER offering. StreamSELLER focuses on everything involved with the sales process, from recruiting, hiring and training the right people to the 4

consistent use of proven sales behaviors that close more sales with greater predictability. LBM’s people, expertise and capabilities, combined with Stream’s financial strength, global presence, and sales and service offerings, will establish a broader portfolio of high-value service offerings for our clients.”

Nicola Beamish, CFO of LBM, noted, "This is a tremendous opportunity to extend the value and service offerings we bring to clients on a much larger scale and to provide new opportunities for our employees. We look forward to the opportunity to add value to our existing clients and to grow with a company that has a global presence, strong reputation, and an exceptional client base."

CONTRACT TRACKER "euHReka will establish a single repository for all people-related data for Orica, enabling globally ORICA CHOOSES NORTHGATEARINSO FOR standardized HR processes, a solid foundation for GLOBAL HR SERVICES IN THE CLOUD unified HR reporting and analytics, and an all-in-one NORTHGATE ARINSO PRESS RELEASE [25 integrated HR services platform." MARCH 2013] CHARLES SCHWAB SIGNS CONTRACT WITH DST NorthgateArinso (NGA), the leading global HR service OUTPUT provider, has been appointed by global mining DST SYSTEMS PRESS RELEASE [20 MARCH 2013] services company, Orica, to deliver HR services supporting the entire employee lifecycle of its 15,000 Charles Schwab & Co., a leading brokerage firm employees in over 50 countries. headquartered in San Francisco, Calif., recently signed a multi-year contract with DST Output, (“DST Output”), In January, Orica selected euHReka, NGA’s cloud- part of the Customer Communications Segment of based BPaaS (Business Process as a Service) DST Systems, Inc. (“DST”), to produce and deliver its platform, as its global platform for Workforce trade confirmations and broker-dealer, bank and tax Administration, Learning, Talent Management and statements, as well as provide fulfillment, direct mail Recruitment. Orica also selected NGA to replace its and warehouse distribution services. Australia/New Zealand payroll platform with euHReka’s Global Payroll solution for its 3,800 “We chose DST Output for its innovation, advanced employees in these two countries. technology and cost-effective approach to producing and delivering customer communications for the General Manager, Policy & Employee Services, brokerage industry,” explained Mike Haydel, senior Supriya Iyer said: "We required a cost effective vice president of brokerage and specialized products solution with proven performance on a global scale. at Schwab. “They can advance Schwab to the next level of efficient print and electronic statement "With over 15000 Orica employees working across production and distribution for the benefit of our more than 50 countries we set a high hurdle for global clients.” HR services provision. The global credentials and international experience of NGA gave us the In gaining the contract, DST Output demonstrated its confidence we demanded in deploying such a vital HR ability to align capabilities and resources to meet support service at this scale." Schwab’s requirements, and highlighted opportunities for Schwab branches and independent registered Denis Tournesac, President Asia Pacific & Japan, investment advisors (who custody their clients’ assets said: "We are honoured to be able to start supporting a at Schwab) to personalize statement messaging and market leader such as Orica in Australia & New implement color options. The brokerage giant was Zealand and across the globe through our global HR impressed by DST Output’s approach to using service delivery network and platform. technology to influence the communication process.

"Orica will roll out NGA’s euHReka to every employee The bulk of Charles Schwab’s customer across their global operations as the one, singular HR communications has already been converted to DST and Payroll portal. Initially it goes-live for some 9,000 Output, and just a few applications remain to be Orica employees in Australia, New Zealand, North transitioned in the coming months. The work is being America, and Asia. The objective is to complete phase processed across four of DST Output’s facilities in 1 of the rollout to all other countries by August this California, Missouri, Massachusetts and Connecticut year." for rapid distribution to customers and built-in disaster recovery to ensure business continuity. “DST Output, 6

together with DST and DST Brokerage Solutions, are provider of business process services and has well positioned to service the brokerage industry,” says extensive experience in pensions and annuity Cheryl Kananowicz, senior vice president for DST administration and this is a natural service extension Output. “Not only can we provide the expertise in for us. We will continue to look for opportunities to producing and delivering all customer communications, service portfolios in the insurance sector. ” but we also bring to the table brokerage knowledge and decades of experience.” INTEGREON EXTENDS BUSINESS SERVICES ENGAGEMENT WITH SNL FINANCIAL EQUINITI RENEWS OUTSOURCING CONTRACT INTEGREON PRESS RELEASE [18 MARCH 2013] WITH PRUDENTIAL EQUINITI PRESS RELEASE [19 MARCH 2013] Integreon, a leading global provider of integrated legal, research and business solutions, recently announced Leading business process services provider, Equiniti, a multi-year extension to its existing landmark deal today announced that it has signed a new 10 year with SNL Financial (SNL). SNL is a premier provider contract with Prudential UK to extend its Outsource of business intelligence and news for the banking, Service Agreement under which it administers existing financial services, insurance, real estate, energy, Defined Benefit occupational pension schemes on metals/mining, and media/communications industries. behalf of Prudential. Integreon has been providing business services to SNL since May 2012, and the recent expansion of the Prudential has a longstanding relationship with Equiniti relationship extends the contract through January Paymaster, specialist providers of complex pension 2017. administration and payment services, as a trusted partner providing continuous servicing and settlement The partnership will grow SNL’s existing relationship of benefits for around 35,000 account holders. The with Integreon in Manila and will further extend schemes continue to need maintenance according to Integreon’s position as a market leading provider of scheme rules and ongoing legislative change. business services to demanding professionals. Integreon already employs 400 people in Manila, Equiniti Paymaster administers the portfolio using providing a range of business services, legal services highly experienced and qualified staff supported by the and document services to clients. Integreon’s largest Compendia platform, which provides the complete investor, LiveIt Investments, is the BPO investment range of administration, reporting and communication division of Philippine-based Ayala Corporation and has services to meet the needs of trustees, employers and played a significant role in Integreon’s success in members. growing its global business, including its Philippine delivery capabilities. Tracy Harris, Customer Service Director at Prudential commented: "Excellence in delivery for our customers Under the extended agreement, Integreon will help has to be as important to our partners as it is to us. SNL build a team of approximately 300 or more Everything we do well builds on the trust our financial research and business support professionals customers place in us so our extension of this that will be located in dedicated delivery centers in partnership is a recognition of Paymaster’s technical Manila. and administrative expertise." Tom Corbitt, Chief Administrative Officer at SNL Equiniti Paymaster’s Managing Director, Paul Financial, said, “Integreon has a good understanding Bingham, said: “We are delighted to have secured the of SNL’s client base since they’ve historically provided contracted extension of our services and commit to a business critical services to many of the same continuing long term strategic relationship with customers. They’ve proven they can leverage their Prudential. Equiniti Paymaster remains a specialist local knowledge and employer brand in the Manila 7

market to quickly deliver the high caliber talent and practice, economies of scale and standardised physical infrastructure SNL needs to support our processes to deliver improved value for money and growing global client base, particularly as we expand service quality. into Asian markets.” He added: “This is a significant milestone in arvato’s Robert Gogel, Chief Executive Officer, Integreon, said, BPO growth strategy in the UK, where we have “SNL is an impressive company with exciting growth extensive experience in delivering continued plans. We are delighted that our ability to attract talent improvements, efficiency savings and better outcomes for them in Manila has led them to choose us for for the public and private sector. The acquisition also further expansion plans. We look forward to supporting complements our existing UK footprint with a flagship SNL in their growth and delivery of high quality Shared Service Centre in an important economic information services over the coming years.” region.”

ARVATO AWARDED UK CENTRAL GOVERNMENT arvato will underpin the services offered by ISSC1 with CONTRACT TO OPERATE FIRST OUTSOURCED the Agresso Central Government Enterprise Resource SHARED SERVICE CENTRE Planning (ERP) Platform provided by its partner, and ARVATO PRESS RELEASE [15 MARCH 2013] global business software company, UNIT4. The Agresso platform will be introduced at the ISSC1 to arvato UK & Ireland, the business process outsourcing replace the existing SAP platform as part of a phased (BPO) partner, has secured a contract to operate the migration process. first Independent Shared Service Centre (ISSC1) on behalf of the UK Government. Anwen Robinson, Managing Director of UNIT4 Business Software Ltd, said: “With Agresso’s proven Under the agreement, the existing Department for flexibility, arvato will be able to make rapid changes to Transport (DfT) Shared Service Centre in Swansea, the solution at a relatively low cost to support the South Wales, has been acquired by arvato, which will changing business needs of the customer.” subsequently provide back office services to the DfT and its executive agencies. The seven-year STATOIL EXTENDS OUTSOURCING CONTRACT outsourcing contract, which includes an optional three- WITH CGI year extension, is expected to deliver significant CGI PRESS RELEASE [5 MARCH 2013] savings to the Department over its duration. The agreement also includes a framework contract under CGI Group Inc., (NYSE: GIB) (TSX: GIB.A), a leading which arvato will be able to maximise the centre’s provider of information technology and business considerable potential for growth by competing for process services, is pleased to announce that Statoil additional outsourced central government business. has chosen to extend its Service Desk contract with CGI in Norway. The multifunctional Service Desk is The Swansea site will be the first Independent Shared used by Statoil’s 20,000 employees in 36 countries. Service Centre to be operated by the private sector. It The agreement is extended until 2016, with an optional forms a key element of the Cabinet Office’s Strategic one year extension until April 2017. Plan for Next Generation Shared Services which aims to achieve savings of £400m to £600m per annum For ten years, CGI has been responsible for delivering from back office costs by creating a market for shared business process services to Statoil. CGI’s services within central government. multifunctional Service Desk provides Statoil employees all over the world with a single point of Matthias Mierisch, CEO & Chairman of arvato UK & contact for enquiries related to IT, human resources, Ireland, said: “Our solution provides a new operating finance, procurement, communication and facilities model for back office functions, using industry best issues. Together, we have developed a modern, 8

flexible, high quality service with main delivery centers in Stavanger, Norway and Manila, Philippines.

“We are pleased that Statoil continues to place their trust in us as one of their key IT suppliers. CGI delivers the industry and technology expertise required to support Statoil in areas strategic to their business growth. Our ability to combine local and global delivery is essential and we are proud of our global capability to provide high quality service to Statoil’s employees 24 hours a day, 7 days a week. This contract extension allows us to continue to enhance our service capabilities for Statoil users around the world,” said Gisle M. Eckhoff, Senior Vice-President, CGI in Norway.

EXPANSION technology solutions. In addition, the company recently launched TempoTM, a web-based default ISGN MOVES TO NEW, LARGER HEADQUARTERS management platform to help institutions attain TO SUPPORT CORPORATE GROWTH profitability despite market challenges. The company ISGN GLOBAL PRESS RELEASE [25 MARCH 2013] has plans to release additional products and solutions throughout 2013. ISGN Corporation (“ISGN”), a leading provider of end- to-end technology solutions and services to the U.S. MINACS TO HIRE 250+ IN RICHMOND, VA mortgage industry, announced it has moved its MINACS PRESS RELEASE [20 MARCH 2013] corporate U.S. headquarters to a new, larger facility to support the company’s continued growth. The Aditya Birla Minacs, today announced the addition of company will remain in Florida, with its new new business from its relationship with an existing high headquarters located at 2230 Commerce Drive in tech client. As the scope of work with this client has Palm Bay, Fla. broadened, Minacs now plans to launch a new site in Henrico, VA, bringing 250 jobs to the area over the To support ISGN’s continued expansion, the 28,000- next 4 months. square-foot facility has been completely remodeled from the ground up, featuring several new offices, “Greater Richmond has a long history of hosting conference and training rooms, and an employee innovative businesses that provide support around the recreation room, with an additional 10,000 sq. feet of world and Aditya Birla Minacs will do very well as a office space available to accommodate an increase in result. Minacs is among several recent high tech future operations. companies that have decided to locate in our area due to our outstanding workforce and Mid-Atlantic location. Additionally, the facility will house ISGN’s new We believe that it’s a great fit for all parties. We also Mortgage Innovation Lab. Unique within the industry, wish to thank the Virginia Economic Development the lab will serve as a space to demonstrate ISGN’s Partnership and Virginia Department of Business agnostic approach in providing end-to-end mortgage Assistance, which provided site specific information technology platforms to support every point of the loan and recruitment and training services,” said Gregory H. life cycle. Complete with demo workstations, the Wingfield, President of the Greater Richmond Mortgage Innovation Lab will visually demonstrate the Partnership, Inc. life of a mortgage through the value chain. Lab visitors will get a sense of the mortgage of the future, as well “We are pleased to welcome Aditya Birla Minacs to as ISGN’s global delivery capabilities. Henrico County. This project will quickly bring a significant number of new jobs to Henrico utilizing the “For more than 20 years, ISGN has created intelligent latest in information technology to deliver technical solutions for the mortgage industry,” said Ritesh services to Minacs’ growing client program; we are Idnani, CEO of ISGN. “As we continue to grow and see confident that Minacs will continue to grow and a demand for innovative, end-to-end mortgage succeed in Henrico, while taking advantage of our technology, it is necessary to expand our headquarters technology-savvy workforce, affordable cost of doing to better support efforts. This new facility will better business and reliable telecom infrastructure,” said foster our ideation process to drive the next generation David Kaechele, Chairman of the Henrico County of products and services and help the industry return Board of Supervisors. to a profitable housing market.” ALORICA STRENGTHENS PRESENCE IN CEBU, Since 2008, the company has more than doubled its CREATES JOBS staff, including numerous additions to its senior ALORICA PRESS RELEASE [17 MARCH 2013] leadership team, due to an increased demand for its 10

Alorica, a leading provider of customer management the strategic sourcing and procurement area for outsourcing solutions, expands its Philippine Procter & Gamble, the world’s largest consumer operations in Cebu City as part of the company’s packaged goods company. continued geographic expansion initiative to increase its presence in key growth markets and support in Infosys will soon offer the entire range of BPO services global growth strategy. With more than 40 US in Costa Rica for its global clients, in areas including domestic, near shore, and offshore customer finance and accounting, human resources management centers, Alorica is actively strengthening management, analytics, legal processes, customer its ability to provide high-value solutions to its clients in relationship services, marketing, and supply chain the fastest growing business process outsourcing management. markets in the world. The President of Costa Rica, Laura Chinchilla Cebu complements Alorica’s business by providing Miranda, joined the Managing Director and CEO of valuable source of growth and skills for the company Infosys BPO, Swami Swaminathan, to celebrate the with increased presence in the Philippines. With inauguration of the center at a ceremony today. The confidence in Filipino talent, Alorica sees this move as Vice President of Costa Rica, Luis Liberman; the potential growth for stakeholders and career Minister of Foreign Trade, Anabel González; the opportunities for highly-qualified jobseekers in the Minister of Science, Technology and region. "Alorica will support a major US Telecommunications, Alejandro Cruz; the Minister of telecommunications and DSL provider that requires Labor, Olman Segura; the Director General of the world-class talents to deliver competitive voice Costa Rican Investment Promotion Agency (CINDE), customer management support with very good English Gabriela Llobet; and senior executives from both communication skills that Cebuanos have," said Doug Procter & Gamble and Infosys also attended the Almond, Alorica Philippines country manager, in a ceremony. statement. "Alorica strives to serve our existing and future clients. We want to have the best people who Laura Chinchilla Miranda, President of Costa Rica, will play an important role in providing the best service said: “Infosys investment is very significant for Costa experience and customer care to our valued clients,” Rica. Infosys is a worldwide leader in technology, added Almond. consulting and outsourcing, and it carried out a very rigorous and detailed selection process to select our With headquarters in Irvine, California, Alorica offers country for its new delivery center, based on our proven industry experience and know-how with over capacities and competitive advantages. We look 20,000 employees globally providing customer forward to a mutually beneficial and long-standing management outsourcing solutions across multiple relationship with Infosys, to promote growth in the channels to Fortune 1000 companies. In the country and to strengthen the position of Costa Rica as Philippines, Alorica is located in Makati City, Lipa, one of the most competitive sites for foreign Batangas and its recent expansion in Cebu City. investment. We hereby welcome Infosys to Costa Rica.” INFOSYS EXPANDS FOOTPRINT IN LATIN AMERICA Humberto Andrade, Head – Latin America, Infosys INFOSYS PRESS RELEASE [11 MARCH 2013] BPO, said: "This new center in Costa Rica is the latest expansion of our global footprint. We continue to Infosys announced today that it has expanded its strengthen our presence in Latin America to provide presence in Latin America with a new delivery center better service and greater flexibility to clients. We’re for its business process outsourcing subsidiary, addressing not only our global clients here but also Infosys BPO, in San José, Costa Rica. The center’s Spanish- and Portuguese-speaking markets as we 100+ employees initially will provide key services in drive business growth in the region. We are fully 11

committed to Costa Rica and look forward to offering Cape Town operation will complement Serco's existing our full range of services to our clients across all 100 global BPO centres across geographies including industries.” the United Kingdom, India and Poland, offering high quality English and other European language skills to Infosys plans to expand the center’s offerings to better Serco's customers around the world. serve its customers and offer innovative sourcing capabilities as a premier global provider of end-to-end "South Africa is the largest economy in Africa and is solutions. The company has a diversified workforce emerging as a destination of choice for Global BPO representing 50+ nationalities, and helps clients companies. We are extremely pleased that Serco has achieve best-in-class efficiencies and effectiveness in made the decision to locate its first centre in Africa industries such as banking, financial services, here in Cape Town," CEO, Business Process enabling insurance, telecommunications, media and South Africa (BPeSA), Gareth Pritchard, said. entertainment, manufacturing, healthcare, retail, energy, and utilities. "I am delighted to be opening our first centre in Africa. In recent years, South Africa has emerged as a key Anabel González, Minister of Foreign Trade, said: “The global BPO destination with a highly skilled labour arrival of this leading company is a result of Costa force and state of the art infrastructure. In addition, we Rica´s efforts to diversify the geographical locations expect the domestic market to offer important where new investments are originating from, sending a opportunities, especially in the country's established message across Europe, Asia and Latin America that industries such as banking, financial services and the country offers favorable investment conditions. Insurance (BFSI), telecom, manufacturing and mining," Furthermore, Infosys is an excellent example of this Susir Kumar, Executive Chairman, Serco Global Government’s commitment and involvement, having Services said. participated in different stages of the company´s decision process, which concludes today with the "Our presence in South Africa supports our corporate inauguration of this top-of-the-line center.” strategy to enter new geographies, where we see growth potential for our services and the opportunity to Alejandro Cruz, Minister of Science, Technology and improve outcomes for our customers. We look forward Telecommunications, said: “We are pleased that the to making a positive contribution to the local economy, skilled talent available in Costa Rica convinced Infosys as we grow our business and create new employment to make the decision to establish operations in our opportunities," Kumar continued. country. We anticipate that the company will be a key contributor in the transfer of technological knowledge "South Africa brings to the table a large talent pool with to professionals in Costa Rica.” good quality English skills, besides other European language capabilities and domain expertise in sectors SERCO GLOBAL SERVICES LAUNCHES NEW such as Financial Services and Insurance. Our CENTRE IN SOUTH AFRICA expansion into this market will enable us to bring our SERCO PRESS RELEASE [1 MARCH 2013] global best practices and BPO expertise to the South African and broader African markets and drive better Serco, the international service company, today outcomes for our clients," CEO of Serco Global announces the opening of a new business process Services - Africa, Middle East, Asia & Australia outsourcing (BPO) delivery centre in Cape Town, (AMEAA), Bhupender Singh, said. South Africa. The new centre, located in the Cape Town Central Business District, is expected to accommodate over 500 new employees and serve a range of international and domestic customers in sectors such as banking, insurance and retail. The 12

MOVERS AND SHAKERS

INDECOMM GLOBAL SERVICES APPOINTS MICHAEL FROTTEN, DIRECTOR OF BUSINESS DEVELOPMENT INDECOMM PRESS RELEASE [4 MARCH 2013]

Indecomm Global Services, a leading business process outsourcing company, announced that Michael Frotten has been named Director of Business Development, Lending Solutions Group. In this role, Michael will focus on mid-tier lenders, community banks, and credit unions to tap into Indecomm's platform-driven mortgage outsourcing solutions.

"Michael is an important addition to Indecomm's sales team," said Rajan Nair, President, Financial Services Division, Indecomm Global Services. "As a seasoned mortgage professional with an extensive history of working with lenders in the mortgage industry, he will help our clients leverage Indecomm's deep domain expertise and end-to-end fulfillment solutions to maximize their profits in this rapidly changing regulatory environment. Michael shows our commitment to bringing the best people and solutions to our clients."

Prior to joining Indecomm, Michael served as President of Vidverify, a next generation video communications platform designed to help consumers understand complex financial transactions. In this role, he oversaw product development, marketing, sales, and business development strategies.

Before that, Michael held positions in senior sales management at AmeriSave Mortgage Corporation and CitiMortgage Inc. Michael also spent 15 years at ABN AMRO/InterFirst in roles including National Sales Manager and Head of Business Development.

Michael holds a BS in Business Management from the University of Phoenix, Orlando, Florida. He is an Accredited Mortgage Professional with the Mortgage Bankers Association.

TRENDS AND VIEWPOINTS RPO drivers differed across regions, posing different challenges and necessitating differing RPO MARKET PROJECTED TO GROW 12-17 solution elements. PERCENT IN 2013 After rapid growth for two years, adoption of EVEREST PRESS RELEASE [20 MARCH 2013] multi-country RPO was moderate in 2012. Mid-market companies increased adoption in The Recruitment Process Outsourcing (RPO) market recent times, signaling RPO is no longer a is projected to grow 12-17 percent in 2013 following large market play. the market’s significant slowdown in 2012 due to a The competitive environment remains intense dramatic decrease in hiring volumes, according to a with several providers competing fiercely to new research study by Everest Group, an advisory and gain market share but clearer segmentation research firm on global services. based on value proposition is starting to emerge. The RPO market growth slowed to about 12 percent in 2012 and is currently estimated at about US$1.5 billion in annual contract volume (ACV), according to Everest Group’s report, Recruitment Process Outsourcing Annual Report 2013: Dichotomy of Market Exuberance and Subdued Economy. On the other hand, new buyers continue to enter the market at a rapid pace and the market grew by around 50 percent in terms of new deal signings in 2012.

“A significant increase in new RPO deal signings in 2012 had the potential to contribute 25 percent to the market size assuming deals were similar in size in terms of annual hires as in previous years, but the slowdown in hiring sapped the market,” said Rajesh Ranjan, vice president, Everest Group. “Decreased hiring activity affected sizes of both new and existing RPO contracts, thus impacting the overall growth of the market. Despite the economy’s negative affect on the RPO market, buyer interest remains strong, so it stands to reason the RPO market will regain its more aggressive growth pattern when hiring returns to more normal levels.”

Other report insights about the RPO market include:

Continental Europe and Asia Pacific witnessed a large surge in new deal activity, while the more mature North American and United Kingdom markets settled into a more steady growth pace. Strong contract activity in Europe and Asia Pacific lead to a decrease in North America’s dominance over the RPO market. 14

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

1.0% 0.6 % -4.2%

Key Highlights

1 month return: 0.6% 1 quarter return: -4.2% 1 year return: 1.0%

Methodology We have used the stock price date of Allsec, eClerx, EXL, Firstsource, Genpact, HOV Services and WNS weighted by their trailing twelve month revenue. The series begins at a base value of 100 on 3rd January 2007 with just Allsec, EXL and WNS. As more BPO companies got listed, we have added them to the index after appropriate scaling. The index is updated for the closing price on the first Friday of every month. We have used closing price as on Friday (05/04/13) for this edition of the newsletter.

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

Avendus Capital is a leading financial services firm which provides customised solutions in the areas of financial advisory, equity capital markets, alternative asset management and wealth management. The firm relies on its extensive track record, in-depth domain understanding and knowledge of the economic and regulatory environment, to offer research based solutions to its clients that include institutional investors, corporations and high net worth individuals/families. In recent years, Avendus Capital has consistently been ranked among the leading corporate finance advisors in India and has emerged as the advisor of choice for cross-border M&A deals, having closed 40 cross-border transactions in the past 4 years. Avendus Securities through its Institutional Equities practice is able to offer high quality research-driven advice to help its clients take investment decisions. Avendus PE Investment Advisors manages funds raised from its investors by investing in public markets, while Avendus Wealth Management caters to investment advisory and portfolio management needs of Family offices and Ultra High Networth Individuals / families, spanning all asset classes. Headquartered in Mumbai, the firm has offices in New Delhi and Bangalore. Avendus Capital, Inc (US) and Avendus Capital (UK) Pvt. Ltd. located in New York and London respectively are wholly owned subsidiaries offering M&A and Private Equity syndication services to clients in the respective regions.

For more information, please visit www.avendus.com

Some of the recent deals closed by us include

Title Month - Year Of Deal Value Industry Announcement Avendus Capital advises Apalya Technologies on its recent April, 2013 Undisclosed Digital Media equity raise & Technology Avendus Capital advises Pennar Engineered Building March, 2013 NA Industrials Systems Limited on its fund raising from Zephyr Peacock Avendus Capital advises Magicrete on its fund raising from March, 2013 Undisclosed Industrials Motilal Oswal Private Equity Avendus Capital advises HEROtsc on its acquisition by February, 2013 Undisclosed Technology & Webhelp Outsourcing Avendus Capital advises CVC in its acquisition of SPi February, 2013 Undisclosed Technology & Global Holdings, BPO business of PLDT Outsourcing Avendus Capital advises Transpole Logistics on its fund January, 2013 USD 40 mn Consumer raising from Everstone Avendus advises KPIT Cummins Infosystems Limited on December, 2012 USD 30 mn Technology & preferential allotment of equity shares to CX Partners and Outsourcing ChrysCapital Avendus Capital advises MphasiS Ltd on its acquisition of December, 2012 USD 202 mn Technology & Digital Risk LLC Outsourcing Avendus Capital advises AGS Transact Technologies Ltd. August, 2012 USD 40 mn Consumer on its equity raise from Actis Avendus Capital advises BookMyShow on Accel Partner’s August, 2012 USD 18 mn Digital Media USD 18 Mn investment & Technology

Avendus Capital advises MAS Financial Services Ltd on August, 2012 Undisclosed Financial raising growth capital from DEG – Deutsche Investitions- Services und Entwicklungsgesellschaft mbH Avendus Capital advises eClerx on its acquisition of Agilyst June, 2012 Undisclosed Technology & Inc. Outsourcing Avendus Capital advises R&R Salons on its fund raising May, 2012 Undisclosed Consumer from Everstone Capital and Helion Venture Partners Avendus Capital advises Wipro on its acquisition of May, 2012 USD 36 mn Technology & analytics company, Promax Applications Group Outsourcing Avendus Capital advises Value & Budget Housing August, 2011 USD 26 mn Infrastructure Corporation on its equity raise from The Carlyle Group & Real Estate Avendus Capital advised SYSTIME on its 50% stake sale to May, 2011 USD 23 mn Technology & KPIT Cummins Infosystems Limited Outsourcing

OUR OFFICES

Avendus Capital Pvt. Ltd. Mumbai: IL&FS Financial Centre, B-Quadrant, 5th Floor, Bandra-Kurla Complex, Bandra (East), Mumbai 400 051 Tel: +91 22 6648 0050 New Delhi: Suite 22A/B, The Aman Resort, Lodhi Road, New Delhi - 110003, Tel: +91 11 4535 7500, Fax: +91 11 4535 7540 Bangalore: The Millenia Tower, A-10th Floor, No. 1 & 2 Murphy Road, Ulsoor, Bangalore 560 008 Tel: +91 80 6648 3600 Avendus Capital, Inc New York: 499 Park Avenue, 12th Floor, New York, NY 10022, Tel: +1 646 707 0789 Avendus Capital (UK) Pvt. Ltd. London: 33, St James’s Square, London SW1Y 4JS, Tel: +44 203 159 4353 Avendus Capital, Inc and Avendus Capital (UK) Private Limited are authorized and regulated by the FINRA and FSA respectively.

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