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S u b m i t t e d i n Pa r t ia l Fu l fi l l me n t f o r t h e Aw a r d o f t he D i p lo ma o f Po s t G r a d ua t e D i p l o ma i n M a na g e me n t (Se s s i o n 2 0 1 0 -1 2 )
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Submitted By:
PG D M I Tr i me s t e r Se c - b
INSTITUTE OF MANAGEMENT STUDIES, NOIDA A UGC Recognized Institute A-8B, Plot C , Sector-62, Noida
INSTITUTE OF
MANAGEMENT STUDIES, NOIDA A UGC Recogni zed Insti tute A-8B, Plot C, Sector-62, N oida
D E C L A R AT I O N
Management Studies, Noida hereby declar e that the Seminar Report-108 entit led _______________ HCL BPO________________ is an or iginal work and the same has not been submitted to any other Inst itute for the award of any other diploma. The suggest ions as approved by the faculty were duly incorporated.
i n c l u d e s i nt e r n a l bu s i n e s s f u n c t io n s s u c h a s hu m a n r e s o u r c e s o r f i n a n c e a n d a c c o u nt i ng , a n d fr o nt o f f i c e o u t s o u r c i ng - w h i c h i n c l u d e s c u s t o me r r e l a t e d s e r v i c e s s u c h a s c o nt a c t c e nt e r s e r v i c e s . B P O t h a t i s c o nt r a c t e d o u t s id e a c o m p a n y ' s c o u nt r y i s c a l l e d o f f s h o r e o u t s o u r c i n g . B P O t ha t i s c o nt r a c t e d t o a c o mp a n y ' s n e i g h bo r i n g ( o r n e a r b y) c o u nt r y i s c a l l e d ne a r s ho r e o u t s o u r c i n g . G i v e n t h e p r o x i m i t y o f B P O t o t he i n fo r m a t io n t e c h no l o g y i n d u s t r y, it i s a l s o c a t e g o r iz e d a s a n i n f o r m a t i o n t e c h n o l o g y e n a b l e d s e r v i c e o r I T E S . K n o w l e d g e p r o c e s s o u t s o u r c i n g ( KP O ) a nd l e g a l p r o c e s s o u t s o u r c i n g ( L P O ) a r e s o m e o f t h e s u b - s e g m e nt s o f bu s i n e s s p r o c e s s o u t s o u r c i n g i n d u s t r y.
I n d u s t ry s i z e I n d i a h a s r e v e nu e s o f U S $ 1 0 . 9 b i l l i o n [ 2 ] f r o m o f f s ho r e B P O a n d U S $ 3 0 b i l l i o n fr o m I T a n d t o t a l B P O ( e x p e c t e d i n F Y 2 0 0 8 ) . I n d i a t hu s h a s s o m e 5 - 6 % s h a r e o f t h e t o t a l B P O I nd u s t r y, bu t a c o m m a n d i n g 6 3 % s h a r e o f t h e o f f s ho r e c o m p o n e nt . T h i s 6 3 % i s a d r o p fr o m t he 7 0 % o f f s ho r e s h a r e t h a t I n d i a e n jo ye d l a s t y e a r , d e s p it e t he i nd u s t r y g r o w i n g 3 8 % i n I n d i a l a s t ye a r , o t h e r lo c a t io n s l i k e P h i l i p p i n e s , a n d S o u t h A f r i c a ha v e e m e r g e d t o t a k e a s h a r e o f t he m a r k e t [ c i t a t i o n
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a v e r y s m a l l b a s e i n t h i s i n d u s t r y. H o w e v e r , w h i l e t he B P O i n d u s t r y i s e x p e c t e d t o c o nt i n u e t o g r o w i n I nd i a , it s m a r k e t s h a r e o f t he o f f s ho r e p i e c e i s e x p e c t e d t o d e c l i n e . I m p o r t a nt c e nt e r s i n I n d i a a r e B a n g a l o r e , H y d e r a b a d , C he n n a i , Ko l k a t a , M u m b a i , P u ne a nd N e w D e l h i . T h e t o p f i v e I n d i a n B P O e xp o r t e r s fo r 2 0 0 9 - 2 0 1 0 a c c o r d i n g t o N AS S C O M a r e G e n p a c t , T C S B P O , WN S G lo b a l S e r v i c e s , W i p r o B P O , a nd Ae g i s Lt d..[3] A c c o r d i n g t o M c K i n s e y, t h e g lo b a l " a d d r e s s a b l e " B P O m a r k e t i s w o r t h $ 1 2 2 $ 1 5 4 b i l l i o n , o f w h i c h: 3 5 - 4 0 r e t a i l b a n k i n g , 2 5 - 3 5 i n s u r a n c e , 1 0 1 2 t r a v e l / h o s p it a l it y, 1 0 - 1 2 a u t o , 8 - 10 t e le c o m s , 8 p h a r m a , 1 0 - 1 5 o t h e r s a n d 2 0 - 2 5 i s f i n a n c e , a c c o u nt i n g a nd H R . M o r e o ve r , t he y e s t i m a t e t ha t 8 % o f t h a t c a p a c it y w a s u t i l i z e d a s o f 2 0 0 6 . B enefits and li mitati ons A n a d v a nt a g e o f B P O i s t he w a y i n w h i c h it h e l p s t o i n c r e a s e a c o m p a n y s f l e x i b i l i t y. H o w e v e r , s e v e r a l s o u r c e s [ w h i c h ? ] h a ve d i f f e r e nt w a ys i n w h i c h t he y p erc e ive o r g a n i z a t io n a l f l e x i b i l i t y. T he r e fo r e business process
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w it h t h e e f f e c t i v e u s e o f s u p p l y c h a i n p a r t ne r s a n d bu s i n e s s p r o c e s s o u t s o u r c i n g i n c r e a s e s t he s p e e d o f s e v e r a l b u s i n e s s p r o c e s s e s , s u c h a s t h e t hr o u g h p u t i n t h e c a s e o f a m a n u f a c t u r i n g c o mp a n y. [ 9 ] F i n a l l y , f l e x i b i l i t y i s s e e n [ w h o ? ] a s a s t a g e i n t he o r g a n i z a t io n a l l i f e c y c l e . B P O h e l p e d t o t r a n s fo r m N o r t e l fr o m a bu r e a u c r a t i c o r g a n i z a t io n i n t o a v e r y a g i l e c o m p e t it o r [ c i t a t i o n
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w h i l e a vo i d i n g s t a nd a r d b u s i n e s s bo t t l e ne c k s . [ 1 0 ] B P O t h e r e fo r e a l lo w s f i r m s t o r e t a i n t h e i r e nt r e p r e ne u r i a l s p e e d a n d a g i l it y, w h i c h t he y w o u l d o t h e r w i s e s a c r i f i c e i n o r d e r t o be c o m e e f f i c i e nt a s t he y e xp a nd e d . I t
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t e r m i n a l s u s e d b y c a l l c e nt e r a g e nt s ( fo r e xa m p l e , d i s a b l i n g U S B p o r t s ) . C o mp a n i e s m a y a l s o u s e d a t a lo s s p r e ve nt io n s o ft w a r e t o b l o c k a t t e mp t s t o do w n lo a d , c o p y, o r t r a ns m it s e n s it i v e e l e c t r o n i c data.[2
bu s ine ss pro ces s o ut so urc ing s er vic e s in t he o ut so urc ing indu st r y i n I n d i a , c a t e r i n g m a i n l y t o We s t e r n o p e r a t io n s o f m u lt i n a t io na l c o r p o r a t io n s (MNCs). A s o f 2 0 0 8 , a r o u nd 0 . 7 m i l l i o n p e o p l e w o r k i n o u t s o u r c i n g s e c t o r [ 1 ] ( l e s s t ha n 0 . 1 % o f I n d i a n s ) . A n n u a l r e ve n u e s a r e a r o u nd $ 1 1 b i l l io n, [ 1 ] a r o u n d 1 % o f G D P . Ar o u n d 2 . 5 m i l l i o n p e o p l e g r a d u a t e i n I nd i a e v e r y y e a r . W a g e s a r e r i s i n g b y 1 0 - 1 5 p e r c e nt a s a r e s u lt o f s k i l l s h o r t a g e . [ 1 ]
HISTORY In t he ear ly 19 80s s e vera l Euro pea n a ir line s st art ed u s ing D e lh i as a ba se fo r b a c k o f f i c e o p e r a t io n s , B r it i s h A i r w a ys b e i n g o ne a m o n g t he m. T h e B A c a p t i v e w a s f i n a l l y s p u n o f f a s a s e p a r a t e o r g a n i s a t io n c a l l e d WN S G lo b a l S e r v i c e s i n 2 0 0 2 . Amex I n t h e s e c o nd ha l f o f t h e 1 9 8 0 s , A m e r i c a n E xp r e s s c o ns o l i d a t e d it s J AP A C ( J a p a n a n d A s i a P a c i f i c ) b a c k o f f i c e o p e r a t io n s i nt o N e w D e l h i a nd N C R r e g io n [ 2 ] . T h i s c e nt e r w a s he a d e d b y R a m a n R o y, a n d h a s be e n a s o u r c e o f s e v e r a l l e a d i n g na m e s i n t he I nd i a n B P O I nd u s t r y. General Electric I n t h e 1 9 9 0 s J a c k W e l c h w a s i n f l u e n c e d b y K. P . S i n g h , ( a D e l h i b a s e d r e a lt o r ) t o lo o k a t G u r g a o n i n t he N C R r e g io n a s a b a s e fo r ba c k o f f i c e o p e r a t io n s . P r a m o d B h a s i n, t h e I nd i a h e a d o f G . E . h i r e d R a m a n R o y a n d s e v e r a l o f h i s m a n a g e m e nt f r o m A m e r i c a n E xp r e s s t o s t a r t t h i s e nt e r p r i s e c a l l e d G E C I S ( G E C a p it a l I nt e r n a t io n a l S e r v i c e s ) . R a m a n fo r t he f i r s t t i m e t r i e d o u t vo ic e o p e r a t io n s o u t o f I nd i a , t h e I n d i a o p e r a t io ns a l s o w a s t h e B e t a s it e fo r G E S i x s i g m a e nt e r p r i s e . T h e r e s u lt s m a d e G E r a m p u p t h e i r I n d i a n p r e s e n c e a nd lo o k a t o t h e r lo c a t io ns . I n 2 0 0 4 G E C I S w a s s p u n o f f a s a s e p a r a t e l e g a l e nt it y b y G E , c a l l e d G e np a c t . G E h a s r e t a i n e d a 4 0 % s t a k e a n d s o l d a 6 0 % s t a k e fo r $ 5 0 0 m i l l i o n t o t wo e q u it y c o mp a n i e s , O a k H i l l C a p it a l P a r t n e r s a nd G e n e r a l At l a nt i c P a r t n e r s . T h i rd p a r t y B P O ' s U n t i l G . E m o s t o f t h e w o r k w a s b e i n g d o ne b y " c a p t i v e s " - a t e r m u s e d fo r i n h o u s e w o r k b e i n g d o n e fo r t he p a r e nt o r g a n i s a t io n. I n 2 0 0 0 R a m a n R o y a n d s o m e t e a m m e m b e r s f r o m G E C I S q u it , a nd w it h V C f u n d i n g fr o m
F e w e n t r e p r e ne u r s w ho h a d a v i s io n o f br i n g i n g t he r u r a l I nd i a i n t o t h e m a i n s t r e a m o f k n o w l e d g e e c o no m y h a ve fo u nd a n o p p o r t u n it y h e r e s e t t i ng R u r a l B P O s . T he t r a n s fo r m a t i o n o f r u r a l I n d i a s t a r t e d w it h t h e e m e r g e n c e o f t h e s e R u r a l B P O s . T he m a jo r h u r d l e s t ha t t h e s e B P O s f a c e d i s q u a l it y m a n p o w e r . A s a r e s u lt t he s e r u r a l B P O s h a v e r e m a i n e d t a r g e t i n g lo w e nd jo b s l i k e d a t a e nt r y. [ c i t a t i o n Effect o f g lob a l me ltdo wn on Indi an B POs A m e r i c a n f i n a n c i a l m e lt d o w n h a s b e g u n t o t a k e it s t o l l o n I nd i a ' s I T a n d o u t s o u r c i n g bu s i n e s s . [ 1 ] Cha llen ge s to outsou rcing se rvic es in India M a n y a n a l ys t s be l i e v e t h a t t he g r o w t h o f I nd i a o u t s o u r c i n g s e c t o r i s w i d e l y o p t i m i s t i c a n d it w i l l s lo w d o w n i n f u t u r e . B o t h I T a n d B P O s e c t o r i s e x t r e m e l y d e p e n d e nt i n U S A a n d i f t h e U S d o l l a r d e p r e c i a t e s c a n a d v e r s e l y i m p a c t t he e nt ir e s e c t o r . A d d it i o na l l y c o u nt r ie s l i k e C h i n a , M e x i c o a n d V i e t n a m a r e a l s o e x p a n d i ng o u t s o u r c i n g o p e r a t io n s a nd o ft e n pro vid ing c heap er ser v ic es. S i ze o f i n d u s t ry T h e i n d u s t r y ha s be e n g r o w i n g r a p i d l y. I t g r e w a t a r at e o f 3 8 % o v e r 2 0 0 5 . F o r t he F Y 0 6 f i n a n c i a l ye a r t h e p r o j e c t io n s i s o f U S $ 7 . 2 b i l l i o n wo rt h o f ser vic es pro vid ed by t his h e a d c o u nt be ing roughly 400,000 i nd u s t r y. T he b a s e i n t e r m s o f d ir e c t l y e m p lo ye d in t his
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r e s p o n s i b i l it i e s i n c l u d e d m a n a g i n g t h e d e l i v e r y o f bu s i n e s s s o l u t io n s fo c u s e d o n b a nk i n g , a i r l i n e s , g o ve r n m e nt a nd n e t w o r k i ng . A p o r t io n o f h e r t e n u r e a t U n i s ys a l s o i n c l u d e d a f i v e - y e a r s t i nt i n A s i a P a c i f i c . SUBROTO B H AT T A C H A R Y A
D ir e c t o r M r . S u b r o t o B h a t t a c h a r ya , a C h a r t e r e d A c c o u nt a nt b y t r a i n i n g , s p e n t h i s e a r l y c a r e e r w i t h D C M L t d . , w he r e h e r o s e t o t he p o s it io n o f a D ir e c t o r o n t he b o a r d . I n t he l a t e e i g ht i e s , he jo i n e d t h e H C L G r o u p a n d s u b s e q u e nt l y j o i n e d t h e B o a r d o f t h e f l a g s h i p c o m p a n y H C L . H e a l s o s e r v e s o n t h e B o a r d o f D i r e c t o r s o f H C L I n fo s ys t e m s L t d a nd N I I T L t d . AMAL G AN G U L I
D ir e c t o r M r . A m a l G a ng u l i, a C h a r t e r e d Ac c o u nt a nt , w a s t i l l r e c e nt l y t h e S e n io r P a r t n e r o f P r i c e w a t e r ho u s e C o o p e r s I nd i a . I n a d i s t i n g u i s h e d c a r e e r s p a n n i n g ne a r l y fo u r d e c a d e s , M r . G a ng u l i w a s i n vo l v e d w it h t he I n d i a p r a c t i c e o f P r i c e w a t e r ho u s e C o o p e r s a n d i s a n a u t ho r it y o n m a t t e r s r e l a t e d t o a u d it , t a x a t io n , m e r g e r s a n d a c q u i s i t io ns , a n d c o r p o r a t e r e s t r u c t u r i ng .
C o m m i s s io n i n A p r i l 2 0 0 3 a nd t o o k o v e r a s D i r e c t o r , I nd i a I nt e r na t io n a l C e n t r e f r o m M a y 2 0 0 3 o n w a r d s . M r . S e n w a s c o n f e r r e d t he ` N a t io n a l C it i z e n s Aw a r d p r e s e nt e d b y t h e P r i m e M i n i s t e r o f I nd i a , t he ` S h i r o ma n i
A w a r d p r e s e nt e d b y t h e S p e a k e r o f t he L o k S a b h a a nd t h e ` W i n g s o f
H i s t o r y Aw a r d fo r h i s t e nu r e i n I n d i a n A i r l i n e s .
D e ve lo p e d t h e f ir s t i n d i g e no u s m i c r o - c o mp u t e r a t t he s a m e t i m e a s A p p l e a n d 3 ye a r s b e fo r e I B M ' s P C i n 1 9 7 8 . T h i s m i c r o - c o mp u t e r v i r t u a l l y g a ve b i r t h t o t he I nd i a n c o m p u t e r i n d u s t r y.
H C L ' s R & D w a s s p u n o f f a s H C L T e c h no lo g i e s i n 1 9 9 7 t o ma r k t h e i r a d v e nt i nt o t he s o ft w a r e s e r v i c e s a r e na .
T o d a y, H C L s e l l s m o r e P C s i n I n d i a t h a n a n y o t he r br a nd , r u n s N o r t h e r n I r e l a n d ' s l a r g e s t B P O o p e r a t i o n , a n d m a n a g e s t h e n e t w o r k fo r A s i a ' s l a r g e s t s t o c k e xc h a n g e n e t w o r k a p a r t fr o m d e s i g n i n g z e r o
v i s i b i l i t y l a n d i n g s ys t e m s t o l a nd t he w o r ld ' s mo s t p o p u l a r a i r p l a n e . A n d t h i s it d o e s a c r o s s 2 3 c o u nt r ie s a n d a c r o s s 3 6 0 s e r v i c e lo c a t io n s i n
I nd i a
P r o f i l e H C L B P O S e r v i c e s r e p r e s e nt s H C L T e c h no lo g i e s ' mo s t s i g n i f i c a n t st rat eg ic e x t e ns i o n a n d i n v e s t m e nt t o d a t e . H C L B P O S e r v i c e s c u r r e nt l y o p e r a t e s o u t o f v a r io u s l o c a t io n s i n I n d i a , M a l a y s i a a n d N o r t he r n I r e l a n d . T h e fo c u s o n a nd c o m m it m e n t t o B P O i s b a s e d o n t h e fo l lo w i n g asset s a nd at t ribut es: G lo b a l C l i e nt B a s e & R e l a t io n s h i p s - H C L - T ' s g lo b a l r e l a t io n s h i p b a s e co nsist s of a ppro ximat e ly 454 c l i e nt s , inc lud ing 61 F o r t u ne 500 bu s i n e s s
D o ma i n s . S o m e o f t h e s e D o m a i n s b e a r a d i r e c t r e l a t io ns h i p t o a w id e r a n g e o f B . P . O s e r v i c e s - e . g . C R M / E R P / S C M / I m a g i n g & Wo r k f lo w e t c .
R e m u n e r a t io n A s p e r I n d u s t r y S t a nd a r d s ( N e g o t i a b l e ) E d u c a t io n U G - A n y Graduate S p e c i a l i z a t io n P G - A n y P G C o u r s e - A n y S p e c i a l i z a t io n Job * * * Ma nag ing So lving and u pdat ing At t e nd i n g cu st o mer c ust o mer & c l i e nt D e s c r i p t io n i n bo u n d . quer ie s. database. Any
* A c t i ng a s a p r i m a r y i nt e r f a c e fo r a l l c u s t o me r s e r v i c e e n q u i r i e s . * E n s u r i n g a l l u n r e s o l v e d f a u lt s , q u e r i e s a n d c o mp l a i nt s a r e p a s s e d o n t o t he n e xt le ve l of
* U n d e r t a k i n g o t he r d u t ie s a s r e q u ir e d b y t h e A s s i s t a nt M a n a g e r . Des ired *Exce llet C o m m u n i c a t io n (0-3 o ve r i nd u s t r y year s spoken will be Pro file Sk ill e xp) E ng l i s h. co nsid ere d.
* A b i l it y t o w o r k a s p a r t o f a t e a m a nd / o r o n yo u r o w n i n it i a t i v e
May 2002
WNS
Not Available
August 2002
IndiaLife Hewitt
Not Available
April 2003
Ephinay
Not Available
July 2003
ClaimsBPO USA
WNS
Not Available
CorPay Solutions Datamatics Detroit, USA Upstream Philadelphia, USA Aegis Communication Corp Texas, USA Simpata San Francisco, USA Acquiree Pipal Research Illinois, USA Source One
$9m
Godrej
$6m
November 2003
Communication New Jersey, USA Cambridge Integrated Services Illinois, USA Accounts Solutions Group (ASG) New York, USA Devonshire Group London, UK
2004
Toronto, Manila; multilingual capabilities in French and Spanish. Enter the insurance claims processing segment, expand presence to Australia and the US. Staff strength of 500 in US delivery center to enter the high-margin, late-stage collections market. Expand capabilities to consulting and staffing services. With the acquisition of Avicis/HealthScribe, currently the nation's third largest medical transcription outsource provider, Spheris is now positioned to more rapidly expand its product and service offering of complete medical transcription technology and outsourcing services to healthcare providers throughout the U.S. and Canada.
September 2004
ICICI OneSource
$40-45m
October 2004
OfficeTiger
Not Available
November 2004
HealthScribe
Spheris
Not Available
Spanco Telesystems
Spanco's domestic BPO business will be farmed out into a separate listed subsidiary, to be owned November, 51% by Intelenet Global 2005 and 49% by Spanco's present shareholders. The Anil Ambani Group owns 14.9% of Spanco Signed in Allsec gets a strong
b2k
Allsec Tech
$3m all-cash
deal, final consideration will depend on the revenues of the company from Dec 2005March 2006 Office Tiger Acquiree RR Donnelley Acquirer / VC $250m all cash deal Value
Donnelly to cut its own costs by outsourcing printing to OfficeTiger Reason For Acquisition Metavante has relationships with over 8,000 financial institutions, including 91 of the top 100 US banks. Metavante will be the exclusive distributor of IOneSource's BPO services in the North American banking and financial services and payments markets. The merger of the two companies came into being with Trident and Capz the two major investors of Ultralink being bought over by Bearings Private Equity the major stake holder of Secova. This merger enables the combined company to leverage technology, global delivery centers and bestin-class processes to deliver an integrated, human resources and benefits administration supply chain at a cost effective price point regardless of an
Not Available
organizations' size. GKM does back-office operations in the areas of finance, accounting and insurance claim processing. The synergy of GKM and SHCIL services would help ramp up the operations and offer a bouquet of services. EBS is a marketing services BPO and IMG is in US. EBS hopes to tap the US market better thru IMG A strategic acquisition to strengthen EXL's research and analytical vertical. Canada based Minacs has an annual revenue of $265m. Transworks wil have an combined revenues of $300m
Not Available
IMG Group
Inductis
$20-40m [stock-cumcash, majority in stock] $125m [sharecum-cash deal for 46.4% acquistion of promoters equity] Rs 530 crore: Infy acquired 87,50,000 equity shares, 23 per cent of Progen from Citicorp International Finance Corporation $31m Capgemini acquired 51%
Minacs
Transworks
Progeon
Infosys
July 2006
Apollo Health
Capgemini
Acquiree
Acquirer / VC
Value $100m
Integreon
After acquisition of shares from Connect Capital October and The View 2006 Group it will infuse $20m into Integreon October 2006 $25m December 2006 Acquisition includes BPM's two wholly owned subsidiaries - MedPlans 2000 and MedPlans Partners. Acquisition is expected to contribute over USD 25 million in revenues to the BPO business of Essar Acquisition will help HOV make an entry in new business verticals like transaction processing, healthcare and media Tata Consultancy Services is exiting its joint venture BPO, Sitel India, by selling its 40% stake for $17.73 million to Sitel Corporation. Tata International is exiting by selling 10% stake for $4.47m WNS to enhance
BPM Inc.
Firstsource Solutions
$30m
January 2007
Vantedge
Essar Gobal
Rs 100 Crore
January 2007
Lason
HOV Services
$148m
February 2007
Sitel India
Sitel Corporation
$22.2m
March 2007
Marketics
WNS
$65m in cash
March
2007
knowledge services business, which provides market research, business & financial research and analytics services. Reason For Acquisition The two decade old Four Lakes is a full service pre-media company with two facilities in Wisconsin and New York City. It is believed that Four Lakes project management, design and editorial development skills will combine will with Laserwords technical strength to provide on-shore, offshore and hybrid delivery models. Laserwords will have over 1000 employees post acquisition. HCCA has been acquired for its delivery capabilities in HR operations, including large scale payroll processing for clients in the BFSI sector The deal will give Wipro five data centers in the U.S. and approximately 900 employees, as well as access to Infocrossing's U.S. customers. After the acquisition, Wipro's IT infrastructure management practice will be 1.5 to 2 times larger than its nearest peers, Tata Consultancy and
Acquiree
Acquirer / VC
Value
Date
Laserwords
$11m
August 2007
3i Infotech Ltd
Infocrossing
Wipro
$600m / 60 times August Infocrossing's 2007 earnings for the last 12 months
HCL Tech. While this will enable the company to compete more effectively in larger IT management deals. The new entity will be christened TSC Hero and will offer customers a multi-site solution, increasing market potential and growth prospects in the core markets of Europe, Asia and the US. Jhawars are investing in both new and existing international locations and plan to build facilities for a total of 2,000 contact centre seats globally (both on-shore and off-shore) that will meet the demands from major blue chip organisations and give them the choice of leveraging domestic and overseas BPO capabilities. While the GSR group companies have revenues of $3 million each, DenMed had revenues of $1.5 million. The company expects to add nearly $10 million to its topline by way of these acquisitions. This acquisition expands Cognizant's capabilities in the analytics segment and broadens our service offerings for the life
Hero Group
40 million
September 2007
Usha Martin
The Jhawar family, main share holders of the Usha Martin Converso September Group acquired Contact Centres 2007 76% of Converso for an undisclosed amoun
Florida based GSR Physician Billing Inc and GSR Systems Inc Accentia and OregonTechnologies based medical transcription services provider DenMed Inc
Rs 80 crore
October 2007
marketRx
Cognizant
$135m in cash
October 2007
sciences industry while providing strong synergies with our existing business intelligence/data warehousing and CRM (customer relationship management) services. The Firstsource bid was around $100 million more than that of Genpact and although Citi was keen on doing the deal with Genpact, it was caught in a bind over the bids. Dalglen has a large presence in Scotland. It is one of the largest call centres in Europe and in the UK. Post acquisition, the combined group will have clients spread across sectors like telecom, financial services, IT, retail, utilities and consumer durables. The deal covers several wholly-owned subsidiaries of Dalglen including Telecom Service Centres (TSC), TSC Credit Management, Sigdev and 9 dormant subsidiaries of TSC. Dalglen group had annual revenues of #55 million in 2007 and is growing at a 15% clip annually. It has nine sites across the UK and an employee base of 3,000. WNS is the second Warburg portfolio firm
Citi BPO
Genpact
Dalglen
Hero Group
WNS
where Nalanda India, the India fund of Singaporeheadquartered private equity fund Nalanda Capital, is known to have invested. The $400million fund, which has a mandate to invest only in publicly-listed companies, had picked up a 14.9% stake in Jaipurbased Vaibhav Gems. Date Reason For Acquisition McGladreys has some $18 million in billings and its 600 or so staffers, including 200 in the U.S. Quatrro has 1600 employees A new legal entity has been carved out from the merger of Quatrro's own finance and accounting practice and RSMs FPO unit. John Keells has picked up 44% stake in this new entity As part of the transaction, which is being funded by DE Shaw, the New Yorkbased investment group is picking a minority stake of around 5-10 per cent in Quatrro for an undisclosed sum. Besides this, DE Shaw will also hold a minority stake in Babel and will provide leverage finance for the acquisition. Quatrro will hold a majority stake in the UK-based firm. Acquired Aviva Global
Acquiree
Acquirer / VC
Value
$50 million
April 2008
Quatrro
April 2008
Babel Media
Quatrro
$100-125m
June 2008
Aviva Global
WNS
$230m
June 2008
Services
Services, the UK-based insurance giant's captive BPO in India and Sri Lanka, for $230 million. WNS has beaten Aviva's other vendors EXL and 24/7 Customer to clinch the deal. The deal will also see WNS securing UK-based insurance giant Aviva's committed $1 billion outsourced work over an eight-year period. The buyout will bring over 6,500 employees of Aviva Global Services spread across Bangalore, Pune, Noida, Chennai and Colombo under the WNS fold. The deal gives Allied Digital access to a ready customer base for remote infrastructure management services and a base in the US to expand its presence. This is Essar's 11th BPO acquisition since 2005. PeopleSupport has annual revenues of around $141 million and Aegis, which is unlisted, has revenues of $320 million. The acquisition gives Aegis a sizeable presence in Philippines, which is a key region for BPO players servicing the US market, as well as presence in Costa Rica. The Costa Rica facility gives it a nearshore
July 2008
PeopleSupport
July 2008
presence to US. Aegis gets about 8,500 employees from the acquisition. Control Point Solutions is a privately-held voice, data & wireless telecom expense management (TEM) service provider. Under the deal, HCL will acquire four delivery centres in US with over 200 professionals. The strategic acquisition of Control Point Solutions is in line with HCL BPOs goal to make strategic, platform-based acquisitions which give us sustainable competitive advantage in chosen verticals. This acquisition enhances HCLs ability to become an end-to-end provider of business process outsourcing services in the attractive TEM space The addition of Cambridge Solutions to Xchanging delivers greater scale, broader international reach and a number of platforms for significant future growth. In particular, the Acquisition brings the following strategic advantages: 1. processing capabilities and a strong market presence in the
August 2008
Cambridge Solutions
83 million (Rs 686.84 crore) Rs 371.2 crore in cash and issue 15,249,998 New Xchanging October Xchanging PLC Shares. The 2008 New Xchanging Shares amount to 7% of the Company's current issued ordinary share capital.
2.
3.
4.
5.
USA, which can serve as a springboard for future growth; the addition of scale to Xchangings Indian BPO platform and the creation of offshore critical mass; the addition of a strong Australian business and a platform for Xchangings growth in the region; the addition of scale and the enhancement of the Xchanging Groups IT capabilities; and the opportunity to create a truly international insurance processing business with significant combined revenues.
$505 m
October 2008
This deal marks the largest buyout of a foreign captive BPO in India. The largest captive BPO acquisition till date was WNS's take over of Aviva BPO for $230 million. Citigroup BPO handles services such as credit cards, consumer
finance, retail banking, capital markets & banking as well as global transaction services. The Citi BPO has EBIT margins of 20% and is expecting the revenues to touch $278 million this year. The transaction is expected to be closed by last quarter of FY08. Merrill Lynch was the advisor to TCS on the deal. TCS said in a statement that the acquisition will broaden its portfolio in the end-to-end IT and BPO services in the global banking and financial services sector. TCS said that it will leverage on capabilities of Citi BPO to serve large global banks. Analysts say it makes good sense for investor to look at IT & BPO firms due to the drop in their valuations. Earlier valued at four times their revenue or 14 times their operating profits, these firms are now trading at half those multiples. As per the last disclosed shareholding pattern of EXL prior to this transaction, Oak Hill Strategic Partners held a 36.5% stake in the BPO firm, followed by Fidelity (15%). BlackRock
Fidelity Investments
November 2008
Financial Management is the other leading shareholder with an 8.2% stake. Founders Rohit Kapoor and Vikram Talwar hold 6.9% and 6.2% respectively. InfoVision group has about 10,000 personnel and 60 clients. Serco, which offers a whole spectrum of support services but did not have a presence in the BPO space prior to the InfoVision acquisition, plans to have a workforce of 20,000 in the next 2-3 years. The cash deal would allow Wipro to get $500 million worth of assured business in software services and infrastructure management over the next six years. The acquisition will help position the company to work in a hybrid onshore/offshore model, capable of delivering design, editorial and project management capabilities in the US. With this acquisition, Aegis will have operations in India, Philippines, the United States, Costa Rica, Kenya and Australia. The unit provides finance and accounting services
InfoVision
Serco Group
November 2008
Wipro
$127m
December 2008
DiacriTech
Undisclosed
Feb 2009
Aegis Communication A$54m (Rs 200 April 2009 Corp, BPO arm crore) of Essar EXL Service Holdings
Approx $40m
July 2009
Republic
to logistics firms in Europe in multiple languages such as English, German , French, Italian and Spanish. Through this acquisition EXL has a presence in Eastern Europe. Eastern Europe is an attractive BPO destination both due to the language capabilities and the nearshore advantage for catering to markets in Europe As part of the transaction, financial services provider UBS and Cognizant have entered into a multi-year services pact, under which Cognizant will provide business process outsourcing (BPO), knowledge process outsourcing (KPO), IT and remote infrastructure management services to UBS divisions globally. The UBS unit, called UBS India Service Centre (UBS ISC), employs about 2,000 associates Reason For Acquisition EXL gained around $160 million outsourcing contract spread over eight years. EXL has 10,500 employees, AmEX travel BPO has 800.
Cognizant
Approx $75m
October 2009
Acquiree
Acquirer / VC
Value
Date
$30m
October 2009
McCamish Systems
Infosys BPO
B I B LI O G R A P H Y
w w w . i n b o x. c o m w w w . g o o g le . c o m www.w ik ipe d ia.co m h t t p : / / w w w . h c l b p o . c o m/ h t t p : / / w w w . bp o i n d i a . o r g / l i s t - c o m p a n i e s / h