For Title page only

MphasiS Voice of Employee Survey 2009

Prepared For: Prepared By:

Abridged Report : 4th August, 2009

TNS Consultants: Parijat Chakraborty Vinod Nair Vidya Devaya

- 1TNS Technology Research and Consulting, www.tns-global.com

Background & Coverage (1)

Measure MphasiS relationship with its employees

Objectives

Identify the key drivers of employee commitment to MphasiS And hence, to help develop an action plan that prioritizes areas for time-based action

Methodology

Employee Commitment Study using the TRI*M Stakeholder Management System Quantitative study using a web-based structured questionnaire Towers Apps, BPO Domestic & International, ITO Core, Service Desk and Corporate Support

Coverage

Locations India, Asia Pacific, North America & Europe. In India 9 locations - Chennai, Bangalore, Mumbai, Pune, Ahmedabad, Noida, Indore, Mangalore and Pondicherry

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Background & Coverage (2) - Definitions

TRI*M INDEX: Level of employee Commitment to the organization Ref: Slide No:6 to 11 TRI*M Typology: Describes employee-organization relationship in the context of existing employee satisfaction and commitment levels Ref: Slide Nos: 12 to 15 TRI*M GRID: Helps identify strengths and weakness of our organization as perceived by employees Ref Slide Nos: 16 to 22

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Background & Coverage (2)

By Country Location India Employee Universe 23393 Sample Achieved 21218 % Achieved 91 Location Ahmedabad Bangalore Chennai Europe North America Australia & New Zealand TOTAL 442 1174 96 25260 By Tower Tower Apps BPO International BPO Domestic ITO Core ITO Service Desk Corporate Support TOTAL Employee Universe 10049 4658 5776 774 2196 1807 25260 Sample Achieved 9124 4343 5196 714 1926 1481 22784 % Achieved 91 93 90 92 88 82 90 357 978 90 22784 81 83 94 90 Hyderabad Indore Mangalore Mumbai Noida Pondicherry Pune Vadodara TOTAL By Location (India) Employee Universe 694 7776 3340 37 1968 327 1625 373 311 6421 521 23393 Sample Achieved 676 7221 3016 37 1820 318 1416 358 287 5590 479 21218 % Achieved 97 93 90 100 92 97 87 96 92 87 92 91

Asia Pacific/Oceania

155

141

91

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Background & Coverage (3)

By Level Tower Level 1 Level 2 Level 3 Level 4 Level 5 Level 6 Level 7 Level 8 Level 9 Level 10 Level 11 Level 12 TOTAL Employee Universe 370 9632 6061 3226 2516 1516 1047 453 300 107 28 4 25260 Sample Achieved 313 8753 5445 2922 2311 1340 905 407 270 95 21 2 22784 % Achieved 85 91 90 91 92 88 86 90 90 89 75 50 90

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How Committed are our Employees ?

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TRIM Index The Key Questions

1 2 3 4
How satisfied are you with your employment with MphasiS? How likely are you to recommend MphasiS as an employer to others? If you were to reapply for a job today, would you reapply for a job with MphasiS again? How strongly do you identify with MphasiS as a company? How do you rate your colleagues motivation in your immediate working environment? How would you assess the overall market performance and achievements of MphasiS as a company? Overall satisfaction Recommendation

Rejoining

Identification
Motivation of colleagues

Market Strength

TRIM INDEX 100+

TRIM INDEX 70-99

TRIM INDEX 40-69

TRIM INDEX 10-39

TRIM INDEX <10

TRI*M Index is used to measure the level of employee commitment to the organization

HIGHLY COMMITTED UNENTHUSIASTIC COMMITTED - 7-

DISILLUSIONED

DETACHED

TRI*M Index - Overall

Excellent Employee Retention
100

2007

2008

2009

Top 2 Boxes
80

Overall Satisfaction
60

28 49 48 41 34 45

31 46 49 41 38 42

34 53 56 48 38 63

63 53 54

Recommendation Rejoining Identification Motivation of colleagues

Poor Employee Retention

40

20

Market Strength Mid Box

2007 Base 3751

2008 19825

2009 22784

Overall Satisfaction Recommendation Rejoining Identification Motivation of colleagues Market Strength Bottom 2 Boxes

59 37 30

57 41 30

56 36 29

40
41 48

38
41 49

38
42 35

TRI*M Index at 63 is a significant increase from 2008 The index seems to be driven mainly by market strength of the company, coupled with intention to rejoin and recommend MphasiS to others.

Overall Satisfaction Recommendation Rejoining Identification Motivation of colleagues Market Strength

13 14 22 19 25 7

12 13 21 21 21 9

10 11 15 14 20 2

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MphasiS TRI*M Index Benchmarked

MphasiS TRI*M Index is 63

77 65 57 64 66

73

59 49 40 41 52 56 49 53

60

Bottom 10%

Bottom 33% Worldwide

Base:

Mean

Top 33% India

Top 10%

Asia (without Japan/Korea)

1,600,000 65,000 16,000

MphasiS TRI*M index is closer to the Top 33% organizations in India and worldwide, moving up from the bottom 50% last year.

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TRI*M Index By Level and Towers

Level
100

MphasiS TRI*M Index is 63

76 73 65 69 60 48 58 44 56 43 55 39 57 61

2008

2009 83

Excellent Employee Retention

80

60 42

63 51 45

60

40

35

38

Poor Employee Retention

20

Level 1 Level 2 Level 3 Level 4 Level 5 Level 6 Level 7 Level 8 Level 9

Level 10

Level 11

- Index below average - Index above average -Significant increase vs. 2008 - Significant decrease vs. 2008

Base - 2009

313
100

8753

5445

2922

2311

1340

905

407
2007

270
2008

95

21
2009

Tower
Excellent Employee Retention

MphasiS TRI*M Index is 63

75 63 57 43 39 74 67 60 64 64 49 68

80

63 47 48 47 51 56

60

40

Poor Employee Retention

20

0 APPS BPO Domestic BPO International Corporate Support ITO Core ITO Service Desk

Base - 2009

9124

4343

5196

714

1926

1481

Levels at either ends relatively better satisfied compared to the levels in the middle, however the middle manager index has raised more significantly from last year Vastly improved performance across most towers. BPO Domestic has also managed to come close -10to the high index last year

TRI*M Index Executive Talent and High Performers

Executive Talent Pool
Excellent Employee Retention
100

80

81

60

40

44

Poor Employee Retention

20

2008

2009

Base

17

24

Excellent Employee Retention

100

80

Top performers

60

62 45

40

Poor Employee Retention

Base

20

2008

2009

TRI*M index for Executive Talent Pool , comprising of High potentials in Levels 10 and 11, has gone up to 81 from 44 TRI*M index for Top performers, comprising of all top performers across all levels, has risen to 62 from 45.

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How can we classify our employees ?

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TRI*M Typology

Overall performance Recommendation

Satisfaction

Satisfied & motivated employees

Satisfied but not committed. Could shift for better opportunities.

Resident

Drivers

59% 25%
Detached Critics

Motivating environment
Rejoining/Motivation of colleagues

Neither satisfied nor committed, virtually ready to shift.

Performance/Market strength

Dissatisfied but committed to stay on

TRI*M Typology
Overall - Typology TRI*M Index 63
Satisfaction
DRIVERS CRITICS RESIDENT DETACHED

Overall- Across Waves

Drivers
23 %

49

48

39

Residents
20 %

Critics
18 %

Motivating Environment

20 22 14 21 18 14 17
2008

Detached
39 %
- Indicates increase vs. 2008 - Indicates decrease vs. 2008

15
2007

23
2009

Base 22784

Increase in proportion of drivers and decrease in proportion of detached has caused an increase in TRI*M Index at the overall level Compared to other studies we have done in this area, our issue seems to be more in the satisfaction aspect rather than motivating environment.

MphasiS TRI*M Typology Benchmarked

DRIVERS CRITICS REISDENTS DETACHED

39

36

41

36

20 18 23 MphasiS

31 13

33 12

34 11 19 World

20 India

14 Asia (without Japan/Korea)

Combined % of Drivers and Critics in MphasiS is higher than the global benchmarks, indicating better scores on motivating environment

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What aspects do we need to work on ?

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TRI*M Grids (1)

Measuring Importance and Satisfaction on product /service attributes
We has asked employees to rate the relative importance of all the parameters on a 5 point scale where 5 means it is extremely important and 1 means not at all important to you Also employees were asked to rate their assessment of MphasiS on these parameters using a 5 point scale where 5 means excellent and 1 means poor to you

1 Importance
Extremely Important Very Important Fairly Important Not Very Important Not at all Important

1 Satisfaction
Excellent Very good Good Fair Poor

Organizational culture

Work place

Manager and Team leaders

Leadership

Team work

Communication

Positive work environment

Sense of security

Good infrastructure
Work life balance

Shares credit
Constructive feedback

Trust
Open to ideas

Clarity
Communication

Relevance of work
Expectation Distribution of work

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TRI*M Grids - Definition (2)

Understanding employee requirements
High

HYGIENICS

MOTIVATORS
Work life balance

Fix weaknesses and leverage strengths to gain competitive advantage

Stated Importance

Good infrastructure

Focus on goal

Exploit these hidden opportunities before the competition!

Team work

Do not fall below average, but do not invest too much due to diminishing returns.

Shares Credit

Reduce investment if traditional elements, but allow new services to start and develop from here!

POTENTIALS?/ HIDDEN SAVERS? OPPORTUNITIES Low High Impact on Employee Retention

Performance Far above average Above average Average Below average Far below average

Low

Sample Data

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Summary of Strengths - Overall

H07 I am proud of the external reputation of the company H06 I feel a sense of pride when I talk about my organization to others H01 MphasiS is dynamic one that is able to manage growth E01 Relevance of work to organizations goals A04 We are result-oriented and we demand excellence from ourselves and from each other. H04 The organization is an equal opportunity employer (no discrimination based on religion/ gender/ caste/ creed/ place of origin/disability) H03 There is a clear corporate vision for sustained growth F01 Goal setting is done and I am aware of my goals. C06 My Manager encourages healthy dialogue and debate to arrive at best solutions

C05 My Manager listens and offers constructive feedback to the team

C04 My Manager gives freedom in functioning, decision making and implementation C03 My Manager is fair and shares credit for the success of a project with the team C01 My Manager takes timely and quality decisions A05 We do our best to honour our commitments to all our stakeholders. A03 We have a culture of working together and being collaborative. H02 MphasiS is innovative A01 We promote an open culture and respect diverse viewpoints.

positive

negative

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Summary of Weaknesses - Overall

TRI*M Index 63
G02 Recognition for work done F04 Opportunities for growth exists for an individual within the organization

E03 Fair distribution of work across the team

E02 Expectations from my job/role are clear D02 Forums are available for meaningful communication with senior management A02 We are Transparent and Honest in dealing with all issues. G01 Compensation is fair and commensurate with my role, responsibility and performance

positive

negative

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Way Forward
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Way Forward
Focus areas centre around Compensation & Recognition, Learning, and Performance Management While there is a need to address compensation structure; the following perceptions emerge as very important to employees:

- Recognition for work done a performance based bonus program, for instance (if not already in
existence)

- Compensation should be fair and commensurate with the employees role, responsibility and
performance Employees rate Learning as a very important dimension in their career path. From the company point of view, there is always a need for productive and efficient workforce. Therefore:

- Training programs on internal tools and processes, leadership skills, soft skills like communication skills,
team building, etc Apart from on the job training; seminars and training programs could be organized for the team in collaboration with reputed institutions etc. Employees should have opportunities for growth within the organization :

- Regular performance reviews by managers - Weekly once work in progress meetings could be
conducted to share experiences

- Performance linked variable pay, target setting etc

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TRI*M Index By Verticals Within Each Tower

Apps
Excellent Employee Retention
60 40 20 0 100 80

APPS TRI*M Index is 57

* - low base

57

62

62

60

57

63

55

53

58

57

53

59

53

59

& Business Ops RMG

CIO

Delivery Assurance

Consumer Industries

APPS

Practices

Resource Mgmt

Sales

Technology

Communication

Base - 124

27*

248

793

566

38

2536

848

1541

1080

517

118

254

556

BPO- Domestic
100

BPO- Domestic TRI*M Index is 74

87 74 78 74 78 66

Excellent Employee Retention

80 60 40 20 0

Poor Employee Retention

BPO Domestic

Dom BPO South,Bangalore

1117

Dom BPO South,Pondy

283

Dom BPO West,Ahmedabad

657

,Dom BPO West Baroda

474

Dom BPO West,Indore

1811

Base -

4343

- Index above average - Index below average - 25-

Transportation

Manufacturing

Financial Services

Healthcare

Poor Employee Retention

TRI*M Index By Verticals Within Each Tower

BPO International
Excellent Employee Retention
60 40 20 0 100 80

BPO International TRI*M Index is 64

86 70 68 58 46 46 62 54

* - low base

64

71

62 47

Business Caps & Ops

F&A

DSC

Enterprise

Eldorado

HRO

& Banking Financial

Global Sales Support

BPO International

Base -

5196

2192

131

59

115

810

568

18*

Health Care

78

192

Insurance

1016

Sales
15*

Poor Employee Retention

ITO- Core

100 80

ITO- Core TRI*M Index is 63

74 63 65 59 58 61 49 44 39 60 64

76

Excellent Employee Retention

60 40 20

69

77 77 64 68 55 46 47

72

77

Poor Employee Retention

DCS - EM

DCS - SYM

GM Hosting

DCS - BUR

DCS - DBA

GM M&Q

- DCS WINTEL

Information Security Integration Engineering Network Services

GM Delivery

Solutioning

DCS - UNIX

DCS

ITO - Core

Client Operations

DCS - MW

- DCS TOOLS

GM Online

T&T
12*

Base - 1926

187

13*

83

115

164

66

52

135

129

149

9*

31

12*

97

153

201

122 10*

- Index above average - Index below average - 26-

Workplace MphasiS Workplace Services

83 89

TRI*M Index By Tower and Vertical

Corporate Support
Excellent Employee Retention
100 80 60 40 20 0

84 68

Corporate Support TRI*M Index is 68

* - low base

76 56 65 52

68

65

66

74 58

Admin, Real & Estate Transport

Biz Excellence

Marketing

Supply Chain

Poor Employee Retention

Base -

714

127

116

9*

14*

129

234

11*

8*

14*

100

ITO- Service Desk

80

ITO- Service Desk TRI*M Index is 56

Excellent Employee Retention

60

56

56

40

Poor Employee Retention

20

ITO - Service Desk

Base 1481

MphasiS ITO - SD
1479

- Index above average - Index below average

*Low base
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Tech Development
36

HR

Corporate Support

Business Support

Finance

Legal

CRO

TRI*M Grids Attribute Level (1)

TRI*M Index 63
High

Winning Culture
A01 We promote an open culture and respect diverse viewpoints A02 We are Transparent and Honest in dealing with all issues.

Hygienics

Motivators

A03 We have a culture of working together and being collaborative.

A04 We are result-oriented and we demand excellence from ourselves and from each other A05 We do our best to honour our commitments to all our stakeholders.

Stated Importance

A05 A04 A03 A02

A01

Low

Potentials?/Savers?
Low

Hidden Opportunities
High

Impact on Employee Commitment

Base 22784

Performance
Far above average Above average
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Average Below average Far below average

TRI*M Grids Attribute Level (9)

TRI*M Index 63
High

Compensation and Recognition

G01 Compensation is fair and commensurate with my role, responsibility and performance G02 Recognition for work done

Hygienics

Motivators

G02 G01 Stated Importance

Low

Potentials?/Savers?
Low

Hidden Opportunities
High

Impact on Employee Commitment

Base 22784

Performance
Far above average Above average
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Average Below average Far below average

Bundle Index and leverage

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TRI*M bundle performance (1)

Compare process score with overall index
The TRI*M Bundle Performance Score is given as one number on the known TRI*M scale. The value of the score depends on two factors On the one hand it depends on the level of the overall TRI*M Index, on the other hand it depends on the performance of the items which are included in a Bundle. The bundle performance allows each process owner to compare his process (represented by the bundle) to the overall TRI*M Index at one glance. If the bundle performance outperforms the TRI*M Index the process will work well.

Bundle metrics calculation

For each of the defined TRI*M Bundles two scores are calculated. Bundle performance (TRI*M Index scale) Process owners get the performance of their own process in comparison to the overall TRI*M Index Leverage metric (0-10-point-scale) based on the bundle position in the TRI*M Grid Supports the decision with regard to the allocation of resources to the process or project

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Overall Bundle Index and leverage

Index
100 90 80 70 60 50 40 30 20 10 0
an ag er s O ve ra ll Co nt en t ag e en t Re co gn itio n un ica t io n an ag em Au to m Le ar ni ng Cu lt u re at io n Im

Leverage
10

63

67

67 48 5

65 60 7 60 6 7 48

71 7 58 5

3 0

Re po rti ng

In fra st ru ct ur e

an ce

High leverage scores noted for dimensions such as winning culture, job content, performance management, compensation and company image MphasiS immediate focus should be on performance management and compensation & recognition, clearly the overall index is affected by these dimensions, as it has high leverage scores
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Co m pe ns at io

Pe rfo rm

Co m pa ny

ng

W in ni

Co m m

Jo n

&

&

Thank you !

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