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transcript
eClerx
Data. Domain. Delivery.
Corporate Presentation – FY17
Company Overview
Service Offerings
eClerx Differentiators
Financial Highlights
Agenda
Services partner of choice for innovative operations embedding deep domain, new technologies, and sophisticated analytics
Processes and People
� Incorporated in 2000
� Publicly traded since 2007
� 200 clients; 30+ in Fortune / FT500
� Expertise in 100+ industry-leading
platforms
� >8,900 analysts, project managers,
specialists out of India and globally
Service Expertise
� Digital : Providing expertise and services
in Data Management, Analytics and BI,
Content and Commerce, and Creative
services
� Financial Markets: Operations, Finance
and Control, and Data Management
support across client types
� Customer Operations: Providing revenue
assurance and quality control solutions to
MSOs in the U.S. and U.K.
Accolades
� eClerx won the coveted Golden Peacock
Award for Business Excellence India’s 27th
World Congress on Business Excellence
and Innovation in Dubai
� eClerx SIEM product recognized at Cypher
2016 – India’s largest conference on
analytics
� eClerx won both Gold and Silver awards at
the ASQ-SATEA, 2016
� eClerx wins in multiple categories at the
World Quality Congress Awards 2016
Industry Footprint
• Retail and eTail
• Hi-tech and Software
• Financial Services
• Media and Entertainment
• Cable and Telecom
• Luxury
• Travel and Leisure
Data
The Problems We Solve
� Too Much Data
� Not Enough Time
� Not Enough Budget
� Not Enough People
� New Regulations
Domain
Partnerships
� Digital: Adobe Analytics, Salesforce.com,
Oracle Eloqua, Oracle ATG, Webtrends
� Financial Markets: ISDA, DTCC,
TriOptima
Delivery
eClerx at a Glance
Continuously Expanding Our Presence
� Software development teams appraised at CMMI 3
� Opened a delivery centre at Hinjewadi, Pune – an SEZ unit
� Set-up sales office in New York (U.S.A.)
� Listed among ‘100 fastest growing companies in India’ by Economic Times
� Named as ‘Rising Star’ by IAOP
� Sales office in Austin (U.S.A.)
� Offshore Delivery Centre (ODC) in Sewri (Mumbai)
� Set-up knowledge management practice
� Client Count: 3
� eClerx incorporated
� Sales office in London
� Third ODC at Ghatkopar (Mumbai)
� Acquired Igentica Group
� Initial Public Offer� Client Count: 22
� Obtained ISO 27001 certification
� Started second ODC at Ghatkopar (Mumbai)
� Awarded for Innovative HR Practices by Asia Pacific
� HRD Congress Recognized as Best Mid-cap by Finance Asia
� Client Count: 50
� Won the EOA (European Outsourcing Association) Award for Outsourcing Works for Delivering Business Value in a Pan-European Outsourcing Project
� Second office in Chandigarh
� Client Count: 75
2000
2007 20092001-04
2006 2008 2010
2011
2012
2013
2014
2015
� Expanded in Airoli and Chandigarh
� Won ‘Use of Technology for Operations Excellence’ at the BPO Excellence Awards
� Acquired CLX Europe S. P. A.
� Launched intrapreneurship program
� Client Count: 150+
� Sales presence in Singapore
� Fifth ODC at Airoli (Navi Mumbai)
� Appraised at Level 3 of PCMM
� Featured in the ‘Business Today 500’ list of India's largest public companies
� Technology Services program turned into profit center
� Fourth ODC at Pune
� Became the first KPO listed on the BSE and NSE
� Crossed turnover of INR 1,000 million
� Total number of employees crossed the 1,000 mark
� Opened the New York Office
� Listed among 'Top 200 under a Billion‘ companies by Forbes magazine
� New office at Philadelphia (U.S.A.)
� Expanded in Pune and Ghatkopar
� Acquired Agilyst Inc.
� Hosted Analyst Day
� MAKE (Most Admired Knowledge Enterprise) – Asia winner
� Expanded in Airoli � Won MAKE – Asia
and India � Won the QIMPRO
award in the Process Optimization category
� Featured in Outlook Business – Fastest Growing Companies
� Leveraged insights from the organizational climate survey to revamp India HR policies
� Client Count: 64
A Brief History
2016
� Inaugurated first US onshore delivery centre in NC – Fayetteville
� New subsidiary in Canada
Transaction-intensive Judgement-intensive Strategic
Voice Services / Data
Capture
Accounts Payable / Receivable
Loans Application Processing
Bank Reconciliations
Customer Insight Studies
Loans Pre-underwriting and Closure
Air / Car and Hotel Reservations Processing
Catalog Integrity Checks
Rules-based
Processing
Market Intelligence
Data Analytics
Reference Data Maintenance
M&A Analysis
Equity Valuations
Actuarial Services
Demand Supply Forecast / Market Views
Benchmarking and Process Improvement Studies
Pharma Drug Launch Studies / Legal Outsourcing
eClerx Sweet Spot
� Specialized domain
knowledge
� Process reengineering
� Predictable operational
delivery with high-quality
metrics
� Specialized HR and
training processes
� Unique transition and
account management
� Automation and robotics
� Embedded analytics
BPO
KPO
Judgement-
based
Processing
Unscripted Customer
Service /
BPO Processes
Consulting /
Advisory
KPO
Statistical Modeling
Financial Reporting
Fund Administration
Web Analytics
Call Centers
Claim Data Entry / Indexing
Spreadsheet Uploads
Database Uploads
Skill and Scale – A Great Combination
Company Overview
Service Offerings
eClerx Differentiators
Financial Highlights
Agenda
Financial Markets
Digital
Customer Operations
� This division’s clients include a number of the world’s pre-eminent commercial banks, investment
banks, and money managers
� Services to support financial transactions from trade closing through to settlement, clearing, and
exposure management
� Reference data and risk management services, as well as financial control, accounting, and
reporting services
� Consulting services related to efficiency, risk reduction, and regulatory compliance
� This division’s clients include leading Fortune 500 and Internet Retail 500 manufacturing, retail,
travel, luxury, and media companies
� Specializes in supporting digital activities through content creation, content management and
delivery, online performance optimization, and customer experience management
� Operational, reporting, and analytics outsourcing solutions for sales and marketing managers
managing online operations and marketing campaigns
� Tailored process support for online operations, data management, reporting and business insights,
pricing operations, and quality compliance
� Specialist-outsourced back-office operations and analytics, serving the Broadband, Cable, and
Telecom industry
� Strong foothold in the U.S. cable industry, providing services to leading providers of broadband,
entertainment, and communications products and services
� Services include critical error identification, customer experience analysis, and end-user support for a
diversified clientele of large Fortune 100 clients
eClerx supports core and critical high-domain activities for clients
Our Service Lines
Operational Support across Asset Classes
Trade Support Trade Entry, Reconciliations,
Exceptions Management
ConfirmationsAffirmations and Confirmations
(Paper and Electronic)
SettlementsSettlements, Clearing, Fail
Management
MarginCollateral Operations and Portfolio
Reconciliation
Asset ServicingAnnouncements, Corporate Actions,
Claims
Tax OperationsTax Form Coding, Cost Basis, Tax
Reclaims
Securities Documentation
Trading Relationship Document
Administration
FinanceFinancial Accounting, BC&E, Product
Control
Reference Data and KYC
Client On-boarding, KYC, SSI, Static
Data
Risk ManagementOperations Risk and Control,
Regulatory Support
Utility Functions
eClerx Financial Markets
� Customer
� Product
� Supplier
� Partner
� Data Integration
� Master Data Management
� Data Stewardship, Quality, and
Governance
� Reporting and Data Visualization
� Digital Analytics and Optimization
� Business Intelligence and
Analytics
� Predictive Analytics
� VoC and Social Media Analytics
� Competitive Intelligence
Analytics, Insights,
and ReportingData Management
� Content Management
� Digital Asset Management
� Search Services and Demand
Generation
� Store and Catalog Operations
� Content Migration
� Customer Experience and Quality
Assurance
� Marketing Automation
� Creative Services
Commerce and Content
eClerx Digital
eClerx is a
leading provider
of technical
support services
to global cable
and telecom
providers, call
centres, and
technical
operations
organizations
Quality Monitoring
� In-house Monitoring and Analysis
� Third Party Vendor Monitoring and Analysis
� eCare Monitoring and Analysis
� Call Optimization Projects
Technical Services
� Avoidable Truck Roll Management
� Tiered Technical Support
� Chat End-user Services
� Technician / Dispatch support
Work Order Accuracy
� Work Order Audits and Correction
� Billing Database Support
� Revenue Assurance
� Batch Posting
� Business Services Audits
KPIs: Call Center KPIs, CE, and
Vendor Performance Management
KPIs: Avoidable Service
Spend and Tech. Support CE
KPIs: Operating Cash Flow and
Contact Avoidance
eClerx Customer Operations
Company Overview
Service Offerings
eClerx Differentiators
Financial Highlights
Agenda
Demand Side
� Revenues are project-oriented
and volatile
� Stiff competition from captives
and other third-party providers
Supply Side
� Growth highly dependent
on ability to hire very
specialized resources, which
are hard to find
� High attrition levels
� Limited-scale benefits when
replicating services
Nature and Size of Engagements
� Processes supported are core to our clients’ businesses and non-discretionary
� Long-term contracts (2-3 years) – predictable and recurring revenues
Specialized Service Offerings
� Highly specialized services based on deep domain proficiency and embedded
analytics in target industries
� High percentage of business derived through reverse inquiry from existing
clients, and only a minority portion typically via RFP
Process Engineering
� Processes substantially re-engineered to regroup tasks into a few high-domain,
complex roles and a larger proportion of more rule-based activities
Platforms and Automation
� Dedicated in-house technology team builds proprietary workflow tools,
platforms, and robots
� High degree of business logic embedded in platforms, further reducing the
need for costly specialist talent
Knowledge Management
� In-house training school with 20,000 courses spanning specializations
� High-velocity model for providing core product, process, and industry skills
� Allows us to substantially broad base the talent pool, driving down cost
eClerx DifferentiatorsTypical KPO Challenges
Key Challenges and eClerx’s Response
People and Knowledge
Management
Process Design and Automation
Quality, Governance,
and Risk Management
Highly Resilient, Secure and
Flexible
Delivery
� Focus on developing tacit institutional knowledge
– Tacit product + industry knowledge and specific process training development
– 20,000 training courses and tests covering products, process, systems, soft skills, and instruction checklists
� Reduce ‘people dependence’ and improve quality and speed of transitions
– Reduce time to effectiveness of new employees, mitigating the attrition impact
– Allow cross-training and reduce reliance on individual superstars, effectively broadening the hiring pool
– Focus on documenting specific process steps and internal training provide critical background during transitions
� CMMI Level 3 – certified technology development team is a critical enabler to process improvement
– Process step simplification + embedding of business logic into tools and checklists; reduces expert need
– Manifests in applications such as workflow, reconciliation, dashboards, robotics and machine learning
� Team provides business analysis support to clients’ technology teams
– Helps clients systematically improve applications using our metrics as diagnostics
– Some applications deployed by clients to dramatically streamline processes e.g. reconciliation engines
� Six Sigma based quality initiatives
– BPI – Employee-generated process improvements, BPI forum / QPI – quality audit (Conducted by the central team)
� Governance structure
– Onshore engagement for relationship governance, MBRs / QBRs identify process improvement opportunities
� Risk assessment framework
– Daily issue log and management broadcast of program health, FMEA risk assessments
� ISO 27001 certification for information security
– IS governance and polices continually benchmarked to industry best practices
� Operating window spans EMEA, the U.S., and Asia-Pacific due to the nature of our clients’ businesses
� BCP managed by simultaneous delivery across three cities within India and delivery sites in US, Italy and Thailand
Our Delivery Framework
Company Overview
Service Offerings
eClerx Differentiators
Financial Highlights
Agenda
� Consistent growth in revenues and profits
� Industry-leading operating and net margins
� Clean and highly liquid balance sheet – total cash and cash equivalents of INR 6,060 mn
Consistent growth with industry-leading margins
INR mm
Financial Highlights
4,952
6,424
8,520
9,745
13,513 13,582
2012 2013 2014 2015 2016 2017
Revenue
2,120 2,365
3,646 3,480
5,168 4,877
2012 2013 2014 2015 2016 2017
EBITDA
1,598 1,716
2,557
2,297
3,415 3,540
2012 2013 2014 2015 2016 2017
PAT
USD74%EUR
18%
GBP8%
FY16
USD76%EUR
16%
GBP8%
FY17
Currency Mix Geographic Mix
Steady revenue quality across all risk parameters
Revenue Demographics
North America
68%Europe28%
ROW4%
FY16
North America
67%Europe29%
ROW4%
FY17
77% 74%
2016 2017
Top 10 Client Contribution
� One among the largest third party KPO – focused firms in India
� Highly specialized services based on deep domain proficiency in target industries
� Deep and diversified relationships with highly referenceable blue chip client base
� Multi-country resilient global services delivery model
� High revenue visibility – Annuity model with long-term contracts
� 16 years of proven track record in delivering core and critical services
� Demonstrated ability to integrate domain knowledge, process engineering, automation, and information security practices to deliver high-value processes most cost effectively
� History of consistent growth with industry – leading margins and consistent shareholder returns
� Liquid and debt-free balance sheet
Why eClerx?
This presentation contains forward-looking statements, inter-alia, to enable investors to comprehend company’s prospects and take informed investment decisions. This report and other statements – written and oral – that we periodically make, contain forward-looking statements that set out anticipated results based on the management’s plans and assumptions. We have tried, wherever possible, to identify such statements by using words like ‘anticipate’, ‘estimate’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’ and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward-looking statements will be realized, although we believe we have been prudent in assumptions. The achievement of results is, inter-alia, subject to assumptions, risks, uncertainties, including but not limited to our ability to successfully conclude and integrate (Potential) acquisition(s) and general regulatory and economic conditions affecting the industry. Should known or unknown risks or uncertainties materialize or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated, expected, or projected. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Further, this presentation may also contain references to findings of various reports available in the public domain. We make no representation as to their accuracy or that we necessarily subscribe to those findings. Figures for previous periods / year have been regrouped, wherever necessary.
Thank You