Editorial

Dear Reader,

November and December saw moderate deal activity in the global outsourcing space. Key deals in November and

December include:

iQor, a global provider of intelligent customer interaction and outsourcing solutions acquires the CCT group, a US

and Philippines based provider of dedicated, shared and hybrid contact centre outsourcing solutions

Bain Capital acquires Atento, one of the world's leading BPO and CRM companies, for €1,051 million

Sutherland Global Services, a provider of integrated portfolio of analytics-driven back-office and customer facing

solutions acquires Apollo Health Street, a leading Healthcare service provider with comprehensive information

technology and business process integrated solutions

FirstSource fully redeems FCCBS of US$ 237 Mn, partly by way of the investment made by Spen Liq – the

investment vehicle of the RP-Sanjiv Goenka Group

MphasiS acquires Digital Risk, one of the largest independent providers of Risk, Compliance and Transaction

Management solutions

CBPE Capital, a European private equity fund acquires Xafinity, a pension administration and outsourcing and

share registration provider

Cognizant acquires Medicall, a leading provider of outsourced clinical services to various health care markets,

including workers’ compensation and group

November and December witnessed a number of new contracts. Key contracts executed in these months include:

Accenture secures a 5 year contract to provide human resources (HR) BPO services to Unilever

Capgemini wins a contract with Unilever, to provide Finance and Accounting services, across 130+ countries

TCS wins a multi-year agreement with Mitchells & Butlers (M&B), one of the UK’s leading hospitality business

chains to streamline the management of its HR and payroll operations

Genpact wins a 5 year contract from Centrica, one of the leading energy companies in the world, to streamline

and manage finance and accounting (F&A) and management reporting processes

Emerging Trends

Everest Research found that the number of new BPO contracts worldwide dropped year-on-year in the third quarter, with contract values also decreasing

This edition of the newsletter also includes the Avendus BPO Composite Index updated till the 4

th of January, 2013. The

index indicates a decrease in share prices of BPO companies over the month of December 2012 with a negative 4.5% monthly return, negative 8.9% quarterly return and positive 4.7% annual return.

Regards,

Amit Singh

Business Process Outsourcing Newsletter JANUARY 2013

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

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Table of Contents DEAL SUMMARY .................................................................................................................................. 3

IQOR TO ACQUIRE CCT GROUP, ENHANCING LEADERSHIP IN CUSTOMER CARE............................................ 3

ATENTO EMBARKS ON A NEW ERA WITH BAIN CAPITAL ............................................................................. 3

FIRSTSOURCE FULLY REDEEMS FCCBS OF US$ 237 MN.............................................................................. 4

SUTHERLAND GLOBAL SERVICES TO ACQUIRE APOLLO HEALTH STREET ...................................................... 4

MPHASIS TO ACQUIRE DIGITAL RISK LLC FOR USD $175 MILLION .............................................................. 5

EQUINITI GROUP SELLS XAFINITY CONSULTING TO CBPE CAPITAL ............................................................. 6

SPI GLOBAL PURSUES K-12 OPPORTUNITIES WITH ACQUISITION ............................................................... 7

MEDICALL HAS BEEN SOLD TO COGNIZANT ............................................................................................. 7

CONTRACT TRACKER ........................................................................................................................... 9

CAPITA SIGNS CONTRACT WITH STAFFORDSHIRE COUNTY COUNCIL .......................................................... 9

ACCENTURE SECURES FIVE YEAR HR BPO CONTRACT WITH UNILEVER ........................................................ 9

CAPGEMINI SIGNS A NEW FINANCE & ACCOUNTING OUTSOURCING CONTRACT WITH UNILEVER ................. 10

MITCHELLS & BUTLERS OPTIMIZES HR AND PAYROLL PLATFORM FROM TCS .............................................. 10

MCCAIN FOODS SIGNS CONTRACT SELECTING PROCURIAN ..................................................................... 11

MERCY MEDICAL CENTRE SELECTS ADP FOR UNIFIED HUMAN CAPITAL MANAGEMENT ................................ 11

NORTHGATEARINSO ANNOUNCES FIVE-YEAR CONTRACT EXTENSION WITH CA TECHNOLOGIES .................. 12

THE DEPARTMENT OF HEALTH CHOOSES CGI FOR DELIVERY OF PAYROLL FOR ITS ARMS LENGTH BODIES .... 12

XCHANGING SECURES LLOYD'S CLAIMS REPORTING CONTRACT ............................................................... 13

GENPACT TO MANAGE FINANCE AND ACCOUNTING FOR CENTRICA ........................................................... 14

EXPANSION ...................................................................................................................................... 15

CONVERGYS ANNOUNCES OPENING OF NEW CONTACT CENTRE IN MANILA’S MEGAMALL ............................ 15

NCO FINANCIAL SYSTEMS INC. EXPANDING OPERATIONS IN CHARLESTON COUNTY ................................... 15

CONVERGYS CONTINUES TO EXPAND ITS PRESENCE IN COSTA RICA ........................................................ 15

MINACS PARTNERS WITH QUALFON TO LAUNCH MEXICO CENTRE ............................................................. 16

INTEGREON OPENS LEGAL DOCUMENT REVIEW CENTRE IN LONDON ......................................................... 16

TELETECH TO OPEN SECOND CUSTOMER EXPERIENCE CENTRE IN PADUCAH, KENTUCKY ............................. 17

CAPGEMINI EXPANDS BPO OPERATIONS IN BRAZIL ................................................................................. 17

XCHANGING UNVEILS PLANS FOR FURTHER OFFICES AND SERVICES IN APAC ........................................... 18

MOVERS AND SHAKERS .................................................................................................................... 19

FIRSTSOURCE APPOINTS SENIOR STRATEGY ADVISOR TO FOCUS ON FINANCIAL SERVICES SECTOR ........... 19

ACHIM BERG APPOINTED NEW CEO OF ARVATO ...................................................................................... 19

EXL NAMES NEW HEAD OF UK AND EUROPE ........................................................................................... 20

XCHANGING HIRES HEWLETT PACKARD VP TO HEAD ITS GLOBAL INSURANCE SERVICES BUSINESS ............ 20

TRENDS AND VIEWPOINTS ............................................................................................................... 22

OUTSOURCING CONTRACTS DOWN BY 19 PERCENT ................................................................................ 22

AVENDUS BPO COMPOSITE INDEX .................................................................................................... 23

OUR OFFICES .................................................................................................................................... 25

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DEAL SUMMARY

IQOR TO ACQUIRE CCT GROUP, ENHANCING

LEADERSHIP IN CUSTOMER CARE

IQOR PRESS RELEASE [20 DECEMBER 2012]

iQor, a global provider of intelligent customer

interaction and outsourcing solutions, today

announced it has acquired the CCT Group, a global

provider of dedicated, shared and hybrid contact

centre outsourcing solutions, from majority investor

Headland Capital Partners.

―The acquisition of the CCT Group is part of our

strategic plan to apply our technology-enabled

solutions and deep analytics capabilities to a broader

platform,‖ said Norm Merritt, President and CEO of

iQor. ―Clients are demanding the latest sophisticated

technology, processes and methods along with

actionable insights from cutting-edge analytics and

business intelligence tools. We believe acquiring CCT

will expand our abilities to offer our respective clients a

wider range of technology-enabled solutions and Big

Data analysis into the increasingly complex customer

experience.‖

CCT has a blue-chip customer care client base that

complements and extends iQor‘s client profile in key

verticals, including Telecommunications, Retail, and

Business Services. The acquisition also bolsters iQor‘s

technology offerings while expanding its global

footprint in Latin America and the Philippines, allowing

clients to take advantage of a broader set of skills and

labor markets across the world.

―We look forward to joining the iQor team,‖ said

Richard Eychner, current CEO of CCT. ―iQor and CCT

share a vision and culture of using the best technology

and the best talent around the globe to deliver world-

class customer service to their customers. By

combining our strong global brand, service culture and

reputation, and large and loyal customer base with

iQor‘s technology platform and analytics capabilities,

we believe we can continue to build and bring

solutions to the market that place customer

relationships at the centre."

CCT has 4,500 employees and maintains two

customer care brands. Interactive Response

Technologies (IRT) was founded in 1993 as a software

company for the call centre industry before it began

operating contact centres on behalf of its Fortune 500

clients. Cyber City Teleservices, founded in 1999,

provides call centre outsourcing solutions to some of

America‘s leading brands from operations in Panama

and the Philippines.

The terms of the transactions were not disclosed. iQor

is acquiring CCT free of its existing debt with the

support of iQor‘s equity owners, Huntsman Gay, CVCI

and Starr Principal Holdings.

"Our additional investment today underscores our

belief in iQor‘s opportunity to transform the BPO

industry,‖ said Gary Crittenden, Managing Partner of

Huntsman Gay Global Capital, a majority investor in

iQor. ―CCT brings an exceptional track record in

customer care and will enhance iQor‘s growth as a

leader in the BPO space.‖

ATENTO EMBARKS ON A NEW ERA WITH BAIN

CAPITAL

ATENTO PRESS RELEASE [12 DECEMBER 2012]

Today sees a further milestone in Atento's history of

growth with the entry of Bain Capital as majority

shareholder. On 12th December the deal was closed

between Telefónica and Bain Capital for the

acquisition of Atento for €1,051 million euros.

"I would like to begin this new stage by thanking

Telefónica for its continued support and contribution to

the development and growth of what is today one of

the world's most important BPO and CRM companies.

Telefónica has played a crucial role in the

transformation our Company has undergone over a

short period of time" said Alejandro Reynal, Atento

Global CEO, on the closing of the deal. "Bain Capital's

decision to invest in Atento is a vote of confidence for

our company, business model, product portfolio and

our management team. I am very excited to be a part

of this new era that represents a unique opportunity for

growth and a challenge for us to strive to improve our

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service offer for our clients who drive our ambition to

deliver excellence" stated Mr. Reynal.

"We are delighted to be Atento's partner on its next

phase of growth. We look to invest and support

market-leading companies and Atento is the market

leader in Latin America and the second largest

company globally in the sector. We have a unique and

exceptional track record of helping companies grow

following separation from larger groups as well as

growing companies in this industry and we look

forward to helping Atento deliver best-in-class services

and added value to its impressive client portfolio", said

Melissa Bethell, Managing Director for Bain Capital.

Atento has become one of the world's most important

companies in the BPO/CRM sector, an industry that is

forecast to grow at a CAGR of 5.7% over 2011-2015.

The company has posted double-digit growth over

recent years, is one of the sector's most profitable

companies and closed the 9-month period ending in

September this year with accumulated revenue of 1.41

billion euros, an increase of 5.3% in comparison to the

same period of the previous year. In terms of profits,

Atento posted an OIBDA of 172 million euros, an

increase of 26.9% compared to the same period for

the previous year. The company is also acknowledged

around the world for its people management, with over

150,000 employees it is the only company in the

industry to be listed in the top 25 best companies to

work for in the world.

FIRSTSOURCE FULLY REDEEMS FCCBS OF US$

237 MN

FIRSTSOURCE PRESS RELEASE [12 DECEMBER

2012]

Firstsource Solutions Limited (NSE:FSL,

BSE:532809), one among India‘s leading Business

Process Outsourcing (BPO) companies today

announced that it has fully repaid its outstanding

FCCB liability of $237mn on the due date of 4th

December, 2012.

The repayment was funded by way of the Company‘s

cash reserves augmented with the preferential

allotment of shares made to Spen Liq Private Limited

(The investment vehicle of the RP-Sanjiv Goenka

Group) and external borrowings.

Commenting on the development Rajesh

Subramaniam, Managing Director & Chief Executive

Officer, said, ―We had proactively embarked on several

strategies that would enable us to deal with the FCCB

situation. The full repayment was the desired outcome

and our ability to fulfill this obligation to our bond

holders has been achieved. With this financial

deleverage of the company, we are now in a stronger

position to look ahead and drive strategies to

accelerate growth and profitability.‖

SUTHERLAND GLOBAL SERVICES TO ACQUIRE

APOLLO HEALTH STREET

APOLLO PRESS RELEASE [11 DECEMBER 2012]

The board of directors for Apollo Hospitals Group

announced today the acquisition of their outsourcing

business, Apollo Health Street, by Sutherland Global

Services based in Rochester, N.Y. The transaction is

expected to close by February 2013, subject to

customary regulatory and other conditions.

This acquisition will position the combined organization

as a leading Healthcare service provider with

comprehensive information technology and business

process integrated solutions and consolidate its

presence as a dominant player in the $38B US

Healthcare business process outsourcing (BPO). This

also fosters Apollo Hospitals‘ strategic intent of

focusing and growing its core healthcare delivery

services.

Established in 1986, Sutherland offers an integrated

portfolio of analytics-driven back-office and customer

facing solutions that support the entire customer

lifecycle. It is one of the largest, independent BPO

companies in the world serving global leaders in major

industry verticals. The company has over 30,000

employees globally working out of 35 operations

centres in the United States, Philippines, India, UAE,

Egypt, Bulgaria, UK, Canada, Jamaica, Mexico, and

Colombia.

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Dr. Prathap C. Reddy, Founder Chairman of Apollo

Hospitals, one of Asia‘s premier Healthcare groups

commented, ―In order to drive Apollo Health Street's

growth to the next stage of its evolution, it was

essential to find the right strategic partner. In

Sutherland Global Services, we have found the ideal

partner with a proven track-record of excellence in

services, technology, and leadership. The combined

capabilities of both companies will create a compelling

value proposition for our clients.‖

Apollo Health Street‘s outcome-based BPO, as well as

information technology solutions and clinical domain

expertise, supports US hospitals, physicians and

health plans to not only improve their current

operations but also address the challenges and

opportunities created by on-going healthcare reforms

in the United States, including Meaningful Use, Health

Insurance Exchanges (HIX), ICD-10, and Accountable

Care Organizations (ACOs).

Ms. Sangita Reddy, Managing Director, Apollo Health

Street added, ―Over the years, Apollo Health Street

has established a very successful suite of technology

platform driven solutions for its marquee list of

healthcare clients. We are pleased that a strategic

player like Sutherland Global Services is acquiring

Apollo Health Street and will expand and enhance our

successful operations. Apollo & Sutherland are both

committed to ensuring customer success, smart

technology, and employee growth.‖

Apollo‘s global clients will now be able to leverage

Sutherland‘s secure and scalable global infrastructure

with full access to Sutherland‘s suite of analytics-

enabled services. Additionally, Sutherland will utilize

Apollo‘s domain driven technology, best practices, and

global resources to expand and secure its leadership

position by providing integrated solutions to address

the challenges and opportunities in the healthcare

market as well as complex compliance and regulatory

mandates.

―We have been extremely impressed by Apollo Health

Street‘s deep domain understanding and world-class

platform based delivery capabilities,‖ said Mr. Dilip R.

Vellodi, Founder Chairman & CEO of Sutherland

Global Services, ―With this acquisition, Sutherland

addresses the central challenge facing major North

American and European healthcare Providers and

Payers - to provide exceptional service to patients in a

cost effective manner. Apollo‘s expertise, combined

with our proven capabilities, strengthens our portfolio

of Payer, Provider, and Health IT solutions in driving

significant value to our client base.‖

MPHASIS TO ACQUIRE DIGITAL RISK LLC FOR

USD $175 MILLION

MPHASIS PRESS RELEASE [3 DECEMBER 2012]

MphasiS (an HP Company) today announced a

definitive agreement to acquire Orlando, Florida, USA

based Digital Risk LLC. Digital Risk is one of the

largest independent providers of Risk, Compliance and

Transaction Management solutions to the United

States mortgage market. The acquisition is an all cash

deal valued at USD$ 175 million with an additional

earn-out component.

Digital Risk provides highly specialized Risk,

Compliance and Transaction Management solutions

for the mortgage industry. Digital Risk‘s proprietary

Making Mortgages Safe™ solutions suite is deployed

by over 15 blue chip clients across key mortgage

constituencies – Originators, Insurers, Issuers and

Investors. Digital Risk is licensed to operate in 46

states in the United States.

In August 2012, Digital Risk was named as one of

America‘s entrepreneurial growth leaders by Inc.

Magazine. Digital Risk ranked number 11 among the

fastest growing private financial services companies in

the US, in 2012 Inc. 500 list.

Digital Risk is expected to register revenues of USD

$127 million in CY2012. The company has grown at

revenue CAGR of 70% in the last 3 years.

―We began our journey of transformation in 2010

focusing on the Financial Services Industry. This

acquisition is central to our strategy of offering

specialized services in chosen segments. Digital Risk

offers highly specialized services in risk and

compliance area, specific to mortgage industry. Their

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analytics platform combined with 1500 mortgage

specialists makes them unique and differentiated. I am

delighted to have Digital Risk with their strong brand

join our family.‖ said Ganesh Ayyar, Chief Executive

Officer – MphasiS.

―The need for risk management in the mortgage

market is not only a US issue but also a global

necessity. This acquisition provides the industry and

clients a unique offering,‖ said Peter Kassabov,

Chairman and Chief Executive Officer - Digital Risk.

―We‘ve developed proven processes, analytics and

technology that are making mortgages safe and this

expertise applies to markets outside the U.S. We are

thrilled to merge our talent and expertise with that of

MphasiS to set a global standard for making

mortgages safe.‖ said Peter.

The transaction is currently expected to close by

January 31, 2013 subject to regulatory approvals and

other customary closing conditions. Upon completion

of the transaction, Digital Risk will operate as a

standalone business unit retaining its brand identity.

Digital Risk‘s founders will continue to lead the

company, with Peter Kassabov reporting to Ganesh

Ayyar, CEO MphasiS. Digital Risk‘s, management

team and employees will remain with the company and

continue serving their customers. This acquisition

significantly enhances MphasiS‘ onshore presence in

the US. MphasiS has plans to expand its footprint in

United States creating up to 500 new US jobs in the

near future.

―The subprime mortgage crisis set off a chain of events

from rising mortgage losses, to a decline in mortgage-

backed securities issuance to increased federal and

state regulation,‖ said Craig Focardi, Senior Research

Director - CEB TowerGroup. "From 2009-2011, per

loan origination costs increased by 40 percent and

servicing costs increased by 36 percent, according to

Mortgage Bankers Association. Risk management and

compliance activities such as quality control, loan

purchase due diligence, loan portfolio surveillance and

analytics are a large share of these cost increases. To

reduce internal fixed costs, financial institutions need

to make improvements in these areas, which is

essential for producing defect free loans and restoring

sustainability to US residential mortgage marketing

and securitization."

EQUINITI GROUP SELLS XAFINITY CONSULTING

TO CBPE CAPITAL

EQUINITI PRESS RELEASE [16 NOVEMBER 2012]

The Equiniti Group is pleased to announce that it has

reached agreement to sell its Xafinity Consulting

business to CBPE Capital LLP. The transaction

remains subject to certain conditions, including

regulatory approvals, and is expected to close during

the first quarter of 2013. Terms of the transaction have

not been disclosed.

The Group was created in 2010 by bringing together

the Xafinity pension administration and consulting

business with the outsourcing and share registration

provider Equiniti. Its forward strategy is to develop its

Business Process Services (BPS) offering under the

Equiniti Group brand with a focus on larger scale

complex administration and financial processing

contracts. The Group‘s market-focused divisions are:

Pensions Solutions, Shareholder Solutions and

Commercial Solutions.

The sale of Xafinity Consulting is consistent with this

strategy to refine the Group‘s core focus. Xafinity

Consulting, comprising Actuarial, Pensions, Healthcare

and Employee Benefit Consulting and administration

as well as, Self Invested Pensions and Independent

Trusteeship, will continue to operate under the Xafinity

brand. Paymaster and Claybrook remain within the

Equiniti Group.

The pension market continues to be central to the

Equiniti Group‘s BPS strategy. It currently administers

the pension benefits of nearly three million scheme

members, pays over 30% of UK pensioners and

supports over 10 million pension scheme members

with its software applications.

In April 2012 the Equiniti Group‘s Paymaster business

became the private sector partner for the mutual joint

venture, MyCSP, administering pensions for 1.5 million

Civil Service Pension Scheme members.

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The Equiniti Group is committed to further invest in

opportunities to extend and enhance its service range.

Recent acquisitions included peterevans - leading

provider of technology solutions for the financial

services industry - and the Corporate and Employee

Services from NatWest Stockbrokers.

Wayne Story, Equiniti Group Chief Executive said:

―Our strategy is to develop the Equiniti Group as a

market leading specialist Business Process Services

provider. Having considered the strategic alternatives,

we believe that separating the Xafinity Consulting

business now is the right course of action for both

Xafinity Consulting and the wider Equiniti Group,

enabling each to a have a clear focus. We fully expect

both businesses to continue to work in close

partnership in key areas of mutual interest in the

pensions market.‖

Robert Birmingham, Managing Director of Xafinity

Consulting said: ―Xafinity Consulting will continue to

concentrate on its existing markets within which we

have significant ambitions to develop and expand our

range of services and products. The expertise, funding

and supportive approach of our new owners will set us

up well to achieve these ambitions to the benefit of our

clients and our business.‖

SPI GLOBAL PURSUES K-12 OPPORTUNITIES

WITH ACQUISITION

SPI GLOBAL PRESS RELEASE [9 NOVEMBER 2012]

SPi Global, through its subsidiary Laserwords, has

acquired Tighe Publishing Services, a full-service

educational development house in the K-12

educational marketplace. This acquisition positions

Laserwords to take advantage of the burgeoning

opportunities in the educational publishing business in

the United States.

―Tighe‘s editorial, design, and content development

capabilities will complement Laserwords‘ strength in

production with conversion, digital, and technology

services for educational publishers,‖ said Michael

O‘Brien, Executive Vice President of Laserwords/SPi

Global.

―The acquisition of Tighe allows Laserwords to

become a leading supplier in the educational

publishing arena,‖ said O‘Brien. ―Clients of both

companies see this acquisition as a welcome

development for the future of their businesses.‖

O‘Brien added that before the acquisition, Laserwords

had established itself with school publishers. However,

Laserwords needed an experienced editorial and

design team to compete for major publishing projects.

The acquisition of Tighe fills that gap, with Laserwords

now being positioned to compete for larger educational

programs.

Suzanne Tighe, President of Tighe, recognized

Laserwords‘ vast experience in digital content

development, offshore and conversion services, and

new offerings and services for mobile content and

digital services. ―Laserwords‘ areas of expertise

constitute advantages for Tighe because they

complement our strengths in content development and

design,‖ said Tighe.

Maulik Parekh, SPi Global President and CEO, said,

―In strengthening SPi Global‘s content business, a

strong foundation is essential for sustainable growth.

We can now focus on further building our digital

service lines with the addition of a top-rate content

development house. By combining Laserwords and

Tighe, SPi Global continues to reinforce its leadership

position in the global content solutions space.‖

MEDICALL HAS BEEN SOLD TO COGNIZANT

MEDICALL PRESS RELEASE [7 NOVEMBER 2012]

Headquartered in Pleasanton, California, with primary

operations in the Philippines, MediCall is a leading

provider of outsourced clinical services to various

health care markets, including workers‘ compensation

and group health. MediCall has multiple URAC

accreditations and, through its fully compliant and

clinician licensed workforce of over 750 certified

professionals, the Company delivers customized cost

containment services and solutions to its U.S.-based

health care clients.

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This transaction provides Cognizant with a fully

accredited, international clinical services platform to

serve the growing demand for health care cost

containment solutions. Cognizant‘s robust global

delivery model, analytics capabilities, innovative

technology platforms, and scale, combined with

MediCall‘s medical management capabilities and

regulatory insights, will help provide superior value to

health care clients. Cognizant (NASDAQ: CTSH) is a

leading global provider of information technology,

consulting, and business process outsourcing

services. With approximately 145,200 employees and

$7 billion in revenue, Cognizant is a Fortune 500

company and is ranked among the top performing and

fastest growing companies in the world.

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CONTRACT TRACKER

CAPITA SIGNS CONTRACT WITH

STAFFORDSHIRE COUNTY COUNCIL

CAPITA PRESS RELEASE [20 DECEMBER 2012]

Capita plc (`Capita') can confirm that it has now signed

a contract to provide educational support services to

the Staffordshire County Council. The contract, will

initially deliver a range of educational support services

for schools and academies in the Staffordshire region.

These services are expected to generate revenues of

approximately £85m per annum over 20 years.

It will additionally focus on achieving significant growth

through securing new local authority, school, academy

and further and higher education clients across the

UK. With the UK schools education support services

market currently estimated to be worth around £16bn

per year, the venture is targeting total revenue of at

least £2bn over the first 10 years.

To support the delivery of these key services, around

3,800 Council employees will TUPE transfer to the

contract from 1 April 2013.

Capita previously announced that it had been selected

as preferred bidder by Staffordshire County Council on

27 November 2012.

ACCENTURE SECURES FIVE YEAR HR BPO

CONTRACT WITH UNILEVER

ACCENTURE PRESS RELEASE [19 DECEMBER

2012]

Accenture (NYSE: ACN) has won a new five-year

contract with Unilever (FTSE: ULVR) to provide human

resources (HR) business process outsourcing (BPO)

services that benefit more than 130,000 Unilever

employees in over 100 countries and introduce a

series of service improvements focused on enhancing

the user experience. Financial terms of the contract

were not disclosed.

Under the terms of the contract, Accenture will work

with Unilever to continue to improve the quality and

effectiveness of its HR services. The scope of the

contract includes recruitment, reward and core HR

administration, and learning services covering content

sourcing and development, program planning and

delivery, learning system hosting, payroll

administration, and management and administrative

services.

As part of the renewed contract, Accenture will closely

align the services it delivers with Unilever‘s Talent

Agenda. With the introduction of a number of

innovations, the services Accenture provides will focus

on delivering business-relevant results in line with

Unilever‘s key business priorities. The program will

drive greater efficiencies and an improved user

experience. The enhanced contract will include a

number of new elements.

For example, as part of a revitalized Service

Performance Model, Accenture and Unilever will go

beyond traditional operational service-level

agreements and team to achieve outcomes relevant to

Unilever‘s business targets.

Additionally, Accenture will introduce a more proactive

recruiting approach, including the expanded use of

social media. Proactive sourcing tools will support

more effective, forecasting-led recruiting methods and

will result in a broader, more appropriate candidate

pool for Unilever.

Learning services will be expanded by Accenture to

support Unilever‘s focus on developing future leaders

and will incorporate professional skills building

modules into a refreshed learner curriculum. Through

the delivery of courses from the functional to strategic,

Accenture will help develop the next generation of

talent within Unilever.

The new agreement aligns HR services with Unilever‘s

sustainability agenda. For example, learning programs

will make greater use of virtual instructor-led training

(VILT), while recruitment services will increase the use

of technology where possible, reducing environmental

costs.

―This contract renewal represents a new milestone in

Accenture‘s 10-year collaboration with Unilever, and is

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testament to the work that we have delivered,‖ said

Teo Correia, a senior managing director in Accenture‘s

Consumer Goods & Services practice who leads

Accenture‘s work with Unilever. ―Unilever strives

continually to find new ways of improving its HR

function to enhance the skills and abilities of its global

workforce, and this contract is key to achieving future

success and higher performance. We look forward to

helping Unilever achieve its goals.‖

Accenture will deliver the services through its Global

Delivery Network, using multiple centres across the

United States, Europe, and Asia Pacific.

CAPGEMINI SIGNS A NEW FINANCE &

ACCOUNTING OUTSOURCING CONTRACT WITH

UNILEVER

CAPGEMINI PRESS RELEASE [19 DECEMBER

2012]

Following a comprehensive global tendering process,

Capgemini has been selected to provide Finance and

Accounting services, across more than 130 countries.

This builds upon a relationship established in 2005, to

bring about process harmonization and increased

productivity. Furthermore, Capgemini has been

appointed as one of Unilever‘s Strategic Business

partners.

Hubert Giraud, CEO for Global Business Process

Outsourcing at Capgemini said: ―This major contract is

a result of two very focused companies demonstrating

their ongoing commitment to one another. Capgemini‘s

ongoing innovation continues to drive value for

Unilever. This win is testament to the team‘s

commitment and our ability to create a winning solution

based on process harmonization and above all, a

strong strategic partnership. Unilever is clearly a

significant customer for us and it‘s fantastic to see that

view reciprocated. We look forward to continuing our

long and successful relationship with Unilever.‖

Christian Kaufmann, Unilever Vice President Finance

Services added ―If we are to achieve the continuous

improvement we need to help the business remain

competitive and to reach our goal of doubling the size

of our business while halving our environmental

impact, we need leading-edge financial services. We

carried out a competitive tendering process to achieve

a ‗best-in-class‘ solution and now look forward to

working with Capgemini as a strategic partner.‖

The new contract will commence in January 2013, with

services being delivered from Chile, Brazil, Guatemala,

India, Singapore and China.

MITCHELLS & BUTLERS OPTIMIZES HR AND

PAYROLL PLATFORM FROM TCS

TCS PRESS RELEASE [12 DECEMBER 2012]

Tata Consultancy Services (TCS), (BSE: 532540,

NSE: TCS) a leading IT services, consulting and

business solutions organization, today, announced that

it has entered into a multi-year agreement with

Mitchells & Butlers (M&B). The UK‘s leading hospitality

business chain is partnering with TCS to streamline

the management of its HR and payroll operations,

which serve 38,000 employees across 1600

restaurants and pubs across the country.

Martin Taylor, Director of Business Change &

Technology, Mitchells & Butlers, said, ―In the last 12

months we have successfully upgraded our core

network and replaced our old data centre infrastructure

by moving into the cloud, whilst introducing a utility-

based services model. We are now at the exciting

stage of taking advantage of this foundation by

implementing TCS‘ HCM core HR and Payroll solution

that will streamline our support processes, benefit our

employees and place our guests at the heart of

everything we do.‖

―We are delighted to partner with Mitchells & Butlers

and are confident that our cloud-based Human Capital

Management solution will help align M&B‘s current

business operations to deliver best-in-class services to

their employees and customers,‖ said Shankar

Narayanan, Head, TCS UK & Ireland.

Susan Martindale, Group HR Director, Mitchells &

Butlers, said, ―We want to improve the level of HR

services that we have available to our employees, and

the TCS HCM system will help us on our journey to

11

enhance our capabilities in the areas of people

development, reward, resourcing and engagement.‖

―The TCS HCM Platform is a result of several years of

research and investment by TCS. It provides our

customers with an integrated, scalable and global

solution, which is not just cost-effective, but also helps

customers move away from siloed approaches to

talent development, payroll and employee lifecycle

management,‖ said Raj Agrawal, Global Head, TCS‘

Platform Solutions.

The agreement underscores TCS‘ non-linear growth

strategy in key markets. TCS‘ HCM Platform is an

integrated and global solution that encompasses key

areas of payroll, time management, workforce

administration, compensation, recruitment, learning

management and performance management. It comes

with full self-service, actionable analytical reporting

and comprehensive mobile enablement. Customers

have the choice to adopt the platform under SaaS,

BPaaS (SaaS + BPO Process Delivery) or a hybrid

model.

MCCAIN FOODS SIGNS CONTRACT SELECTING

PROCURIAN TO OPTIMIZE SPENDING ACROSS

GLOBAL ORGANIZATION

PROCURIAN PRESS RELEASE [10 DECEMBER

2012]

Leading comprehensive procurement solutions

provider Procurian, formerly ICG Commerce, today

announced that it has signed an agreement with

McCain Foods, a leading supplier of frozen potato and

snack food products for the home and food services

market. Procurian will deliver a comprehensive

procurement solution to help the company optimize

and manage its spending in several categories across

its global operations.

Procurian is solely focused on helping clients

transform procurement into a strategic function that

fuels growth through measurable savings as well as

supply market insights that optimize spending.

Procurian‘s unique offering provides its clients access

to all the components necessary to optimize indirect

spending across over 350 subcategories and achieve

the highest levels of procurement excellence.

―The team at McCain has a very progressive approach

to optimizing procurement and increasing its impact on

the organization, and we‘re excited to help this

forward-thinking market leader harness the power of

their spending,‖ said Carl Guarino, CEO of Procurian.

―This new engagement showcases the opportunity for

many companies to rethink how they view indirect

spending, focusing not only on process compliance,

but continuously optimizing the business impact of

their investments. We look forward to helping McCain

build on their success and take procurement to the

next level to meet their strategic goals.‖

MERCY MEDICAL CENTRE SELECTS ADP FOR

UNIFIED HUMAN CAPITAL MANAGEMENT

ADP PRESS RELEASE [6 DECEMBER 2012]

ADP, a leading provider of global human capital

management (HCM) services, today announced that

Mercy Medical Centre (MMC), a full service medical

centre delivering a comprehensive range of health

services, has selected ADP Vantage HCMSM as its

human capital management solution.

ADP will provide MMC with a centralized, fully unified

human resource, payroll, time and labor management

solution to power the organization‘s growing HR

function. Leveraging a configurable user experience

centered on the roles and processes within an

organization, ADP Vantage HCM unifies the

notoriously disparate HR processes of large

organizations by automating and integrating them into

a real-time, end-to-end view across the HR spectrum,

enabling organizations like MMC to streamline

enterprise-wide HR systems, achieve greater

efficiencies and reduce costs.

―With thousands of staff and facilities across the

region, we were intent on finding the right human

capital management solution to enable us to function

at maximum efficiency,‖ said John Topper, Chief

Financial Officer, Mercy Medical Centre. ―ADP

Vantage HCM enables us to quickly and easily supply

information across the enterprise, providing a

12

complete, 360-degree view. We take great comfort in

knowing that ADP is providing process support and

compliance expertise as an extension of the MMC

team. As a result, we can maximize efficiencies

across our organization and provide an enhanced

employee experience.‖

Vantage HCM also encompasses ADP‘s leading

outsourcing, best practices and compliance services to

allow for the optimal combination of technology and

process support for MMC‘s employees, managers and

practitioners.

Mercy Medical Centre‘s selection of ADP is further

evidence that ADP is fast becoming the leading

provider of human capital management tools to

organizations in the healthcare industry. Healthcare

providers throughout the United States are electing to

partner with ADP for its human resources, payroll and

benefits administration expertise, as well as its deep

industry knowledge in an era of new healthcare

regulations and reform. ADP currently serves more

than 30,000 healthcare organizations, and pays over

1.8 million healthcare employees.

―Large organizations such as Mercy Medical Centre

can benefit from ADP Vantage HCM‘s ability to help

drive efficiencies and simplify human capital

management processes so that HR decisions can be

based on more strategic, data-driven insights,‖ said

Regina Lee, Division President, ADP.

NORTHGATEARINSO ANNOUNCES FIVE-YEAR

CONTRACT EXTENSION WITH CA

TECHNOLOGIES

NORTHGATE ARINSO PRESS RELEASE [27

NOVEMBER 2012]

NorthgateArinso (NGA), a leading global HR process

provider, announced the extension of its six-year

partnership with CA Technologies to continue

providing premier HR solutions through 2018. Through

the extended partnership, NGA will continue to

maintain CA Technologies employee database and

provide document management services, in addition to

providing process refinement across global HR

systems.

CA Technologies, an IT management and software

solutions company, began its work with NGA in 2007

when it saw a need to engage a HR outsourcing

partner to help improve its HR processes worldwide.

Serving CA Technologies workforce of 13,900, NGA is

able to leverage its best practices related to SAP and

HR processing , while driving operational effectiveness

and employee satisfaction.

Given the breadth and nature of CA Technologies

needs, NGA was selected as the HR provider of

choice due to its deep knowledge of SAP, ability to

provide global support and in-depth knowledge of CA

Technologies HR processes.

―Continuing our relationship with NGA was an easy

decision,‖ said Julian Hardy, Vice President of Global

HR Operations, CA Technologies. ―Over the years our

relationship with NGA has turned into a true

partnership. They fully understand our processes --

and have the capabilities to support our HR systems

globally.‖

―Employee satisfaction and engagement is of critical

importance to our clients and we are committed to

leveraging our command of SAP, global reach and

dedicated executives to help our clients become even

better employers,‖ said Mike Ettling at NGA. ―We are

honored to continue our work with CA Technologies as

they work to provide their employees with the HR

resources necessary for success.‖

THE DEPARTMENT OF HEALTH CHOOSES

LOGICA, NOW PART OF CGI FOR DELIVERY OF

PAYROLL FOR ITS ARMS LENGTH BODIES

CGI PRESS RELEASE [9 NOVEMBER 2012]

CGI Group Inc. (TSX: GIB.A) (NYSE: GIB), a leading

provider of information technology and business

process services and McKesson UK, a trusted

healthcare technology solutions and services provider,

today announced that they have been selected as

preferred supplier to provide fully managed payroll

services to the Department of Health (DH)‘s Arms

Length Bodies (ALBs).

13

This announcement is in line with the Government

policy of delivering efficiencies through the sharing of

back office functions. It is expected to deliver an

excellent level of support to DH‘s ALBs, which enable

the NHS to operate effectively. These organizations

will employ over 30,000 staff (headcount) and include

the Health Protection Agency and the NHS

Commissioning Board.

CGI was chosen through Logica‘s inclusion as sole

supplier under the highly successful Government

Procurement Services framework for payroll, HR and

finance and will provide full end-to-end payroll

processes and services, alongside McKesson UK,

using the NHS Electronic Staff Record (ESR) system.

ESR is an Oracle-based, DH led initiative; it is the

world‘s largest integrated HR and payroll system and

the solution spans the NHS in England and Wales.

Paula Sussex, Vice-President Public Sector, UK, CGI

said, ―The GPS framework is an extremely effective

way for the public sector to both make cost savings but

also to ensure a consistently high level of service

across organizations. Our partnership with McKesson

to deliver an accurate and reliable payroll service that

will allow the Arms Length Bodies to get on with their

key roles in delivering the UK‘s health services without

having to worry about a back office function.‖

Frank Rutley, Vice President, UK Workforce Solutions,

McKesson UK, said, ―Achieving efficiencies and cost

savings in the public sector is no longer about

technology alone. In today‘s environment, it is critical

that providers work together to share expertise and

knowledge to the benefit of the customer. McKesson is

delighted to have been selected as a partner to CGI.

McKesson will offer the depth and breadth of technical

and project management resource to ensure a

successful project delivery, ongoing cost savings and

efficiency benefits.‖

The managed payroll services implementation will

begin immediately, with an option for DH to evaluate

how DH‘s ALBs can further modernize and streamline

back office services using the Government

Procurement Service‘s Framework.

The seven year contract for DH‘s ALBs builds on CGI‘s

experience in delivering payroll systems and services

for organizations across the UK public sector. It now

provides payroll services to over 90 Government

Procurement Services framework clients.

XCHANGING SECURES LLOYD'S CLAIMS

REPORTING CONTRACT

XCHANGING PRESS RELEASE [8 NOVEMBER

2012]

Xchanging, the business process, procurement and

technology services provider and integrator has been

awarded a contract to build the platform for the Lloyd's

Claims Reporting Suite (CRS).

Xchanging will develop an environment which

comprises 10 on-line dashboards which will provide

Lloyd's and managing agents with consistent,

benchmarked, claims management information

delivered against a market agreed set of key

performance indicators.

The dashboards will be compiled from a combination

of data that is currently held in the Claims Data

Warehouse and the market's electronic claims

platform, CLASS. The dashboards will be delivered in

three tranches in March, April and May 2013.

Geoff Kennard, Electronic Services Director at

Xchanging comments: "We are delighted to be

announcing this contract today and to continue

working with the market in the delivery of sophisticated

real time claims information. The level of detail that

these dashboards are able to deliver will support

Lloyd's in their vision to be the global centre for

specialist insurance and reinsurance."

Mike East, Head of Operations at Canopius and

market sponsor of this project, said: "This is another

important step in further improving how the Lloyd's

market manages claims. The Claims Reporting Suite

will help make sure that the Lloyd's market has access

to information that is clearly defined and one version of

the truth. This means we will have more of the

information we need and, just as importantly, it will be

there when we need it."

14

GENPACT TO MANAGE FINANCE AND

ACCOUNTING FOR CENTRICA, ONE OF THE

WORLD’S LEADING ENERGY COMPANIES

GENPACT PRESS RELEASE [6 NOVEMBER 2012]

Genpact Limited (NYSE: G), a global leader in

business process management and technology

services, today announced a five-year agreement with

Centrica, one of the leading energy companies in the

world. Centrica is a top 30 company on the FTSE 100

Index with operations predominantly in the UK and

North America. Under the terms of the agreement,

Genpact will streamline and manage finance and

accounting (F&A) and management reporting

processes for British Gas, which serves 13 million

households and 1 million businesses in the UK, and for

its sister company, Direct Energy, which serves 6

million customers across Canada and the United

States.

Genpact will drive end-to-end process excellence

through its proprietary Smart Enterprise Processes

(SEPSM) framework and be Centrica‘s strategic

partner in providing F&A and management reporting

services. Genpact will deliver and ensure continuous

improvement in those processes, reduce operational

risks and improve financial controls while helping both

British Gas and Direct Energy manage these costs and

take these processes to best in class. This will support

Centrica‘s strategic objectives of growth, building an

integrated North American business, and driving

overall superior financial returns.

"We are looking forward to the development of our

business relationship with Genpact," said Ian Peters,

MD, Energy for British Gas. "We chose Genpact

because of their track record in F&A and reporting,

combined with their commitment to process excellence

and optimization that was truly a differentiator."

"We look forward to a very long term partnership with

Centrica. Our framework and approach using the

‗science of process‘ called SEPSM is what we will

deploy to drive leading end-to-end processes that will

deliver improvements in outcomes," said Tiger

Tyagarajan, president and CEO, Genpact. "It is vital in

today‘s competitive marketplace that energy providers

maximize the value that effective business processes

can create, especially in terms of the insights they can

build for their customers, the improvement in customer

service, and the bottom-line impact they can create."

15

EXPANSION

CONVERGYS ANNOUNCES OPENING OF NEW

CONTACT CENTRE IN MANILA’S MEGAMALL

CONVERGYS PRESS RELEASE [21 DECEMBER

2012]

Convergys Corporation is pleased to announce the

opening of a new contact centre in Manila in January

of 2013. Convergys will occupy over 180,000 square

feet on four floors within the SM Megamall, one of the

largest shopping centres in the world. This is an ideal

location, where employees can benefit from the

convenience of being at the epicenter of activity in the

city. In addition, a new bus terminal is located at the

base of the building, providing safe, convenient, and

reliable transportation for employees to travel between

their homes and work.

This expansion marks the 18th centre in the

Philippines for Convergys, the largest private employer

in the Philippines. Named BPO Employer of the Year

at the ICT Awards—Philippines in 2012, Convergys is

recognized for significant contributions to the local and

national ICT industry. This new centre will soon begin

recruiting to fill hundreds of positions to support clients

in multiple industries.

NCO FINANCIAL SYSTEMS INC. EXPANDING

OPERATIONS IN CHARLESTON COUNTY

NCO PRESS RELEASE [7 DECEMBER 2012]

NCO Financial Systems Inc., a leading global provider

of best-in-class business process outsourcing (BPO)

solutions, today announced that it will expand its

current operations in Charleston County due to new

business development. In conjunction with the

expansion, the company will be seeking to fill 75 new

positions.

―It‘s exciting to have the opportunity to expand our call

centre facility in Charleston County. South Carolina

has provided us with an excellent environment in

which to do business, and provided us with exceptional

workforce talent. We look forward to growing here, and

we appreciate all the support we‘ve received from

state and local officials,‖ said Jay King, Co-Head ARM

Operations, of NCO Financial Systems.

NCO Financial Systems will expand its call centre

operation, located at 4275 Bridge View Drive, in North

Charleston, SC. The centre handles accounts

receivable services for utilities and telecom revenue

clients and currently employs more than 600 people.

The expansion is scheduled to be completed in

January 2013. The new positions are primarily for call

centre representatives.

―When existing businesses in South Carolina choose

to expand, it‘s a good indication our economic

development efforts are on the right track. We

celebrate NCO Financial Systems‘ decision to grow in

North Charleston and create 75 new jobs,‖ said

Governor Nikki Haley.

NCO operates a global network of more than 100

operations centres running on a centralized data

platform with the flexibility to respond to the changing

marketplace, and to tailor operations to meet client

specifications. NCO‘s services include accounts

receivable management, revenue cycle management

and order-to-cash BPO services. NCO provides

services across multiple vertical markets through a

combination of voice, chat, email, voice automation,

back-office, social media and self-help portals.

―NCO Financial Systems is a world-class company and

this expansion in Charleston County is great news.

Every one of these jobs will have impact in North

Charleston. Announcements like this one show

companies continue to see the Palmetto State as the

right place to do business,‖ said Secretary of

Commerce Bobby Hitt.

CONVERGYS CONTINUES TO EXPAND ITS

PRESENCE IN COSTA RICA

CONVERGYS PRESS RELEASE [6 DECEMBER

2012]

Convergys Corporation (NYSE: CVG), the global

provider of customer management staffing solutions,

today announced the launch of a new 7,000 square-

meter operations centre in Boulevard de Rohrmoser, in

16

San Jose. This facility becomes the company‘s fourth

operations centre in the country, and will offer jobs to

500 new employees that will join the more than 2,000

that the company currently employs in three centres in

Heredia and San Jose.

The launch event was attended by President

Chinchilla, who underlined the significant growth of

Convergys and its consolidation as one of the ten main

employers of the service sector in Costa Rica,

according to data from CINDE.

After only three years of deploying in Costa Rica, the

company has made four significant expansions,

making it one of the largest employers in the service

sector, with 2,400 job positions. The employment

opportunities that Convergys adds to this sector have

been very important and marked by the offering of

hundreds of job opportunities with stable income, good

salaries and interesting prospects for personal and

professional growth to Costa Ricans. With the

expansion we are celebrating today, the company

reaffirms the vote of confidence it has placed in our

country and particularly in the skills of our people,"

said the President.

For his part, the Deputy Minister of Foreign Trade,

Fernando Ocampo said that, in addition to being an

example of growth, Convergys is also an example of

the evolution that the service sector has had in Costa

Rica.

"Convergys has helped increase the impact that the

services sector has in the country's economy. In 2011,

exports and business information services such as

what is offered by Convergys represented 5.8% of the

GDP in Costa Rica. This figure is equal to that

achieved by agricultural exports and places us as

leaders in Latin America in the export of services,

information technology and communications," said

Ocampo.

MINACS PARTNERS WITH QUALFON TO LAUNCH

MEXICO CENTRE

MINACS PRESS RELEASE [26 NOVEMBER 2012]

Aditya Birla Minacs, a global business solutions

company (subsidiary of Aditya Birla Nuvo), today

announced that it has set up a new centre in Mexico

City, Mexico in partnership with Qualfon, a leading

global BPO provider with proven LATAM contact

centre experience. This centre will provide customer

support services to Minacs‘ clients in North America.

The 600-seat centre will offer a wide range of facilities

to employees in a world-class working environment.

Qualfon will partner with Minacs to provide customer

service support in English and Spanish to its clients.

Senior Minacs executives will provide leadership

onsite to ensure the delivery of a world-class service

experience to customers.

Commenting on the new partnership with Qualfon and

the focus of the Mexico City delivery centre, Anil

Bhalla, COO, North America and Europe at Aditya

Birla Minacs said, ―With this new centre, we are

strengthening our LATAM presence and solution

offering to add to Minacs‘ presence in Jamaica and the

Dominican Republic. This enables our clients to be

even closer to their customers. Combined with Minacs‘

Value Partnering strategy, our Mexico location will

ensure that we better support the achievement of

business outcomes that our clients are seeking.

Qualfon is a highly respected outsourcing services

provider in the LATAM market, and we are delighted to

partner with them. I am confident that the synergies

between our two companies will deliver immense value

to our clients.‖

―We are pleased to be working with such a respected

company like Aditya Birla Minacs and to support its

high quality customer lifecycle solutions,‖ said Mike

Marrow, the Chief Executive Officer (CEO) of Qualfon.

―Minacs‘ customized client solutions based on its deep

domain expertise in its focus industries, combined with

Qualfon‘s LATAM experience and our highly-engaged

and highly-tenured workforce will indeed provide

superior solutions for clients and their customers.‖

INTEGREON OPENS LEGAL DOCUMENT REVIEW

CENTRE IN LONDON

INTEGREON PRESS RELEASE [26 NOVEMBER

2012]

17

Integreon, a leading global provider of outsourced

legal, research and business services, today

announced the opening of a 100 seat legal document

review centre in the City of London. The London centre

is the second UK facility Integreon has opened this

year, with the initial Bristol centre opening in January.

These onshore locations complement the company‘s

offshore review centres in India and the Philippines

and further extend Integreon‘s leadership position in

the UK for onshore and offshore service delivery.

―Client interest in the UK for Integreon‘s onshore legal

outsourcing services has never been higher and we

are committed to investing and growing our business

in this market,‖ said Brent Larlee, Global Head, Legal

Services at Integreon. ―Our London review centre

offers UK law firms and corporations a high quality

service experience and outsourcing cost benefits,

while providing clients with the ability to balance data

protection requirements, if work is required by the

client or by law to be carried out in a UK facility.‖

Clients choose Integreon‘s document review services

to gain crucial cost certainty and predictability, and to

achieve higher quality results through structured,

tightly controlled review processes that provide a

defensible, risk management framework. Integreon

offers clients unrivalled choice of global service

delivery for any blend of on location, onshore, or

offshore review, including access to specialized

expertise such as foreign language fluency for most

European and Asian languages.

―We‘ve worked with Integreon for offshore and onshore

review and appreciate their professionalism and

consistent attention to quality,‖ said Vince Neicho,

Litigation Support Manager at Allen & Overy LLP.

―The opening of our London facility is timely, since

many UK organizations are preparing for the April

2013 implementation of new rules on disclosure as

part of the Jackson Reforms,‖ said Juliet Hanna, Head

of Document Review Services at Integreon. ―Discovery

costs will be subject to closer scrutiny by the courts

and we are very pleased to be able to offer a lower

cost option for managed review right on the doorstep

of most of our UK clients.‖

TELETECH TO OPEN SECOND CUSTOMER

EXPERIENCE CENTRE IN PADUCAH, KENTUCKY

TELETECH PRESS RELEASE [20 NOVEMBER 2012]

TeleTech Holdings, Inc. (NASDAQ: TTEC), a leading

global provider of technology-enabled customer

experience solutions, today announced that it is

expanding its presence in Kentucky by opening a

second state-of-the-art customer experience center in

Paducah. In May, TeleTech announced a site opening

in Hopkinsville.

The Paducah customer experience center will occupy

two separate buildings: one in the historic downtown

area and the second building will be built in the

commerce park area. Construction on the 30,000

square foot building in the commerce park is expected

to begin in January 2013.

―We‘re excited to expand our commitment to the state

of Kentucky,‖ said Kenneth Tuchman, chairman and

chief executive officer of TeleTech. ―The talented labor

force in the state will help us deliver exceptional

support to our Fortune 1000 clients and their

customers.‖

CAPGEMINI EXPANDS BPO OPERATIONS IN

BRAZIL

CAPGEMINI PRESS RELEASE [15 NOVEMBER

2012]

Capgemini, one of the world‘s foremost providers of

consulting, outsourcing, and technology services, has

announced it has set up a new office for Business

Process Outsourcing in Blumenau, Santa Catarina in

Brazil. The new centre is part of the company‘s

strategy to significantly expand its Brazilian operations.

The company has already opened its doors employing

400 professionals (with the capacity to expand to

1,200) to support major clients such as Algar.

Serving a number of leading players in the country, in

addition to the unit in the southern region, Capgemini

Business Process Outsourcing (BPO) counts on

another office in Campinas, Sao Paulo employing a

total of 1,100 team members. It expects to reach 3,000

BPO employees in Brazil by 2015. Capgemini‘s BPO

18

services are characterized by long-term contracts (7-

13 years) for large companies, which can be

highlighted by its work with Unilever, Syngenta, Avon,

Nokia Siemens and Algar Group.

Roberto Cerqueira, Capgemini BPO Vice President,

says Santa Catarina is a strategic delivery location for

the company. ―Together with the Campinas office, the

new unit will allow us to serve our customers

throughout the globe, with the intent to generate

significant value to them. The Vale do Itajaí region

provides a large pool of talent, since it is home to

many universities and offers a high quality workforce‖.

Aiming to expand its Brazilian BPO operations

significantly, Capgemini is a member of Associação

Brasileira de Provedores de Serviços de Apoio

Administrativo (ABRAPSA), and holds a Strategy

Director role. ―We are working hard to show the value

of Business Process Outsourcing in the country‖, says

Cerqueira.

Capgemini provides extensive global BPO solutions for

the execution of business processes in Finance and

Human Resources, as well as Procurement and

Supply Chain.

XCHANGING UNVEILS PLANS FOR FURTHER

OFFICES AND SERVICES IN APAC

XCHANGING PRESS RELEASE [1 NOVEMBER

2012]

Xchanging, the business process, procurement and

technology services provider and integrator today

announces its intention to open new delivery centres at

two locations in Asia.

On the back of its strong Asia presence, already

operating out of 11 locations in APAC, Xchanging is

setting up two centres in the Philippines and China.

The centres are being established to cater to the

global demand for BPO, ITO & Procurement services

in the insurance, real-estate, BFS and other verticals.

Xchanging is further enhancing its offering to the

APAC market by adding new services lines. These will

include cloud computing services in conjunction with

YTL delivery insight. Xchanging Malaysia is the joint

venture between Xchanging and YTL Communications

that is setup to provide cutting edge cloud services,

Telco & 4G services, Infrastructure management and

BSS / OSS services.

APAC is a not only a core market for Xchanging and

one that it is actively expanding, it is also a key

delivery hub, given the availability of scalable talent in

countries like India, Philippines & China. Our strategy

is in line with analyst predictions that the business

process outsourcing market in Asia-Pacific is on pace

to reach US$6.45 billion this year and hit US$9.5

billion by 2016, with many growth opportunities still

untapped.

Currently Xchanging has 4,500 staff at 18 offices

across APAC, servicing over 250 clients. Xchanging's

Asia Pacific business includes Singapore, Australia,

Malaysia, India, China and Japan with clients also in

Thailand and Indonesia. It is a major interface provider

for all Lloyd's China insurance transactions and

manages over 60,000 claims annually in Australia.

Julie Lynch, Head of Relations at Xchanging said:

"APAC is a key market for us as we continue to grow

our business globally. The new locations and services

build on an already broad range of services we provide

for customers across the region. APAC is obviously a

very diverse region culturally but the issues there are

the same as other territories and Xchanging is very

proud to be at the heart of this exciting region, which is

undergoing transformational expansion."

19

MOVERS AND SHAKERS

FIRSTSOURCE APPOINTS SENIOR STRATEGY

ADVISOR TO FOCUS ON FINANCIAL SERVICES

SECTOR

FIRSTSOURCE PRESS RELEASE [17 DECEMBER

2012]

Firstsource Solutions has announced that as part of its

strategy of developing and growing its banking &

financial services sector business, Tim Franklin, former

Chief Operating Officer of the Co-Operative Banking

Group, has been appointed as a Senior Strategy

Advisor.

―We are delighted to welcome Tim Franklin to our

financial services team in the UK,‖ commented Iain

Regan, Head of Global Sales & Marketing for

Firstsource. ―Tim has a wealth of experience and

knowledge in the financial services sector and he will

help us to build on our existing expertise that we have

developed through working for our UK banking and

financial services clients.‖

Tim Franklin has a distinguished career in the financial

services sector, having served as COO of the Co-

Operative Banking Group between August 2009 –

December 2011. Previously, he was Managing

Director of Britannia Building Society and has also

worked for Barclays Bank in several senior roles. Tim

has also served as a non-executive director for

organizations including the Post Office, HM Land

Registry, Reclaim Fund, Western Mortgage Services,

Mutual Plus, and Link Cash Machines.

ACHIM BERG APPOINTED NEW CEO OF ARVATO

ARVATO PRESS RELEASE [30 NOVEMBER 2012]

Achim Berg (48) has been designated as the new CEO

of arvato AG and a member of the Bertelsmann

Executive Board. The Supervisory Board of

Bertelsmann Management SE today appointed Berg to

the Executive Board of the international media and

services company, with effect from April 1, 2013. He

succeeds Rolf Buch (47), who will step down from the

arvato management and resign his seat on the

Bertelsmann Executive Board, by mutual agreement

and on the best of terms, at the end of the year. Rolf

Buch and the shareholders have jointly arrived at the

conclusion that the responsibility for arvato‘s upcoming

stage of growth, for which Buch laid the foundations,

should be reassigned.

Gunter Thielen, Chairman of the Bertelsmann

Supervisory Board, comments: ―In his more than

twenty years at Bertelsmann and especially at the

helm of arvato, Rolf Buch has achieved a great deal

for our company. I thank him for this and wish him all

the best for the future. Among Rolf Buch‘s remarkable

and enduring achievements are the building of arvato‘s

French business, which is one of the company‘s most

important mainstays to this day, the establishment of

Infoscore, and the expansion of the group‘s worldwide

services business.‖ Thielen continued: ―Achim Berg is

the best possible choice for leading arvato into a

prosperous future and putting the company‘s strategy

into practice. He has a wealth of experience and top-

notch networks in the IT and services segments that

are so important for arvato. Moreover, he is an

excellent manager.―

Bertelsmann CEO Thomas Rabe welcomed Berg‘s

appointment to the Executive Board of the company,

saying: ―We look forward to Achim Berg‘s international

expertise and perspective. Above and beyond his

profound understanding of technology, he brings with

him extensive management know-how from a global

group like Microsoft and other noted companies. He

will further enhance our Executive Board team, and will

resolutely align the Group‘s growth engine arvato to

our four new strategic guidelines: beyond

strengthening arvato‘s core business he will provide

crucial impetus in the division‘s digital transformation,

advance the building of growth platforms within arvato,

and accelerate its expansion in our defined growth

regions across the world.‖

Rabe added: ―Achim Berg will be able to build on the

work done by Rolf Buch, whom I would like to sincerely

thank at this point. He and I spent many good years

together on the Bertelsmann Executive Board. Rolf

Buch is one of the most successful entrepreneurs in

our group. No other colleague has won the coveted

Bertelsmann Entrepreneur Award, which we present in

20

honor of the year‘s best performances, more often

than he did.‖

Achim Berg has served as Corporate Vice President,

Worldwide Operator Channels at Microsoft Inc. in

Seattle, WA (USA) since 2011, having initially joined

Microsoft in 2007 and overseen the company‘s

Germany business among other things. Prior to this,

the Business IT graduate held executive positions at

companies including the Telekom subsidiary T-Com

and the computer manufacturers Dell and Fujitsu

Siemens. Berg is regarded as both an eminent

authority on the distribution and marketing of IT

services, and a well-versed expert on information

technology. He is married and has a 14-year-old son.

Rolf Buch is leaving Bertelsmann after more than 20

years. In 1991, he had joined what was then

Bertelsmann Distribution GmbH as an assistant to the

management. This was followed by successive

managerial positions across what is now arvato. He

took a seat on the arvato Executive Board in 2002, and

was appointed its Chairman in January 2008. Since

then, he has successfully repositioned arvato with a

clear-cut growth strategy.

As a global service provider, arvato supports B2B

customers around the world in optimizing their

customer relationships. Its more than 68,000

employees develop and deliver bespoke solutions for

business processes across integrated service chains.

arvato AG is a wholly owned subsidiary of

Bertelsmann. In 2011, it generated revenues of €5.4

billion and its operating EBIT was €341 million.

EXL NAMES NEW HEAD OF UK AND EUROPE

EXL PRESS RELEASE [28 NOVEMBER 2012]

ExlService Holdings, Inc. (NASDAQ: EXLS), a leading

provider of outsourcing and transformation services,

today announced the appointment of Leo Curran as

Senior Vice President, Head of UK and Europe. This

appointment is among other investments planned to

grow EXL‘s business in the region.

―With Leo, EXL gains an outsourcing veteran well

respected among buyers, analysts and advisors who

will be instrumental in providing both internal and

external leadership,‖ said Bill Bloom, President, Global

Client Services, EXL. ―Our client relationships within

the UK and Europe are among our best, and EXL as a

company has produced some of its most innovative

solutions on behalf of our clients there. Our plan is to

build a strong brand off the foundation of these

tremendous assets in order to aggressively grow our

business.‖

Curran joins EXL from a leading IT outsourcing

company, where he was Head of BPO for the UK and

Ireland. In his previous role, he oversaw go-to-market

BPO strategies and developed a strategic proposition

for integrated BPO and ITO services, while increasing

revenue and profitability. He will be based in London.

―I am extremely excited about the opportunity that EXL

has to expand its reach into the UK and European

markets," Curran said. ―I am particularly impressed

with the organization's focus on meeting clients'

increasingly complex business needs. Working with

our existing team, I look forward to showcasing how

global services delivery, whether through operations

management or decision analytics services, will help

companies in this market achieve their goals.‖

XCHANGING HIRES HEWLETT PACKARD VP TO

HEAD ITS GLOBAL INSURANCE SERVICES

BUSINESS

XCHANGING PRESS RELEASE [28 NOVEMBER

2012]

Xchanging, the business process, procurement and

technology services provider and integrator has

appointed Adrian Guttridge as Executive Director,

Insurance Services.

Reporting directly to group CEO Ken Lever, Adrian will

assume responsibility for the activities and growth of

Xchanging‘s global Insurance Services business.

He joins from Hewlett Packard (HP), where he held the

position of Vice President of business process

outsourcing, Europe, the Middle East and Africa. HP‘s

BPO business generates global revenues in excess of

$2.5bn Adrian has previously held roles as HP Vice

21

President and Managing Director for the financial

services sector in the UK and Ireland, and Chief

Executive of HP subsidiary EISIS, a company

delivering FSA regulated services to its clients.

Before HP, Adrian was director of IT systems at Abbey

National with responsibility for software delivery across

all of its mortgage, banking and insurance brands.

As such Adrian brings an accomplished technology

background and extensive insurance experience to the

role, having also previously held senior positions in the

sector at Accenture and Marlborough Stirling.

His appointment follows the departure in May 2012 of

Jane Tutoki, whose executive responsibility for the

Insurance Services business was temporarily assumed

by Jon Stratford, group Director of Corporate

Development and Strategy.

Commenting on Adrian‘s appointment CEO Ken Lever

said: ―At Xchanging Adrian will be focussed on the

global growth of our Insurance Services business as

well as building on the strong position we are

privileged to hold in the London and Lloyd‘s markets.

We warmly welcome someone of Adrian‘s caliber to

Xchanging and, on behalf of the Executive Board, I

wish him every success in his new role. I would also

like to thank Jon Stratford who has done an

outstanding job in the role in the interim.‖

22

TRENDS AND VIEWPOINTS

OUTSOURCING CONTRACTS DOWN BY 19

PERCENT

EVEREST PRESS RELEASE [7 NOVEMBER 2012]

The number of new business process outsourcing

contracts worldwide dropped year-on-year in the third

quarter, with contract values also decreasing, a

research firm said.

Everest Group, which had reported a drop of 20

percent year-on-year in the second quarter, said the

number of contracts was down to 381 in the third

quarter from 472 in the same quarter last year.

The dip in number of contracts in the third quarter is

more worrying than the slowdown reported in the

second quarter, because the third quarter is usually

the busiest period in the outsourcing industry, said

Salil Dani, practice director for global sourcing at

Everest, on Tuesday.

The drop came largely because of economic problems

in key markets like the U.S. and Europe, but there was

also uncertainty about offshoring among U.S.

customers, as keeping jobs in the country became a

key issue in the U.S. presidential election campaign,

Dani said.

Banks in the U.S. in particular delayed decisions

relating to offshoring to locations like India and the

Philippines because a number of them have taken

funding from the government, and didn't want to be

seen as offshoring while the political rhetoric was at its

hottest, Dani said.

Offshoring is a key part of outsourcing, and about 47

percent of the contracts in the quarter had an element

of offshoring. About 38 percent of the contracts were

for delivery from India and other locations in Asia, he

added.

Everest said its estimate of outsourcing contracts is

based on publicly disclosed data, and included entirely

new transactions as well as some renewals of earlier

deals. Dani said that if estimates of contracts that were

not made public were included, the numbers of new

contracts were still lower in the third quarter than from

the same quarter a year earlier.

The total annualized value of new reported contracts

has also been falling, particularly in business process

outsourcing, and was down to US$1.5 billion in the

third quarter from $2.7 billion in the same quarter last

year, Dani said. Annual contract value is the value of a

contract divided by its duration. The deal sizes are

getting smaller across most industry verticals, he

added.

23

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.

Key Highlights

1 month return: -4.5%

1 quarter return: -8.9%

1 year return: 4.7%

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 (04/01/13)

for this edition of the newsletter.

Avendus BPO Composite Index

4.7% -8.9% -4.6%

24

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, wealth management and alternative asset 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, corporates and high net worth 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 over 40 cross-border

transactions in the past 4 years. Avendus Securities through its Institutional Equities practice is able to offer best-in-

class research-driven advice to help its clients take investment decisions, while Avendus PE Investment Advisors

manages funds raised from its investors by investing in public markets. 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

Announcement

Deal Value Industry

Avendus advises KPIT Cummins Infosystems Limited on

preferential allotment of equity shares to CX Partners and

ChrysCapital

December, 2012 USD 30 mn Technology &

Outsourcing

Avendus Capital advises MphasiS Ltd on its acquisition of

Digital Risk LLC

December, 2012 USD 202 mn Technology &

Outsourcing

Avendus Capital advises AGS Transact Technologies Ltd.

on its equity raise from Actis

August, 2012 USD 40 mn Consumer

Avendus Capital advises BookMyShow on Accel Partner‘s

USD 18 Mn investment

August, 2012 USD 18 mn Digital Media

& Technology

Avendus Capital advises MAS Financial Services Ltd on

raising growth capital from DEG – Deutsche Investitions-

und Entwicklungsgesellschaft mbH

August, 2012 Undisclosed Financial

Services

Avendus Capital advises eClerx on its acquisition of Agilyst

Inc.

June, 2012 Undisclosed Technology &

Outsourcing

Avendus Capital advises R&R Salons on its fund raising

from Everstone Capital and Helion Venture Partners

May, 2012 Undisclosed Consumer

Avendus Capital advises Wipro on its acquisition of

analytics company, Promax Applications Group

May, 2012 USD 36 mn Technology &

Outsourcing

Avendus advises Kanoria Chemicals on its acquisition of

APAG Holding, Switzerland

April, 2012 USD 8.46 mn Industrials

Avendus Capital, Inc. advises SPi Global on its acquisition

of Laserwords Private Limited

November, 2011 Undisclosed Technology &

Outsourcing

25

Avendus advises Eris Lifesciences on its private equity

transaction with ChrysCapital

September, 2011 Undisclosed Lifescience

Avendus Capital advises Value & Budget Housing

Corporation on its equity raise from The Carlyle Group

August, 2011 USD 26 mn Infrastructure

& Real Estate

Avendus Capital advised SYSTIME on its 50% stake sale to

KPIT Cummins Infosystems Limited

May, 2011 USD 23 mn Technology &

Outsourcing

Avendus Capital advises on Serco‘s acquisition of Intelenet

Global Services

May, 2011 USD 536 mn Technology &

Outsourcing

Avendus Capital, Inc. advises Outsource Partners

International (OPI) on its transaction with ExlService

Holdings, Inc.

May, 2011 USD 91 mn Technology &

Outsourcing

Avendus advises KPIT Cummins Infosystems Limited on its

preferential allotment of equity shares to Chrys Capital

March, 2011 USD 25 mn Technology &

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

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3600

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New York: 499 Park Avenue, 12th Floor, New York, NY 10022, Tel: +1 646 707 0789

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Avendus Capital, Inc and Avendus Capital (UK) Private Limited are authorized and regulated by the FINRA and FSA

respectively.

“© Copyright 2011 Avendus Capital Private Limited. All rights reserved.”

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