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Amit Singh amit.singh@avendus.com Abhinav Goel abhinav.goel@avendus.com Shruti Chaturvedi shruti.chaturvedi@avendus.com Varun Divgikar varun.divgikar@avendus.com

Business Process Outsourcing Newsletter

Dec - Jan ‘14

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Table of ContentsDEAL SUMMARY .................................................................................................................................. 3 

NSE BUYING 45% IN CAMS, ADVENT TO EXIT .......................................................................................... 3 

XEROX EXPANDS EUROPEAN CUSTOMER CARE EXPERTISE WITH ACQUISITION OF INVOCO .......................... 3 

SALMAT ACQUIRES PHILIPPINES-BASED OUTSOURCED SERVICE PROVIDER ................................................ 4 

IQOR ACQUIRES JABIL AFTERMARKET SERVICES TO CREATE LEADING CUSTOMER AND PRODUCT SUPPORT COMPANY ............................................................................................................................................. 4 

MOODY'S ACQUIRES AMBA INVESTMENT SERVICES .................................................................................. 5 

WIPRO TO ACQUIRE OPUS CMC, ONE OF THE LEADING US MORTGAGE DUE DILIGENCE AND RISK MANAGEMENT SERVICE PROVIDERS ........................................................................................................ 6 

COMPETENCE CALL CENTER SETS SIGHTS ON ACCELERATED GROWTH WITH THE BACKING OF SILVERFLEET CAPITAL ........................................................................................................................... 7 

LASALLE CAPITAL ACQUIRES METASOURCE, LLC ....................................................................................... 7 

INNOTRAC ENTERS INTO MERGER AGREEMENT WITH AFFILIATE OF STERLING PARTNERS ............................. 8 

DIVESTMENT OF DOCUMENT OUTSOURCING IN COLOMBIA ........................................................................ 9

CONTRACT TRACKER ......................................................................................................................... 10 

DST SELECTED BY LEADING NEW YORK HEALTH SYSTEM TO PROVIDE FULL ADMINISTRATIVE OUTSOURCING SERVICES .................................................................................................................... 10 

GENPACT AND ASTRAZENECA EXTEND FINANCE AND ACCOUNTING SERVICES AGREEMENT ........................ 10 

TELEPERFORMANCE UK AWARDED FIVE YEAR HER MAJESTY’S PASSPORT OFFICE CONTRACT....................... 11 

NTA LIFE SELECTS THE EXL LIFEPRO® POLICY ADMINISTRATION PLATFORM ............................................. 11 

AEGIS ENTERS INTO A 5 YEAR CONTRACT WITH BANK OF INDIA FOR CUSTOMER RELATIONSHIP MANAGEMENT ..................................................................................................................................... 12 

XCHANGING SECURES FIRST UTILITY CUSTOMER WITH A NEW THREE YEAR PROCUREMENT CONTRACT WITH SEVERN TRENT SERVICES ........................................................................................................... 13 

UPM SIGNS FINANCE AND ACCOUNTING CONTRACT WITH GENPACT ......................................................... 13

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

DST TO OPEN SECOND LOCATION IN INDIA ........................................................................................... 15 

ARVATO BENELUX B.V. GROWS WITH CUSTOMERS AND MOVES INTO NEW WAREHOUSE IN VENRAY ............ 15 

INFOSYS BPO EXPANDS GLOBAL PRESENCE WITH NEW CENTER IN THE NETHERLANDS .............................. 16

MOVERS AND SHAKERS .................................................................................................................... 17 

NEW CEO TO PROGRESS HGS GROWTH STRATEGY IN UK & EUROPE ......................................................... 17 

WNS NAMES RONALD GILLETTE CHIEF OPERATING OFFICER .................................................................... 17

TRENDS AND VIEWPOINTS ............................................................................................................... 19 

INSURANCE BPO – ANNUAL REPORT 2013: IN AN INCREASINGLY VOLATILE WORLD, INSURANCE IS FINDING NEW TAKERS ......................................................................................................................... 19 

EUROPE NOW LEADS GLOBAL OUTSOURCING MARKET SHARE: EVEREST GROUP MARKET VISTA REPORT ...... 19

AVENDUS BPO COMPOSITE INDEX .................................................................................................... 20  

OUR OFFICES .................................................................................................................................... 22 

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DEAL SUMMARY

NSE BUYING 45% IN CAMS, ADVENT TO EXIT

VCCIRCLE PRESS RELEASE [26 DECEMBER 2013]

India’s biggest bourse in terms of volumes in equity

trades, National Stock Exchange has signed an

agreement to acquire 45 per cent stake in Chennai-

based Computer Age Management Services (CAMS),

which offers technology solutions to mutual funds and

other financial services. The deal is routed through

NSE’s arm Strategic Investment Corporation.

The financial details of the transaction stand

undisclosed but The Economic Times said it could be

in the range of Rs 540-675 crore or up to $108 million,

citing sources.

This is a secondary deal with the 45 per cent stake

being acquired from US-based private equity firm

Advent International besides other shareholders

namely HDFC, HDFC Bank and Acsys Software India.

Advent, which has $26 billion under management

globally, had first invested in India by picking up 30 per

cent stake in CAMS for nearly $90 million (Rs 350

crore back then) in 2007.

Following the deal, remaining 55 per cent equity stake

will be held by Acsys Software India Pvt Ltd and HDFC

Group.

The acquisition will help the NSE, which started

operations in 1994 with a fully electronic trading

platform, to increase its footprint in the mutual fund

transaction and distribution space and will also

improve volumes on the mutual funds trading platform

on the NSE.

CAMS, which provides services to 18 mutual fund

groups in India, is responsible for around half of all

mutual fund transactions processed across the

country. The company also offers services to

insurance industry.

"This association will bring in unique capabilities in

expanding the reach of mutual funds and other

financial products through the exchange infrastructure

of member terminals across the country, apart from its

unique capabilities in governance of members,

settlement and market making," NSE said in the filing.

The transaction will not result in any change in CAMS

management team and structure.

XEROX EXPANDS EUROPEAN CUSTOMER CARE

EXPERTISE WITH ACQUISITION OF INVOCO

XEROX PRESS RELEASE [20 DECEMBER 2013]

Xerox (NYSE: XRX) today announced an agreement

to acquire German-based Invoco Holding GmbH,

expanding its European customer care services. The

transaction is expected to close following the

completion of customary closing conditions.

Invoco will provide Xerox’s global customer base with

immediate access to industry-leading German

language customer care services while enabling

Invoco’s existing customers to take advantage of

Xerox’s broad business process outsourcing (BPO)

capabilities, including customer care service spanning

175 facilities and serving clients in more than 30

languages.

“Invoco will blend seamlessly with our current

operations as we expand our BPO footprint in

Germany and execute our European customer care

strategy,” Simon Verzijl, group president of Xerox’s

commercial business process outsourcing in Europe.

“Together our goal is to expand service and capability

across Europe to new and existing local market and

multi-national clients.”

This acquisition follows Xerox’s similar customer care

acquisitions in the European market, including Unamic

(Benelux region) in 2011, and both WDS (U.K.) and XL

World (Italy) in 2012. The addition of Invoco’s German-

speaking capabilities expands Xerox’s customer care

language capabilities that are now offered in facilities

in the United Kingdom, France, Netherlands, Belgium,

Turkey, Czech Republic, Romania, Italy and Albania.

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The Invoco management team will remain unchanged

and continue to be led by Rainer Diekmann, Invoco’s

chief executive officer. After closing, the company will

go to market as ‘Invoco, A Xerox Company’.

“This transaction enables Invoco to expand Xerox’s

capabilities in Germany and provides the opportunity

to expand our services to countries with strong

German language requirements, such as Switzerland

and Austria,” said Rainer, who helped establish Invoco

in 2007.

Headquartered in Hamburg, Invoco’s 1,800 employees

offer deep expertise in the cable industry allowing

Xerox to add to the suite of industries where it leads in

customer care, including telecom, transportation,

technology, retail, and travel.

SALMAT ACQUIRES PHILIPPINES-BASED

OUTSOURCED SERVICE PROVIDER

SALMAT PRESS RELEASE [19 DECEMBER 2013]

ASX-listed communications and marketing company,

Salmat (ASX:SLM) has purchased Philippines-based

outsourced services provider, MicroSourcing

International.

The deal involves 50 per cent shares in the business

and a performance-based option to acquire the

remaining 50 per cent by mid-2016.

It comprises of two tranches with an initial investment

of $US7.75 million and an estimated total investment

of $US31 million, which will be based on performance

incentives.

MicroSourcing provides a range of offshore outsourced

business solutions including contact centre services,

back office processes, digital creative and

development services, which are offered via a range of

service delivery models.

Salmat chairman and interim CEO, Peter Mattick, said

the acquisition complemented its current growth

strategy and it will enable its customer engagement

solutions division to expand with capabilities and scale

in the Philippines market.

“We’ve experienced an increase in client demand for

offshore services in recent years,” Mattick said. “This

deal expands our footprint in the contact centre

business with more than 4000 seats in offshore

locations and also provides a valuable extension of our

product offering into offshore digital and back-office

services.

“The business has a unique service delivery model

which is extremely attractive with an established and

stable client base in the USA and Australia, presenting

the opportunity for Salmat to extend its other services

into new geographic markets.”

The MicroSourcing brand will remain along with its

current CEO and founder, Philip Kooijman. The deal is

expected to be earnings per share accretive after the

first year and is expected to be completed on January

31.

IQOR ACQUIRES JABIL AFTERMARKET

SERVICES TO CREATE LEADING CUSTOMER AND

PRODUCT SUPPORT COMPANY

IQOR PRESS RELEASE [17 DECEMBER 2013]

iQor, a global provider of business process

outsourcing services, today announced the signing of

a definitive agreement to acquire the Aftermarket

Services business of Jabil Circuit, Inc. (NYSE: JBL) for

$725 million. This acquisition will create the first global

company with the capabilities to address the $40

billion market at the intersection of customer

relationship management and product support

solutions.

Following completion of the transaction, iQor will have

more than $1.5 billion in revenues, more than 31,000

employees and operations in 16 countries around the

world. As part of a multiyear contract, iQor Aftermarket

Services will become the exclusive aftermarket service

provider for Jabil Circuit, Inc., which will retain a

financial stake in the combined company.

The transaction will combine iQor’s leading customer

support capabilities with Jabil Aftermarket Services’

experience as the premier product support services

organization to create a unique service offering that

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addresses the needs across the customer value chain,

from customer care (including sales, technical support,

and accounts receivables management) to product

diagnostics to repair services. The combined entity

will be strongly positioned to provide global clients in a

range of industries with integrated support across their

supply chain and customer ecosystems.

Jabil Aftermarket Services, headquartered in St.

Petersburg, Fla., is the leading provider of aftermarket

services to industry-leading electronics manufacturers,

retailers, and service providers in categories such as

computing, consumer devices, mobility, networking,

storage, telecommunications, and medical devices.

The business has 13,000 employees and 28 facilities

around the world to serve its global customers.

iQor, headquartered in New York City, provides

customer care, receivables management, and

outsourcing solutions for blue-chip, global brands. The

company’s 18,000 employees in 39 locations serve

clients in industries ranging from telecommunications,

financial services, and government to retail, healthcare

and transportation.

“At iQor, we see more and more of our clients

consolidating outsource service providers in order to

reduce complexity and streamline operations, and this

transaction addresses that market dynamic in a

powerful way,” said Hartmut Liebel, CEO of iQor, who

was previously CEO of Jabil Aftermarket Services for

more than 10 years, during which time the business

transformed into the leader in its industry. “In addition,

this combination diversifies iQor’s revenue stream, and

enhances our ability to extend our platform by adding

adjacent industries and capabilities over time.”

Jabil Aftermarket Services will initially be a separate

business unit of iQor that will operate as iQor

Aftermarket Services, and remain headquartered in St.

Petersburg. The business will continue to be run by its

current strong, dedicated management team under the

leadership of Bryan Maguire.

“Over time, we expect this business combination will

help provide a comprehensive solution to today’s

fragmented consumer experience,” said Maguire. “We

believe the ability for one organization to address the

product support and customer service chain will help

ensure a seamless and positive experience for our

clients and the customers they serve.”

“iQor is excited to acquire Jabil Aftermarket Services

based on its deep expertise working with major

electronics manufacturers, retailers, and service

providers around the world, which enables us to create

a unique service offering and enhances our

competitive advantage to gain market share,” said

Gary Crittenden, Chairman of iQor who also serves as

Chairman of iQor’s lead investor, HGGC. “iQor’s

customers will benefit from a considerably larger global

footprint and additional financial resources to invest in

all lines of its business.”

Financing for the transaction comes from iQor, and an

additional investment from its investors, HGGC, The

Rohatyn Group, and Starr Investment Holdings.

Completion of the transaction is contingent upon

customary regulatory approvals and is expected to be

completed in the first quarter of 2014

MOODY'S ACQUIRES AMBA INVESTMENT

SERVICES

AMBA PRESS RELEASE [11 DECEMBER 2013]

Moody's Corporation (NYSE:MCO) announced today

that it has acquired Amba Investment Services, a

provider of investment research and quantitative

analytics for global financial institutions. Amba will

operate as part of Moody's Analytics majority-owned

subsidiary, Copal Partners.

The acquisition will bolster the research and analytical

capabilities offered by Moody's Analytics through

Copal, creating a leading outsourcing provider for the

global financial sector, including nine of the ten largest

global investment banks. Moody's acquired a majority

stake in Copal in 2011.

Founded in 2003, Amba provides outsourced

investment research and analytics to financial

institutions, including asset managers, investment

banks, broker-dealers, insurance and alternative

investment firms. Amba operates service delivery

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centers in Costa Rica, India and Sri Lanka, as well as

sales offices in major financial centers.

"Amba is highly regarded for its offerings to investment

research firms and asset managers, and Copal is

known for its strong services for corporate finance.

Together, their scale, talent and resources offer global

financial institutions a broader array of research and

analytics," said Mark Almeida, President of Moody's

Analytics.

The deal, which is not expected to have a material

impact on Moody's earnings per share, was funded

from cash on hand, and the terms of the transaction

were not disclosed. Amba expects to generate nearly

$39 million of revenue in 2013.

WIPRO TO ACQUIRE OPUS CMC, ONE OF THE

LEADING US MORTGAGE DUE DILIGENCE AND

RISK MANAGEMENT SERVICE PROVIDERS

WIPRO PRESS RELEASE [2 DECEMBER 2013]

Wipro Ltd. (NYSE:WIT), a leading global Information

Technology, Consulting and Outsourcing company

today announced that it has signed a definitive

agreement to acquire Opus CMC (Opus Capital

Markets Consultants LLC), one of the leading US-

based providers of mortgage due diligence and risk

management services for a purchase consideration of

USD 75 million that includes a deferred earn-out

component. The acquisition will strengthen Wipro's

mortgage solutions and outsourcing business and

complement its existing offerings in mortgage

origination, servicing and secondary market.

Founded in 2005 and headquartered in Lincolnshire,

Illinois, Opus CMC provides comprehensive risk

management solutions to the mortgage industry in the

United States. It has over 490 employees, including

over 315 loan underwriters, spread across 5 centers in

the US.

Opus CMC offers operational and loan level due

diligence, valuation support, forensic analysis, and

advisory services on all classes of mortgage products,

residential and commercial, ranging from re-

underwriting whole loans to collateral reviews of

securitized pools. Its customers include several of the

top global banks, mortgage conduits, mortgage

investors, and independent mortgage originators.

"We welcome Opus CMC's employees to the Wipro

family," said Manoj Punja, Senior Vice President and

Head - BPO, Wipro Limited. "This acquisition will help

us expand in the high end Mortgage BPO segment,

and brings differentiated capability with a platform-

based risk management offering. Opus CMC has an

experienced management team with a deep

understanding of the emerging needs of this business.

We believe Opus CMC will continue to lead with their

innovative offerings and extend these capabilities to

Wipro's banking and financial services customers as

well. Our vision is to leverage Wipro's offerings with

Opus CMC's capabilities and knowledge base to

create an end-to-end offering for all mortgage players,

with a greater degree of automation and application of

analytics."

Opus CMC has been very successful in building a

talented team that can address a wide range of quality

management needs for mortgage product sellers,

intermediaries and investors. Its proprietary due

diligence platform, encapsulates nearly a decade of

business intelligence in loan reviews, and the latest in

regulatory requirements.

"We are excited about the opportunity to join hands

with Wipro and continue to be a dominant player in the

industry with increased range and scale of offerings for

our clients. Our industry is at a pivotal point with the

introduction of new mortgage regulations driven by the

CFPB (Consumer Financial Protection Bureau) and

government agencies. Wipro and Opus CMC will

jointly assist our clients in navigating this challenging

and changing business environment and help build

reliable outcomes in mortgage origination and

secondary market operations," said Joseph Andrea

and Jennifer LaBud, Co-founders and Principals, Opus

CMC.

Commenting on this acquisition, Dan Latimore, Senior

Vice President of Celent's Banking Practice said, "A

critical differentiator for mortgage industry participants

going forward is the ability to manage risk and identify

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profitable growth opportunities in both existing loan

portfolios and new originations. Execution capabilities

in legacy books, combined with deep knowledge of

regulatory frameworks and the ability to efficiently

implement them, will be essential for success."

COMPETENCE CALL CENTER SETS SIGHTS ON

ACCELERATED GROWTH WITH THE BACKING OF

SILVERFLEET CAPITAL

COMPETENCE PRESS RELEASE [2 DECEMBER

2013]

Competence Call Center (CCC) is continuing its

expansion course in existing and new markets. To this

purpose the company will be working together with

Silverfleet Capital from 2014.

Christian Legat, CEO of Competence Call Center, is

pleased to continue to grow with its stable and

experienced management team.

CCC already spans 11 locations in 7 countries and

plans to expand the business in France and the

Eastern European markets. Founded in 1998, CCC

already employs more than 4,500 people at the end of

2013. The customer communications specialist

operates out of locations in Berlin, Bratislava,

Bucharest, Dresden, Essen, Istanbul, Leipzig, Paris,

Vienna and Zurich. Competence Call Center has

grown dynamically in recent years. 2013 will be a

record year in the company's history. The high quality

that CCC delivers has earned broad international

recognition, which is reflected in a total of 42

international awards, as well as quality certifications

across all its locations.

"The increasing internationalization of businesses and

the consolidation within the industry has opened

further growth areas for CCC. With our new owners,

we have the potential for playing a large and important

role in the exciting development of the call center

industry," says CEO Christian Legat.

Guido May, Silverfleet Capital Senior Partner,

responsible for the German-speaking area and leading

the investment says: "CCC is a company with

extremely high quality standards and has an excellent

management team that is committed to the best

customer service for its partners. We look forward to

working with them and to supporting the growth and

business development of the CCC."

As an independent European private equity firm, with

the support of investment expert teams in Munich,

London and Paris, Silverfleet Capital has been

supporting mid-sized companies in terms of organic

growth and the implementation of buy&build strategies

for 25 years.

"The developments of recent years and the changing

economic conditions have created room for expansion

and international acquisitions in the call center industry

worldwide. We will make use of these opportunities.

We want to position ourselves internationally even

more and thus increase our attractiveness for global

partners. With Silverfleet Capital, an investor with a

wealth of international experience in corporate

acquisitions, we have excellent opportunities. There is

an excellent strategic fit between our companies and

cultures”, says Christian Legat.

CCC founder and member of the Supervisory Board,

Thomas Kloibhofer remains invested in the company in

addition to the new owner Silverfleet Capital.

LASALLE CAPITAL ACQUIRES METASOURCE,

LLC

LASALLE CAPITAL PRESS RELEASE [19

NOVEMBER 2013]

LaSalle Capital is pleased to announce that it has

partnered with management to acquire MetaSource,

LLC (“MetaSource” or the “Company”). MetaSource,

based in Draper, UT, is a leading provider of

technology-enabled business process outsourcing

(“BPO”) services with a focus on the financial services,

healthcare and retail industries. The Company offers a

full range of services, including document processing,

customer care and content management solutions

delivered via premise based and SaaS based

platforms designed to help customers achieve

organizational efficiencies, cost savings and other

strategic benefits. MetaSource represents LaSalle

Capital’s sixth platform investment out of its second

fund.

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The Company’s Chief Executive Officer, Adam

Osthed, will continue to lead MetaSource as it

executes its growth strategy to build a leading BPO

business focused on providing customized solutions to

the financial services, healthcare and retail industries.

Osthed stated, “We are very excited to partner with

LaSalle Capital to grow our business. We’ve always

focused on providing innovative, technology-driven

solutions to our customers, and believe that working

with LaSalle Capital will help us to further expand our

service offering through internal investment and future

acquisitions.”

Nick Christopher, Partner at LaSalle Capital, noted,

“Adam and his team have a reputation for delivering

outstanding customer service and customized

technology-enabled solutions to the marketplace. We

look forward to working with management to

accelerate the Company’s strong growth and solutions

development to continue to build a unique technology

leader in the BPO industry.”

INNOTRAC ENTERS INTO MERGER AGREEMENT

WITH AFFILIATE OF STERLING PARTNERS

INNOTRAC PRESS RELEASE [15 NOVEMBER 2013]

Innotrac Corporation (NASDAQ: INOC) (the

“Company” or “Innotrac”), a best-of-breed commerce

provider integrating digital technology, fulfillment, and

contact center solutions to support global brands,

announced today that it has entered into a definitive

merger agreement with an affiliate of Sterling Partners,

providing for the acquisition of all of the outstanding

shares of Innotrac for $8.20 per share in cash. Scott

Dorfman, the Company’s CEO, Chairman and largest

shareholder, and other members of the Company’s

management will continue their leadership of the

Company and will retain a significant equity position in

the Company after the transaction is closed.

The $8.20 per share purchase price represents a

25.2% premium over the closing price of the

Company’s common stock on October 21, 2013, the

last trading day prior to the beginning of the

Company’s exclusive negotiations with Sterling

Partners, and a 54.4% premium over the average

closing price over the 90 days ended November 14,

2013.

Under the terms of the merger agreement, an affiliate

of Sterling Partners will promptly commence a tender

offer for all of the outstanding shares of Innotrac. The

agreement provides that, promptly after the closing of

the tender offer, any shares not tendered in the tender

offer will be acquired in a second-step merger at the

same cash price as paid in the tender offer. The

transaction is expected to close in the first quarter of

2014.

The merger agreement was negotiated on behalf of

the Company by a special committee of the board of

directors, composed entirely of independent directors,

with the assistance of financial and legal advisors

selected by it. Following the special committee’s

unanimous recommendation, Innotrac’s board of

directors unanimously approved the merger agreement

(with Mr. Dorfman recusing himself) and has

recommended that Innotrac’s shareholders tender their

shares in the offer.

Mr. Dorfman has also entered into a contribution and

support agreement pursuant to which he has agreed to

contribute all of his shares, representing approximately

44% of the Company’s outstanding common stock, to

the purchaser. It is contemplated that, following the

merger, an affiliate of Sterling Partners will acquire a

significant portion of Mr. Dorfman’s equity interests at

the same cash price as paid in the tender offer. Mr.

Dorfman’s obligation to contribute his shares under

this support agreement will terminate if the merger

agreement terminates.

The transaction is conditioned on Innotrac

shareholders tendering at least a majority of the

outstanding shares of Innotrac common stock, and on

a majority of the shares not owned by Mr. Dorfman

being tendered or voted in favor of a merger. The

transaction is also subject to other customary closing

conditions, including expiration or termination of the

applicable waiting period under the Hart-Scott-Rodino

Antitrust Improvements Act, the absence of a material

adverse effect on the Company, and securing required

consents. There are no financing contingencies.

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Following completion of the transaction, Innotrac will

become a privately held company and its stock will no

longer trade on the Nasdaq.

“This transaction will deliver to Innotrac’s shareholders

a substantial cash premium, certainty of value and

immediate liquidity. We believe that Sterling will be a

strong strategic partner to help us continue to service

our customers with the best-of-breed services they

have become accustomed to,” said Mr. Dorfman.

Joel Marks, the chairman of the special committee,

added, “The committee arrived at the decision to enter

into a transaction with Sterling after a thorough review

of Innotrac’s future and strategic alternatives and after

contact with a wide range of potential buyers, both

strategic and financial, as part of a competitive bidding

process.”

DIVESTMENT OF DOCUMENT OUTSOURCING IN

COLOMBIA

EXPERIAN PRESS RELEASE [1 NOVEMBER 2013]

Experian, the global information services company,

announces that it has divested the Colombia document

outsourcing business of Experian Computec S.A. to

Hermes Documentos S.A.S., a Colombian investor.

The business was acquired as part of the Computec

acquisition in 2011 and is seen as non-core to

Experian. The divestment frees up resources to focus

on growing the core data and analytics businesses in

Colombia, and to continue the development of other

Experian products in this region.

Document outsourcing revenues for the year ended 31

March 2013 were US$40m (COP 72bn) and had been

reported as part of the Latin America business.

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CONTRACT TRACKER

DST SELECTED BY LEADING NEW YORK HEALTH

SYSTEM TO PROVIDE FULL ADMINISTRATIVE

OUTSOURCING SERVICES

DST PRESS RELEASE [19 DECEMBER 2013]

DST Health Solutions, LLC, a leading provider of

technology solutions and services to health plans,

integrated delivery systems, and health care providers,

has been chosen to provide Business Process

Outsourcing services to New York-based North Shore-

LIJ CareConnect Insurance Company, Inc.

DST’s agreement with NSLIJ CareConnect, a newly-

formed subsidiary of the North Shore-LIJ Health

System, a nationally-recognized health system serving

seven million people in Long Island, Manhattan,

Queens, and Staten Island, provides for a range of

administrative BPO services, including claims

processing and support, provider and member

maintenance, workflow management, and premium

billing.

DST is supporting NSLIJ CareConnect in its New York

Health Exchange and commercial individual and small

group offerings.

“We’re looking forward to supporting NSLIJ

CareConnect in meeting current and future business

objectives,” said DST Health Solutions President Steve

Sabino. “We believe our commitment and expertise,

combined with our world-class technologies and

services, will provide them with the ability to focus on

expansion into new markets, while continuing to

deliver world-class care to members.”

DST Marketplace Elements®, specifically designed to

support health plans entering the Health Insurance

Exchanges, will provide critical connectivity, enrolment,

billing, and reconciliation support, as well as the care

management technology and analytics required to

support new risk models. The DST platform’s

modular design allows users to tailor the solution to fit

their specific business needs, enhancing products,

rather than defining them.

“DST brings years of experience and stability to a

dynamic and fast moving industry. DST’s service

capabilities, scalability, and NYS Marketplace-specific

product met our needs,” said Charles Ottomanelli,

Chief Operating Officer of NSLIJ CareConnect. “This

relationship allows us to build the foundation for the

future as well as provide exceptional service to all of

our customers and members.”

DST will also provide its care management system,

which combines care, disease, and utilization

management into a single coordinated system, as part

of NSLIJ CareConnect’s services.

GENPACT AND ASTRAZENECA EXTEND FINANCE

AND ACCOUNTING SERVICES AGREEMENT

GENPACT PRESS RELEASE [12 DECEMBER 2013]

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

transforming and running business processes and

operations, today announced a multi-year contract

extension for its global Finance and Accounting (F&A)

services agreement with leading pharmaceutical

company AstraZeneca.

The AstraZeneca-Genpact relationship launched in

2009. Through its unique Smart Enterprise Processes

(SEPSM) methodology for improving the effectiveness

of business processes, combined with analytical

insights, technology, and global delivery excellence,

Genpact has helped AstraZeneca achieve impact

through continuous process improvement initiatives

and increased global compliance through the

standardization and harmonization of finance

processes.

The multi-year contract extension encompasses

transactional finance operations covering Procure-to-

Pay (P2P), Travel and Expense (T&E), Record-to-

Report (R2R), Sales Order-to-Cash (SOTC), data

management services and support for AstraZeneca’s

Global Transactional Finance transformation program

– delivered from five delivery centers globally.

In addition, AstraZeneca has been engaged with

Genpact’s IT business to deploy a global Travel and

Expense platform and more recently began a three-

11

year engagement with Genpact’s Akritiv OTC Business

Process as a Service (BPaaS) platform to implement

the solution globally in an effort to drive working capital

improvement. The Akritiv BPaaS platform will leverage

AstraZeneca’s existing ERP investments to accelerate

cash conversions, compress dispute resolution cycle

time, increase visibility with award-winning reporting,

and automate collection strategies.

“Genpact is extremely proud of the partnership we

have built with AstraZeneca and how we have applied

our Lean and Six Sigma-driven process expertise and

operational excellence to make their financial

operations more effective,” said Balkrishan ‘BK’ Kalra,

Senior Vice President, Life Sciences, CPG and Retail,

Genpact. “The life sciences industry continues to be a

priority investment market for Genpact. We look

forward to continuing our partnership with AstraZeneca

and allowing the company to focus on its strategic

growth objectives and its core business of making a

meaningful difference to healthcare by delivering great

medicines to patients through innovative science.”

TELEPERFORMANCE UK AWARDED FIVE YEAR

HER MAJESTY’S PASSPORT OFFICE CONTRACT

TELEPERFORMANCE PRESS RELEASE [03

DECEMBER 2013]

Teleperformance UK is delighted to announce that it

has been awarded a new contract with Her Majesty's

Passport Office following a competitive tender

exercise.

The new contract will commence on 1st February 2014

and could run for up to five years. Under this contract,

the Teleperformance team will continue to manage

contact centre services for general enquiries from the

public regarding all passport applications including

identity interviews for first time adult applications and

Passport Validation Service for businesses. They will

also support HM Passport Office in both its Digital By

Default and Call Avoidance strategies.

Rachel Robinson, Director of Public Sector Services at

Teleperformance UK said: “I am absolutely delighted

we have secured another contract with HM Passport

Office. I am very proud of the team we have who work

tirelessly to deliver great customer service on a daily

basis. We are looking forward to building on the

important partnership we have with HM Passport

Office and to working with them to grow, evolve and

continue to deliver an excellent service to the UK

public.”

Ian Forster, Director of Operational Services at HM

Passport Office said: “The contact centre service

supplied to HM Passport Office is a key way we

communicate with our customers. Our renewed

working relationship with Teleperformance will ensure

that we continue to deliver excellent customer service.”

Teleperformance in the UK has been partnering with

Central Government clients for over 20 years. The

public sector represents a large, and very successful

part, of Teleperformance UK’s growing business. The

new contract with HM Passport Office will mean over

400 jobs are safeguarded for Teleperformance

employees based in Bristol and Bangor.

NTA LIFE SELECTS THE EXL LIFEPRO® POLICY

ADMINISTRATION PLATFORM

EXL PRESS RELEASE [25 NOVEMBER 2013] EXL (NASDAQ: EXLS), a leading business process

solutions company, announced today that National

Teachers Associates Life Insurance Company (NTA

Life) entered into an agreement to implement EXL’s

policy administration platform, EXL LifePRO®. NTA

Life will use the platform for: new business agent and

commission management, policy administration, billing

and collections, claims processing, reinsurance and

client management. As part of the agreement, existing

business will be migrated to the LifePRO® platform.

“NTA Life needs a platform and provider that can keep

up with our growth and development. LifePRO®

provides us with a tool that optimizes the customer and

agent experience and is flexible enough to grow with

us,” said Brian Ellard, President of NTA Life's affiliated

agencies.

Based in Addison, TX, NTA Life offers supplemental

health and life insurance products for public service

employees and other individuals that are in need of

12

solutions to protect their financial wellbeing. Together

with its affiliates, NTA Life offers insurance products in

49 states and the District of Columbia.

Ellard added that “LifePRO® is well established with a

strong user community that advises on ongoing

product direction. We liked that EXL is a market leader

with more than 40 customers on the platform, and look

forward to a successful implementation.”

EXL has a long history of delivering industry-specific

process management, analytics and technology

solutions to insurance providers. EXL LifePRO®

supports a broad range of life, health and annuity

products for policy administration.

“EXL is happy to welcome NTA Life into the LifePRO®

community. NTA Life’s decision reinforces that

LifePRO® remains a cost-effective and comprehensive

administration solution for insurers. EXL, as a strategic

partner, enables insurers to execute upon their core

growth strategies by partnering with a leading

technology platform provider,” said Keith Johnson,

Senior Vice President and Head of EXL's Life and

Annuities practice.

"NTA Life wanted a proven policy administration

system that supports the entire insurance life-cycle,

delivers operational efficiencies, and leverages

existing technology investments," said Tom Organ,

Vice President, EXL. "LifePRO® will help NTA Life

manage its rapid growth, simplify the IT environment

and facilitate excellent service to NTA Life’s agents

and policy holders.”

AEGIS ENTERS INTO A 5 YEAR CONTRACT WITH

BANK OF INDIA FOR CUSTOMER RELATIONSHIP

MANAGEMENT

AEGIS PRESS RELEASE [6 NOVEMBER 2013] Aegis Limited, a global outsourcing and technology

services company announced today that it has entered

into a 5 year strategic contract with Bank of India (BoI),

one of India’s largest public sector banks with over

4,500 branches and presence across 22 countries.

With its quality statement of “Relationship beyond

Banking”, Bank of India has been in the forefront of

introducing various innovative services and systems

across Indian financial sector.

As a part of the engagement, Aegis will provide

support and manage BoI’s end-to-end customer

lifecycle value chain, including multi-channel customer

onboarding and service operations, data management

and collections. It will also provide customer

relationship management (CRM) platform, including

core banking features and the knowledge portal. The

scope of the contract includes support for all banking

products and services such as deposits operations,

banking processes, lending services, insurance and

investment banking, account and card services.

Speaking during a visit to the delivery center, Mrs V. R.

Iyer, Chairperson and MD of Bank of India stated

"Entering into an alliance with Aegis will enable 65

million customers of the Bank to avail services without

having to visit or contact the branches. This

arrangement will reinforce the continuous endeavours

we have been making for enhancing Customer

Excellence."

Sandip Sen, Global CEO, Aegis Limited said “The

opportunity for Customer Relationship Management

BPO within the Indian banking and financial sector is

large and Aegis has within a short timeframe built a

strong BPO practice focused around Indian Banking

and Financial Institutions. With a singular approach of

customer experience, Aegis will deliver higher-value

services to help Bank of India drive operational

excellence, and enable its management team to

maximize customer experience.”

Under the terms of the contract, Aegis will provide

customer contact management, marketing services,

recovery function, fulfillment and transaction support

and other services through its new state-of-the-art

delivery center in Mumbai. This engagement will

initially have about 150 personnel, which would then

be scale upto 500 people across 2centers.

Aegis has over 3 decades of leadership in customer

lifecycle management and a track record of introducing

new process and technology innovations. With 20

years of experience in the serving Fortune 500

13

Banking and Financial services organizations and over

6,000 seats globally, Aegis continues to help its

partners manage risk, comply with regulations, and

enhance customer relationships.

XCHANGING SECURES FIRST UTILITY

CUSTOMER WITH A NEW THREE YEAR

PROCUREMENT CONTRACT WITH SEVERN

TRENT SERVICES

XCHANGING PRESS RELEASE [5 NOVEMBER

2013] Xchanging, the business process, procurement and

technology services provider, has announced that

Xchanging Procurement Services, a global leader in

procurement solutions, has signed in the U.S. a three-

year global contract with Severn Trent Services (STS),

a leading supplier of water and wastewater solutions

and a member of the Severn Trent Plc group of

companies.

The appointment is the ninth major win for Xchanging

Procurement Services this year and marks the

company’s first contract in the utility sector.

The global agreement will cover strategic sourcing,

category and contract management services, and

analytics across all STS indirect procurement spend.

The contract will incorporate Xchanging’s recent

acquisition of MM4, where the MM4 e-sourcing

platform will act as a critical driver in delivering

savings.

Xchanging also recently closed a deal with a leading

biobased solutions company, which has appointed it to

provide strategic procurement services to the

organization as part of a three-year services

agreement. Xchanging will provide the full source-to-

manage process in the following indirect categories for

the company:

- Facilities Management

- Human Resources Services, including

Temporary Labor

- Information Technology

- MRO

- Professional Services

- Sales and Marketing

- Travel

These strategic wins represent the continued strong

momentum in North America and Europe for

Xchanging Procurement Services, the third largest

procurement services provider globally.

Ian Dearnley, Vice President Product Management

and Global Procurement, Severn Trent Services said:

“STS wanted to improve spend visibility and increase

coordination in all areas of indirect spend. Xchanging

proved they can deliver unparalleled value in enabling

us to achieve maximum value for spend, introduce

standard global processes and enable scalable

growth.”

Marie Meliksetian, CEO U.S. Xchanging Services, Inc.

and Managing Director, Procurement Services for

Xchanging North America, said: “Both of these new

contracts are special partnerships aimed at achieving

a high-touch quality service customized to the

companies’ needs, and are based on a mutual trust

and cultural fit. These wins are not only a testament to

our capabilities and innovative procurement offerings,

but also a validation to our expanding footprint in the

U.S. Xchanging Procurement Services has increased

its North American customer base significantly in 2013,

and we will continue our growth path through strategic

partnerships that are truly based on Xchanging’s

quality high-touch delivery model.”

UPM SIGNS FINANCE AND ACCOUNTING

CONTRACT WITH GENPACT

GENPACT PRESS RELEASE [1 NOVEMBER 2013] Genpact Limited (NYSE: G), a global leader in

transforming and running business processes and

operations, and UPM-Kymmene Corporation (UPM),

the global frontrunner of the new bio and forest

industry, have signed a five-year outsourcing

agreement to provide Finance and Accounting (F&A)

services to UPM.

As part of this agreement, Genpact will create a global

hub for UPM’s transactional finance processes in

Kolkata, India, which will operate in close cooperation

14

with UPM’s captive Financial Shared Service Centers

in Finland and China.

“With this outsourcing agreement UPM will optimize

and standardize the handling of recurring financial

tasks and thus drive significant improvements in cost

and performance efficiency as well as increase the

scalability and flexibility of our financial operations,”

says Erkka Repo, Senior Vice President of Business

Control and Finance Operations at UPM. “We chose

Genpact because of their track record in F&A and their

experience in managing global transformation projects,

combined with their commitment to process excellence

and continuous improvement."

“We continue to expand our footprint and capabilities

in the Nordics region, where in the past 12 months we

have formed a number of solid relationships including

this one with UPM,” says Ahmed Mazhari, Senior Vice

President, Global Sales at Genpact. “Our granular

process knowledge, deep analytical insights, global

delivery and leadership in F&A services allow us to

focus on transforming core business processes that

generate significant business outcomes for our clients.

We look forward to a long-term partnership and believe

that we will be able to substantially improve the

effectiveness of UPM’s F&A operations, making UPM

more competitive, adaptive and connected to their

customers.”

.

15

EXPANSION

DST TO OPEN SECOND LOCATION IN INDIA

DST PRESS RELEASE [5 DECEMBER 2013] DST, a leading provider of servicing solutions to the

financial services, asset management, brokerage,

retirement, and healthcare markets, today announced

plans to open a second location for India operations in

the city of Pune.

The new office will support the delivery of global

information technology services through DST

Worldwide Services, a wholly-owned subsidiary of

DST.

The Pune office will open with an initial capacity of

over 500 seats, with full operations commencing in first

quarter 2014. According to Krish Krishnan, President

of DST Worldwide Services, the Pune location

provides access to a new workforce across several

competency areas, in addition to meeting an in-country

Business Continuity Planning (BCP) objective.

“We considered other cities across India, and Pune

provides us the greatest ability to leverage specific

talent available in a location,” says Krishnan. “Given

our aggressive growth trajectory, we are very excited

to expand to a second site in India.”

DST Worldwide Services currently employs nearly

1,500 associates at its other India location in

Hyderabad to handle mission-critical information

technology and processing functions for clients. In

addition to its significant India operations, DST also

has offices in Thailand and the U.S.

DST Worldwide Services has been offering information

technology, business process outsourcing and

consulting services to a variety of industries around the

world since 2008.

ARVATO BENELUX B.V. GROWS WITH

CUSTOMERS AND MOVES INTO NEW

WAREHOUSE IN VENRAY

ARVATO PRESS RELEASE [18 NOVEMBER 2013]

Following the growth of existing customers and the

increase of new customers, arvato Benelux B.V. has

moved into a new warehouse on a central location on

the industrial area in Venray per September 2013. This

extension offers more room for growth and better

customer service. Besides that, the new arvato

customs warehouse and the Regulated Agent

certification offer significant benefits for customers.

The new warehouse is sized 10.000m² and can extend

with a further 3.500m². The new building provides

employment for 50 to 100 employees. In the short term

this will increase even further.

arvato Account Manager Willem Scheepers: "arvato

performs work in the new warehouse in accordance

with the multi-user concept. This concept ensures

customers to enjoy a high level of service with flexible

scalability at low cost.” The services provided by

arvato in Venray include Forward and Reverse

Logistics, Repair & Refurbishment Services, E -

Commerce, Customs and Transport Management and

Customer Service. This broad service portfolio from a

single provider, enables arvato clients to reduce their

total supply chain costs and increase shareholder

value by innovating and improving entire business

processes, rather than just individual elements.

Scheepers adds: “We are good at servicing online

shops, thanks to our late order cut off times and high

flexibility. Moreover, we serve our customers with a

state of the art SAP warehouse and TMS system.”

The arvato warehouse is certified for Regulated Agent.

As a Regulated Agent (accredited air cargo agent)

arvato may send customer goods without the extra

screening at the airport. From the new warehouse

arvato serves not only customers on the West

European market, but EMEA wide. The convenient

location of airports and seaports offers them an

attractive environment.

Scheepers: “Because arvato is in possession of a

customs warehouse license, goods imported from

outside the EU entering the warehouse in Venray can

be stored duty free. Then again, these goods can also

be sent outside the EU. For our customers this offers

16

many advantages and less worries, so they can focus

on their core business

INFOSYS BPO EXPANDS GLOBAL PRESENCE

WITH NEW CENTER IN THE NETHERLANDS

INFOSYS PRESS RELEASE [8 NOVEMEBER 2013] Infosys BPO, the business process outsourcing

subsidiary of Infosys, today announced the opening of

a new delivery center in Eindhoven, the Netherlands.

The 120-seat center strengthens Infosys BPO’s global

footprint and reinforces its position in Europe.

Infosys BPO will leverage the new center to deliver

critical business processes such as finance and

accounting and other high value services for its global

clients, and provide end-to-end outsourcing services in

Dutch, English, French and German

The new center will also enable Infosys BPO to

respond quickly and efficiently to client needs for

accelerated solutions across the EMEA region.

The favorable business environment created by the

Netherlands Foreign Investment Agency (NFIA), the

Brabant Development Agency (BOM) and Brainport

Development, coupled with the availability of a highly

competent and skilled workforce with multi-linguistic

capabilities, makes Eindhoven an ideal location for

Infosys BPO’s new delivery center

Quotes

Lars de Vries, Project Manager Foreign Investments,

Brabant Development Agency (BOM): "For Eindhoven

and Brabant, Infosys investment means a great mix of

retaining existing jobs along with the prospect of fresh

employment opportunities created by the company.

This compelling combination of providing services and

high-quality jobs will undoubtedly attract similar

interest from other international companies."

Gautam Thakkar, Chief Executive Officer and

Managing Director, Infosys BPO: "The new center will

serve as a regional hub for Infosys BPO. It strengthens

our ability to cater to client needs across functions,

languages and time zones quickly and with greater

flexibility. The availability of a talented workforce and a

positive environment fostered by the government

makes the Netherlands an attractive destination for us.

Our team in Eindhoven will play a key role to

accelerate innovation and transformation for our clients

across industries."

17

MOVERS AND SHAKERS

NEW CEO TO PROGRESS HGS GROWTH

STRATEGY IN UK & EUROPE

HGS PRESS RELEASE [11 DECEMBER 2013] HGS, the global business process outsourcing (BPO)

company has appointed Matthew Vallance as Chief

Executive Officer for Europe. Matthew, who joined

HGS earlier this month, takes up the CEO role from

Charles Cooper-Driver, who has led the business in

the UK and Europe since 2010 following HGS’

acquisition of Careline Services, the company he

founded in 1997.

Based in HGS’ European headquarters in West

London, Matthew’s priority will be to build on the

existing platform, developing a strategy to drive HGS’

growth and further enhance the scope of the

company’s services. In the past two years HGS has

added delivery centres in the UK, France, Italy,

Benelux and Germany and is geared up for further

expansion.

Matthew Vallance joins HGS from Sutherland Global

Services, where he held the role of Managing Director

for Europe and Emerging Markets. He previously spent

ten years at Firstsource Solutions Ltd (FSL), latterly as

Global CEO. He joined FSL in 2002, through the

company’s acquisition of CustomerAsset. He led the

creation of FSL’s European business, growing its

turnover to $200 million with 10,000 employees and a

highly successful ‘rightshore’ delivery model. Matthew

is also an experienced entrepreneur with 15 years’

experience in BPO and ITO. He founded the sourcing

advisory business, InCode in 1998 and was part of

Customer Asset’s founding team.

“With his extensive knowledge of the outsourcing

market and experience as an entrepreneurial business

leader in several geographies, Matthew is the ideal

person to lead the evolution of our business in the UK

and continental Europe. I welcome him to the team,”

says Partha De Sarkar, HGS’ Chief Executive Officer.

Charles Cooper-Driver will leave HGS at the end of

2013 to pursue new entrepreneurial opportunities.

“Charles has built a strong business and a solid

foundation for future growth,” says Partha. “We wish

him well in his future endeavours.”

WNS NAMES RONALD GILLETTE CHIEF

OPERATING OFFICER

WNS PRESS RELEASE [18 NOVEMBER 2013] WNS (Holdings) Limited (WNS) (NYSE:WNS), a

leading provider of global Business Process

Management (BPM) services, today announced that

Ron Gillette has joined the company in the newly

created role of Chief Operating Officer (COO) effective

November 18, 2013. Gillette will report to WNS’s

Group CEO, Keshav R. Murugesh, and will have direct

responsibility for sales, operations and capability

creation. Ron and his family will relocate from Paris,

France to Mumbai, India for this strategic position.

“We are pleased to welcome Ron to the WNS team,

and believe his unique combination of capability and

experience will be a tremendous asset to the

company,” said Murugesh. “His track record of

leadership and knowledge of the services space will

enable Ron to be a great partner to me and the

executive team, helping drive continuous improvement

in our core operational areas. This will allow me to

spend more time focusing on strategy, clients and

other key stakeholders.”

“I believe that WNS is well-positioned for continued

success in the global BPM space,” said Gillette. “I am

excited to join WNS at this important juncture in the

company’s evolution, and look forward to working with

Keshav and the entire WNS team to help define the

company’s future, drive operational excellence and

accelerate business momentum.”

Prior to joining WNS, Gillette spent six years with ACS

and Xerox in both the US and Europe. Most recently,

he was the Group President, Xerox Business Services

in Europe with responsibility for all Banking and

Insurance services, and previously led its global

Finance and Accounting Outsourcing (FAO) business.

Before joining ACS, Gillette was a Senior Partner at

Accenture, responsible for growing their Business

Process Outsourcing (BPO) practice, including F&A

18

and procurement outsourcing. Prior to Accenture, he

was a Managing Partner at Deloitte Consulting, where

he built and led the company's global outsourcing

practice, creating a world-wide network of delivery

centers that provide applications and BPO services.

He was also a Partner at Ernst & Young, spearheading

their outsourcing efforts with a focus on technology,

business process, and applications, and served as

Managing Director for EDS in Russia and Eastern

Europe.

Gillette has a Bachelor of Science degree from the

United States Military Academy in West Point, New

York, and is also a graduate of the U.S. Army

Command & Staff College at Fort Leavenworth,

Kansas. He holds an MBA degree from Marymount

University in Arlington, Virginia.

19

TRENDS AND VIEWPOINTS

INSURANCE BPO – ANNUAL REPORT 2013: IN AN

INCREASINGLY VOLATILE WORLD, INSURANCE

IS FINDING NEW TAKERS

EVEREST PRESS RELEASE [01 DECEMBER 2013]

The global insurance BPO market has grown steadily

over the last three years to reach ~US$2.3 billion.

Higher proportion of new contract signings as

compared to renewals and extensions highlight longer

term of insurance BPO contracts and the increasing

penetration of insurance BPO into newer geographies.

Although the overall value proposition of insurance

BPO is driven by cost reduction, rising demand for

complex work is slowly turning focus towards process

efficiency and effectiveness.

Some of the findings in this report are:

- The last two years have seen a much higher

number of new contracts compared to renewals

and extensions because of higher adoption in

nascent geographies such as Asia Pacific, Latin

America, and Western Europe

- While U.S. is split equally between L&P and P&C

insurance BPO segments, UK and APAC show a

marked preference for L&P insurance BPO

- While L&P shows preference for platform solutions,

owing to closed books inclusion, P&C segment is

leaning more towards augmentation solutions

- While FTE-based pricing continues to be the

dominant pricing model in CCO, pricing structures

have evolved over time with L&P insurance BPO

showing affinity towards output-based pricing

- TCS and EXL are the biggest insurance BPO

service providers and account for ~47% market

share by revenue

EUROPE NOW LEADS GLOBAL OUTSOURCING

MARKET SHARE: EVEREST GROUP MARKET

VISTA REPORT

EVEREST PRESS RELEASE [11 NOVEMBER 2013]

Europe now comprises the largest share of the global

outsourcing market, with a 43 percent share, based on

Q3 data. The U.S. holds 35 percent of the market.

Additionally, the region scored the two largest

megadeals (those valued at US$1 billion and up)

signed in the third quarter of this year.

These findings and others are detailed in a new

research report published by Everest Group, an

advisory and research firm on global services. The

report, Market Visa™: Q3 2013, focuses on global

outsourcing transaction trends, including details of

major outsourcing deals, GIC (global in-house center)

developments, global offshoring dynamics, location

risks and key service provider developments.

The report also details an increase in the number of

GICs announced and expanded in Central and Eastern

Europe, owing primarily to aggressive incentive

packages offered by Central European governments

hard hit by a slow global economic recovery. Related

to this trend, the region is benefitting from service

providers seeking to locate new capacity in tier two

markets.

Three megadeals were signed worldwide in Q3. Of

these, two were located in Europe. UniCredit signed a

multi-billion euro deal, and Telefonica inked a GBP 1.2

billion transaction. The third-largest deal was the

Centers for Medicare and Medicaid Services in the

U.S., valued at US$1.25 billion.

“This quarter’s results for Europe are to some degree a

rebound from lower-than-typical numbers during the

protracted global recession. Outsourcing transactions,

setup activity by GICs and service providers, and

service provider financials all seem to be on an upward

trajectory,” said Anurag Srivastava, practice director at

Everest Group who led the report team. “Additionally,

the growing popularity of tier two markets is a trend

from which portions of Europe can benefit going

forward.”

20

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: -2.1%

1 quarter return: 18.6%

1 year return: 43.0%

Methodology

We have used the stock price date of Allsec, eClerx, EXL, Firstsource, Genpact, HOV Services and WNS weighted by

their trailing twelve month revenue. The series begins at a base value of 100 on 3rd January 2007 with just Allsec, EXL

and WNS. As more BPO companies got listed, we have added them to the index after appropriate scaling. The index

is updated for the closing price on the first Friday of every month. We have used closing price as on Friday (03/01/14)

for this edition of the newsletter.

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

Avendus Capital is a leading financial services firm which provides customized solutions in the areas of financial

advisory, equity capital markets, alternative asset management and wealth management. The firm relies on its

Avendus BPO Composite Index

43.0 %

18.6%

-2.1%

21

extensive track record, in-depth domain understanding and knowledge of the economic and regulatory environment, to

offer research based solutions to its clients that include institutional investors, corporations and high net worth

individuals/families. In recent years, Avendus Capital has consistently been ranked among the leading corporate

finance advisors in India and has emerged as the advisor of choice for cross-border M&A deals, having closed around

40 cross-border transactions in the past 5 years. Avendus PE Investment Advisors manages funds raised from its

investors by investing in public markets, while Avendus Wealth Management caters to investment advisory and

portfolio management needs of Family offices and Ultra High Networth Individuals / families, spanning all asset

classes. Headquartered in Mumbai, the firm has offices in New Delhi and Bangalore.

Avendus Capital, Inc (US) and Avendus Capital (UK) Pvt. Ltd. located in New York and London respectively are

wholly owned subsidiaries offering M&A and Private Equity syndication services to clients in the respective regions.

Avendus Capital, Inc (US) also provides wealth management services to clients in select jurisdictions in USA.

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 Capital advises Grama Vidiyal Microfinance Ltd on

raising long-term senior and subordinated facilities from

WorldBusiness Capital, Inc.

December, 2013 USD 7.5 mn Structured

Finance

Avendus Capital advises Amba Research on its acquisition

by Moody’s Corporation

December, 2013 Undisclosed Technology &

Outsourcing

Avendus Capital advises Komli Media on its equity raise

from Peepul Capital

October, 2013 USD 30 mn Digital Media

& Technology

Avendus Capital Advises Fractal Analytics on TA

Associates’ INR 150 crore investment

June, 2013 USD 25 mn Technology &

Outsourcing

Avendus Capital advises redBus on its acquisition by

Naspers’ Indian subsidiary, ibiboGroup

June, 2013 Undisclosed Digital Media

& Technology

Avendus Capital advises the Government of India (GOI) on

its INR 5,723 million OFS transaction in MMTC Limited

June, 2013 USD 98 mn Equity Capital

Markets

Avendus Capital advises Apalya Technologies on its recent

equity raise

April, 2013 Undisclosed Digital Media

& Technology

Avendus Capital advises Pennar Engineered Building

Systems Limited on its fund raising from Zephyr Peacock

March, 2013 NA Industrials

Avendus Capital advises Magicrete on its fund raising from

Motilal Oswal Private Equity

March, 2013 Undisclosed Industrials

Avendus Capital advises HEROtsc on its acquisition by

Webhelp

February, 2013 Undisclosed Technology &

Outsourcing

Avendus Capital advises CVC in its acquisition of SPi

Global Holdings, BPO business of PLDT

February, 2013 Undisclosed Technology &

Outsourcing

Avendus Capital advises Transpole Logistics on its fund

raising from Everstone

January, 2013 USD 40 mn Consumer

Avendus advises KPIT Cummins Infosystems Limited on December, 2012 USD 30 mn Technology &

22

preferential allotment of equity shares to CX Partners and

ChrysCapital

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 eClerx on its acquisition of Agilyst

Inc.

June, 2012 Undisclosed 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: The Lodhi, Suite 22A, Lodhi Road, New Delhi - 110003, Tel: +91 11 4535 7500, Fax: +91 11 4535 7540

Bangalore: The Millenia Tower, A-10th Floor, No. 1 & 2 Murphy Road, Ulsoor, Bangalore 560 008 Tel: +91 80 6648

3600

Avendus Capital, Inc

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

Avendus Capital (UK) Pvt. Ltd. London: 33, St James’s Square, London SW1Y 4JS, Tel: +44 203 159 4353

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

respectively. “© Copyright 2013 Avendus Capital Private Limited. All rights reserved.”

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