1. 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.
2. 2
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
3. 3
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 12
th
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
4. 4
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.
5. 5
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
6. 6
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.
7. 7
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.
8. 8
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.
9. 9
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
10. 10
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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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 3
rd
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. 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
