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1 INDUSTRY PROFILE
BUSINESS PROCESS OUTSOURCING BPO Delegation of one or more business process to an external provider who, in turn, owns, administers, and manages the selected process [together with the IT system support it], based upon defined and measurable performance - Gartner BPO INDUSTRY IN INDIA Business process outsourcing (BPO) is a broad term referring to outsourcing in all fields. A BPO differentiates itself by either putting in new technology or applying existing technology in a new way to improve a process. Business Process Outsourcing (BPO) is the delegation of one or more IT-intensive business processes to an external provider that in turn owns administers and manages the selected process based on defined and measurable performance criteria. Business Process Outsourcing (BPO) is one of the fastest growing segments of the Information Technology Enabled Services (ITES) industry. FEW OF THE MOTIVATION FACTORS AS TO WHY BPO IS GAINING GROUND ARE: Factor Cost Advantage Economy of Scale Business Risk Mitigation Superior Competency Utilization Improvement Generally outsourcing can be defined as - An organization entering into contract with another organization to operate and manage one or more of it business processes. that

DIFFERENT TYPES OF SERVICES BEING OFFERED BY BPOS CUSTOMER SUPPORT SERVICES: The customer service offerings create a virtual customer service center to manage customer concerns and queries through multiple channels including voice, e-mail and chat on a 24/7 and 364 days basis. TECHNICAL SUPPORT SERVICES: The technical support offerings include round-the-clock technical support and problem resolution for OEM customers and computer hardware, software, peripherals and Internet infrastructure manufacturing companies. These include installation and product support, up & running support, troubleshooting and Usage support TELEMARKETING SERVICES: The telesales and telemarketing outsourcing services target interaction with potential customers for 'prospecting' like either for generating interest in products and services, or to upsell / promote and cross sell to an existing customer base or to complete the sales process online. EMPLOYEE IT HELP-DESK SERVICES: The employee IT help-desk services provide technical problem resolution and support for corporate employees. INSURANCE PROCESSING: The insurance processing services provide specialized solutions to the insurance sector and support critical business processes applicable to the industry right from new business acquisition to policy maintenance to claims processing.

DATA ENTRY SERVICES / DATA PROCESSING SERVICES: SERVICE EXAMPLE: *Data entry from Paper/Books with highest accuracy and fast turn around time (TAT) *Data entry from Image file in any formal *Business Transaction Data entry like sales / purchase / payroll. *Data entry of E-Books / Electronic Books *Data Entry: Yellow Pages / White Pages Keying *Data Entry and compilation from Web site *Data Capture / Collection *Business Card Data Entry into any Format *Data Entry from hardcopy/Printed Material into text or required format *Data Entry into Software Program and application *Receipt and Bill Data Entry *Catalog Data Entry. *Data Entry for Mailing List/Mailing Label. *Manu scripting typing in to word *Taped Transcription in to word. *Copy, Paste, Editing, Sorting, Indexing Data into required format etc.

DATA CONVERSION SERVICES: SERVICE EXAMPLE: *Conversion of data across various databases on different platforms *Data Conversion via Input / Output for various media. *Data Conversion for databases, word processors, spreadsheets, and many other standard and custom-made software packages as per requirement. *Conversion from Page maker to PDF format. *Scanning, OCR with Editing & Indexing Services: *Conversion from Ms-Word to HTML format *Conversion from Text to Word Perfect. *Conversion from Text to Word to HTML and Acrobat *Convert Raw Data into required MS Office formats. *Text to PDF and PDF to Word / Text / Doc *Data Compilation in PDF from Several Sources. *E-Book Conversion etc. SCANNING, OCR WITH EDITING & INDEXING SERVICES: SERVICE EXAMPLE: *High speed Image-Scanning and Data capture services

*High speed large volume scanning *OCR Data From Scanned page / image *Scan & OCR paper Book in to CD. *ADOBE PDF Conversion Services. *Conversion from paper or e-file to various formats BOOK KEEPING AND ACCOUNTING SERVICES: SERVICES EXAMPLE: *General Ledger *Accounts Receivables and Accounts Payable *Financial Statements *Bank Reconciliation FORM PROCESSING SERVICES: SERVICE EXAMPLE: *Insurance claim form *Medical Form / Medical billing *Online Form Processing *Payroll Processing etc. INTERNET / ONLINE / WEB RESEARCH : SERVICE EXAMPLE: *Internet Search, Product Research, Market Research, Survey, Analysis. *Web and Mailing list research etc.

CHALLENGES FOR A HR PROFESSIONAL IN BPO: *Brand equity: People still consider BPO to be "low brow", thus making it difficult to attract the best talent. * Standard pre-job training: Again, due to the wide variety of the jobs, lack of general clarity on skill sets, etc, there is no standard curriculum, which could be designed and followed. *Benchmarks: There are hardly any benchmarks for compensation and benefits, performance or HR policies. Everyone is charting their own course. *Benchmarks: There are hardly any benchmarks for compensation and benefits, performance or HR policies. *Customer-companies tend to demand better results from outsourcing partners than what they could actually expect from their own departments. "When the job is being done 10,000 miles away, demands on parameters such as quality, turn around timeliness, information security, business continuity and disaster recovery, etc, are far higher than at home * Lack of focused training and certifications * Given this background, the recruiting and compensation challenges of HR departments are only understandable. KEY TO SUCCESS The key to success in ramping up talent in a BPO environment is a rapid training module. The training component has to be seen as an important sub-process, requiring constant reengineering.

BUSINESS PROCESS OUTSOURCING: THE TOP RANKERS WNS has emerged as the top BPO in India, pushing Wipro Spectra mind to the second position, according to a survey done by NASSCOM. The basis of ranking is the revenues generated by the BPO companies, as per US GAAP. A list of top fifteen BPO companies in India is given below. 1. WNS Group 2. Wipro Spectra mind 3. HCL Technologies 4. Darkish e-Services 4. Converges 6. Zenta 7. ICICI One source 8. Mphasis 9. EXL 10. Tracmail

11. GTL Ltd. 12. VCustomer 13. HTMT 14. 24/7 Customer 14. Sutherland Technologies 15. ICICI One source 16. Mphasis 17. EXL

1.3 COMPANY PROFILE HCL B-SERVE HCL- as Indias largest IT conglomerate-is actively involved with the growth of the India ITES industry. As an experienced global software outsourcing enterprise, HCL has extensive and understanding of the critical issues and concerns related to offshore outsourcing. At a macro level these can be broadly categorized in to: Risk Mitigation Value Addition RISK MITIGATION THE KEY COMPONENTS OF RISK MITIGATION ARE AS FOLLOWS Process Migration in the first phase of outsourcing, seamless and timely Process Migration is critical for building first level comfort in the outsourcing initiative. Disaster Recovery and Business Continuity

The infrastructure to effectively mitigate local and geographic disaster scenarios. The ability to ensure rapid resumption of process delivery operations. Manpower Attrition and Cost Control MANPOWER ATTRITION AND COST CONTROL *Establishing business presence in prime secondary locations. *Existence of management and infrastructure resources in the target locations. * Expertise to recruit and train large number of new employees in such Locations. Partner Profile and Provenance * Demonstration ability to successfully manage cross culture partnerships. * Proven track record of structuring and nurturing a wide range of collaborative enterprise models. VALUE ADDITION: STRONG FINANCIALS TO SUPPORT LARGE CONTRACTS *Strong balance sheet/nil Debt Company *Committed $ 40 M for Contact centre and BPO businesses. CREATING AND MANAGING LARGE SCALE INFRASTRUCTURE AND

RESOURCE BASE. Demonstrated experience of manage large heterogeneous hardware and software installation base. Creating and managing multiple Offshore Development Centers. 14000+employee base. EXPERIENCE OF MANAGING LARGE HETEROGENEOUS ACCESS TO A ABOUT 140 LOCATIONS WITHIN INDIA

 In two years the majority of new Customer Service Centers in India will need to be located in category B and C towns. HCL has over 20 years experience in servicing these towns with locally present management and infrastructure. Capability to hire and train large work force locally. ABILITY TO RISK MITIGATE OPERATIONS THROUGH BUSINESS CONTINUITY AND DISASTER TOLERANCE State-of-the-art facilities in Belfast (Ireland) and Salt Lake City (US) in addition to India.

DEMONSTRATED CAPABILITY IN GLOBAL DEVELOPMENT AND SUPPORT OF IT SERVICES Extensive experience of migrating complex development processes offshore. Proprietary offshore delivery methodology-Off sourcing END-TO-END SERVICES DELIVERY CAPABILITY * Concept, design, development, implementation and maintenance of applications and enterprise solutions. * Systems Integration, Networking and Network management services. * BPO and Multi-lingual Contact services. HCL BPO SERVICES: THE RIGHT STAFF Business Process Outsourcing (BPO) has the potential enabling power to vitalize Businesses sustainable and energize and strategic Economic or growth BPO benefits are

significant, rather they can be. To ensure that customer expectations are consistently met and often exceeded requires a BPO Service Provider with the Right Stuff- starting off with: HCL BPO SERVICES: THE RIGHT PARENTAGE: HCL BPO Services represents HCL Technologies most significant strategic business extension and investment to date. HCL BPO Services currently operates out of various locations in India, Malaysia and Northern Ireland. The focus on and commitment to BPO is based on the following assets and attributes: Global Client Base & Relationships - HCL-Ts global relationship base consists of approximately 444 clients, including 61 Fortune 400 organizations, in such high propensity to and potential of outsourcing Sectors as IT / I.S / Insurance/ Financial Services / Retail. Global Presence & Reach - HCL-T operates in 14 Countries across 20 locations between U.S.A, Europe and Asia-Pacific, deploying over 100 Customer Relationship Managers (over 70 of who are located in the U.S.A). This network ensures effective and responsive Client Relationship Management. Related Technology Domain Expertise - HCL-T has developed extensive expertise in a wide range of emergent and mainstream Technology Domains. Some of these Domains bear a direct relationship to a wide range of B.P.O services - e.g. CRM/ ERP/ SCM/ Imaging & Workflow etc. Relevant Industry Practices - In addition to Technology Domain expertise, HCL-T has also developed a number of Industry Practices, including Banking / Funds Management /Insurance / Retail Funding & Scalability - HCLs BPO Services operations have been totally funded from internally generated resources, enabling the rapid ramp-up of delivery infrastructure in diverse locations and countries as well as significant enhancements in delivery Reliability, Security and Quality ALLIANCES

In October 2001, HCL Technologies entered into a strategic alliance with British Telecom by acquiring a 90% stake in BT's award winning Apollo Contact Center, located in Belfast, Northern Ireland. Now operating as HCL Technologies BPO Services, the Belfast facility is a four-yearold purpose built Contact Center. In this relatively short span of time, the Center has built an enviable reputation for Quality and Innovation - attributes that are recognized by a number of prestigious awards as well as kudos from Clients and Industry Experts. British Telecom continues to be active in a range of collaborative initiatives with HCL in both India as well as Northern Ireland. Santo Corporation provides the latest in Web-enabled CRM (Customer Relations Management) solutions for a diversified portfolio of organizations. These services include selfhelp, live chat, Web collaboration, e-mail, and telephone. These solutions give customers access to customer service at anytime using any media. Santo deploys skills-based routing; customerdata screen pops, and customer-centric applications to Provide the best in customer care and support. HCL BPO Services works closely with Santo to deliver a wide range of Voice and Web- enabled services in both U.S.A and Europe. D&B RECEIVABLE MANAGEMENT SERVICES D&B Receivable Management Services is headquartered in Bethlehem, Pennsylvania, in the United States, with offices throughout the US, Canada, Mexico and Hong Kong. They are a leading global supplier of receivable management services, offering their customers a full continuum of services including electronic bill presentment, receivable outsourcing, traditional collections, and bankruptcy services and deductions management. Under the terms of the alliance, D & B RMS will be HCLs preferred provider of receivable management services for accounts located in the United States, Canada, Mexico and Hong Kong. HCL, in turn, will be the exclusive provider of D&B RMS call center services from India. QUALITY

Consistently deliver value to our stakeholders and innovate to continually improve our services by review of processes, people and performance. QUALITY FRAMEWORK ISO 9001:2000 23 processes including Operations, Recruitment, Quality Assurance, Voice & Accent training, Marketing, Legal, Procurement, Transportation and Management documented and certified. External evaluation and certification conducted by the British Standards Institution against BS EN ISO 9001:2000 and certified as ISO compliant for BPO & Contact Center Services. PURDUE BENCHMARK HCL BPO Services is positioned in the upper right hand quadrant of the EffectivenessEfficiency grid and ranked 2nd in the Global Peer group.

MAJOR OBSERVATIONS Excellent SLA performance tracking, improvement and management methodologies at all levels Team Leader to Top Management Very low rate of manpower attrition Strong organizational capability to attain and maintain high levels of manpower motivation COPC CERTIFICATION

HCL BPO Services has been awarded the prestigious COPC Certification. Globally, COPC is considered to be the most coveted certification in the CSP (Customer Service Provider) industry. It is based on COPC-2000 CSP standard, which was developed in 1996 by buyers, providers and senior managers responsible for operational management of customer centric service operations. HCL BPO Services is amongst the very few Indian BPO Service Providers to have been awarded this certification HCL BPO Services is the First Indian CSP and possibly the third worldwide to have been certified for Collections. HCL BPO Services raises the bar yet another notch for customer service and delivery excellence. SIX SIGMA A Six Sigma Master Black Belt leads HCL BPO Services Process Improvement Program. The Six Sigma methodology for continues improvement of its processes and performance.

Tools like Fishbone analysis, Design of Experiments, Detailed Process mapping, Histograms, Pareto Charts, Control charts and many others are effectively used for such analysis. BS 7799 CERTIFICATION Information is the lifeblood of all organizations and can exist in many forms. Recent high-profile information security breaches and the value of information are highlighting the everincreasing need for organizations to protect their data. BS7799 is the British standard for the protection of an organizations information asset. The road cannot be justified, but it can be quantified by the benefits to your business. The certification is not a one-off task; an external assessor must periodically review it. BS7799 is being tracked as an international standard. HCL BPO Services is one of Indias leading Business process outsourcing (BPO) service providers. The Chennai center of HCL BPO Services has been certified to the British security

standard BS7799. HCL BPO Services is among the leading BPO firms in India to achieve this third-party certification for its quality management system. The certification is an endorsement of the processes that the Chennai center has in place to safeguard the security of data, and also as mechanism in place for issues relating to business continuity and disaster recovery. The certification is valid for a period of 3years. HCL BPO Services, with a committed top-level management and dedicated experienced employees made the certification possible within a short span of five months. CLIENTS: TOP SEVEN CLIENT PROFILES Global Telecom Major U.K Fortune 400 Retail Conglomerate U.S.A Fortune 400 Retail Chain U.S.A Property Services & Insurance Major U.K Global E-integration Solution Provider U.S.A Global Retail/ Financial Automation Systems U.S.A Global Telecom Major U.S.A