Business Plan

Table of Contents
EXECUTIVE SUMMARY...........................................................................................................3
I. BACKGROUND AND PURPOSE.....................................................................................5
a) History.....................................................................................................................................................5
b) Current Conditions................................................................................................................................6
c) The Concept............................................................................................................................................7
d) Overall Objectives..................................................................................................................................9
e) Specific Objectives................................................................................................................................10

II. MARKET ANALYSIS.....................................................................................................13

a) Market Research...................................................................................................................................13
b) Overall Market:.....................................................................................................................................14
c) Specific Market Segment.....................................................................................................................21
d) Competitive Factors.............................................................................................................................25
e) Growth Prospects.................................................................................................................................39

III. DEVELOPMENT AND PRODUCTION....................................................................44

a) Research and Development................................................................................................................44
b) Production Requirements...................................................................................................................47
c) Productions Process.............................................................................................................................48
d) Quality Assurance/Quality Control.................................................................................................49

IV. FINANCIAL DATA........................................................................................................51

a) Financial Projections............................................................................................................................51
b) Financial Ratios....................................................................................................................................54
c) Analysis.................................................................................................................................................55

V. ORGANIZATION AND MANAGEMENT...............................................................58

a) Organization Chart..............................................................................................................................58
b) Management Team...............................................................................................................................58

EXECUTIVE SUMMARY
Since the Industrial Revolution, companies have grappled with how they can exploit their
competitive advantage to increase their markets and their profits. Outsourcing was not
formally identified as a business strategy until 1989. However, most organizations were not
totally self-sufficient; they outsourced those functions for which they had no competency
internally. In earlier periods, cost or headcount reductions were the most common reasons
to outsource. In today's world the drivers are often more strategic, and focus on carrying
out core value-adding activities in-house where an organization can best utilize its own core
competencies. The worldwide market for outsourcing services is estimated at one trillion
dollars in 2008 and is projected to grow to three trillion dollars by 2015, a growth rate of
300%, according to The Black Book of Outsourcing.

ABC Sourcing Solutions is a global outsourcing business offering customized packages of

bundled BPO services to middle-market US banks. The company will function as a
facilitator, a single point-of-contact outsourcing provider and will leverage a globally diverse
network of best-in-class service providers to deliver its hybrid business process and IT
solutions. Initially the company will focus on providing (bundling) call center and HR
functions through its vendor network.

For its customers, GSS will be US-based portal to global outsourcing specialists, a strategic
partner that will manage and deliver scalable outsourcing services with better integration
and service at less cost than managing multiple sourcing relationships in-house. Price
competitiveness and service quality are two key benefits that in combination with the
companys marketing capabilities will dictate the success of GSS.

The initial objective is to raise the capital necessary to execute the business plan by second
quarter 2009. GSS will reach break-even by the end of 2010 and achieve a 25% return on
invested capital by end of 2011. From 2011 through 2015 the objective is to achieve revenue
growth of 25% compound annual growth rate which is at par with the single relationship,
multiple process outsourcing provider market.

To penetrate the market, GSS will combine in-bound call center outsourcing with HR
outsourcing services. The outsourcing competition has not offered these two high-demand
services in a single package. The skill set and systems are different enough to keep a single
provider from benefiting from economies of scale. Yet with the companys unique vendor-
based delivery system GSS will be able to offer these attractive set of services in a single
package.

Once GSS has established a successful marketing strategy and service delivery system,
proven the model, and begun building its customer base, additional lines of service will be
added, such as F&A, to broaden the GSS service offerings, increase revenue per customer
and develop customer loyalty. As our customers restructure their business to benefit from
globalization they will require a full range of service offerings. Since GSSs competitive
advantage is in the marketing and delivery system, adding extensions to its service offerings
will be a natural fit. The need for a single vendor will only increase as companies adapt to
the global environment.

The revenues are expected to grow rapidly in the coming years. The jump in the revenue is
mainly due to increase in outsourcing revenues. Although, the company is expected to
make a loss in the initial period, the year on year growth in the profits depicts a positive
trend. The company once earns stability in 2011, the profit margins ranges between 6% to 9%
and EBITDA margin from 11% to 14% in the coming years.

The return on Assets, Equity and Capital employed are also expected to be high post 2010
with heavy cash balance. The company can make investments in order to earn better
returns.

Overall, the outsourcing market is expected to grow tremendously in the coming years. GSS
is expected to grow along with the market mainly because of it bundled outsourcing
services.
I. BACKGROUND AND PURPOSE

a) History
Since the Industrial Revolution, companies have grappled with how they can exploit their
competitive advantage to increase their markets and their profits. The model for most of the
20th century was a large integrated company that can own, manage, and directly control
its assets. In the 1950s and 1960s, the rallying cry was diversification to broaden corporate
bases and take advantage of economies of scale. By diversifying, companies expected to
protect profits, even though expansion required multiple layers of management.
Subsequently, organizations attempting to compete globally in the 1970s and 1980s were
handicapped by a lack of agility that resulted from bloated management structures. To
increase their flexibility and creativity, many large companies developed a new strategy of
focusing on their core business, which required identifying critical processes and deciding
which could be outsourced.

Initial stages of evolution

Outsourcing was not formally identified as a business strategy until 1989. However, most
organizations were not totally self-sufficient; they outsourced those functions for which they
had no competency internally. The use of external suppliers for these essential but ancillary
services might be termed the baseline stage in the evolution of outsourcing. Outsourcing
support services is the next stage. In the 1990s, as organizations began to focus more on
cost-saving measures, they started to outsource those functions necessary to run a company
but not related specifically to the core business. Managers contracted with emerging service
companies to deliver accounting, human resources, data processing, internal mail
distribution, security, plant maintenance, and the like as a matter of good housekeeping.
Outsourcing components to affect cost savings in key functions is yet another stage as
managers seek to improve their finances.

Strategic partnerships
The current stage in the evolution of outsourcing is the development of strategic
partnerships. Until recently it had been axiomatic that no organization would outsource
core competencies, those functions that give the company a strategic advantage or make it
unique. Often a core competency is also defined as any function that gets close to
customers. In the 1990s, outsourcing some core functions may be good strategy, not
anathema. For example, some organizations outsource customer service, precisely because
it is so important.

Eastman Kodaks decision to outsource the information technology systems that undergird
its business was considered revolutionary in 1989, but it was actually the result of rethinking
what their business was about. They were quickly followed by dozens of major corporations
whose managers had determined it was not necessary to own the technology to get access to
information they needed. The focus today is less on ownership and more on developing
strategic partnerships to bring about enhanced results. Consequently, organizations are
likely to select outsourcing more on the basis of who can deliver more effective results for a
specific function than on whether the function is core or commodity.

What is outsourcing?
Outsourcing can be defined as the strategic use of outside resources to perform activities
traditionally handled by internal staff and resources. Sometimes known also as facilities
management, outsourcing is a strategy by which an organization contracts out major
functions to specialized and efficient service providers, who become valued business
partners. Companies have always hired contractors for particular types of work, or to level-
off peaks and troughs in their workload, and have formed long-term relationships with
firms whose capabilities complement or supplement their own. However, the difference
between simply supplementing resources by subcontracting and actual outsourcing is that
the latter involves substantial restructuring of particular business activities including, often,
the transfer of staff from a host company to a specialist, usually smaller, company with the
required core competencies.

Why do companies outsource

Here are some common reasons:
Reduce and control operating costs
Improve host company focus
Gain access to world-class capabilities
Free internal resources for other purposes
A function is time-consuming to manage or is out of control
Insufficient resources are available internally
Share risks with a partner company

In earlier periods, cost or headcount reductions were the most common reasons to
outsource. In today's world the drivers are often more strategic, and focus on carrying out
core value-adding activities in-house where an organization can best utilize its own core
competencies.

b) Current Conditions
i. ABC Sourcing Solutions (GSS) is a global outsourcing business offering customized
packages of bundled BPO services to middle-market US banks. The company will
function as a facilitator, a single point-of-contact outsourcing provider and will leverage
a globally diverse network of best-in-class service providers to deliver its hybrid business
process and IT solutions. Initially the company will focus on providing (bundling) call
center and HR functions through its vendor network.
ii. PROMISING NEW PRODUCTS - FUTURE INCREASED RETURNS????
The worldwide market for outsourcing services is estimated at one trillion dollars in
2008 and is projected to grow to three trillion dollars by 2015. According to the Black
Book of Outsourcing, the market for outsourcing services worldwide will grow 300%
between today and 2015. The latest developments in outsourcing stay in high demand
by investors, analysts, advisors, competitive suppliers and savvy buyers. In the search
for the next big thing, the client-centric vendor is king. Local front office operations,
one team partnerships and driving business transformation for client improvements
are in. (Excerpt from the Executive Summary, 2008 State of Outsourcing Industry Report,
Brown & Wilson)

Bundling is a market-leading approach to outsourcing that takes a comprehensive set of

end-to-end processes across core and non-core business functions and IT systems and
combines them into a single outsourcing arrangement. A bundled outsourcing
approach enables companies to gain significant efficiencies by bridging the traditional
silos of core and non-core business functions. As the reliance on various forms of
outsourcing grows rapidly across every industry, a number of organizationsthose who
are masters of outsourcingare gaining major competitive advantages and are
growing more rapidly than their competitors by outsourcing a bundle of business
processes across functions.

GSS and savvy market watchers believe the outsourcing market will continue to evolve
toward bundling or combining outsourcing services. Outsourcing several related
functions at the same time enables executives to connect the dots among different
business functions, sharing resources, applications and platforms. The company will
become a leader in the outsourcing services industry by focusing on providing
unmatched customer service through its single point-of-contact, best-in-class bundled
BPO services.

c) The Concept
i. For its customers, GSS will be US-based portal to global outsourcing specialists, a
strategic partner that will manage and deliver scalable outsourcing services with better
integration and service at less cost than managing multiple sourcing relationships in-
house. Price competitiveness and service quality are two key benefits that in
combination with the companys marketing capabilities will dictate the success of GSS.
Single-service outsourcing providers have been successful in delivering both cost savings
and service quality to their customers. Providers of multiple services generally place
emphasis on one factor over the other, typically service quality more than cost savings,
though through process efficiencies they are able to reduce costs. GSS will maximize the
benefits by delivering individual best-of-breed providers through a single relationship
and integrative delivery system.
 The market for outsourcing providers is fragmented. The majority of providers are
single business process providers, such as Jack Henry & Assoc. and Integrated Bank
Technology which provide banking software solutions or Advantec and eTelecare Global
Solutions which provide HR outsourcing and in-bound call center outsourcing
respectively. On the other end of the spectrum is Accenture. Accenture is a market
leader of bundled consultancy and outsourcing services primarily to the large business
and government market. However, with the purchase of Savista in 2006, Accenture did
make a move to serve the middle-market. Accenture, as well as other multi-service
providers are limited in the number and types of services that they offer. Their strategy
has been expansion through M&A. Though this does provide a market entrance
advantage, they are limited to the amount of diversification, flexibility, and nimbleness
they can achieve.

ii. The vendor relationship and delivery system distinguishes GSS from its competitors.
GSS will leverage global labor arbitrage to provide the best price to its customers, and
through its flexible vendor network will be able to provide the best of any type of service
at the best globally available price point. Vendors will provide the specific service, and
through its integrated IT portal GSS will facilitate the service delivery and assure that
the vendors are maintaining service levels that meet or exceed GSSs customers
expectations. The ability to source multiple providers will assure delivery of the best
combination of service and price.

Business model System Design

 None of the target customers (initially banks) can opt out of globalization. If they do not
purchase service through GSS, they will be left to manage multiple outsourcing
contracts with a variety of providers and will struggle to integrate the services across
their business. Another option for them is to source some processes leaving partial
efficiency improvements and potential cost savings unrealized. The result will be
unrealized efficiency improvements, reduced cost savings, and disconnected information
between independent silos of business functions. The future competitive landscape will
squeeze out banks that follow these paths. They will be forced to maximize their
strategic partnerships and eventually move to a single provider such as GSS to gain
maximum efficiencies.

d) Overall Objectives
The initial objective is to raise the capital necessary to execute the business plan by
second quarter 2009. GSS will reach break-even by the end of 2010 and achieve a 25%
return on invested capital by end of 2011. From 2011 through 2015 the objective is to
achieve revenue growth of 25% compound annual growth rate which is at par with the
single relationship, multiple process outsourcing provider market.

To penetrate the market, GSS will combine in-bound call center outsourcing with HR
outsourcing services. The outsourcing competition has not offered these two high-
demand services in a single package. The skill set and systems are different enough to
keep a single provider from benefiting from economies of scale. Yet with the companys
unique vendor-based delivery system GSS will be able to offer these attractive set of
services in a single package.

The company will provide consultancy services centered on these service identifying
areas of potential cost savings and performance enhancements for both core and non-
core business functions along with a cost-savings analysis and proposed solution for the
outsourcing of select business processes. The consultancy services will be priced with
incentives for prospective customers who choose to implement the outsourcing strategy
with the company.

Once GSS has established a successful marketing strategy and service delivery system,
proven the model, and begun building its customer base, additional lines of service will
be added, such as F&A, to broaden the GSS service offerings, increase revenue per
customer and develop customer loyalty. As our customers restructure their business to
benefit from globalization they will require a full range of service offerings. Since GSSs
competitive advantage is in the marketing and delivery system, adding extensions to its
 service offerings will be a natural fit. The need for a single vendor will only increase as
companies adapt to the global environment.

e) Specific Objectives
Revenues/Sales
Initial revenues will be generated from the companys consultancy services with
outsourcing contracts to follow.

Profitability
The company will price its consultancy services with a target gross profit of 50% with
incentives for prospective customers who choose to implement the developed
implementation strategy with the company.

The target outsourcing model will allow customers to save 40% of their domestic labor
and benefits costs. The company will seek a 25% gross profit margin and will target its
operating expenses at 12.5% or less.

Market share/Market standing

Service quality
Service quality is at the heart of what makes a successful relationship. Deficiencies of
service rather than unrealized cost savings have lead to the majority of failures in
outsourcing relationships. Poor governance, multi-supplier environments, poor
communication, unclear expectations, misaligned interests and relationships that over
time become no longer mutually beneficial are responsible for relationship failures,
increased risk and unanticipated costs for the client.

The service objective for GSS is to create a mutually beneficial, partnership environment
where customers select a long-term growing relationship with GSS. To create such an
environment, the company will focus on providing a solution to the above causes of
failure by proactively evaluating company-wide needs, the ever-changing expectations,
maintaining interest alignment and managing the multiple-supplier environment for the
client. As the facilitator/manager of the outsourcing relationships, the company will
monitor the big picture the functioning of the company as a whole so that interests
remain aligned over time and that the clients strategic or tactical changes can be
implemented successfully within the outsourcing vendors. The nature of the business
design positions GSS as the service coordinator constantly focused on the client.

2009: GSS will establish vendor relationships with a business process mapping/consulting
firm and four globally diverse suppliers that provide call center and HR outsourcing. The
suppliers will be selected based upon the following criteria in order to provide a high level
of service to our customers:
Have a proven track record
Demonstrate best practices
Continually increase expertise and capabilities
Possesses excess capacity and the ability to add capacity quickly
Bring added value through innovation
Focus on efficiency and cost reductions
Pricing flexibility
Geographic location

The company has received a commitment from Advantec to be one of GSSs HR services
vendor. Advantec is a Tampa based HR outsourcing company with service centers in
Chennai, India. Through our relationship with Advantec, GSS is able to provide services
such as:
Integrated Human Resources, Benefits, Payroll, and Tax Services
Scalable services and technologies that minimize additional capital expenditures
for your clients.
Comprehensive industry expertise in compliance consulting and workers
compensation.
Full administrative services including: Training & Education Courses, Recruiting
Solutions, Drug & Background Screening, and On-boarding of Employees
Powerful benefits administration systems and services

The company has also received a commitment from CompanyXYZ, located in Chennai,
India to provide business consulting services. CompanyXYZ provides:
??? (another of John Sansoucies offshore companies)

2010: The objective is to increase global diversification of our vendor network in order to
achieve constant improvement in the level of service we provide our customers base. The
strategy is to maintain a minimum of two independent vendors covering similar services in
each geographic region. GSS will have multiple vendors service each customer. This will
leverage the relationships of each vendor; reduce service delivery risk by spreading it across
the entire vendor network. It will also provide GSS with critical information about
economic, political, and social changes that might affect service level or cost changes. These
changes will inevitably occur over time. Geographic diversification of vendors will allow
GSS to redirect service delivery as needed to remain ahead of economic or changes to
service delivery risk.

GSS plans to engage four service centers in India (2-call centers, 2-HR providers), two call
centers in the Philippines, two Spanish-speaking call center providers in South America, and
two additional HR providers outside of India, yet to be identified.
2011: The Objective is to have a proven, successful track record of consultations leading to
multiple outsourcing contracts. By mid 2011, the company will have the first complete year
of outsourcing contracts under its belt. To prepare for the coming contract renewal period,
GSS will add one additional service to increase the revenue per customer and to attract new
customers who are receptive to the new lines of service. To increase the probability of
existing customers taking advantage of the additional services, GSS will survey the existing
customer base and add the service which ranks highest among the existing customers
additional needs.

The objective up to this point has been to establish the companys credibility as a strategic,
service-oriented partner and to foster a need within the customer base for expanded services
utilization. The expansion might include additional back-office support, marketing, sales,
CRM, or financial management processes that support the customers competitive
advantage.

2012: Additional service offerings will be added at a pace that will be determined by the
companys ability to understand the risks inherent within the different disciplines and by
the companys ability to identify and integrate proficient suppliers. The companys objective
is to provide service levels that will foster a high level of customer retention, recurring
revenue and expanding service offerings and utilization.

2013: GSS will target at the below aspects:

Innovation
Efficiency/productivity
Employee morale
Management development
Social concerns/social responsibility (impact on community)
II. MARKET ANALYSIS

a) Market Research
i. Research from BM/EIU projections, Thomson One Banker, and the IBM Institute for
Business Value analysis states that theres no denying the reverberations of the credit
crisis that began in 2007. Even if the crescendo finally has occurred, retail banks face
flattening performance, market turmoil and a mounting global shift in assets. Yet, the
worldwide financial system is expected to quadruple by 2025 to nearly US $1,300
trillion. Market advantage will lie with those banks that rethink their strategy,
structure and culture to reflect a changed reality.

Banking executives agree: globalization will yield new windows of opportunity, pushing
banks beyond todays boundaries. And, while many banks feel unprepared, the reality
is no bank big or small can opt out. Managing global talent will be critical, and
Forrester Research has found that the costs to manage multiple suppliers can increase
contract costs from 4 to 30 percent. More and more companies are turning to
multisourcing as a way to drive down pricing, obtain best-of-breed services, minimize
delivery risk, and increase their capacity to scale.

Without question, banking is becoming more global. However, banks have a choice in
how they attain greater growth, efficiency and effectiveness. Banks are struggling to
operate in a more agile and global fashion, yet a surprising 51 percent of universal banks
rank their global integration capabilities as moderate to poor and the figure rises to 69
percent across all respondents. IBM/EIU projections; Thomson One Banker; IBM
Institute for Business Value analysis.

The opportunities for financial services outsourcers are growing at the fastest rate of all
the areas. Financial enterprises are relying on outsourcing as part of their broader
strategic sourcing plans to achieve their common goal of improving competitiveness
while reducing costs. Financial Services outsourcing vendors are experiencing the fast
growth in opportunities.
Leading economic indicators show Americas institutions that provide financial services
are suffering as much or more than the real estate industry. Financial services like banks
have increasingly turned to downsizing and outsourcing to reduce their cost
commitments. Financial services are a paperwork intensive industry that is looking for
cheaper ways to perform these activities, such as using a virtual assistant or outsourcing
company.

As these financial institutions (Bankers) struggle to reduce capital costs and gain budget
flexibility they increasingly rely on outsourcing in this field, sometimes called
Knowledge Process Outsourcing to handle many of their administrative tasks, A sound
economic analysis of their payroll expenses has caused many financial services to
outsource certain tasks to third parties. Typically, banks and other financial services
outsource areas of Finance & Accounting such as:
Bookkeeping/accounting
Accounts payable/receivable
General ledger accounting
Customer order processing
Payroll

Advances in technology have given the outsourcing industry the ability to perform more
complex and important functions. Two such areas are forms processing and data
capture & entry. Data capture and entry is the process of getting data into application
processing systems. Innovative technology now allows a virtual assistant to convert
large volumes of hard copy and image-based forms into fielded electronic formats.

The combination of staff reductions and technology advances has allowed financial
services to outsource important work at a much cheaper rate. The battered economy has
led many in the financial service industry to reevaluate their employment practices.
Instead of being top heavy in management, now financial services have the option to
outsource vital assignments. Outsourcing solutions to the financial services sector now
include:
financial project management
planning & budgeting
project monitoring
analysis of financial data

As global economics evolve, so do the capabilities of outsourcing services. The type of

endeavors that are now sought demand that outsourcing services have a perfectly clear
understanding of client applications, associated hardware and software and all ancillary
equipment that is used to help support client requirements.
b) Overall Market:
i. Overview
The worldwide market for outsourcing services is estimated at one trillion dollars in
2008 and is projected to grow to three trillion dollars by 2015, a growth rate of 300%,
according to The Black Book of Outsourcing. The latest developments in outsourcing
stay in high demand by investors, analysts, advisors, competitive suppliers and savvy
buyers. In the search for the next big thing, the client-centric vendor is king. Local front
office operations, one team partnerships and driving business transformation for client
improvements are in. (Excerpt from the Executive Summary, 2008 State of Outsourcing
Industry Report, Brown & Wilson) The market for outsourcing multiple processes under
one relationship is growing at a 25% compound annual growth rate, compared to a 10%
rate for outsourcing a single business process Everest Research Institute.

The United States is the largest single market for outsourcing services. In 2007,
outsourcing saved the financial services industry an estimated $9 billion a year, up from
$5 billion in 2006, according to Deloitte and Touches. More than 75 percent of major
financial institutions now have operations offshore, compared to less than 10 percent in
2001, the report notes, and the trend toward outsourcing work to low-labor-cost areas of the
world will become more common. Gartners Business Process Outsourcing Forecast
Database, November 2007 by Robert H. Brown and Kathryn Hale indicates that
spending on services in the Business Process Outsourcing market is expected to grow
from $144 billion in 2006 to an estimated $234 billion by 2011.

"Over the years we've seen banks move more toward outsourcing," the vendors are
better at managing those risks than a community bank is." Raj Patel, a partner at Plante
& Moran PLC of Southfield, Mich., the accounting and business advisory firm that
compiled the survey results for the ICBA (Independent Community Bankers of
America).

According to Julio Ramirez, globalization and outsourcing practice leader at the Hackett
Group, many companies are hitting the pause switch on their globalization efforts. And
with the transformational projects on hold the outsourcing companies will see less of the
request for proposals (RFPs) till such time the recession scenario actually unfolds. There
might also be a dip in deal size especially in the full service models per Soumit B,
Senior Analyst at Everest Research Institute, as buyers become frugal in determining
scope of contract.

With the given scenario purchasers will look to vendors to offer them help in savings
and productivity. Rupee appreciations against the dollar and the general inflationary
levels in India arent helping much. Rupee in fact gained about 11% against the dollar
between January and December 2007, which resulted in higher costs for the clients and
lower earnings for the offshore service providers.
Hedging of course is an option available to the sellers to manage currency exchange rate
risk but it eventually would put more pressure on the bottom-lines as it adds to the costs.
Again, wages in India are escalating and the companies are planning to reduce the salary
increments to single digits in the next couple of years to control the costs. The difficulty
with this option is attrition and it needs to be seen how the outsourcing companies
would now manage the already high rates.

US recession, however, has some positive effects too on the industry. Hundreds of
thousands of small medium enterprises (SMEs) are waking up to benefits of offshore
outsourcing industry. Times of India states that SME deals from the US would be around
$8 billion by March 2009 and $11 billion by March 2010 from the current levels of about
$7 billion. Also the slowing US economy could push the outsourcing up to new levels to
low-cost destinations and per the global research firm Gartner India here has a definite
advantage over other countries.

So to better tap the opportunities venders need to move to low cost destinations either
within the country or even outside of it. Trend is evident with many of the top firms
opening their offices in countries like Philippines, Singapore, Malaysia, Sri Lanka and a
few east European countries. Companies are also looking for new client outside the US
particularly in the English speaking countries of the UK, Australia, New Zealand and
Canada.

Industries that have the most aggressive strategic sourcing plans to expand initiatives
in 2008-2009 include:
ii. Characteristics

Market Size Global BPO

According to Gartner, a market research firm, the size of the global BPO market by
2007 would be $173bn, of which $24.23bn would be outsourced to offshore
contractors. Of this, India has the potential to generate $13.8bn in revenue. "The
projection includes revenues of pure play Indian BPO service providers, captives
operations of MNCs operating in India, third party service providers and BPO
subsidiaries of IT services firms.

North America will remain the dominant market for ITES-BPO services, accounting
for nearly 60 percent of the total ITES-BPO market in 2006. The main verticals in the
North American ITES-BPO market are telecommunications, financial services, health
care and energy. Commonly outsourced processes include internal auditing, payroll,
human resources, benefits management, contact centers/customer care, payments/
claims processing, real estate management, and supply chain management.

The Global business process outsourcing (BPO) market is forecast to hit $450bn by 2012.

BPO total contract value grew across all major regions worldwide in 2007, fostered by
increased capabilities among suppliers, says analyst Nelson Hall.

The credit crunch will hasten organizations move offshore, as companies look to reduce
costs and buy their way into emerging growth markets, particularly in the financial
services and telecoms sectors, the report says.

The emerging economies of Asia and Latin America will ride the crest of this wave,
housing support functions such as finance and accounting services, and benefiting from
the relocation of existing shared services centers.

HR Outsourcing - Industry Background and Market Size

Many large corporations have begun to outsource discrete, non-core functions of their
operations, such as payroll and benefits administration, in order to address many of the
problems found in traditional human resources departments.

The Internet makes the HR BPO delivery model possible by facilitating interactive
communications among large groups of individuals in multiple geographic locations. It
is estimated that by using the functionality of the Internet to move HR delivery to a
largely self-service mode, organizations can achieve annual HR cost reductions of
approximately 25%-30%.

To date, however, HR departments have not fully utilized the Internet because they have
not broadly implemented any mechanism for effectively centralizing and organizing the
large amount of information and electronic transmissions within the HR organization.
Accordingly, the Internet's use in HR departments has been mostly limited to one-on-one
e-mail communications or process-specific internal networks.

The Size of the HR Process Outsourcing Market

Many large corporations outsource discrete, non-core functions of their operations, such
as payroll, tax filings, and benefits administration.

The market for multi-process HR outsourcing is relatively new. It is estimated that

approximately 300 of the Global 500 are viable candidates for HR outsourcing. Based on
the median employee base and estimates of annual spending per employee for various
services, we estimate that the addressable market basic HR outsourcing consists of
annual spending of approximately $29 billion per year.

Comprehensive HR process outsourcing for large corporations requires a well-

developed service delivery infrastructure and significant expertise in analyzing,
providing, and managing HR processes across many divisions and third-party vendors.
It also necessitates policies, procedures, operations, and technologies that yield superior
performance as measured by productivity, cost, quality, and customer satisfaction
metrics.

Call Centers - Financial Services its market size and structure

Financial services companies understand call centers importance more than other
industries as evidenced by their resource allocation. Companies know that each
customer contact through the call center is a new opportunity to build or expand the
relationship.

While call centers are often assumed to be large, factory-like operations, it is found that
most are relatively small organizations.

The figure below shows that the size of call centers varies substantially by industry,
customer segment, and whether they are in-house or subcontracted. High end centers
serving large business or offering business and IT services are the smallest in size,
averaging under 100 employees at a worksite. This small office environment allows for
close relationships among employees and managers and limits the extent to which scale
economies offered by call center technologies can be realized. In-house centers serving
telecommunications and financial services have just under 200 employees, while those in
retail average 230. Centers of this size can realize some economies of scale in the
allocation of labor, while retaining some level of interpersonal relationships between and
among managers and employees. Subcontractors, by contrast, average almost 400
employees per center, or twice the level of in-house centers. This difference in size
suggests that outsourced centers, on average, can make greater use of standardized call
center technologies.
 Traditional call center thinking emphasizes the importance of technology, and excellent
call centers are usually at the cutting edge. This report, however, points to human
resources as the most critical and most difficult to master component of call center
management.

To turn a profit, call centers must master cross-selling and up-selling strategies. These
techniques depend on the people handling the calls, so call centers must design
customer service jobs to be desirable and build strong career paths.

Both quantitative and qualitative findings demonstrate how successful financial services
call centers master these three critical components:

Strategy and Measurement Cross-selling, up-selling and outsourcing strategies.

Learn what measures are most important to managing a successful call center.

Call Center Processes Improve efficiency through better call routing and
technology.

Human Resources Understand how successful call centers recruit and retain top
customer service representatives.
iii. Leading Companies

Accenture: A management consulting, technology services and outsourcing

organization. The Companys business is structured around five operating groups,
 which together comprise 17 industry groups serving clients. The operating groups of the
Company are Communications & High Tech, Financial Services (21% of FY08 revenue),
Products, Public Service and Resources. On the verge of becoming a megavendor, 2008
total revenues increased 18% over 2007 to $25.31 billion with pre-tax income of $3.108
billion. Much of Accentures outsourcing work consists of long-term contracts that are
rarely eliminated in response to an economic downturn, since they help corporations
operate more efficiently. The company is global in nature, and the Americas region
contributed 42% of total FY08 revenue. Rated #1 by the International Association of
Outsourcing Professionals (IAOP) The 2008 Global Outsourcing 100. Rated #11 by The
Black Book of Outsourcing on their Best Managed 50 Global Outsourcing Vendors
Survey List.

Infosys Technologies Ltd.: Infosys defines designs and delivers IT-enabled business
solutions that help Global 2000 companies win in a flat world and stretch their IT budget
by leveraging the Global Delivery Model that Infosys pioneered. 2008 revenue was up
35% from 2007 to $4.176 billion from $3.09 billion. Pre-tax for 2008 was $1.326 billion up
from 2007s $936 billion, an increase of 41%. Rated #3 by the International Association of
Outsourcing Professionals (IAOP) in The 2008 Global Outsourcing 100. Infosys fell off
of the Black Book of Outsourcings Best Managed 50 list in 2008, but was rated #10 in
2007.

IBM Global: IBM knows how to play the role of a strategic partner and proactively
contribute to customers business and IT strategy. One of the largest global
infrastructures, which has led to economies of scale that pass on to customers. 2007
revenue for IBMs global outsourcing $13.5 billion. Rated #2 by the International
Association of Outsourcing Professionals (IAOP) in The 2008 Global Outsourcing 100.
Rated #14 in 2007 by The Black Book of Outsourcing on their Best Managed 50 Global
Outsourcing Vendors Survey List, however IBM fell off of the list for 2008.

Hewlett Packard: More than 700 clients around the world trust their critical IT
infrastructure, applications, and business processes to HP firmly established as one of
the worlds largest and most trusted outsourcing service providers. 2007 revenue of $5.3
billion. Rated #8 by the International Association of Outsourcing Professionals (IAOP)
The 2008 Global Outsourcing 100. Rated #1 by The Black Book of Outsourcing on their
Best Managed 50 Global Outsourcing Vendors Survey List.

EDS: Purchased by HP on August 26, 2008 for $13.9 billion. A leading global
technology services company offers a broad portfolio of business technology solutions
backed by an unrivaled global infrastructure and the most experienced team of
professionals in the industry it pioneered more than 45 years ago. The companys core
portfolio comprises IT outsourcing, applications and business process outsourcing
services. Revenues of $22 billion. Rated #12 by the International Association of
Outsourcing Professionals (IAOP) The 2008 Global Outsourcing 100. Rated #5 by The
 Black Book of Outsourcing on their Best Managed 50 Global Outsourcing Vendors
Survey List.

Perot Systems: Since 1988, Perot Systems Corporations has delivered technology-based
solutions to help organizations worldwide control costs and cultivate growth. Drawing
on deep industry expertise and a portfolio of interrelated consulting, business process,
application, and infrastructure services. 2008 projected revenue of $2.8 billion. Rated #2
by The Black Book of Outsourcing on their Best Managed 50 Global Outsourcing
Vendors Survey List.

24/7 Customer: the first BPO company that provides integrated customer lifecycle
management service through a multishore global delivery model. Established in 2000,
2007 revenue of $63.9 million. Rated #28 1 by the International Association of
Outsourcing Professionals (IAOP) The 2008 Global Outsourcing 100. Has not been
made the top 50 on The Black Book of Outsourcing since 2006, yet still mentioned as a
top global vendor.

Capgemini: A global leader in outsourcing, Capgeminis collaborative approach allows

clients to achieve better, faster, and more sustainable results providing both outsourcing
and consultancy services. Established in 1995, 2007 revenue of $700 million. Rated #5 by
the International Association of Outsourcing Professionals (IAOP) The 2008 Global
Outsourcing 100. Rated #12 by The Black Book of Outsourcing on their Best Managed
50 Global Outsourcing Vendors Survey List.

Sitel: Provides fully integrated customer care and back office processing services that
focus on delivering a return on customer investment to our clients by reducing service
costs, improving customer retention and increasing revenue per customer. Formerly
Clientlogic Corporation which was founded in 1989, Sitel was established in 2007, 2007
revenue of $24.9 billion. Rated #21 by the International Association of Outsourcing
Professionals (IAOP) The 2008 Global Outsourcing 100. Rated #33 by The Black Book of
Outsourcing on their Best Managed 50 Global Outsourcing Vendors Survey List.

c) Specific Market Segment

As reported by the Offshoring Times in 2007, the US banking, financial services and
insurance industry offshoring pie will be worth $400-billion by 2010. Surveys estimate
that the US BFSI industry would outsource as much as 20% of its cost base (amounting
to $400 billion) to offshore locations. In a report published in 2008 by IBM Institute for
Business Value analysis, they estimate that spending in the US banking sector alone will
climb from US$97 billion in 2007 to US$153 billion by 2011 for offshoring services.
Outsourcing in the banking and financial services sector demonstrated short-term signs
of a slowdown at the end of 2008 due to the economic crisis, but the market will likely
 regain momentum in early 2009, according to the Market Vista: Q3 2008 report on global
outsourcing and offshoring activity by the Everest Research Institute.

ABC Sourcing Solutions has established a target market of US middle-market banks

employing between 250-2500 personnel of which there are 518 customers. For reference,
there are 36,909 US banks with over 2,500 employees. Banks have an imperative to
collaborate in a global industry and they know their competitors are already learning
to tap into the lower-cost capabilities and experiences of other institutions. They have a
choice in how they attain greater growth, efficiency and effectiveness all banks must
consider at least some aspects of becoming a globally integrated enterprise. A shift
toward more fluid, globally integrated enterprises will enable banks to capture
opportunities whenever and wherever they exist on the revenue and cost sides.

Astute banks will focus on four key imperatives now in order to gain optimum
competitive advantage by 2015: focus on core strengths and partner for everything else,
optimize the potential of each customer relationship, harness the potential of the
workforce through effective performance management and recognize that technology
will be a critical element of success.

i. Leading companies serving Financial Services Industry

The leading outsourcing companies serving the financial services industry are very
strong financially.

Accenture: A management consulting, technology services and outsourcing

organization. The Companys business is structured around five operating groups,
which together comprise 17 industry groups serving clients. The operating groups of
the Company are Communications & High Tech, Financial Services (21% of FY08
revenue), Products, Public Service and Resources.

Infosys Technologies Ltd.: Infosys defines designs and delivers IT-enabled business
solutions that help Global 2000 companies win in a flat world and stretch their IT
budget by leveraging the Global Delivery Model that Infosys pioneered.

Genpact Limited: Genpact manages business processes for companies around the
world. The company combines process expertise, information technology and
analytical capabilities with operation insight and experience in diverse industries to
provide a wide range of services using its global delivery platform. Genpact helps
companies improve the ways in which they do business by applying Six Sigma and
Lean principles plus technology t continuously improve their business processes.
Genpact operate service delivery centers in India, China, Hungary, Mexico, the
Philippines, the Netherlands, Romania, Spain, and the United States
 Fidelity National Information Services: A leading provider of core financial
institution processing, card issuer and transaction processing services and
outsourcing services to financial institutions and retailers worldwide. FIS has
processing and technology relationships with 40 of the top 50 global banks,
including nine of the top 10. Headquartered in Jacksonville, Fla., FIS maintains a
strong global presence, serving more than 13,000 financial institutions in more than
80 countries.

Sykes Enterprises: Provides Inbound Outsourced Customer Contact Management

Solutions. A family of global businesses delivering business process outsourcing
services, SYKES sets the standard for excellence in customer service. Whether
serving a credit card customer in Denver, a healthcare patient in Toronto, or a utility
customer in Budapest - SYKES brings over 30 years of service expertise to every
customer interaction. 2007 revenue of $710 million. Not rated by Black Book of
Outsourcing or by the IAOP, however, Sykes has a marketing presence with Bank
Administrative Institute (BAI), a financial services (primarily banking) resource and
research outlet.

As the global delivery system develops, and as GSS gains credibility, market share, and
deep financial services industry knowledge it will assess other areas outside of the US
middle-market bank segment where the ABC model will have the greatest demand.
The company will continually assess the financial services industry as it executes its
plan for changes in the market landscape that would necessitate a change in the
strategic plan. The company will observe strategic topics of current and future trade
shows, observations within industry publications, through spill-over demand driven by
the companys internet marketing, and the companys exposure at financial services
trade shows.

ii. Leading companies serving HR Services Industry

d) Competitive Factors

i. Existing Rivals

1. Infosys defines designs and delivers IT-enabled business solutions that help Global
2000 companies win in a flat world. With Infosys, clients are assured of a transparent
business partner, world-class processes, speed of execution, and the power to stretch
their IT budget by leveraging the Global delivery Model that Infosys pioneered.
Infosys BPO seeks to leverage the benefits of service delivery globalization, process
redesign and technology to drive efficiency and cost effectiveness in customer
business processes. Infosys has experienced a 40.08% and 43.8% compound annual
growth rate of revenues and net income respectively from 2004 to 2008.

Infosys business is designed to enable the company to seamlessly deliver onsite and
offshore capabilities using a distributed project management methodology, which
they refer to as their Global Delivery Model. The Global Delivery Model allows the
company to provide clients with high quality solutions in reduced time-frames
enabling them to achieve operational efficiencies. 62% of FY08 revenue was
generated in North America. 35.8% of revenues were derived from the financial
services industry.

Infosys Consulting offers operations and business process consulting services that
leverage Infosys business, domain and technology expertise utilizing their Global
Delivery Model. The consulting services include strategic and competitive analysis to
help clients improve their business operations and create competitive advantages.
Infosys also assists clients in implementing operational changes to their businesses.

The company offers consulting services in the areas of:

customer operations, customer service, sales and pricing, marketing analytics
and customer relationship management;
product operations, which includes research and development for new
products, supply chain transformation, and working capital efficiency; and

Corporate operations, which includes technology strategy, finance, legal and

human resources operations.
in millions
Infosys 2008 2007 2006 2005 2004
Revenue $4,176 $3,090 $2,152 $1,592 $1,063
Pre-tax Income 1,326 936 630 491 321
30.20%
Profitability 31.75% 30.29% 29.28% 30.84%
2. Accenture is a global management consulting, technology services and outsourcing
company. Committed to delivering innovation, Accenture collaborates with its clients
to help them become high-performance businesses and governments. With deep
industry and business process expertise, broad global resources and a proven track
record, Accenture can mobilize the right people, skills, and technologies to help clients
improve their performance. For nearly two decades, Accenture has been working with
industry leaders to develop and deliver innovations through outsourcing.

Accentures comprehensive portfolio of outsourcing services includes application

outsourcing, infrastructure outsourcing and industry-specific and cross-industry BPO
services. Accenture also offers bundled outsourcing, an innovative approach to
outsourcing that consolidates multiple business functions with a single service
provider. Ultimately, outsourcing enables clients to increase business performance,
profitability, and competitiveness.

Accenture operates globally with one common brand and business model designed to
enable them to provide clients around the world with the same high level of service.
Drawing on a combination of industry expertise, functional capabilities, alliances,
global resources and technology, the company delivers competitively priced; high-
value services that help their clients measurably improve business performance. Their
global delivery model enables the company to provide a complete end-to-end delivery
capability by drawing on Accentures global resources to deliver high-quality, cost-
effective solutions to clients under demanding timeframes.

The business is structured around five operating groups, which together comprise 17
industry groups serving clients in major industries around the world. Industry focus
gives them an understanding of industry evolution, business issues and applicable
technologies, enabling the company to deliver innovative solutions tailored to each
client or, as appropriate, more-standardized capabilities to multiple clients.

in millions
Accenture 2008 2007 2006 2005 2004
Revenue 25,314 21,453 18,228 17,094 15,114
Pre-tax Income 3,108 2,619 1,924 2,206 1,799
Profitability 12.28% 12.21% 10.56% 12.91% 11.90%
3. Wipro is a global service provider delivering technology-driven business solutions
that meet the strategic objectives of its clients. Wipro has 40+ Centers of Excellence
that create solutions around specific needs of industries. Wipro delivers unmatched
business value to customers through a combination of process excellence, quality
frameworks and service delivery innovation. The company provides a comprehensive
range of IT services, software solutions, IT consulting, business process outsourcing
(BPO) services and research and development services in the areas of hardware and
software design to leading companies worldwide. They combine the business
knowledge and industry expertise of their domain specialists and the technical
knowledge and implementation skills of the companys delivery team in their
development centers located in India and around the world, to develop and integrate
solutions which enable their clients to leverage IT for achieving their business
objectives. The company uses their quality processes and global talent pool for
delivering time to development advantage, cost savings and productivity
improvements.

Wipros objective is to be a world leader in providing a comprehensive range of IT

services to their clients. The markets Wipro addresses are undergoing rapid change
due to the pace of developments in technology, changes in business models and
changes in the sourcing strategies of clients. Wipro believes that these trends provide
significant growth opportunities.

in millions
Wipro 2008 2007 2006 2005 2004
Revenue 197,428 149,431 106,107 81,353 58,433
Pre-tax Income 35,881 32,535 23,248 18,449 11,563
Profitability 18.17% 21.77% 21.91% 22.68% 19.79%

4. Cognizant is a leading provider of global IT, business process outsourcing and

consulting services for Global 2000 companies located in North America, Europe and
Asia. Focused on delivering strategic information technology solutions that address
the complex business needs of its clients, Cognizant tailors their services to specific
industries, and uses its own on-site/offshore outsourcing model to provide
applications management, development, integration, and reengineering; infrastructure
management; business process outsourcing; and numerous related services, such as
 enterprise consulting, technology architecture, program management, and change
management.

According to NASSCOM (Indias National Association of Software and Services

Companies), IT/BPO exports from India were an estimated $31.3 billion for the fiscal
year ended March 31, 2007, with IT software and services exports growing 36% and
BPO exports growing 34% in fiscal 2007. Indias IT / BPO sector is projected to grow to
greater than $60 billion by 2010. In 2007, the companys Financial Services business
segment represented approximately 47% of their total revenues. This business
segment provides services to customers operating in the following industries: Capital
Markets; Banking; and Insurance.

in millions
Cognizant 2007 2006 2005 2004 2003
Revenue 2,136 1,424 886 587 368
Pre-tax Income 414 278 185 122 72
Profitability 19.38% 19.52% 20.88% 20.78% 19.57%

5. Genpact manages business processes for companies around the world. The company
combines process expertise, information technology expertise and analytical
capabilities, together with operational insight and experience in diverse industries to
provide a wide range of services using its global delivery platform. Genpact helps
companies improve the ways in which they do business by continuously improving
their business processes including through the application of Six Sigma and Lean
principles and leveraging technology. The company strives to be a seamless extension
of its clients' operations. Genpact operates more than 30 service delivery centers in
India, China, Hungary, Mexico, the Philippines, the Netherlands, Romania, Spain, and
the United States.

Genpact seeks to create long-term relationships with its clients where they view
Genpact as an integral part of their organization and not just as a service provider.
These relationships often begin with the outsourcing of discrete processes and, over
time, expand to encompass multiple business processes across a broader set of
functions. To achieve this goal, we the company developed the Genpact Virtual Captive
SM
model for service delivery, and may implement all or some of its features in any
given client relationship, depending on the client's needs.

in millions
Genpact Limited 2007 2006 2005 2004 2003
Revenue 823 613 492 429 382
Pre-tax Income 82 34 11 90 85
Profitability 9.96% 5.55% 2.24% 20.98% 22.25%
 ii. Nature of Competition

Relative Relative
Strength
s Weaknesses

Global Delivery Model HQ in India which has seen recent terrorist

Infosys:
Operate in low-cost environments
Size
Diverse Service Offerings
High level of repeat business
Debt-free (extremely stable)
activity
Global delivery model has limitations of
brick and mortor sites
Focus on internal performance take eye off
of customer satisfaction as seen in elimination
from black book of outsourcing 2008
Target large companies
Does not offer Call Center Outsourcing
Customer solutions are limited to their own
expertise

Broad global resources Global resources have limitations of brick

Accenture
Wide industry knowledge
Diverse service offerings
Offer bundles of services to select
industries
and mortar sites - focus on M&A for
expansion of resources
Primarily target large companies, but have
recently started to dip into the middle-market
Focus on internal performance take eye off
of customer satisfaction
Customer solutions are limited to their own
expertise

Wipro Does not offer HR outsourcing solution

Customer solutions are limited to their own
expertise

Cognizant Does not offer Call Center Outsourcing

Customer solutions are limited to their own
expertise

Genpa
ct Does not offer HR Outsourcing
Customer solutions are limited to their own
Advantages over Rivals

Price: The ABC model provides for pricing advantages due to the globally diverse
sourcing system. As competition increases among providers, ABC will retain a
pricing advantage by its ability to source suppliers.

Performance: ABC will provide its clients with true best-of-breed services. Best-of-breed
providers, as specialists in their field, have primarily focused on their niche and
do not offer a broad array of services. Multi-service providers struggle to
provide true best practices across the service spectrum and often only do so
through M&A. Through ABCs vendor network, the company will be able to
source niche, best-of-breed providers and deliver their services through a
bundled delivery system.

Ease of Use: Clients will find in ABC a one stop shop service provider with the flexibility to
grow as fast as they do. The types and size of services clients engage through
ABC will only be limited by the clients desire to outsource. The IT interface will
remain consistent for clients as services are added or changed over the client
relationship lifetime. Familiarity will foster long-term relationships with
integration remaining the central goal across all services.

Speed: The Company will depend upon the experience of its vendors/suppliers. The
company will engage best-in-breed outsourcing providers, consultants, and
implementation teams to achieve high speed-to-market for its clients.

Versatility: ABCs vendor network will provide clients with increased versatility of sourcing
and pricing options. The company will provide sourcing options from wherever
it makes the most sense for its clients. Not limited to its own in-house providers,
flexibility and versatility cannot be matched by any other provider. This
versatility also provides ABC with a higher degree of cost control than its
competitors as pricing fluctuates in response to the global economy.

Scalability: The vendor network provides the company with a greater degree of scalability
than its competitors. The company can grow or contract as demand ebbs and
flows. The nature of the business model allows the company to benefit from a
high degree of variable costs rather than fixed.
Marketing: Through web search optimization, the company will maintain an advantage in
being accessible to the market. Of the top competitors, only Accenture has
demonstrated excellent web search placement. However, they do not offer call
center outsourcing. Beyond Accenture, searches primarily do not result in
identifying providers.
Advantages of Rivals over ABC

Price: Due to the size of the megavendors, the scalability they experience may allow
pricing to dip below some of ABCs vendors especially those vendors that are
located in the same geographical areas as the megavendors. This proximity may
also limit accessibility to best-in-class niche providers if megavendors reduce
competition in those areas through acquisition. The company does not see this as
an insurmountable advantage as demand will continue to outstrip supply which
will provide opportunities for new providers. Also, if ABC becomes a customer
of the niche provider prior to acquisition, the megavendor may ultimately
become a ABC vendor.

Performance: Some of these competitors are best-in-breed providers in their own right even
though they may not be best-in-breed across all services. They have proven track
records of performance as established outsourcing providers and specific in-
depth industry knowledge that provides them a leg up on experience. ABC will
have to rely on the track records of its vendors until it has a proven historical
record of its delivery system.

Speed-to-market: Competitors history within the industry allows them to plug in new
customers into its existing, on-going services. This is an industry-wide effort that
all providers are working to improve. There advantage will remain until ABC
has enough successful implementations under its belt to reduce to-market time
frames. This advantage will reappear as additional services are added to ABCs
service offerings. A possible way to counteract this advantage at start-up is to
engage an experienced implementation team.

Ease of Use:

Size: Competitors who provide multiple services are among the largest outsourcing
providers in the industry. Their size provides brand recognition, industry clout,
skills, and financial resources to remain highly competitive for the long-term
through economies of scale and future acquisitions.

Versatility:
Scalability: The existing competitors are all of a size that provides them significant
infrastructure for scaling up their businesses as demand grows. They also have
the resources to acquire existing smaller firms to add to their delivery
capabilities.

iii. Competitors

1. Cyber Infrastructure (CIS)

Profile:
The company's major chunk of business comes from off-shore software development
and Call Center services. They have perfected the art of off-shore services since the
start of business in the year 2000. Faculties such as requirement gathering, client
communication, and making water tight deliverables are now thoroughly polished and
refined. The company has

State of the art infrastructure equipped with latest technology.

100+ dedicated professional's team at Indore, Europe and US locations.
Latest inventions and technologies are under testing' in our beta test labs.
Pioneers in Computer Safety and Monitoring application developments.
Experts in complex web application and solutions developments.
Leading Help-Desk service provider, appreciate by best service inspectors all
over the word.
Having experts for ITO, KPO, EPO including complex Architectural, Law,
Financial and Accounts, outsourcing needs.

Cyber Infrastructure believes in its core engineering strength and its ability to question
the routine applications of technology concepts, to help consistently deliver cutting-
edge solutions to its clients. The company believes that their Knowledge and
competence is a key differentiator. The faith in expertise enables new thinking and
develops new approaches to solve a given technical challenge.

CIS has a team of dedicated professionals who will be responsible for the clients day
to day needs. CIS strategy is different here from others companies. They fix
responsibility of your project on one of their project managers. In this case a single
person will be responsible for your work to be done with in your time limits. Through
the focus on research, Innovation, and experimentation, the company develop novel
and creative ideas that help envision better and superior solutions.

Products and Services:

 CIS "The One-Stop Outsourcing Service Provider" provides:
Customized Software Development Services.
Product Development, Testing and continue support.
Staffing, Dedicated Offshore Staffing solutions.
Contact Center, Call Center, Help Desk services.
Why will be suitable according to your needs, always with upgrades

Website: http://www.cisin.com/aboutus.htm
2. International Services Outsourcing (InSO)

Profile:
Company provides outsourcing services to help small and medium-sized businesses
compete with larger companies on a global scale is helping American-based clients
gain a competitive edge through its Business Process Outsourcing division.

InSO offers a host of integrated remote support services. These include customer care
and technical support through multiple communication channels, backend transaction
processing, outbound collections and telemarketing. Web based services including
real-time chat among others. InSO's unique 'co-sourcing' model and 100% BPO focus
has enabled them to re-engineer processes and also provide value-added services.
These services vary from simple (customization of processes in keeping with the
client's requirements, knowledge management) to complex (using technology to enable
enhanced performance on metrics, reporting tools, middleware).

In addition to this, InSO's 'Centers of Excellence' including Transitioning and Project

Management and its 'Process Improvement Team' enable a solid platform for sharing
best practices. This has helped the company in providing significant cost savings,
improved productivity and quality levels and other value added services to its clients.

Service Offerings:
Transaction Processing
Document Processing
Data Entry Outsourcing
Data and Voice Management Services
Financial and Accounting Services
Outsourcing Web Research
Outbound Call Center Services
Email and Chat Support Services
Verification of Information Services

Website: http://www.inso.us/ourvision.php
3. API Outsourcing, Inc.

Profile:
API Outsourcing, Inc. (API) is a leading finance and accounting outsourcing (FAO)
provider of back-office automation services. By transforming manual, paper-
dependent document management, billing, and payable processes through proprietary
imaging, printing, and workflow systems, API enables clients to outsource invoicing
and other tasks to minimize the labor-intensive work associated with back-office
processing. API offers flexible a la carte services with transactional pricing, or full
outsourcing of back office functions. This provides clients with increased information
accuracy, cost savings of 30-60%, and more time to focus on their core business. API
Outsourcing currently processes millions of transactions annually and uses Six Sigma
techniques for high quality, consistent service.

APIs services provide clients not only with cost savings, increased efficiency, and
improved financial controls, but also environmental benefits through dramatic
reductions in printing, paper usage and waste.

Services:
Founded in 1998, API remains focused on the key objective of delivering services to
transform manual paper-dependent activities into innovative automated processes.

API outsourced document management services include:

Accounts Payable Automation
Billing Automation and Invoice Management Outsourcing
Electronic PO Processing
On-line payment and collections
Travel and Expense Reports
Freight Payment Automation

Website: http://www.apifao.com/company/index.html

4. CNY Outsourcing

Profile:
CNY is a locally owned and operated recruiting firm that focuses its efforts in the
greater Central New York area. What sets them apart from competition is that the
recruiters have a supervisory background in their respective fields. They know the
skills possessed by successful employees in clients profession or industry. They will
 take the time to find the right person and will communicate every step of the way
making the right match.

Service:
CNY place candidates on a direct hire, contract-to-hire and short-term project basis.
They can also payroll referred candidates on clients behalf. At clients request, will
conduct pre-employment drug screens, criminal background checks, skills assessments
and other pre-employment testing

Website: http://www.cnyoutsourcing.com/about.html
5. Oasis Outsourcing

Profile:
Formed in 1996 as a subsidiary of The Wackenhut Corporation, Oasis Outsourcing is
the nation's largest privately-held Professional Employer Organization (PEO)
providing Human Resources, Employee Benefits, Payroll, Workers Compensation and
Risk Management services on an outsourced basis. With annual revenue exceeding $2
billion, Oasis is a global leader in the PEO Industry. Serving over 3,000 clients and
more than 80,000 worksite employees throughout the United States, the company
understands all facets of human resources management.

Products and Services:

Human Resource Payroll Accrual,

Services Tracking and
Infrastructure Processing
Development Payroll
Compliance Recordkeeping
Assistance Web-Based Payroll
Operations System
Partnership Employee Services
Growth and Website
Development
Employee Discount
Programs Employee Benefits
Management Services
Payroll Services Health and Other
Preparation and Insurance
Distribution Financial Savings
Plans
 Administration and Return-to-Work
Support Programs
Employee & Risk Management
Legal Advocacy and Compliance

Risk Management
Services

Website: http://www.oasisadvantage.com

6. Contact America

Profile:
Headquartered in La Jolla, California, Contact America is a
dynamic, full capabilities call center outsourcing company
specializing in inbound, outbound and e-commerce telemarketing,
customer service, and CRM. Contact America maintains a state of
the art computer integrated telephony system to serve a wide
range of corporate, customer service, and e-commerce clients.
Over the last nine years, the company has successfully managed
growth without sacrificing quality or attention to detail.

Contact America is a wholly owned subsidiary of IDT

Corporation (NYSE: IDT), a leading multinational carrier that
provides a broad range of telecommunications services to its retail
and wholesale customers worldwide. Contact America is a part of
IDT Contact Services, a global, full-service, multilingual customer
contact management service provider, supplying inbound,
outbound, email and call center outsourcing services for
businesses.

Services:
Contact America is a dynamic, full service call center company.
They specialize in customer acquisition, customer retention and
customer care.

Call center outsourcing service capabilities include:

Direct Sales
 Business-to-Business Up-sale
Business-to-Consumer Cross-sale
Acquisition New services & products to existing
Launch customers
Lead generation Custom order processing
Surveys Customized reports
Market research Quality Assurance
Verification
Win back E-mail follow-up

Inbound Services
Help Desk
Order taking and processing
Customer service and care
IVR (Interactive Voice Response)
Pre/post sales service
VRU (Voice Recognition)
Level 1 and 2 Tech Support
Hot transfer
Toll free numbers
Product inquires
TPV (Third party verification)
Credit card activation and up-sell

Support services
Licensed insurance professionals
Data modeling
Digital recordings
Data, sales and customer analysis
Data Warehousing
Strategic and tactical planning
Defection analysis
Fully Blended Centers

Website: http://www.contact-america.com/aboutus.html
iv. Prospective Clients (clients/customers)

1. United Community Banks, Inc.

United Community Banks, Inc., the third largest bank holding
company headquartered in the State of Georgia. Today they are a
$8.1 billion, multi-bank holding company with banking offices
located throughout north Georgia, coastal Georgia, western North
Carolina, eastern Tennessee, and metro Atlanta.

Net assets $8.1B

Revenue $613.9M
Employees 1,944
2. Amtrust Bank
Headquartered in Cleveland, Ohio. AmTrust has grown from a
local savings and loan with one office to a leader in retail banking,
with branch offices in Florida, Ohio and Arizona. AmTrust
proudly offers our customers customized checking, investment
and small business services and is among the top 15 home loan
originators in the country and also specialize in commercial
construction lending.

Net assets $16.67B

Revenue $1.088B
Employees 1,600

3. MB Financial Bank
With $8.4 billion in assets, MB Financial, Inc. (NASDAQ: MBFI)
has grown substantially over the past several years. We are the
Chicago-based holding company for our lead bank, MB Financial
Bank in Chicago. MB Financial Bank, N.A. provides customer-
driven financial solutions to privately-held, middle-market
businesses as well as to small businesses and individuals who
work and live in the communities we serve. We offer a wide array
of commercial and personal banking products and services as well
as trust, private banking and investments through our wealth
management division.

Net assets $8.4B

Revenue $557M
Employees 1,282

4. Dollar Bank
For 153 years, Dollar Bank has grown to become a large, full
service, regional bank serving both individuals and business
customers. Today, Dollar Bank operates more than 50 branch
offices and loan centers throughout the Pittsburgh and Cleveland
metropolitan areas.
Net assets
Revenue $69.9M
Employees 1,200
 5. Great Southern Bank
Headquartered in Springfield, Mo., the Company operates 39
retail banking centers in 16 counties in southern, central and
western Missouri, and loan production offices in St. Louis,
Overland Park, Kan., and Rogers, Ark. Great Southern offers one-
stop shopping with a comprehensive line-up of financial services
that give customers more choices for their money. Customers can
choose from a wide variety of checking accounts, savings accounts
and lending options. With the understanding that convenient
access to banking services is a top priority, customers can access
the bank when, where and how they prefer, whether its through a
banking center that will have the longest banking hours in town,
through an ATM, by telephone or through the Internet.

Net assets $2.5 B

Revenue $95 M
Employees 750

v. Suppliers
 Financial Services Call Centers HR Vendors
Allstate Goldman Sachs Accenture
American Express H&R Block ACS
American Multi-Line Hibernia National Bank of New EDS
Insurance Orleans
Amtrak IBM Convergys
ANZ Bank ING Arinso
British Airways Keyport Life Ceridian
Capital One LifeUSA ADP
Charles Schwab Linksys Hewitt
Citibank Protective Life Insurance Spherion
Citigroup Merrill Lynch CitiStreet
Colonial Life and Accident MetLife Exult
Conseco PeopleSupport Kenexa
Co-Operative Bank PNC Advantec HR
Credit Suisse First Boston Prudential Financial Group Gevity HR
Principal Financial Group Purdue University
Dreyfus Softtek
EverTrust Financial Group TPG
Fidelity Investment TSYS
First Federal Savings and Tucson Old Pueblo Credit
Loan of Osceola Union
FleetBoston United Parcel Service
Frost National Bank USAA Insurance
GE Capital Wachovia

e) Growth Prospects

Business Process Outsourcing Trends

The Business Process Outsourcing (BPO) used to be a mere
innovative strategy for enterprises to gain cost advantage and
achieve a higher level of business performance. Now, BPO is serving
a much higher purpose. Companies from around the world now see
it as the ultimate way to keeping and maintaining their global
competitive edge; and accessing global resources to mark their
global footprint.

With this shift in perception, the BPO industry is expected to grow

phenomenally. During 2006, it became more apparent that it will be
able to withstand protests from its detractors and reach new highs
within the years to come.

The growth in BPO sector is propelled by the introduction of new

service offerings as well as the increasing ability to keep up with the
improvements and complexities of business processes. It is likewise
driven by customers who are maturing rapidly, even in the midst of
countless new vendors who are providing them with more options
and greater bargaining power.

These diverse forces are shaping the course of the business process
outsourcing (BPO). The succeeding trends, which are distinct yet
interrelated, will influence the BPO in the years to come:

1. Move to Knowledge Services

Traditional BPO processes in CRM, transcription, data entry and
transaction processing have become commoditized with the rise in
global competition and the birth of smarter customers. Despite this,
the successful offshoring of a variety of knowledge services in 2006
has encouraged many new and existing players in BPO to turn their
heads on the opportunities of this promising service area.

The humble beginnings in areas like financial research, risk

modeling, market research, R&D, data mining, telemedicine,
actuarial services, engineering services, legal services and many
others have implied that investments in knowledge services (often
called knowledge process outsourcing or KPO) will likely soar. This
is because various new offerings in knowledge services will pan out
exponentially in scope and specialization.

A new breed of third party service providers and buyers will also
emerge across the world. India will still be at the pinnacle of BPO,
but other locations like East Europe, China, South America, East
Asia, and especially Indias most competitive rival Philippines, will
become home to various new players, competing against one
another not necessarily on cost but knowledge.

Consequently, buyers will go beyond cost considerations and will

see offshore benefits in terms of the availability of brainpower. With
increasing importance of knowledge services in the outsourcing
industry, 2007 will undoubtedly see a major evolution from low-end,
commoditized, process-driven services, to one where knowledge is
becoming the critical factor for various BPO decisions.

2. The Rush to Scale and Specialize

Decreasing revenues due to intensifying competition and increasing
demand for offshoring leads to two opposing yet complementary
trends scale and specialization. On the one hand, an increasing
number of players will mark their presence by acquiring higher
levels of specialization and expertise. On the flip side, more large
and multi-service providers will employ a one-stop strategy by
adding new verticals, service offerings and geographies. They will
also capitalize on scale and diversity to acquire large, complex and
multi-service contracts. Building specialization and scale in their
chosen offering will also enable them to compete with niche
providers.

Meanwhile, the awareness of higher billing rates and opportunities

for differentiation in specialized services will motivate large vendors
to continue pursuing acquisition targets with established niches and
specialized services in order to gain presence in new segments or
geographies.

3. Consolidation amidst Fragmentation

The BPO industry will be tugged by opposing forces consolidation
and fragmentation. Mega deals or acquisitions will continue to gain
momentum. However, there will be more small deals, primarily in
the knowledge services area, as acquirers resort to small deals to
obtain specialized knowledge, capabilities and customers.

Meanwhile, new firms, particularly IT service providers and

consultants will be more involved in the game, as they are drawn by
exciting new opportunities in offshore BPO. Replicating Indias
success, competitive BPO locations like the Philippines will likewise
attract new entrepreneurs because their governments are making a
wide range of incentives available to them.

Also, a new breed of entrepreneurs especially professionals like

lawyers, doctors, engineers and scientists will be fascinated with
BPO. Minimal entry barriers, low infrastructures and set-up costs; as
well as small critical size requirement will make small KPO set-ups
possible. Even the existence of high degrees of specialization and
the proliferation of niches will not hinder small firms from existing
profitably. So even with some degree of consolidation, the
mushrooming of service providers will create further
fragmentation.

In addition, the propagation of small niche players will create a

large pool of acquisition targets. For these players to survive,
especially the new and undifferentiated entrants will have to agree
to acquisition by larger players to keep up with the higher demands
of discerning customers.

The forces of fragmentation will prevail over those of consolidation,

resulting to even more players in the years to come. One negative
implication however is that, the vast pool of acquisition targets will
lower valuation particularly for the small, undifferentiated multi-
service outfits without the capacity to scale; and the intensity of
price war will leave few buyers to take on their services at their
desired price.

4. Offshoring Gains More Momentum

Offshoring is growing robustly, fueled by buyers and vendors who
are both in pursuit of global sourcing and labor arbitrage benefits.
Almost all major BPO contracts will have an offshore component.
This persistent need to deliver lower costs through offshoring, in
turn will hasten the creation of global delivery networks.
Medium U.S. and European owned BPO enterprises, following the
lead of major U.S. players are expected to increase their investments
in India, Philippines, China and other competitive offshore BPO
destinations.

5. Captives will become integral to the mix

There will be more offshore investments by large corporations in
fully owned captive centers. This trend will be guided by two
factors: the increasing sensitivity towards IPR, data security and
confidentiality; and by the fact that many large corporations are
seeing the viability of expanding their captive operations beyond
pre-determined critical mass.

Interestingly, it is not just a matter of either pure captive or third

party for buyers. Their unique company needs and risk perceptions
will guide them in looking for an ideal co-existence model. Such
complementary mix will facilitate the free flowing of best practices
and cost efficiency learning between the captive and the third-party
service provider.

6. Investors will loosen their pockets

Because of the increasing maturity, growth and M&A activity, the
financial community will be more enthralled in BPO. On the one
hand, a great deal of BPO enterprises will achieve considerable
scale, qualifying them for public listing. On the other hand, venture
capitalists and private equity firms will pour in more investments,
as drawn by the availability of exit, both via IPO and M&A.

Implications for Outsourcing Service Providers

1. Small players will actively participate in BPO activities
fragmentation of BPO operations is making it possible for small
scale deals to gain momentum.
2. There will be much stiffer competition as a result of
fragmentation, many small-scale yet highly specialized players
will emerge.
3. There will be more opportunities for offshoring large and
medium scale industries are increasing their investments in
offshore outsourcing.
 4. Financial community is getting into the picture this means
widening BPO market and a whole lot more opportunities for
BPO service providers.

III. DEVELOPMENT AND PRODUCTION

a) Research and Development

Business process outsourcing is becoming a standard strategy for
mid-sized companies. For years, outsourcings singular purpose was
to achieve cost savings in transaction-intensive, back-office business
functions. Today, BPO has emerged as a flexible and powerful
alternative that business leaders can use to achieve a wide range of
more strategic goals:
 Drive Corporate Value - craft an outsourcing relationship that
specifically meets the corporations needs, gaining access to
technology and unique expertise immediately, at a fraction of the
cost and time required to bring in-house.
Competitive Superiority transform average business processes
into world-class capabilities, increasing business disciplines
through standardization, centralization, and new technology.
Simplified Operations Management improve information flow to
management, while streamlining the numerous business
processes into a more efficient few.
Renewed Investment in the Core Business lower recurring costs
significantly, redirecting savings to more strategic aims.
Guaranteed data integrity meet regulatory requirements to
guarantee the integrity of employee data.
Reduced Capital Expenditures Convert upcoming, planned
capital expenditures to period operating expenses.
Revived Management Focus redirect management time toward
strategic initiatives that focus on the real profit drivers of a
company, outsourcing repetitive operational processes.
Managed Growth handle business fluctuations, support
acquisitions and divestitures, stimulating company growth by
achieving unique, competitive capabilities.
Accelerated Time to Market launch new businesses, fully
operational with state-of-the-art capabilities in weeks rather than
months.
Improved Integration reduce the number of outsourcing
vendors, asking a single provider to handle multiple processes,
simplifying relationships and improving integration.
Enhanced Efficiencies share service centers, extending the
operational boundaries of the company to utilize less expensive
labor and increase efficiencies.
Improved Service Levels accelerate technology roll out, beyond
what any company could achieve by itself. Outsourcing
applications that run on the Web offers the benefits of self-service
processes for customers, vendors, and employees.
Human Resources: A Prime Candidate for Outsourcing
When the various functions within the organization are evaluated as
candidates for outsourcing, many critical, non-core functions seem to
be viable alternatives. Yet studies show that many firms are focusing
on outsourcing human resources functions as their primary initiative.

Human Resources Business Process Outsourcing (HR BPO) is a

logical extension of the trend toward outsourcing and the inclination
of companies to delegate individual functions. In HR BPO, the
company outsources complete responsibility for an integrated set of
functions such as Benefits Administration, Payroll Management and
general Human Resources Administration to a third party.

In deciding to outsource HR functions, most companies choose to

outsource the tactical, transaction-related activities while keeping
strategic functions in-house. These tactical activities include functions
such as payroll processing, human resources administration (adding
and terminating employees and the like) and benefits administration.
These functions affect the performance of virtually every part of the
company and consume a tremendous amount of the HR departments
time and energy.

Many companies report that these transaction oriented tasks require

more than 80% of the HR staffs time. Likewise, implementing the
systems to support these functions is complicated, time-consuming
and expensive. Once implemented, maintaining HRIS systems over
their expected life cycle can approach or exceed the cost of the original
implementation. This ongoing investment translates directly into the
first compelling argument for HR BPO: most companies can achieve
immediate, significant cost savings compared with the processes
theyre employing now.

North American Contact Centre outsourcing - continues to grow

The North American contact center outsourcing market continues to
see impressive growth. This is especially true given the strategic,
financial and technological factors fueling the thirst for outsourced
contact center services. Organizations today are increasingly looking
to focus on core competencies, while also striving to improve service
quality by building brand equity and loyalty through exceptional
customer interactions

The U.S. economic climate, coupled with greater acceptance of call

center outsourcing across business verticals, will give rise to
promising market growth in the future. Outsourcing firms must
contain cost, improve agent efficiencies and deliver high-quality
interactions in order to remain competitive in this market.
Outsourcing has been a way for companies to subcontract business
functions that are outside of their core competency and can be done at
a lower cost. This movement is fueled by industry participants' ability
to use a mix of on-shore, near-shore, and offshore facilities to provide
continuous, round-the-clock coverage for their clients in every corner
of the world.

However, the most evident challenge in call centers today is one of

complexity. Frost & Sullivan believes that there are a myriad of factors
that have contributed to this in blended inbound and outbound call
centers. While increasingly diverse and complex products and
services are now being offered, there is also sharp increase in
consumer demand for speed and multi-channel media touches.

"In this highly competitive market, organizations are looking to drive

process improvements by moving the needle on service quality to
enhance brand equity," says Frost & Sullivan Strategic Analyst Michael
DeSalles. "Meeting end-user demand for quality and speed in a multi-
channel environment is a challenge for even the most experienced
outsourcers."
 The real market opportunity lies in gaining more wallet share from
existing client engagements and from prospects that operate in-house
contact centers. Providers looking to add new logos to their client list
must address all aspects of risk mitigation in order to attract these
potential customers. In some cases, it could mean an internal re-
design of the sales and service delivery channel to align more closely
with the client's objectives and goals. New clients are looking for
industry-centric solutions from providers that have a history of
measurable results.

Typical Mid-Market HR BPO Services

Administrative Services HR Technology HR Professional Support
Comprehensive Payroll Comprehensive HRIS HR BPO Transition
HR Management applications, extended to Web Services
Benefits Administration Technology Hosting Services HR Operational Service
Workers Compensation Application and Technology Centers
Administration Management Services

b) Production Requirements
Managing a bundled outsourcing relationship requires additional
skills and strategies. Two are particularly important: establishing a
new, enterprise governance model; and creating a supplier portfolio
strategy based on a future-looking orientation.

Enterprise governance
Bundled outsourcing requires a more effective enterprise-level
governance modelone that supports more effective management
across business functions and that produces more value by
eliminating redundancy and by helping different parts of the
organization work together more efficiently. In our experience, the
most successful enterprise governance model involves creating a
dedicated organization or outsourcing center of excellence. Rather
than focusing on each individual outsourcing relationship, such a
center provides higher-level guidance and skills in such areas as
negotiations, transition, solution design, supplier relationship
management, compliance and change management.

Enterprise governance can provide valuable oversight in such areas as

developing standard contractual terms, facilitating risk assessments,
reporting overall outsourcing performance and shaping the supplier
portfolio. Experienced bundlers will tell you the importance of
beginning as early as possible to establish and manage a Center of
Excellence. An enterprise governance organization can take several
years to reach optimal effectiveness, so it is best to work on
establishing the organization before the volume of outsourcing
agreements gets too high.

It's also important to use strong sponsorship and communications

strategies to help the rest of the organization accept the new ways of
working under an enterprise governance model. Appoint a well-
respected and highly visible champion with cross organizational
credibility.

Supplier portfolio strategies

Understanding some of the synergies that occur in bundled
outsourcing can help organizations choose the right supplierone
capable of maximizing the value of those synergies. For example,
finance and accounting (F&A) outsourcing gains increased power
through its close ties with other processes such as supply chain,
payroll and customer support. So a provider with experience in
multiple IT systems touching those areas will be critical to success
over time. Similarly, a great deal of the cost reduction potential in HR
outsourcing comes from improved procurement capabilities in areas
such as recruiting and benefits. And an HR outsourcing provider that
also has deep skills in enterprise learning outsourcing can help an
organization deliver increased performance across the entire talent
management lifecycle.

For outsourcing arrangements that begin from a bundled perspective,

the need for a provider with broad experience will be obvious. But it
is equally important, when beginning a single-function outsourcing
arrangement, to have one eye on the present and the other eye on the
future. It's important to consider from the start a provider's capacity
and capability to expand scope into additional functions. A provider
that cannot scale up, or that cannot capture horizontal synergies
between functions, will be a constraint on future value.

While HRO providers may seem to offer little that is different between
them, differences do occur in their size, culture, HRO methodology
and track record. However, they offer their services in three distinct
ways.
Single-service or transactional solutions for a particular HR activity.
Multiple HR services as part of a large-scale deal.
 Transformational deals which radically change the purpose and
role of HR.

Three different types of providers are active in the HRO market - pure
HRO specialists, business/HR transformation firms and HR process
technology suppliers.

c) Productions Process

Many large corporations outsource discrete, non-core functions of

their operations, such as payroll, tax filings, and benefits
administration.

The market for multi-process HR outsourcing is relatively new. It is

estimated that approximately 300 of the Global 500 are viable
candidates for HR outsourcing. Based on the median employee base
and estimates of annual spending per employee for various services,
we estimate that the addressable market basic HR outsourcing
consists of annual spending of approximately $29 billion per year.

Comprehensive HR process outsourcing for large corporations

requires a well-developed service delivery infrastructure and
 significant expertise in analyzing, providing, and managing HR
processes across many divisions and third-party vendors. It also
necessitates policies, procedures, operations, and technologies that
yield superior performance as measured by productivity, cost, quality,
and customer satisfaction metrics.

d) Quality Assurance/Quality Control

For the past five or six years, there has been increasing desire within
contact centers to improve upon customer satisfaction and experience,
in order to keep customers loyal and profitable for longer. Recent
ContactBabel studies have shown that increasing customer
satisfaction is consistently the no.1 focus of UK contact centers,
outperforming other key areas such as decreasing costs or increasing
sales, and the US report shows a growing desire to improve customer
satisfaction as well.

Call recording and monitoring may have been around for a long time,
but it is at the forefront of the battle to improve quality and thus
customer satisfaction and loyalty. Sophisticated call recording
solutions have the tools within them to recognize patterns and
anomalies, allowing management to identify the issues that are
impacting customer service, and to deal with them at an agent or
process level. Such recording solutions record every call that comes in
and analyzes them on an agent- o subject level to identify areas for
immediate action, such as whether it is a training issue, a process
issue or a product issue.

This real-time analysis, and of course, the actions leading from it, can
mean that customers' hold time and call time is shorter because of the
increased agent efficiency, and customers call less often about
processes that have been fixed as a result of the new system, with
agent performance improving as well due to the identification of
training needs.

Effectively, the call recording and analytics can act as an exceptionally

well-informed and alert team leader who can oversee the entire
operation instantaneously, which is vital, as supervisors are struggling
under the mass of tasks they have and need something to keep them
 organized, and contact centers need something to monitor the
supervisors and of course, prove compliance.

Quality assurance methods

Scripting is used the most often within the outsourcing sector, where
much of the work will be outbound sales, and because the agent
needs to portray and support the clients brand values, detailed
guidance in how to converse with the customer may be felt to be
needed. Call monitoring (listening-in) is used almost everywhere
except with healthcare respondents - with call recording and
customer surveys also being very popular.

e) Contingency Plans

Possible causes of failure in outsourcing:

IV. FINANCIAL DATA

a) Financial Projections

INCOME
2009 2010 2011 2012 2013
STATEMENT
Revenue:
Outsourcing Revenue
1,098,375.0
Call Center 58,000.00 0 3,458,250.00 4,149,900.00 4,772,385.00
4,065,250.0
HR 214,666.67 0 12,799,500.00 15,359,400.00 17,663,310.00
Total Outsourcing 5,163,625.0
Revenue 272,666.67 0 16,257,750.00 19,509,300.00 22,435,695.00

5,163,625.0
TOTAL REVENUE 272,666.67 0 16,257,750.00 19,509,300.00 22,435,695.00
COGS:
Outsourcing Vendors
Call Center 43,500.00 823,781.25 2,593,687.50 3,112,425.00 3,579,288.75
3,048,937.5
HR 161,000.00 0 9,599,625.00 11,519,550.00 13,247,482.50
3,872,718.7
Total - COGS 204,500.00 5 12,193,312.50 14,631,975.00 16,826,771.25

1,290,906.2
GROSS PROFIT 68,166.67 5 4,064,437.50 4,877,325.00 5,608,923.75
Expenses:
Depreciation and
Amortization 58,333.33 56,666.67 38,333.33 20,000.00 20,000.00
Salary Expense 426,666.67 666,660.67 958,525.09 999,634.01 1,042,645.69
Payroll Expenses 24,550.00 41,799.64 59,311.51 61,868.04 64,543.24
Virtual Assistants 15,010.00 24,000.00 24,000.00 24,000.00 24,000.00
IT Hardware/Software 129,000.00 173,750.00 107,781.25 112,114.84 116,773.46
IT Outsourcing 27,200.00 40,800.00 40,800.00 40,800.00 40,800.00
Website
Dev./Maintenance 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00
Marketing 367,383.33 378,181.25 812,887.50 975,465.00 1,121,784.75
Telephone 5,000.00 6,000.00 6,000.00 6,600.00 7,260.00
Telephone - Cell 4,000.00 6,000.00 6,000.00 6,600.00 7,260.00
Rent and Utilities 13,400.00 30,000.00 72,000.00 79,200.00 87,120.00
Administrative
Expense 34,950.00 38,400.00 17,400.00 18,090.00 18,814.50
Insurance 50,354.17 70,666.52 77,963.13 78,990.85 80,066.14
Professional Fees -
Legal 7,500.00 6,000.00 6,000.00 6,000.00 6,000.00
Professional Fees -
Accounting 2,750.00 3,000.00 3,000.00 3,000.00 3,000.00
Miscellaneous 0.00 6,000.00 6,000.00 6,300.00 6,615.00
1,553,924.7
Total Expenses 1,172,097.50 4 2,242,001.81 2,444,662.75 2,652,682.78

Income Before Tax -1,103,930.83 -263,018.49 1,822,435.69 2,432,662.25 2,956,240.97

Income Tax (38%) 0.00 0.00 692,525.56 924,411.66 1,123,371.57
NET INCOME -1,103,930.83 -263,018.49 1,129,910.13 1,508,250.60 1,832,869.40

BALANCE SHEET
2009 2010 2011 2012 2013
as on 31st Dec

ASSETS

Cash and Cash 154,355.0 302,242.3 583,315.1 1,837,491. 3,443,829.

Equivalents 7 2 2 63 78
430,302.0 1,354,812. 1,625,775. 1,869,641.
Accounts Receivables 22,722.22 8 50 00 25

177,077.2 732,544.4 1,938,127. 3,463,266. 5,313,471.

Total Current Assets 9 1 62 63 03

Loans
Investments
Total Other Assets 0.00 0.00 0.00 0.00 0.00

Fixed Assets 66,666.67 30,000.00 11,666.67 11,666.67 11,666.67

 243,743. 762,544. 1,949,79 3,474,93 5,325,137
TOTAL ASSETS
96 41 4.29 3.30 .70

LIABILITIES &
EQUITY

129,493.7 186,833.4 203,721.9 221,056.9

Accounts Payable 97,674.79 3 8 0 0
Short term loans
129,493.7 186,833.4 203,721.9 221,056.9
Total Current Liabilities 97,674.79 3 8 0 0

Notes Payable
Long term loans

129,493.7 186,833.4 203,721.9 221,056.9

TOTAL LIABILITIES 97,674.79 3 8 0 0

Shareholders Equity
1,250,000. 2,000,000. 2,000,000. 2,000,000. 2,000,000.
Capital 00 00 00 00 00
- - -
1,103,930. 1,366,949. 237,039.2 1,271,211. 3,104,080.
Retained Earnings 83 32 0 40 80
Total Shareholders 146,069.1 633,050.6 1,762,960. 3,271,211. 5,104,080.
Equity 7 8 80 40 80

TOTAL LIABILITIES
and 243,743. 762,544. 1,949,79 3,474,93 5,325,137
SHAREHOLDERS 96 41 4.29 3.30 .70
EQUITY

Cash Flow
2009 2010 2011 2012 2013
Statement
Operating Activities
- -
1,103,930. 263,018. 1,129,910. 1,508,250. 1,832,869.
Net Income 83 49 13 60 40
Depreciation & 56,666.6
Amortization 58,333.33 7 38,333.33 20,000.00 20,000.00
Changes in current
Assets
- - -
407,579. 924,510.4 270,962.5 -
Accounts Receivable -22,722.22 86 2 0 243,866.25
Changes in current
Liabilities
31,818.9
Accounts Payable 97,674.79 4 57,339.76 16,888.41 17,335.00

- -
970,644.9 582,112. 301,072.8 1,274,176. 1,626,338.
Operating Cash Flow 3 75 0 51 15

Investing Activities
125,000.0 20,000.0
CAPEX 0 0 20,000.00 20,000.00 20,000.00

125,000.0 20,000.0
Investing Cash Flow 0 0 20,000.00 20,000.00 20,000.00

Financing Activities
1,250,000. 750,000.
Issuance of Shares 00 00 0.00 0.00 0.00
Long term Loan

1,250,000. 750,000.
Financing Cash Flow 00 00 0.00 0.00 0.00

Change in the Cash 154,355.0 147,887. 281,072.8 1,254,176. 1,606,338.

Position 7 25 0 51 15
154,355. 302,242.3 583,315.1 1,837,491.
Beginning Cash 0.00 07 2 2 63

154,355.0 302,242. 583,315.1 1,837,491 3,443,829

Ending Cash 7 32 2 .63 .78
b) Financial Ratios

Parameters 2009 2010 2011 2012 2013

Profitability Ratio
Gross Margin 25.00% 25.00% 25.00% 25.00% 25.00%
-
EBITDA Margin 383.47% -4.00% 11.45% 12.57% 13.27%
-
EBT Margin 404.86% -5.09% 11.21% 12.47% 13.18%
-
Net Profit Margin 404.86% -5.09% 6.95% 7.73% 8.17%
-
Return on Assets 452.91% -34.49% 57.95% 43.40% 34.42%
-
Return on Equity 755.76% -41.55% 64.09% 46.11% 35.91%
-
Return on Capital Employed 755.76% -41.55% 103.37% 74.37% 57.92%

Solvency Ratio
Current Ratio 1.81 5.66 10.37 17.00 24.04
Quick Ratio 1.58 2.33 3.12 9.02 15.58
Working Capital ($ 000) 79.40 603.05 1,751.29 3,259.54 5,092.41
c) Analysis

Total Revenue:
The company expects to generate nominal revenue during 2009, with a
gradually increases in 2010. The company becomes more stable in 2011 with
a three fold revenues as compared to 2010. Post 2011, the company expects a
gradual growth of 10 to 20% in the coming years.

Revenue Breakdown:
The company expects to generate 70% of the revenues from HR outsourcing
and 30% from call centre outsourcing.
Compounded Annual Growth Rate (CAGR)
The CAGR of the Company is expected to be 201.18%. This is mainly
because of the jump in revenues during the initial period (2009 -2011).

Yr-to-Yr
Year Sales
Growth
2009 272.67
2010 5,163.63 1793.75%
16,257.7
2011 5 214.85%
19,509.3
2012 0 20.00%
22,435.7
2013 0 15.00%

CAGR 201.18%

Profit Comparison
Although, the company is expected to make a loss in the initial period, the
year on year growth in the profits depicts a positive trend. The company
once earns stability in 2011, the profit margins are good, with Net Margin
ranging between 6% to 9% and EBITDA margin from 11% to 14%.
Cash Flow
The company has enough cash to meet its obligations post 2011, whereas
initially the company has negative cash flow due to set up costs and initial
expenses for the startup. The company can look for investments after 2011
to earn heavy returns.
V. ORGANIZATION AND MANAGEMENT

a) Organization Chart

David
Boudreaux

President

Sunil Kurapati TBD Marketing

TBD Craig DiCecco
Vice-President Vice-President Outsourced to
Vice-President Vice-President
Information Operations The Delve
Finance Sales
Technology Vendor & Client Group
b) Management Team

Key Personnel

Top Management
1. David Boudreaux, President
2. Sunil Kurapati, Vice-President IT
3. Craig DiCecco, Vice-President Operations Vendor and Client

Other Personnel

Advisory Board Members:

1. Allan Martin
2. Russ Hunt
3. Gordon Babbitt