eFunds: In Good Health

Amongst all the US-based third-party BPO service providers who set up shops
in India eFunds was upstaged in the pecking order this year by the dramatic rise
of Convergys. However, that should not imply that eFunds was in bad health-in
fact, along with its software services arm, it reached Rs 491 crore, up by 42%
from last year's Rs 345 crore. It continued to remain a strong votary of
offshoring; it reduced its American workforce and increased headcount in India.

However, because of the large quantum of government work it had undertaken,
eFunds had to backtrack in a few cases following adoption of anti-outsourcing
bills-after New Jersey last year, it had to take back food stamp program work
for Department of Social and Rehabilitation Services, Kansas as well as Utah
state contract for welfare/social service debit cards. Quite uniquely, even as a
US BPO player it was not averse to looking at the domestic market-the
acquisition of India Switch Company (ISC) from the Chennai-based HMA Group for
$17.5 mn appeared to be a precursor to this domestic foray.