Elusive Europe

The overall business of Hinduja Global Solutions (HGSL), earlier, HTMT
Global, grew by 22%. But the non-Indian revenuethe basis for this surveygrew
only by 16%, meaning it had a faster growth in the Indian domestic market.
Interestingly, the margin story was just the reverse. There was pricing pressure
on the domestic front; but it managed to increase average pricing in case of
many large international customers.

Industry-wide, knowledge services suffered a setback, voice managed to grow
moderately while transaction processing did well. HGSLs growth reflects that
reality as it has large exposure to voice which did moderately well (except for
tech support), some exposure (about 17% of its total BPO revenues) to insurance
claims processing that did fairly well, and no exposure to knowledge services at
all. To ward off the dollar appreciation impact, the company successfully hedged
dollar inflows at attractive rates in Indian Rupee and the Philippine Peso.

Affina, which it had acquired during FY 08, managed to perform well.
However, its plans to get into Europeit has zero revenue from therethrough an
acquisition in the UK (for which it had even set aside $110 mn) has not
materialized. In India, it was one of the few vendors that had expressed an
initial interest in Satyam, but later backed out.

Among the new wins last year were a logistics customer, a banking customer
that came to it through the latters India vendor consolidation efforts. One of
the oldest players in the health insurance market, FY 09 saw HGSLs entry into
the provider side, by bagging a few clients there.

RANK 16	Hinduja Global Solutions
Partha De Sarkar, CEO
Viswanath Rao, head, India BPO operation Anand Vora, CFO Patrick David, head, HR Ashwin Hoskote, head, quality Prasenjit Guha, head, compliance Subramanya C, CTO
FACTSHEET
l Start Up Year: 2001 l Employees: 3,547 l Address: Hinduja House, 171, Dr Annie Besant Road, Worli, Mumbai 400018 l Tel: 08025730652 l Website: www.hindujagsl.com
HIGHLIGHTS
Successfully hedged dollar inflows at attractive rates in Indian rupee and Philippines peso Set aside $110 mn for acquisition in the UK Entered into the health insurance provider business Started integrated IT-BPO deals in a consortium

One strategic decision the company took last year was to partner, wherever it
does not have strengths rather than trying to build everything from scratch. As
part of that, it has partnered in China for delivery and is partnering with IT
service providers to tap integrated IT-BPO deals as a consortium. The success of
this strategy, an industry first, though will be tested only this year.

In India, it won three telecom contracts including one from Sistema Shyam
Teleservices to manage latters customer service in South India.

The company may change its name again this year, keeping in line with Hinduja
Group decision to use the Ashok Leyland name in all its businesses. DQ