Global-O&O

Release DATE: Jan 21st, 2010

FACTS

• Net decline in revenues due to
        – Seasonal decline in travel service
        – Decline in Insurance business and Aviva second year deal pricing
•  Net decline in income due to
        – Unwinding charges for interest rate swaps
        – Decline in travel, insurance business
        - Cost of adding new clients
• Decline in Insurance business
• Added 12 new clients and expanded existing 4 relationships (including Sabre)
• 2,100 non India employees including 1,100 in Philippines
• CEO Neeraj Bhargav stepping down, Ex Syntel CEO Keshav the new CEO
• Growth in F&A space
• Same level of profitability between India and Philippines

METRICS

• Gross Revenues – $149.114 million YoY – (+11.3%), QoQ – (-2.6%)
• Net Revenues – $96.8 million (YoY) – (-3.4%), QoQ – (-2.8%)
• Net Income – $11.1 million YoY – (-3.5%), QoQ – (-18.7%)
• Fiscal Year 2010 ( ending March 2010) Guidance –Revenue $390 million,Net Income $52 million
• Headcount – 21,392 ( Net addition of 149 from last quarter)
• Attrition – 31%
• Total Foreign Exchange losses for quarter – $2.3 million
• Cash Balance – $60 million

LEARNINGS

• Flat pricing trends in the markets. No downward movement but no increases.
• Pure play BPO players will continue to struggle for growth and have to find ways to leverage non linear growth models, diversifying in IT, IT packaged implementation or other space
• Pure play BPO players have to develop niche deep expertise to generate client wins and foster growth.
•  Higher snow fall in UK reduces auto claims and thus revenues for Indian vendors!

FACTS

• 4^TH       Quarter GE revenue grew to $119 million a 5% increase QoQ but a 5% decrease YoY. GE accounted for 40% of the total revenues for the quarter and the full fiscal year. Decline in GE revenues due to tight cost management in discretionary project spending
• Signed an extension with GE for the contract till 2016
• Strategic clients added in Fiscal 2009  include Walgreens, AstraZeneca, Max New York Life
• Genpact acquired Symphony Marketing Services firm a market analytical firm
• Genpact made a one time investment of $ 9 million on hiring business development staff for non-India regions, investing in their new methodology SEP and internal process improvement initiatives
• 60% of growth in 2009 from banking and financial services
• Wage inflation to be between 6 and 7%
• 70% of growth to come from mining existing clients and 30% from new deals

METRICS

• Gross Revenues  - $297 million  YoY – (+5%), QoQ – (+4%)
• Fiscal 2009 Full Year Revenue – $1.12 billion an YoY growth of 7.6%
• 4^th quarter Operating income – $55 million
• Fiscal 2009 Full Year Operating Income – $199 million – YoY growth of 12%
• Net Income – $144 million YoY – (+28%)
• Number of clients with annual revenue > $ 2 million – 62
• Attrition rate – 23%
• 38,600 employees. Net addition of 2400 employees in 2009
• Revenue per employee – $31,200
• Cash on Hand – $847 million

LEARNINGS

• Genpact continues to depend on GE as their primary largest client and have to give in price discounts for the current contract extensions they have had.
• Pure Play BPO layers like Genpact are looking at aggressive ways to scale non-linear growth and are introducing methodologies like SEP (Smart Enterprise Processes) and spending on high end business development talent to grow.
• North America continues to be the largest driver for growth. Despite firms continuing to look at growth opportunities outside North America, they are smaller percentage of the total revenue mix.
• Pushing Gain sharing contracts. This is different than what a number of the other industry players are seeing in the marketplace . The peer group to Genpact continues to see standard Time and Material and Fixed Price contracts vs gain sharing and other new contract structures.

DATE: January 15th, 2010

TCS quarter ending Dec 31st, 2009 earnings:Key highlights:

• Revenue – $1.64 billion (+10.3% YoY)(+6.3% QoQ)
• Net Profit – $384 million (+38.9% YoY) (+14.2% QoQ)
• Operating Margin – +103 basis point QoQ
• Growth in all verticals ( Infosys saw gains primarily in the BFSI and Energy sector, other sectors were flat or lower for Infosys) BFSI, Retail, Telecom, Technology, Energy and Utilities
• 32 new clients
• Net addition of 7,692 employees
• Attrition Rate – 11.5% ( IT Services – 10.8%, BPO – 18.3%)
• Ten new large deals.  Added 7 new clients with revenues > $ 5 million per year
• Winning large UK Public Sector deal ( Cardiff)
• Winning two large Indian State Government deals
• BFSI Sector continues to show positive growth and leader in growth. ( Similar trends in Infosys earnings)
• Consulting revenues are typically 3 to 3.5% of total revenues and had come down to around 2.5% but show a positive momentum
• Engagement models for new deals nothing fancy – Standard Time and Material or Fixed Priced deals.