2006 Best Managed Global Outsourcing Vendors

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Affiliated Computer
Services (Public,
NYSE:ACS): With
new CEO and
several key
BPO,
acquisitions, Fortune
1 95.1 10 +9 $4.4B 7.45% 52,000 Mark King ITO,
500 ACS outperforms
HRO
with 2006’s top ITO &
BPO contracts, High
standards & highest
customer satisfaction
scores.
Satyam (Public,
NYSE:SAY): This
outsourcer who
pioneered the
offshore development
center model for
software delivery saw
22.81 B. Rama BPO,
2 93.4 profits zoom 54% 19 +17 $1.1B 29,000
% Raju ITO
and record 36%
growth. With
Accenture’s former
chief marketing
officer onboard,
Satyam won’t be
satisfied being #2.
Cognizant(Public,
NASDAQ:CTSH):
Agile, fast moving,
touting a strong track
18.34 Lakshmi ITO,
3 92.9 record of delivering 21 +18 $886M 25,000
% Narayanan BPO
business results, One
of BusinessWeek’s
“Hot Growth”
companies of 2006.
4 92.6 Perot 43 +39 $2B 5.20% 18,000 Peter A. ITO
Systems(Public, Altabef
NYSE:PER):
Awarded for superior
ITO services, Perot
delivered new
industry solutions
generating big
revenue leaps with
appreciable
expansions into the
 government and
healthcare revenue
cycle outsourcing.
Infosys (Public,
NASDAQ:INFY):
Crossing over to $2B
in Annual Revenue,
INFY acquired
Progeon BPO from
26.02 Nandan M. ITO,
5 92.2 Citicorp as profits 25 +20 $2.2B 58,000
% Nilekani BPO
jumped 31%.A
corporate recruiting
program aims to hire
top talent grads from
US universities this
year.
Patni (Public,
NYSE:PTI): New
solutions and well-
12.41 Narendra
6 91.9 established, 45 +39 $450M 12,000 ITO
% K. Patni
structured
methodologies grew
income 38%.
TATA Consulting
Services (Public,
BOM:532540): Six of
the Fortune Top 10
companies are
Subramani
among TCS’ valued 21.97
7 91.4 33 +26 $2.9B 54,000 an ITO
customers. Pioneer %
Ramadorai
in Indian outsourcing.
Annual profits rose
another 41% with
broad Latin American
expansion plans.
HCL (Public,
BOM:532281):
India’s original
garage start-up, HCL
Technologies ranked
among the world’s
8 91.1 Top 5 IT services 14 +6 $757M 2.57% 13,000 Shiv Nadar ITO
companies & ranked
#1 among the world's
specialty offshore
infrastructure service
providers for two
consecutive years.
9 90.7 GenPact (Public, 34 +25 $1B 12.25 30,000 Pramod BPO
NYSE:GE): The % Bhasin
largest BPO
company in India,
GenPact is the joint
 venture between GE
and private equity
firms. Honored as
country’s most
admired employer.
Mellon (Public,
NYSE:MEL): Mellon’s
efforts to create a
complete working
capital management
solution was
highlighted by the
acquisition of
18.88 Leon BPO,
10 90.2 SourceNet Solutions, 48 +38 $4.3B 17,000
% Busch HRO
a high performing
provider of finance
and accounting BPO
services. Mellon sold
its HRO to ACS to
focus on asset
management product
lines. It’s paying off.
Fiserv (Public,
NASDAQ:FISV): With
a new CEO and COO
onboard, Fiserv was
on the acquisition
track, expanding its
11.66 Jeffrey
11 88.9 technological New - $4.06B 23,000 BPO
% Yabuki
footprint in the
insurance industry.
Positive news and
strong earnings
propelled swiftly
growing sales.
ClientLogic(Private):
Large global
presence with 24 US-
based BPO facilities.
New Latin American
centers greatly
David E.
12 86 expand ClientLogic’s New - $350M n/a 22,000 BPO
Garner
global footprint while
simultaneously
bolstering its bilingual
and near-shore
English services. Top
CRM vendor.
13 85.7 Hewlett 3 -10 $86.7B 4.07% 150,000 Mark Hurd ITO
Packard(Public,
NYSE:HPQ): GM
awarded more than
$700 million in
 information
technology services
contracts over a five-
year period. Cost
reduction &
accountability efforts
cut over 15,000 jobs.
Convergys(Public,
NYSE:CVG): Top
performing, award
winning CRM,
Convergys, the
largest holder of
outsourced SAP
James F. Call,
14 85.5 licenses in the world, 9 -5 $2.6B 4.89% 66,000
Orr HRO
is expanding its 10-
year SAP relationship
to help accelerate
and increase the
global growth of its
employee care
business.
Capgemini(Public,
EPA:CAP): Hard
charging for North
American business,
Paul BPO,
15 84.7 revenue is up 33%, 5 -10 $6.9B 2.03% 60,000
Hermelin ITO
with outsourcing
comprising over 38%
of Capgemini’s total
revenue base.
RR
Donnelley(Public,
NYSE:RRD): 140-
year-old US firm that
provides solutions in
commercial printing,
direct mail & financial
printing Acquired two
Mark A.
16 83.4 major BPOs in the 42 +26 $8.4B 1.62% 50,000 BPO
Angelson
year: OfficeTiger and
Astron, creating
processes and
distribution for
mission-critical
information for the
world’s largest
companies.
17 82.9 EXL Service New - $344M n/a 7,000 Rohit BPO
Holdings(Private): Kapoor
EXL is driven on a
culture of values that
has produced record
 growth and
outstanding client
satisfaction ratings in
financial outsourcing
services.
i-Flex Solution
s(Public,
BOM:532466): This
zero-debt Indian
company with 96% of
sales originating from
software exports
16.65 Rajesh
18 81.6 offers specialized 32 +14 $323M 6,000 ITO
% Hukku
custom solutions and
consulting services to
625 financial services
industry customers in
120 countries
focused in the
lending industry.
Sutherland(Private):
This global BPO
anticipated the surge
in the European
market demand for
Dilip R. Call,
19 80.7 global sourcing and 11 -8 $200M n/a 13,000
Vellodi BPO
invested to capture a
large share of this
business with top
ranked global call
centers.
CGI (Public,
NYSE:GIB): Founded
in 1976, Canada’s
CGI is eighth largest
independent
information
technology and
business process Michael E.
20 80.5 20 - $3.28B 6.11% 25,000 BPO
services firms in the Roach
world. To improve
bottom line
performance, a 1,000
FTE reduction in
force (RIF) distressed
internals. 40% growth
in 2005.
21 77.8 24/7 22 +1 $300M n/a 7,000 P.V. ITO
Customer(Private): Kannan
Continual
improvements
earned 24/7 a
distinction of being
 the best performing
global call center,
lowering attrition &
actively mentoring
workers to keep
clients happy.
Accenture(Public,
NYSE:ACN):
Acquired middle
market BPOs.
Outsourcing net
revenues were $1.64
billion, or 40% of net
revenues. Record ITO,
Joellin
22 76 results didn’t 2 -20 $17.1B 7.18% 123,000 BPO,
Comerford
necessarily add up to HRO
high client
satisfaction rankings
as Accenture brings
aboard a new chief
leadership officer to
re-train its 10,000+
managers in 2006.
Ceridian (Public,
NYSE:CEN): Signed
100th multinational
Ronald L. BPO,
23 74.5 payroll client. 29 +6 $1.46B 9.56% 9,000
Turner Call
Operational and
earnings targets well
surpassed.
SOFTTEK(Private):
Mexico’s nearshore
outsourcing
alternative, Softtek
aims to be America’s Blanca
24 73.6 New - $140M n/a 4,000 BPO
top BPO. Softtek is Trevino
one of the few
companies outside of
India that has global
delivery capabilities.
ICICI
OneSource(Private):
This globally
expanding BPO is
backed by ICICI
Group, which Ananda BPO,
25 71.2 7 -18 $123M 8.99% 8,500
manages total assets Mukerji Call
of over $38 billion. Its
flagship, ICICI Bank,
is India's largest
private sector retail
bank.
26 70.6 WNS Global 49 +23 $165M n/a 12,000 Neeraj BPO
 Services(Private):
Rated as India’s top
BPO for two
consecutive years by
Bhargava
NASSCOM, WNS
was recently ranked
best performing BPO
by neoIT.
Outsource Partners
International(Private
): Largest
outsourcing firm
dedicated solely to
finance and
accounting functions, Clarence T. ITO,
27 69.8 39 +12 $42.7M n/a 1,000
OPI beefed up the Schmitz BPO
marketing team and
opened expanded
India operations,
resulting in three-
year revenue growth
of 842%.
Datamatics(Public,
BOM:532528): IT
consulting & software
solution clients
include 5 of top 10
Fortune 500
14.84 Sriram
28 69.6 companies plus 38 +10 $30.3M 2,000 BPO
% Shrinivasan
customers in 58
countries.116%
revenue growth
pumped Datamatics
up to be third largest
pure BPO in India.
EPAM (Private): With
83% annual growth,
a high demand
provider of software
engineering
outsourcing services
Arkadiy
29 69.4 in Central and New - $60M n/a 2,000 ITO
Dobkin
Eastern Europe,
Moskow’s EPAM is
recognized as one of
the top worldwide
leaders in application
development.
30 69.3 Ness New - $386M n/a 7,000 Raviv BPO
Technologies(Public Zoller
, NASDAQ:NSTC):
Israel's leading IT
services and
 outsourcing company
is the big winner of
regional BPO
business, particularly
in banking, insurance
& finance.
Acquisitions
propelled prime
growth.
TeleTech Holdings,
Inc.(Public,
NASDAQ:TTEC):
The customer is king
with Teletech, and
TeleTech was king of
new and expanded
call center contracts
Kenneth D.
31 69.2 this year. Nearly 60% New - $1.1B 2.93% 40,000 Call
Tuchman
of TeleTech's
revenue is generated
internationally with
services offered in
150 languages from
nearly every
continent on the
globe.
Oracle (Public,
NASDAQ:ORCL):
Oracle is fighting toe-
to-toe with archrival
SAP to retain
customers picked up
through its $20 billion
worth of acquisitions,
23.51 Lawrence
32 68.9 and Oracle's 12 -20 $11.8B 50,000 ITO
% J. Ellison
shopping spree has
done little to solve
the company's
fundamental
problem:
sluggishness in its
flagship database
business.
33 68.3 PeopleSupport(Publ New - $62.1M 32.27 4,000 Lance Call
ic, NASDAQ:PSPT): % Rosenzwei
CRM- and AR- g
focused BPO,
PeopleSupport
reported record
revenues and an
increase in net
income of 74 %.
Lowering its
dependence upon its
 biggest clients over
the last few years
from around 80% to
around 50% and
growing product lines
while expanding the
number of seats for
its E-reps is putting
big cash in the
coffers.
International
Business
Alliance(Private):
IBA, an alliance of
privately owned
companies, is the Sergei
34 67.6 New - $30M n/a 1,000 ITO
largest IT service Levteev
provider in Eastern
Europe. IBM has
been a major
strategic partner of
IBA from the outset.
IBM Global
Services (Public,
NYSE:IBM): Big blue
is getting bigger and
betting big on
outsourcing in India.
BPO arm IBM-Daksh Ginni BPO,
35 65.8 1 -34 $46.2B 9.33% 20,000
added over 10,000 Rometty ITO
staff in 12 months but
overall management
satisfaction dropped
post acquisition from
the top ranked
position.
EDS (Public,
NYSE:EDS): A year
of executive &
strategic operational
shake-ups, EDS
completed the sale of
its global consulting
subsidiary, A.T.
Michael H. BPO,
36 63.5 Kearney, and 44 +8 $19.7B 1.52% 117,000
Jordan ITO
established an office
of the COO to
increase alignment
and drive change
throughout its
business operations
including takeover of
BPO giant MphasiS.
 Hewitt (Public,
NYSE:HEW): One
year after Hewitt
Associates merged
with Exult, Inc.,
Hewitt sent shock
waves through the
HRO industry when it
announced the
retirement of its CEO
at year end and the
resignation of its
president of HRO,
effective immediately. Dale L.
37 62.9 13 -24 $2.9B 4.76% 22,000 HRO
At the same time, the Gifford
company announced
that it will be
reviewing its
guidance for the third
quarter and full fiscal
2006 pending a
review of its HRO
contracts. Wall Street
moved Hewitt's stock
price down by 8% to
a 52-week low on the
day of these
announcements.
vCustomer(Private):
Handling tens of
millions of customer
contacts a month,
vCustomer was
named by Sanjay
38 61.4 47 +9 $80M n/a 3,000 Call
BusinessWeek as a Kumar
top-10 “Hot Player” in
global outsourcing
call centers. Overall
satisfaction took a
leap up.
39 58.9 MphasiS (Public, 4 -35 $205M 15.94 12,000 Jaithirth BPO,
BOM:526299): EDS % Rao ITO
has completed the
acquisition of a
majority stake in
MphasiS BFL
Limited. With the
addition of MphasiS
and current
expansion plans,
EDS' total India work
force is projected to
exceed 20,000 by
year end but
 management esteem
fell.
Wipro (Public,
NYSE:WIT): India’s
second largest IT
company grew
revenue 30% and
profit after tax grew
18.95 Azim H. BPO,
40 56.3 by 27%. 5% revenue 6 -34 $2.3B 55,000
% Premji ITO, Call
contribution from
innovation initiatives.
Management shake-
ups caused concern
and entry for smaller
BPOs to compete.
Xansa (Public,
LON:XAN): UK-
based Xansa offers
financial BPO to
41 55 primarily European 15 -26 $376M 3.67% 6,000 Alistair Cox BPO
clients. Building sales
momentum globally
with key contract
wins.
ADP (Public,
NYSE:ADP):
Revenues soared
through enhanced
HRO offerings, ADP 12.38 Arthur F.
42 54.1 31 +11 $8.5B 44,000 HRO
pays 1 in 6 private % Weinbach
sector workers in the
US but competition is
capturing payroll
marketshare.
Caliber Point(Public,
BOM:532129):
Newcomer Caliber
Point Business
Solutions is the $147.5 Ashok BPO,
43 52.3 New - n/a 5,000
independent BPO M Bildikar ITO
arm of Hexaware
Technologies, an IT
& BPO services
company.
44 51.6 Larsen & New - $2.1B 8.32% 24,000 Vijay ITO
Toubro InfoTech(Pu Kumar
blic, BOM:500510): A Magapu
subsidiary of one of
Asia’s largest
construction and
engineering
corporations and
BusinessWeek Asia
 “Top 50” technology-
driven giant, Larsen
& Toubro Limited.
Luxoft (Private):
Russia's leading
software developer
and IT services
exporter has long-
term clients including
IBM, Boeing, Dell,
Dmitriy
45 49.8 and Deutsche Bank. New - $37.3M n/a 2,000 ITO
Loschinin
Gaining momentum,
Luxoft acquired IT
Consulting
International, New
York-based financial
services specialist &
keeps growing.
eTelecare(Private):
70% growth in call
center business
spurs entry on the
46 49.3 New - $153M n/a 7,000 John Harris Call
Philippine Stock
Exchange and the
Nasdaq later this
year or in early 2007.
Unisys (Public,
NYSE:UIS): Troubles
abound for UIS with
RIFs & low morale - Joseph W.
47 49.1 17 -30 $5.76B 36,000 ITO
chatter. Management 29.7% McGrath
challenged to react to
lower profit margins
and higher losses.
Freeborders(Private)
: Amassing a top
notch creative
executive team in the
US, this technology
Ramsey
48 48.9 outsourcing provider New - n/a n/a 1,000 ITO
Walker
from China has
secured $20 million
in expansion capital
from investors and is
ready to expand.
49 48.6 Computer Sciences 16 -33 $14.6B 3.95% 79,000 Van B. ITO
Corp.(Public, Honeycutt
NYSE:CSC): Big
government contract
wins but lower client
satisfaction scores
among large
competitors, CSC
 explored potential
sale of the company,
then decided to go
with a stock buyback
program instead. It
also announced that
it will cut 5,300 jobs
over the next two
years, mainly from its
European operations.
Shaky times.
SPi (Private):
Philippines-based
outsourcing leader in
the healthcare, legal,
publishing and
transaction markets,
SPi outperformed 15
former list winners &
competitor BPOs to
Ernest L.
50 48.4 make the 2006 New - - n/a 6,500 BPO
Cu
rankings. Honored
recently as the top
global leader in
human capital
development.
Acquired in July
2006, at the time of
this writing, by
ePLDT.