This was the same project ''Investment Patterns of ITES Employees'' in the Nascent stage when we were still working on it.

1. Investment Patterns of ITES Employees in Bangalore:
Krishna N (Project Lead)
Sheela K
Bhavani Karinja
Sunia Mukherjee
Merlin Shobha
Introduction
Introduction to ITES Industry:
The word ITES stands for Information Technology Enabled Services. What a layman can understand by
the term is, any service which is given to the customer by virtue of IT can be classified under ITES.
Another name for this industry is BPO (Business Process Outsourcing). Since most of the work which is
worked on globally is from the clients of other countries, hence the word ‗‘Outsourcing‘‘ is used. Any
company which is based in a particular location A can outsource its in-house work to another company
based in location B, and that concept is known as outsourcing. For e.g. AT&T has outsourced its call
center division to Accenture, India. All the technical support is provided by Indian Nationals sitting in the
Bangalore and Mumbai offices in India.
Since over the years, many companies started outsourcing their in-house work within their own home
counties to another companies, hence the word ITES became more popular. For e.g. Airtel has
outsourced its call center and backend work to IBM. Airtel is an Indian company and has outsourced its
business to IBM which is a USA based company; however the call centers are located in India.
Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the
operations and responsibilities of specific business functions (or processes) to a third-party service
provider. Originally, this was associated with manufacturing firms, such as Coca Cola that outsourced
large segments of its supply chain.[1] In the contemporary context, it is primarily used to refer to the
outsourcing of business processing services to an outside firm, replacing in-house services with labor
from an outside firm.
BPO is typically categorized into back office outsourcing - which includes internal business functions such
as human resources or finance and accounting, and front office outsourcing - which includes customer-
related services such as contact centre services.
Often the business processes are information technology-based, and are referred to as ITES-BPO, where
ITES stands for Information Technology Enabled Service. Knowledge process outsourcing (KPO) and
legal process outsourcing (LPO) are some of the sub-segments of business process outsourcing industry.
Benefits and limitations:
An advantage of BPO is the way in which it helps to increase a company‘s flexibility. However, several
sources have different ways in which they perceive organizational flexibility. Therefore business process
outsourcing enhances the flexibility of an organization in different ways. Outsourcing may provide a firm
with increased flexibility in its resource management and may reduce response times to major
environmental changes.

2. Another way in which BPO contributes to a company‘s flexibility is that a company is able to focus on its
core competencies, without being burdened by the demands of bureaucratic restraints.
Key employees are herewith released from performing non-core or administrative processes and can
invest more time and energy in building the firm‘s core businesses. The key lies in knowing which of the
main value drivers to focus on – customer intimacy, product leadership, or operational excellence.
Focusing more on one of these drivers may help a company create a competitive edge.
A third way in which BPO increases organizational flexibility is by increasing the speed of business
processes. Supply chain management with the effective use of supply chain partners and business
process outsourcing increases the speed of several business processes, such as the throughput in the
case of a manufacturing company.
Finally, flexibility is seen as a stage in the organizational life cycle: A company can maintain growth goals
while avoiding standard business bottlenecks. BPO therefore allows firms to retain their entrepreneurial
speed and agility, which they would otherwise sacrifice in order to become efficient as they expanded. It
avoids a premature internal transition from its informal entrepreneurial phase to a more bureaucratic
mode of operation.
A company may be able to grow at a faster pace as it will be less constrained by large capital
expenditures for people or equipment that may take years to amortize, may become outdated or turn out
to be a poor match for the company over time.
Although the above-mentioned arguments favor the view that BPO increases the flexibility of
organizations, management needs to be careful with the implementation of it as there are issues, which
work against these advantages. Among problems, which arise in practice are: A failure to meet service
levels, unclear contractual issues, changing requirements and unforeseen charges, and a dependence on
the BPO which reduces flexibility. Consequently, these challenges need to be considered before a
company decides to engage in business process outsourcing.
A further issue is that in many cases there is little that differentiates the BPO providers other than size.
They often provide similar services, have similar geographic footprints, leverage similar technology
stacks, and have similar Quality Improvement approaches.
Threats:
Risk is the major drawback with Business Process Outsourcing. Outsourcing of an Information System,
for example, can cause security risks both from a communication and from a privacy perspective. For
example, security of North American or European company data is more difficult to maintain when
accessed or controlled in the Sub-Continent. From a knowledge perspective, a changing attitude in
employees, underestimation of running costs and the major risk of losing independence, outsourcing
leads to a different relationship between an organization and its contractor.
Risks and threats of outsourcing must therefore be managed, to achieve any benefits. In order to manage
outsourcing in a structured way, maximizing positive outcome, minimizing risks and avoiding any threats,
a Business continuity management (BCM) model is set up. BCM consists of a set of steps, to successfully
identify, manage and control the business processes that are, or can be outsourced.
Another framework, more focused on the identification process of potential outsourceable Information
Systems, identified as AHP, is explained.

3. Importance of the Study/ Introduction:
Savings and Investment:
Savings are the excess of Income over expenditure for any economic unit.
Thus: S=Y- E, where S is the savings, Y is the income and E is the expenditure.
Secondly excess funds or surplus in profits or capital gains are also available for investment. Savings is
abstaining from present consumption for a future use. Savings are something autonomous coming from
households as a matter of habit. But bulk of the savings come for specific objectives like interest income,
future needs, contingencies, precautionary purposes or growth in future wealth leading to rise in the
standard of living etc.
When people start saving they search for various investment options t invest their savings. During this
process they consider various factors like risk, return, duration, liquidity, tax planning, hedge against
inflation, safety etc.
In earlier days the investment options available to investors were very limited like insurance, jewellery,
fixed deposits, debentures, shares etc.
But in the liberalized economy there are many investment options, which promise very high returns. After
private players started operating in Insurance, there are many policies available which not only cover the
risk, but they also promise high return with gook capital appreciation.
You are already aware of the various economic activities. Individuals engage themselves in such
activities to earn money. The money they earn is normally spent on meeting daily needs like buying
vegetables, groceries, clothes, giving school fees, telephone bills etc. People also generally
try to keep aside a part of their earnings to meet future needs like marriage of their sons and
daughters, buying a house, health care, etc. You also find some people who use a part of their
earning to deposit in banks or in buying shares, property or gold. By doing so these people are
also able to generate some extra earnings for themselves.
Let us learn more about how people earn; how they spend; how they keep money for future needs and
how they use their earnings to get some return.
Objectives:
After studying this project you will be able to:
Explain the terms ‗income‘ and ‗expenditure‘;
Identify various ‗sources of income‘ and ‗avenues of expenditures‘;
Explain the concepts of ‗savings‘ and ‗investment‘;
Recognise the need for ‗savings‘ and ‗investment‘; and
Identify the avenues of ‗investment‘.
Income:
As we know, individuals engage in one or the other occupations to earn their livelihood. For example, a
person may be employed in Bank and draw salary, a person may engage in selling books and earn a
profit, a doctor or a lawyer may do the private practice and get fees for their services. The earning from all
these sources is called income. Sometimes we find people earn from more than one source. For

4. example, a teacher can write books for schools and he gets some money from the publishers. If he is a
singer, he can sing for All India Radio (AIR) for which AIR gives him some money. Thus, one individual
can engage in different occupations to earn money. The earnings from different sources collectively is
called as his total income. This total income in a month is called as his monthly income and in a year is
annual income.
Sources of Income:
You learnt that people earn money from different sources. Some may earn from a single source and
others may have multiple sources. Let us learn about the various sources from which people earn their
income.
Business: Individuals engaged in business earn income by way of profit.
Employment: People who are in employment earn their income by way of salary or wages.
Profession: You have seen doctors, lawyers and chartered accountants. They provide personal
services of special nature and charge fees for their services. This fee is the source of income for
professionals.
Vocation: As we know vocation is the application of one‘s special skill or knowledge to earn
money. For example, a good cook can cook food at marriage parties and earn some income. A
carpenter can make or repair furniture and earn income.
Agriculture: When we cultivate land we produce crops, paddy, vegetables etc. All or a part of it
can be sold which gives us a return. This earning is called agricultural income.
Property: Normally owning land or a home is considered as owning property. This property can
be given on rent or lease to someone for use and we get a return on it. Thus, it becomes a source
of income for us.
Other Income: People keep a part of their earning either in banks, post office or they can buy
shares and debentures, government bonds etc. All these give them some return in the form of
interest/dividend. These are also called their income.
Expenditure:
When we buy goods or products we pay money for them. Similarly when we avail of some services like
consulting a doctor during illness or getting water and electricity for use, we also pay for them. Normally
we pay for all these goods and services since we use them. Sometimes we present some gift items to our
friends and relatives for their use. Besides this, we also spend money on charity and donation to the poor
persons and also to the cyclone or earthquake victims. In these cases, we do not earn any money out of
such spending. These are our expenditure. Sometimes we spend money and use it for other purposes to
get some additional income. That spending is a type of expenditure through which we generate further
income. This is called investment. To clarify the concepts further let us observe the activities of a
housewife and a restaurant owner. Both of them buy vegetables. A housewife buys them for consumption
of her family and the restaurant owner buys them to prepare different dishes and sells them at a profit.
In the first case the housewife does not get any monetary return. Thus, it is expenditure for her. In the
second case i.e., in case of restaurant owner, spending on vegetable can be termed as investment,
because the spending on vegetables finally generates additional income for him. Thus, the term
‘Expenditure’ refers to spending of money on any item, which does not give any additional
monetary income in return to the person who spends that amount.

5. Avenues of Expenditure:
Generally, most of us spend a major portion of our income on buying goods and services for daily
consumption. Besides spending on goods and services there are also many other areas in which we
spend money like expenditure on celebrations, on entertainment, charity and donation, etc. The different
areas in which we spent our earnings are called avenues of expenditure. Let us learn in detail about all
these avenues.
Expenditure on Goods and Commodities: We may spend money on various types of goods
and commodities needed for use in our daily living. These may be perishable goods like
vegetables, milk, fish, etc. or may be consumer durables like television, radio, furniture etc.
Expenditure on Services: We also spend money for availing of different types of services. It
may be for availing banking services, postal services, transport services, communication services
etc.
Expenditure on Celebrations: In our daily life we find several occasions for celebration. It may
be a birthday, an anniversary, a festival, a marriage ceremony etc. On such occasions we spend
a lot of money.
Expenditure on Entertainment: In our busy life we often feel like taking a break for some sort of
enjoyment through entertainment progammes. This may include going to watch a movie or drama
or dance or cricket match or even going for a picnic or tour.
Expenditure on Charity and Donation: Sometimes people spend money by donating to
individuals or institutions engaged in social services or charitable work. These are called
expenditure on charity and donation.
Expenditure on Health and Education: In a family people usually spend some money on health
and education of their children. When individuals go for higher education it requires more money.
Thus, money spent on health and education may be termed as expenditure.
Other Expenditure: The modern age has paved newer avenues of expenditure for people. For
example, now-a-days people go to a gymnasium to keep themselves physically fit, go to
beauticians to take care of their body and beauty, surf the Internet to gather information and also
send e-mails, etc.
Savings:
Ramesh and Suresh are working in a school. They had joined this school together and have been earning
some amount of money for the last five years. Last month there was a training programme on computers
in their school and both of them participated in it. They liked computers so much that they decided to buy
one each for their own use. Ramesh asked the school authority for a loan to buy the computer, as he did
not have sufficient money with him. The school authority asked him to wait for at least two months to get
the loan processed and sanctioned. Suresh had sufficient money with him and he went to the market and
purchased a computer.
Knowing this Ramesh asked Suresh, ―Look, from where did you get this money?‖ Suresh said, ―I got it
from my savings‖. Ramesh enquired, ―What is savings?‖ Suresh answered, ―See, every month I used to
keep aside a portion of my income for future use. And over a period of five year this has become a
substantial amount to enable me to buy a computer.‖

6. Thus, we find that savings refer to the amount of money, which is kept aside from the current income for
future use. We may be able to keep aside this money either by reducing our expenditure or by increasing
our income or by doing both.
Investors are savers but all savers cannot be good investors, an investment is a science and an art.
Savings are sometimes autonomous and sometimes induced by the incentives like fiscal concessions or
income or capital appreciation. Savers come from all classes except in the case of the population who are
below the poverty line. The growth of urbanization and literacy has activated the cult of investment. More
recently, since the eighties the investment activity has become more popular with the change in the govt.
policies towards liberalization and financial deregulation. The process of liberalization and privatization
was accelerated by the govt. policy changes towards a market oriented economy, through economic and
financial reforms started in July 1991.
Need for Savings:
Savings are essential not only for individuals, family or businessmen but it is also very much required for
a nation. Growth is practically impossible without savings. Individuals save because of several reasons.
Let us discuss why we all require savings.
Savings help us to meet future requirements: We need money in future for various purposes
like spending money on higher education, on marriages and other celebrations, owning some
immovable assets like house, land, farms etc. With savings at hand we, can meet all these
expenses.
Savings help us to meet expenses during emergencies: There are events which are uncertain
and may occur in future. All these events may require some amount of money to be spend, which
we can have from our savings. For example, we may require money during emergencies like
sudden illness, accidents, etc.
Savings help us to raise our standard of living: Savings accumulated over a period of time
become a substantial amount, which enables us to buy something, which is better, comfortable or
even luxurious. For example, you can buy a vehicle of your own, a home, good furniture, you can
use generators/inverters at home to avoid power cut, etc. All these improve your standard of
living.
Savings help us to generate further income: We can use our savings or part of it in buying
shares, debentures or bonds, in buying property and renting it out or even in keeping money in a
bank for a fixed period. All of these can give us an assured return in terms of dividend, rent or
interest. This is an additional income for us.
Savings help the nation in its economic development: When we keep our savings in a bank
or in a post office, we get interest in return. But have you ever thought what they do with our
money? How do they generate more money from our savings? Actually they utilize our money for
various productive purposes. For instance, banks may give our money to the business houses as
loan and charge more interest from them. Similarly, government may use our savings in various
industrial activities, by taking it from the post offices or banks. Thus, our savings help in
development of business activities, which ultimately contributes to the overall economic
development of the country.
Impact on Inflation:

7. All the investments lose in value due to inflation or rise in prices leading to depreciation of the rupee.
When the rate of inflation or rise in prices leading to depreciation of the rupee. When the rate of inflation
is about 10%, the real value of money is lost by 10% every year. The investors have therefore to protect
themselves from this loss of real values of their assets by proper investment planning and by securing
returns, higher than the inflation rate.
Some investments give only income like bank deposits, Post Office certificates, company deposits etc.
Some assets show capital appreciation if they are shares in companies or bullion, land and buildings.
Some are safe and liquid, like the investments in government securities, bonds of P.S.U, etc. A few
investments like Indira Vikas Patra are easily transferable and marketable. So also the shares and
securities listed and traded on the stock exchanges. But all the above investments do not satisfy all the
needs and objectives of investors, referred to later, including securing a hedge against inflation. All
objectives of income, capital appreciation, safety, marketability and liquidity as also hedge against
inflation can be secured only by proper investment in corporate securities.
Tips on Saving:
We have learnt that savings are required for every individual. Let us learn some tips so that we will be
able to save.
Keep a record of your total income and its sources: This is essential as you get to know when
and how much you earn and to plan your expenditure accordingly. Keep a record of your current
expenditure: As you know there are certain expenses which you have to incur regularly and the
amount you spend is almost certain. For example, expenditure on food, tuition fee for children,
electricity and water bill, expenses on newspaper, house rent, etc. These are your current
expenditure. Once you know about these expenditures which you cannot avoid, you can plan for
other expenses keeping current expenditure in mind.
Plan your expenditure: There are certain expenses which do not occur regularly. For example
buying a TV, refrigerator, washing machine, computer etc. To spend on these you have to make
a priority list and then you can defer the expenditure, which is least important. For example,
suppose you plan your expenditure on 25th December and fix your requirements as a
refrigerator, a computer and a washing machine. You prioritized your requirements in the
following order – washing machine, refrigerator, and computer. This is so because you find that a
computer shall be most useful during the next academic session, a refrigerator shall be most
useful during summer (next March) and washing machine is urgent as it is becoming difficult to
wash cloth manually in winters. So naturally your will spend on the washing machine and defer
your expenditure on the refrigerator for three months and the computer for six months.
Cut down your expenditure: There are certain expenses which one may incur in an unplanned
way. For example, suppose you have gone to Shimla on a tour in the month of March and got
some winter clothes. You may use them at Shimla but coming back from Shimla you may not be
requiring all those winter clothes. This sort of expenditure may be cut short.
Try to generate additional income and don’t spend it. This is a very good way of savings.
Whatever we earn from a regular source we can spend it on our livelihood. But the extra earnings
that we make from other sources can be kept aside for future use. For example, suppose one of
your articles is published in the newspaper or magazine and you are paid some money for that.
You can keep aside this money for future use.

8. Investment:
We have already learnt that sometimes people spend some money on buying shares, bonds, properties
etc. which give them some monetary return. Sometimes people also keep their savings or a part of it as a
recurring or fixed deposit in the banks or post offices and earn interest on it. Similarly some people
deposit their money in Mutual Funds, Public Provident Fund Account etc. some buy National Savings
Certificates from the post office and some take Life Insurance Policies etc. All these give them some
additional income. These types of expenditures are called investment. Thus, the term ‗investment‘ refers
to depositing or spending money on some items that generate additional income either immediately or in
the future. For example, if you deposit money in Public Provident Fund Account it will give you some
amount of return in the form of interest. So, this is your investment. Besides Public Provident Fund
Account there are a number of other avenues in which you can invest your money. Let us learn the
details about these avenues.
Objectives of Investor:
Income
Appreciation of capital
Safety
Liquidity
Hedge against inflation
A method of tax planning
The mix of these objectives may also depend on the time frame of his investment.
Short-term/day to day trading gains
Short term capital gain up to one year
Long term appreciation more than 1 to 3 years.
Investment preferences of public may be set out in terms of their savings for:
Transaction purpose (for daily needs or regular payment?
Precautionary purpose ( for contingencies or special needs)
Speculation or asset purposes ( for capital gain or building of assets)
Where to Invest:
Deposits in Banks and Post Offices: These are the most common, popular, risk free and
trustworthy investments. In banks and post offices individuals deposit their money in savings
account, where they can withdraw the money whenever required. They can also deposit money
for a fixed period on one-time basis or a recurring basis. All these investments are safe and give
an assured return. There is something known as recurring deposits. That means in Banks we can
open recurring deposit accounts, and every month/quarter we can deposit the fixed amount and

9. the bank will give a fixed interest on that money which is usually higher than the regular interest
rates in the banks.
Other Schemes/Certificates of Bank, Post Office: Apart from deposits, the banks and post
offices also offer various other schemes like Monthly Income Scheme, National Savings Scheme,
Public Provident Fund, National Savings Certificates, Kissan Vikas Patra etc., which provide
assured return and are risk free.
Government Bonds: Sometimes government and semi-government organizations accept
deposits from individuals for a fixed period and promise to pay a fixed amount after the stipulated
period. These are in the form of bonds, which are also risk free and provide assured return.
Life Insurance policies: Post offices, Life Insurance Corporation of India and other private
sector life insurance companies insure the life of individuals for a specific amount for a specified
period upon payment of a premium amount. The individual who is insured gets a good return on
maturity of the policies. This is a very important form of investment. People should look if they
are adequately covered. A person‘s net worth plays a huge role in determining the amount of
policy s/he should have. If a person‘s earnings are high, then accordingly the life style changes.
Hence individuals should ensure that they buy enough coverage so that if case of their
unfortunate death, their family can survive well on that insurance money.
UTI and other mutual funds schemes: There are some financial institutions (may be
government, semi-government or private) which raise money from individuals and invest the
collected amount in securities and deposits and thereby earn a good return. This return is then
distributed among the investors as dividend. These types of investments are risky. It may give
you very good return or it may also lead to losses.
Corporate securities and deposits: There are companies which accept deposits from public for
a fixed period. People can invest their savings in these companies. This is bit risky as your money
goes into private hands. But if the company is good and a reputed one, you can get assured
return. Similarly people sometime invest in buying shares of the company. If the company is
performing well the shareholders get good return otherwise the shareholders may not get
anything. These investments are again risky.
Real estate: Sometimes people spend money on buying a plot of land, an apartment or a house
etc., the value of which appreciates over a period of time. By giving it on rent they can earn
money. These types of investments are less risky though they do not provide an assured return.
Business activities: You must have observed that some people invest money to carry on
various business activities. They may start the business individually i.e., in the form of sole
proprietorship, or by inviting others to invest money with them i.e., they can start partnership form
of business. By investing their money and putting their best effort then can get return in the form
of profit.
Investment in the share market: A person can invest his money in the share market by
purchasing shares. A share market is a public institution and it serves the growth of the capital
market. In a stock market, purchase and sale of shares are made in conditions of free
competition. It is organized as voluntarily, non-profit making association of brokers to regulate
and protect their interests. Whenever a company raises capital through public issue of securities,
its securities are required to be listed on the stock exchange within ten weeks of the closing of the
subscription list mainly to provide liquidity to the investors.

10. Gold, Silver, Precious Metals and Precious Stones: All these items vary as per the market
rates. And in the past few years, the rates of them have only increased.
Please go to this site which will give you a day wise rate of gold.
http://www.marketonmobile.com/gold_price_2011.php?m=February
Now if we see the gold price per 10 gram on Jan 2009, it was Rs. 13664. And it was Rs. 27322
on Jan 1, 2012. So in 3 years it went up by Rs. 13658, which is almost 100%. So if someone had
invested in gold at the right time, then it brings in good results.
The same goes for silver too. Silver price on Jan 1, 2009 was Rs. 13753/Kg and it went up to Rs.
51043/Kg on Jan 1, 2011. So the increase was Rs. 37290/Kg that means the increase was 271%.
Hence people who had invested in silver had reaped a better return than investing in gold. In fact
on May 1, 2011 it went up to Rs. 71576/Kg.
Provident fund- statutory, recognized, unrecognized, public provident fund: Employee
Provident fund scheme came into effect in 1952, and this was done on a mandatory basis so that
employees save on a monthly basis through a government scheme. The govt. gives interest on
the money which is deducted in PF. All the employees (including casual, part time, Daily wage
contract etc.) other than an excluded employee are required to be enrolled as members of the
fund the day, the Act comes into force in such establishment. Ideally when someone attains the
age of 55, or over and retires from his duties, then s/he is eligible to withdraw the PF. The better
course would be to invest in savings in Public Provident Fund (PPF) so that the money is blocked
and saved for a minimum period of 15 years. It is totally exempt from tax.
Unit scheme of Unit trust of India (Some are marketable among these): The announcement
by the Chairman of Unit Trust of India (UTI) Mr. PS Subramanyam, that all repurchases of units
would be stopped for six months, betrayed the trust that 20 million domestic investors had
reposed in the institution. In one sweep, UTI removed liquidity, one of the prime components of
an open-end fund to nothing at all. The government gave the Unit Trust of India two weeks to
devise a way of allowing small investors to redeem units in its biggest fund. The government
wanted the suspension lifted for small investors, as it would have jolted the investor‘s confidence
on the industry in a big way, something that the government did not want to happen. UTI obliged
by setting up a committee for the purpose of proposing a way out to end the problem and to help
restructure the scheme from the state of shambles that it currently is in. Investors stand to gain
from the latest mechanism, which has been worked out after a lot of brainstorming and though it
is yet to get a nod from RBI, in all probability, in the best interest of all the concerned parties, the
modalities shall be worked out properly. However, given the degree of uncertainties involved,
investors can do nothing but watch the drama unfold and just hope that the outcome is in their
interests.
Venture Capital: Venture capital (VC) is financial capital provided to early-stage, high-potential,
high risk, growth startup companies. The venture capital fund makes money by owning equity in
the companies it invests in, which and usually have a novel technology or business model in high
technology industries, such as biotechnology, IT, software, etc. The typical venture capital
investment occurs after the seed funding round as growth funding round (also referred to as
Series A round) in the interest of generating a return through an eventual realization event, such
as an IPO or trade sale of the company. Venture capital is a subset of private equity. Therefore,
all venture capital is private equity, but not all private equity is venture capital.
In addition to angel investing and other seed funding options, venture capital is attractive for new
companies with limited operating history that are too small to raise capital in the public markets
and have not reached the point where they are able to secure a bank loan or complete a debt
offering. In exchange for the high risk that venture capitalists assume by investing in smaller and

11. less mature companies, venture capitalists usually get significant control over company decisions,
in addition to a significant portion of the company's ownership (and consequently value).
Investment Avenues:
All investments are risky, as the investor parts with his money. An efficient investor with proper training
can reduce the risk and maximize returns. He can avoid pitfalls and protect his interests.
Classification of Investments:
There are different methods of classifying the investment avenues. A major classification is:
Physical investment: Example of physical investments is land, property, flats, house, gold,
precious metals and stones, paintings etc. They are physical, if savings are used to acquire
physical assets, useful for consumption and/or production. Many items of physical assets are not
useful for further production of goods or create income as in the case of consumer durables, gold,
silver etc.
Financial investment: Examples are Fixed Deposits, Bonds, Shares, and Mutual Funds etc.
Most of the financial assets, barring cash are used for production or consumption, or further
creation of assets, useful for production of goods and services. Among different types of
investments, some are marketable and transferable and others are not. Examples of marketable
assets are shares and debentures of public limited companies, particularly the listed companies
on stock exchanges, bonds of P.S.Us, Government securities, etc. Non-marketable securities or
investments are bank deposits, provident fund and pension funds, insurance certificates, post
office deposits, NSC bonds, company deposits, private limited companies shares etc.
Difference between savings and investments:
Savings are money or other assets kept over a long period of time, usually in a bank without any risk of
loss or making profit. Investments are money or other assets purchased with the hope that it will generate
income, reduce costs, or appreciate in the future. In an economic sense, an investment is the purchase of
goods that are not consumed today but are used in the future to create wealth. In finance, an investment
is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate
and be sold at a higher price. And usually it has also a risk of some loss.
As far as we are talking about investment then it is certain amount of money which is saved or used in
some projects where we can take profit more than the money we have saved or invested. In general
terms investment means the use of money to make more money.
Think Before Making an Investment:
When you are investing money you must look into some factors to reduce the risk involved in investment.
Analysing these factors you must decide where to invest.
Ability to save: Some of the investments require regular contributions of certain amount of
money like payment of LIC premium or installments in a recurring deposit. You must assess your
ability to save before taking any decision.
Safety: You must look into the various risks or drawbacks of the instruments where you are going
to invest to ensure safety of your investments.

12. Easy Liquidity: Any investment you make must be capable of being converted into cash
whenever necessary.
Rate of Interest: Rate of interest is more important than the amount of return you get. Savings
and Investment normally, for larger deposits, higher rates of interest are fixed.
Tax relief: One must take into consideration the various tax benefits we can avail of through our
investments.
New developments in Investment avenues:
Exchange traded funds: (ETFs) are a new variety of mutual fund that first became available in
1993. ETFs have grown rapidly and now hold nearly $80 billion in assets. ETFs are sometimes
described as more 'tax efficient' than traditional equity mutual funds, since in recent years, some
large ETFs have made smaller distributions of realized and taxable capital gains than most
mutual funds. This paper provides an introduction to the operation of exchange traded funds. It
also compares the pre-tax and post-tax returns on the largest ETF, the SPDR trust that invests in
the S&P500, with the returns on the largest equity index fund, the Vanguard Index 500. The
results suggest that between 1994 and 2000, the before- and after-tax returns on the SPDR trust
and this mutual fund were very similar. Both the after-tax and the pre-tax returns on the fund were
slightly greater than those on the ETF. These findings suggest that ETFs offer taxable investors a
method of holding broad baskets of stocks that deliver returns comparable to those of low-cost
index funds.
REIT (Real estate investment trust): REITs are companies, which own properties such as office
buildings, shopping complexes, and hotels etc, which are giving continuous income. As these
companies pass most part of their income to the shareholders, they get tax benefits from their
income. Like other stocks that are traded in the stock exchanges, REIT can also be traded in the
stock exchange. REITs give a new opportunity to the retail and institutional investors to diversify
their portfolio.
The Emerging Investment Avenues:
According to a study undertaken jointly by Merrill Lynch and Cap Gemini Ernst and Young, High Net
worth Individuals [HNIs] or wealthy investors are proactive in portfolio management, risk management,
consolidation financial assets and use of diversification strategies as actively as large institutions. HNIs
are proactive in identifying new investment options and take inputs from professional advisors in volatile
market conditions.
HNIs are dynamic in modifying their asset allocation and were among the first investors to move from
equities to fixed income during 2001-2002 period of downturn in equity markets. They shifted back to
equities when they identified favorable market trends.
Needs of wealthy investors
Wealthy investors being aware of the emerging investment opportunities use sophisticated investment
strategies such as:-
Leveraging on the professional advisors' capability to analyse market trends and make
appropriate investments.
Searching for innovative products to enhance value.

13. Diversifying across various types of assets.
Investing across emerging geographies.
Consolidating financial information and assets.
Investment products and avenues
Managed products: Managed product service is the most popular investment strategy adopted
by wealthy investors globally.
Real Estate: Wealthy investors have found this asset class very attractive and have invested
directly in real estate and indirectly through real estate investment trusts.
Art and passion: Wealthy investors also have their investment in art, wine, antiques, and
collectibles.
Precious Metals: Gold and other precious metals are attractive investment options to balance
the asset allocation.
Commodities: Wealthy investors have turned to commodities to offset the lower returns from
fixed income securities.
Alternative investments: Hedge funds and Private equity investments such as venture funds
are becoming increasingly popular with wealthy investors to reduce the investment risks related
to stock market fluctuations. This is because these instruments have low correlation with equity
asset class performance. Investment in non correlated assets, such as commodities helps to
improve diversification of the portfolio amidst volatile market conditions.
Characteristics of wealthy investor:
The wealthy investor of today is:-
Young, educated and knowledgeable.
Well informed about global trends.
Willing to take risks.
Demanding and quality conscious.
Performance oriented in taking decisions and less loyal.
Techno savvy and seeks information from various sources.
Smart in looking for the best deal.
Not attracted by traditional status symbols that do not add value.
Hands on in checking investments, making deals and getting personally involved.

14. Special needs of wealthy investors
The strategies and characteristics of wealthy investors has led to financial institutions innovating and
expanding their product range to meet the growing demands of such investors.
A financial advisor should keep in mind the following special needs and expectations of the wealthy
clients:-
Demand broader range of services and skills: Wealthy clients not only are on the lookout for
multiple investment avenues, unlike other clients, but are also ready to face the risks associated
with newer products.
Net worth and goals need to be matched and assets need to be planned tax effectively: Since
wealthy investors have surplus funds that can be passed on to the next generations and also
come into the high tax paying category, investors need to advise them on the best methods to
transfer their assets after death as well as on the best tax saving investments.
Estate planning and tax planning: In-depth knowledge about tools of estate planning such as
wills, trusts, and power of attorney is necessary. It is also important to know the succession rules
and tax rules to do effective tax planning resulting in minimal/no tax on transfer of assets.
Educate the client: Educating the client on various and different types of investment avenues that
will suit him the best will prove very beneficial for the financial advisor. Wealthy clients, especially
those who are self made, may assume that if they can make wealth in one industry they can
manage their own portfolio as well. In such cases it is best to educate the client about the best
investment options rather than trying to push a product; because if one is trying to push a
product, the client is unlikely to get interested since he/she will be having enough people chasing
him/her for investments.
In the BPO industry, the salaries are quite high. And an average manager earns anything between 10-20
Lakhs/ annum. Hence there are many HNIs in this sector and we have tried to include some of them in
this study and have tried to analyse their approach towards investments.
Features of investment avenues:
The investor has various alternative avenues of investment for his savings to flow in accordance with his
preferences. All investors involve some risk or uncertainty. The objective of the investor is to minimize the
risk involved in investment and maximize the return.
1. Risk: The risk depends on the following factors:
a) The longer the maturity period, the larger is the risk.
b) The more the creditworthiness of the borrower or agency issuing securities, the less is the risk.
c) The nature of instrument, namely, the debt instrument or fixed deposit or ownership instrument like
equity or preference share, also determines risk.
d) The risk of variability of returns is more in the case of ownership capital as the return varies with the
net profits after all commitments are met.
e) The nature of tax liability on the instrument.
2. Return: A major factor influencing the pattern of investment is its return, which is its return and capital
appreciation, if any. The difference between the purchase price and the sale price is capital appreciation
and the yield is the interest or dividend divided by its purchase price.

15. 3. Safety: The safety of the capital is the certainty of return on capital without loss of money or time
involved. In all cases of money lent, some transaction costs and time are involved in getting the funds
back.
4. Liquidity: If a capital asset is easily realizable, salable or marketable, then it is said to be liquid. An
investor generally prefers liquidity for his investments, safety of his funds, a good return with a minimum
risk or minimization of risk and maximization of return (dividend and capital appreciation).
5. Marketability: This refers to transferability or salability of an asset. Those listed in stock market are
more easily marketable than those that are not listed.
6. Tax benefits: Some instruments enjoy good tax benefits; hence their net return is higher.
Risk-return Relationships:
Risk and return are directly correlated with each other, when risk high return is also high and vice versa.
The relationship between risk and return is a fundamental financial relationship that affects expected
rates of return on every existing asset investment. The Risk-Return relationship is characterized as being
a "positive" or "direct" relationship meaning that if there are expectations of higher levels of risk
associated with a particular investment then greater returns are required as compensation for that higher
expected risk. Alternatively, if an investment has relatively lower levels of expected risk then investors
are satisfied with relatively lower returns.
This risk-return relationship holds for individual investors and business managers. Greater degrees of
risk must be compensated for with greater returns on investment. Since investment returns reflects the
degree of risk involved with the investment, investors need to be able to determine how much of a return
is appropriate for a given level of risk. This process is referred to as "pricing the risk". In order to price
the risk, we must first be able to measure the risk (or quantify the risk) and then we must be able to
decide an appropriate price for the risk we are being asked to bear.
Research Design:
Problem Statement: We have been working in the BPO industry for a long time. Sunia has been
working for 10+ years in this industry; Krishna is working for 6 years, Merlin for 4 years, Bhavani for 4
years and Sheela for 3 years. We have realized that we have earned a lot of money from this industry;
however our investments are not up to the mark.
During the global recession in 2008, we have seen many of our colleagues losing jobs, and then we
realized all the more the importance of investments.
We have also gone through traumas of a family member being hospitalized, and the huge expenses
which we have to incur during such times.
It is not only us, we have seen most of our colleagues working in this industry are earning well, however
their savings are investments are poor. In fact most of them own credit cards and often are neck deep in
debts. Also they often take personal loans to buy consumer durables like TV, Fridge, and Washing
Machines etc. and pay anything between 12-20% as interest/ year of such loans.
Hence we thought of taking up this study so that we can not only gather data and reach to a conclusion,
so that we can create awareness amongst young BPO employees regarding savings and investments.

16. Reasons for taking up this study:
As per a study done by Price Water Coopers, here we can find some facts:
Please go through the entire study at:
http://www.pwc.com/en_IN/in/assets/pdfs/publications-2011/Indian_IT-ITeS_Industry_-
_Changing_Landscape_and_emerging_trends.pdf
The Indian information technology (IT) / IT enabled Services (ITeS) industry has played a key role in
putting India on the global map. Over the past decade, the Indian IT-BPO sector has become the
country‘s premier growth engine, crossing significant milestones in terms of revenue growth, employment
generation and value creation, in addition to becoming the global brand ambassador for India.
The Indian IT-BPO sector including the domestic and exports segments continue to gain strength,
experiencing high levels of activity both onshore as well as offshore. The companies continue to move up
the value-chain to offer higher end research and analytics services to their clients.
The Indian IT-BPO industry has grown by 6.1 percent in 2010, and is expected to grow by 19 percent in
2011 as companies coming out of recession harness the need for information technology to create
competitive advantage.
India‘s fundamental advantages—abundant talent and cost—are sustainable over the long term. With a
young demographic profile and over 3.5 million graduates and postgraduates that are added annually to
the talent base, no other country offers a similar mix and scale of human resources.
Realising the wealth of potential in the IT-ITeS sector, the central and state governments are also working
towards creating a sound infrastructure for the IT-ITeS sector. CII aims to make the Indian IT and ITeS
industry world class by continuously providing a platform for understanding and adoption of the new
developments & best practices worldwide in this sector, taking up issues and concerns of the Indian
industry with the relevant ministries at National and State level, coming up with studies, reports and
surveys to help understand the potential of Indian IT and ITeS market and the issues faced.
As one of the key growth engines of the economy, the Indian IT/ITeS industry has been contributing
notably to the economic growth accounting for around 5.6% of the country‘s GDP and providing direct
employment to about 2.3 million people and indirect employment to many more. (Data collated till
2011).
Since this industry has a huge potential, and it is providing a positive impact on India‘s GDP, and every
year a lot of new graduates and post graduate young people are joining the work force, we thought that
this will be a good platform to base our studies on.
Since this is an emerging and young sector, not too many studies have happened in this sector. Hence it
gave us a fresh platform to work on. Plus since many of our friends and colleagues work in this sector, it
was easy for us to collect primary data. Also this was a very relevant study which would have benefitted
most of us and this research would have helped us to create awareness amongst our colleagues and
friends associated with this industry.
Bangalore is known as the Silicon Valley of India and most of the IT and ITES companies have their large
operations in Bangalore. Hence Bangalore has a sizeable population and we will take a small sample
from that population for this survey.
Since out of total investment from Bangalore, substantial share is from ITES professionals, the researcher
is making a study here to understand the investment pattern of ITES professionals. The knowledge about

17. investments and portfolio designing is limited for ITES professionals as there area of study and interest is
different. The decisions they take regarding their investments may not be accurate and hedging will not
be taken care properly if portfolio is not proper. Therefore this study is basically conducted to find out the
investment pattern of ITES professionals in Bangalore city and offer suggestions for better performance
of the funds invested.
Scope of the study: The area covered for the study of ―A study on investment pattern of ITES
Employees in Bangalore‖ is about X ITES companies for the collection of primary data. They are:
1. Infosys BPO
2. Accenture BPO
3. IBM- Daksh BPO & IT Services.
4. HP (BPO and IT Services)
5. Fidelity BPO Wing
6. GENPACT BPO
7. ANZ Services/BPO
8. KPMG
9. Dell (BPO and IT Services)
10. Others
Profile of the ITES companies:
1. Infosys BPO:
Progeon was established in April 2002 as the BPO subsidiary of Infosys Technologies and today is
among the top third party BPOs in India according to NASSCOM. It was started as a 74% and 26% joint
venture between Infosys and Citibank Investments. In 2006 Infosys bought out Citibank's share at a price
of Rs 592 per share. Today it has operations in Bangalore, Chennai, Gurgaon, Bhbaneshwar, Jaipur and
many other Indian Cities along with international centers like, Monterrey, Mexico, Lodz, Poland, Brno,
Czech Republic, Atlanta, USA, Hnagzhou, China, Manila, Philippines, and Brazil. Infosys BPO, the
Business Process Outsourcing subsidiary of Infosys Limited (NASDAQ: INFY), is an end-to-end
outsourcing services provider. Infosys BPO addresses your business challenges and unlocks business
value by applying proven process methodologies, integrated IT and business process outsourcing
solutions. The company applies business excellence frameworks to significantly reduce costs, enhance
effectiveness and optimize business processes. The company focuses on integrated end-to-end
outsourcing and delivery of result-oriented benefits to our clients through reduced costs, ongoing
productivity improvements and process reengineering.
Our business solutions and leadership are recognized by several global forums. We are consistently
ranked among the leading BPO companies in India by industry bodies such as Global Outsourcing 100
(The International Association of Outsourcing Professionals), FAO Today, and NelsonHall.
Infosys BPO has not only pioneered "Business Value Realization" (BVR), but has also emerged as a
trusted and valued collaboration partner through consistent focus on improving process and end-business
metrics. We continue to enable realization of business value, customer satisfaction and co-creation to
sustain long term partnerships.
We take pride in being a consistent performer and are endorsed by industry analysts, customers (internal
and external), and alliance partners. Infosys BPO is a global company operating in the Americas, APAC,
Australia and Europe with over 21,421 employees and revenues of $494.9 million as of March 31, 2012.

18. Business Transition Methodology
Infosys BPO enables flexible business process management services through global delivery centers. We
believe that a well managed transition provides a robust foundation for smooth operations. A key aspect
of our service is the transition of business processes from client‘s locations to our delivery center(s). We
have a comprehensive and mature transition methodology documented from over 1,000 transitions.
Overview
Infosys BPO leverages global delivery centers to deliver predictable and flexible business process
management services. A key aspect of our service delivery is the successful migration or transition of
business processes from the client‘s locations to our delivery center(s).
We have a comprehensive and mature transition methodology that has been refined and documented
during the course of more than 1,000 transitions. Compliance is monitored through check points at
different stages.
We believe that a well managed transition provides a robust foundation for a stable operation across the
outsourcing cycle.
Transition Methodology
Our transition methodology ensures process enhancement across five phases:
Project Preparation
Planning
Execution
Parallel Run
Steady State
At the end of each phase, our quality team confirms meeting pre-defined success criteria that are
mutually agreed by the client and our transition team. Our quality team works independently of the
transition team.
We also encourage clients to participate in reviews and audits. Our transition methodology addresses
knowledge management, technology management, operations management, contract management and
program management. A high level of accountability is ensured through individual owners for each track,
as illustrated below.

19. Project Preparation
Project preparation begins with the handover of the solution design to the transition team. It involves
defining the roles and responsibilities of key stakeholders to ensure a smooth transition. A dedicated
transition team consisting of a transition manager, operation and documentation specialists, and trainers,
is deployed.
The team has access to a shared resource pool from technology, legal, finance, human resources and
quality during transition. It involves Knowledge Transfer (KT), team identification and preparing the team
for onsite assignment.
Planning
After a detailed planning workshop with the client, this phase involves finalization of the integrated project
plan. It includes plans for operations, delivery, technology, recruitment, quality, and risk to cater to project
requirements. In addition, the integrated project plan mobilizes resources and arranges logistics.
The objectives of planning include -
Creation of a detailed execution plan for all work streams
Validation of FTE ramp-up, technology requirements and establishment of a governance structure
Identification of deliverables across different functionalities
Pre-empting and monitoring implementation of the plan across all phases – a continuous and consistent
exercise
Assessing and mitigating risk
Workflow tool/ point application requirement collection and analysis
Execution
Execution involves the implementation of the transition solution. We deploy domain, process and
technology teams to address transition -
Knowledge transfer: Includes the construction of operating procedures, preparation of training
documents, and training executives to execute the process offshore
Technology transfer: Identifies the optimal network architecture, procurement of bandwidth and
systems, and installation, testing, and deployment of technical infrastructure.
Operating preparedness: Includes recruitment, induction and site preparation
Parallel Run
In this phase, offshore operations are initiated with active client support. Gradually, the responsibility is
transferred to the offshore operations team while ensuring that inter-dependent processes are not
affected. It involves several stages:
Preparation of the ramp-up schedule
Managing logistics
Execution of offshore ramp-up and onsite ramp-down while maintaining continuity of operations
Establishing service levels
Parallel run helps achieve robust operations with all the resources and infrastructure to execute steady
state operations.
Steady State
'Steady state operations‘ is the ongoing delivery of services. The key objective is "business as usual,"
where the outsourced processes are executed in accordance with the norms in the Service Level
Agreement (SLA). Steady state involves:
Security and business continuity

20. SLA metrics tracking and reporting to monitor continuous performance
Human Resource Management
Quality Management System
Our transition framework has several features:
Check points after each phase of transition to enable robust implementation
Health checks after go-live as a warranty
Structured Customer Satisfaction (CSAT) survey after each transition to elicit client feedback and ensure
world-class transition
Management Profiles
Swami Swaminathan
Chief Executive Officer and Managing Director, Infosys BPO
Raghavendra K
Gautam Thakkar
Vice President and Head - Enterprise Services, Infosys BPO
Abraham Mathews
Vice President and Head - Finance, Infosys BPO

21. Anantha Radhakrishnan
Vice President and Head - Business Transformation Services, Customer Services and Technology Services, Infosys
BPO
Units at Infosys BPO
Strategic Business Unit (SBU)
BFSI - Banking Financial Services and Insurance
BP - Business Platform
BT - Business Transition
CME - Communication Media and Entertainment
CS - Customer Service
EM - Emerging Market
F&A - Finance and Accounting
HRO - Human Resource Outsourcing
KS - Knowledge Services
MFG - Manufacturing
S&F - Sales and Fulfillment
S&P - Sourcing and Procurement

22. Business Enabling Functions (BEF's)
Corporate Finance
Corporate Marketing
Corporate Planning
Corporate Sales
Facilites
HRD - Human Resources & Development
Legal
Quality
Privacy and Data Protection
Risk
Solutions & Alliances
TSG - Transformation Solutions Group
Transport
TIG - Technology Infrastructure Group
2. Accenture BPO:
Accenture is a global management consulting, technology services and outsourcing company, with more
than 249,000 people serving clients in more than 120 countries. Combining unparalleled experience,
comprehensive capabilities across all industries and business functions, and extensive research on the
world‘s most successful companies, Accenture collaborates with clients to help them become high-
performance businesses and governments. The company generated net revenues of US$25.5 billion for
the fiscal year ended Aug. 31, 2011.

23. Accenture is a great success story by any measure. The company‘s history has been more than 60 years
in the making—from the earliest days as a pioneer in the new world of information technology in the
1950s to its position today as a Fortune Global 500 industry leader.
Initially called Andersen Consulting, Accenture was formally established in 1989 when a group of partners
from the Consulting division of the various Arthur Andersen firms around the world formed a new
organization focused on consulting and technology services related to managing large-scale systems
integration and enhancing business processes.
In April 2001, Accenture‘s partners voted overwhelmingly to pursue an initial public offering, and
Accenture became a public company on July 19, 2001, when it listed on the New York Stock Exchange
under the symbol ACN.
The majority of Accenture employees are organized in one of four "workforces" (Consulting, Services,
Solutions and enterprise) and they chose to open their BPO wing in Bangalore in April 2003.
Services
Accenture offers a vast range of BPO services to enable high performance, including function-specific
services such as procurement, HR and finance and accounting, as well as services geared to the needs
of specific industries such as utilities, insurance and health care.
Cross-Industry BPO Services
Finance and Accounting BPO
Human Resources BPO
Learning BPO
Procurement BPO
Supply Chain BPO
Industry-specific Services
Credit Services BPO
Health Administration BPO
Industry-specific BPO
Insurance BPO
Life Sciences BPO
Network BPO
Utilities BPO

24. Bundled Outsourcing Services
Bundled Outsourcing
Management Profiles
Group Chief Executive
Mike Salvino is group chief executive of Accenture‘s Business Process Outsourcing (BPO) growth
platform. In this role, he oversees Accenture‘s comprehensive portfolio of cross-industry (finance and
accounting, HR, learning, procurement and supply chain) and industry-specific BPO services (including
credit services, health, network and utilities). He leads a team of professionals charged with developing,
selling and delivering differentiated, innovative, insight-driven and operationally excellent services to
clients seeking BPO solutions to help them achieve high performance. Accenture‘s BPO services are
delivered through its Global Delivery Network, which consists of more than 50 delivery centers across
five continents.
Under Mr. Salvino‘s leadership, Accenture‘s BPO business has received many industry accolades
including International Association of Outsourcing Professionals‘ global service provider of the year from
2008 to 2011 and has consistently been recognized by industry analysts as a market leader for BPO.
3. IBM- Daksh BPO & IT Services:
Daksh eServices Pvt. Ltd. (Which was started by Sanjeev Aggarwal and Pavan Vaish in 2000, and which
was acquired by IBM in 2004) etc. also played a significant role in the growth of the ITES industry in
India.
In April 2004, IBM Corporation acquired Daksh e-Services to form IBM Daksh. Today, IBM Daksh is a
leading provider of business process services. It offers solutions in CRM, finance and administration and
back-office processes catering to Financial, Travel, Retail, Insurance, Communication and Technology
verticals.
Frost & Sullivan has named IBM the Contact Center Outsourcing Vendor of the Year in Asia Pacific, for
two consecutive years, 2006 and 2007. It received the NASSCOM-India Today Woman Corporate
Awards for Excellence in Gender Inclusivity in the BPO-ITeS category.
IBM Daksh is a winner of many recognized awards for employee and customer satisfaction. The
company promises growth for its employees. Some of the facilities offered by the company include life
insurance, paid holidays, referral bonus program, company car entitlement, retirement benefits,
promotional schemes etc.

25. With the acquisition of Daksh in 2004, IBM now also has a formidable business process outsourcing
(BPO) service portfolio. Associates and analysts work out of the Embassy Golf Links, and Manyata Tech
Park Bangalore office in out-sourced business processes of IBM clients. IBM-Daksh has an office in
Gurgaon and other cities in India too.
BPO services
The process-driven disciplines of Customer Relationship Management, Finance and Administration,
Human Resources and Procurement and Supply Chain Management are rich with opportunities for your
enterprise not only to save money but to grow, grab market share and drive customer loyalty. Discover
how we innovate processes to deliver measureable business outcomes for clients in a range of
industries and markets.
Customer Relationship
Management Services
Reach your customers with a multichannel communications platform and turn flawless service into a
selling point.
Finance and Administration
Improve the quality, integrity and accessibility of financial data for better business insight and decision
making

26. Human Resources Learning and Recruitment Outsourcing
Focus on strategic HR and talent initiatives while managing costs and providing an excellent employee
experience.
Procurement and Supply Chain Management
Access the best global resources and materials while getting the most value from every dollar.
Outsourcing at IBM
Outsourcing services for business processes, applications and IT infrastructure designed to improve
your bottom line.
Overview
Outsourcing your IT needs to IBM helps enable you to focus on strategic direction while trusting IBM to
manage the day-to-day operations that monopolize your time. Consider the breadth of IBM expertise and
experience managing business processes, applications and IT infrastructure.
Industry-specific business processes are available 24/7. When your company is looking to access new
business services quickly and cost-effectively, IBM hosted business processes can be the answer. IBM
provides one of the most comprehensive application hosting capabilities in the industry - from basic
support to global deployments.
By outsourcing to IBM, you can leverage the leading business applications that can help reduce your
time-to-market or boost customer satisfaction without the usual upfront infrastructure costs - or the
ongoing implementation and management headaches.
To learn more about our capabilities, please follow the links under 'What we offer' on the left side of this
page and explore our application services.
What IBM Outsourcing Offers:
Applications on Demand
Pay-as-you-go infrastructure and application management services for SAP, Oracle, PeopleSoft, and
Lotus.
IT outsourcing and hosting
With IBM IT Outsourcing you can benefit from IBM global expertise in the management of applications
and other IT components in either a hosted or onsite arrangement.

27. Services By Industry:
Reduce costs. Manage risk. Optimize supply chains. Improve customer experience. Increase revenue.
Whatever your industry, you are faced with ever-increasing expectations.
Our client teams have deep industry knowledge. Let us show you how technology can be strategically
applied to transform your enterprise and differentiate your business.
Aerospace and defense
Automotive
Banking
Chemicals and petroleum
Communications
Consumer products
Education
Electronics
Energy and utilities
Financial markets
Government
Healthcare
Insurance
Life sciences
Media and entertainment
Metals and mining
Retail
Travel and transportation
The IBM- Daksh Leadership Team:
Pavan Vaish - CEO, Business Process Services
Chandrasekar Thyagarajan - CFO
Rohit Tandon - EVP, Strategy and Shared Services
Kulbir Singh Ahuja - EVP, Service Delivery
Chebiyyam V.V.N.S. Murthy (CHM) - CQO, IBM Daksh and MBPS Asia Pacific
Arvind Agrawal - EVP, Finance & Accounting (F&A) Practice
Tina Dhawan - VP, Mumbai BU
Sanjay Dora - VP, Service Delivery, Philippines BU
Lyndon J. D'Silva - VP, Banking, Financial Services, and Insurance (BFSI) BU
Subbiah Gopalakrishnan - VP, Technology
Shalabh Jain - VP, Bangalore BU

28. Rajat VK Kotra - VP, Transitioning and Project Management
Anuj Kumar - VP, India BU (IBU) and Talent Transformation BU (TTBU)
Nandita Jain Mahajan - VP, Information Systems and Security (ISS)
Ullal Narendra Nayak - VP, Sales and Business Development
Ravinder Singh Rana - VP, Pune BU
Dilpreet Singh - VP, Strategic HR
Sanjiv Tandon - VP, Technical Services BU
4. HP (BPO and IT Services):
HP Business Process Outsourcing services are delivered on a common platform that enables
consistency, security and regulatory compliance. Our global reach enables a Best Shore approach that
lowers labor cost while tailoring service delivery to your specific needs. Digital GlobalSoft acquired HP‘s
one wing HP ISO in July 2003 and it Offers potential growth opportunities for both Digital and HP
Services.
HP Enterprise Services catalogs its services into three service portfolios which are,
Infrastructure Technology Outsourcing (ITO) - includes maintaining the operation of part or all of
a client's computer and communications infrastructure, such as networks, mainframes,
"midrange" and Web servers, desktops and laptops, and printers.
Applications Services - involves the developing, integrating, modernizing, and/or maintaining of
applications software for clients.
Industry Services, including Business Process Outsourcing (BPO) - addresses the core business
challenges of clients in five key industries: healthcare, transportation, communications,
government, and financial services, among others. BPO group is an integral part of the portfolio,
which involves performing a business function for a client, like payroll, call centers, insurance
claims processing, and so forth.
Horizontal services improve process efficiency and effectiveness for business functions common to all
industries.
Customer Relationship Management (CRM) Services

29. Effective services that let you recruit, retain and reward your best customers anywhere in the world.
Document Processing Services
Comprehensive services that help customers efficiently manage documents throughout their lifecycle
Finance and Administration Services
Handle a variety of functions—from sourcing indirect supplies to collecting customer payments and
performing cost and inventory accounting activities.
Human Resources and Payroll Services

30. Augment your staff with experienced HR and Payroll professionals who are trained to streamline
operations while cutting overall costs.
Industry Specific Solutions
Industry-specific solutions bring specialized expertise, best practices and technology to key business
processes in select industries. They include:
Communications, Media and Entertainment
Energy
Financial Services
Health and Human Services
Manufacturing
Travel and Transportation
Executive team (There was no separate leadership team info for ITES/ BPO
available on the internet)
Meg Whitman
President and Chief Executive Officer
Todd Bradley
Executive Vice President, Printing and Personal Systems Group
Dave Donatelli
Executive Vice President and General Manager, Enterprise Group
Henry Gomez
Executive Vice President and Chief Communications Officer
John Hinshaw
Executive Vice President, Global Technology and Business Processes
Marty Homlish
Executive Vice President and Chief Marketing Officer
George Kadifa

31. Executive Vice President, HP Software
Tracy Keogh
Executive Vice President, Human Resources
Cathie Lesjak
Executive Vice President and Chief Financial Officer
John F. Schultz
Executive Vice President and General Counsel
Bill Veghte
Executive Vice President and Chief Operating Officer
John Visentin
Executive Vice President, Enterprise Services
Chandrakant D. Patel
HP Senior Fellow & Interim Director of HP Labs
5. Fidelity BPO Wing:
FMR India
FMR India consists of three business verticals - Technology services, Business Delivery and Enterprise
Services, providing services to Fidelity Investments' US clients. The range of operations include IT
Development & Support, Business Process Outsourcing (BPO), Implementation, Business Analytics &
Research and Support functions.
FMR India was set up in the year 2002 at Gurgaon and its Bangalore operations commenced in 2003,
with the mission to enable Fidelity‘s clients to achieve lifelong financial independence and peace of mind.
Headquartered in Bangalore, FMR India has full-fledged operations Chennai also.
Fidelity Management and Research (FMR co.) founded in Boston by Edward C. Johnson 2
nd
to act as
investment advisor to fidelity fund.
The global brand
Fidelity is an international provider of financial services and investment resources that help individuals
and institutions meet their financial objectives.
Once known primarily as a mutual fund company, Fidelity has adapted and evolved over the years to
meet the changing needs of its customers. Today, that evolution is reflected in Fidelity's menu of products
and services. In addition to more than 300 Fidelity mutual funds, Fidelity also offers discount brokerage
services, retirement services, estate planning, wealth management, securities execution and clearance,
life insurance and much, much more.

32. What hasn't changed over the years is Fidelity's commitment to continuous improvement, state-of-the-art
technology and peerless customer service. Fidelity is responsible for many innovations that are standards
in the industry today. Fidelity reinvests a substantial portion of its revenues each year back into
technology to deliver new products and services to investors. And Fidelity is being consistently
recognized by industry surveys and publications for providing some of the highest levels of customer
support.
FMR’s locations in India
Fidelity Business Services India Private Limited
Pinehurst, Embassy Golf Links Business Park,
Off Intermediate Ring Road,
Bangalore 560 071 INDIA
Tel: 080 6691 6000
Fax: 080 4125 6260
Fidelity Business Services India Private Limited
Manyata Embassy Business Park,
Outer Ring Road
(Hebbal – Krishnarajpuram Section),
Opp. BEL Corporate Office
Bangalore 560 045 INDIA
Tel: 080 4033 5000
Fidelity Business Services India Private Limited
DLF Infocity Developers Chennai Ltd - SEZ,
Block - II, No.1/124, Shivaji Gardens
Ramapuram, Chennai 600 089 INDIA
Tel: 044 4545 1200 / 01
The leadership team:
Edward C. Johnson 3d
Chairman and CEO , Fidelity Investments

33. 6. GENPACT BPO:
Genpact Limited (NYSE: G) is a global provider of business process and technology management
services, offering a portfolio of enterprise and industry-specific services. It was formerly a GE owned
company called GE Capital International Services or GECIS. It operates from India, China, Guatemala,
Hungary, México, Morocco, the Philippines, Poland, the Netherlands, Romania, Spain, South Africa,
Australia, UAE, Brazil and the United States. Tiger Tyagarajan is the President and CEO of Genpact and
has the highest paid salary package of Rs.49 Crores per annum.
Currently it employs over 55,000 people in various locations providing services in 25+ languages on a
24/7 basis.
Genpact's services cover areas like Finance and Accounting, Analytics & Research, Risk Management,
Supply chain, Procurement, Enterprise Application Services and IT Information Services. Genpact serves
clients in various industries including Banking and Financial Services, Insurance, Capital Markets,
Healthcare, Life-sciences, Consumer Goods, Retail, Aerospace, Automotive, Energy, Hi-Tech,
Transportation & Logistics, and Hospitality.

34. History:
Genpact went public on NYSE on August 2, 2007 under the symbol "G".
The NYSE symbol "G" was initially allocated to the Gillette company. After the Gillette Company was
acquired by Procter and Gamble, the symbol became free and Genpact and Google booked it. It was
Genpact in the end that got to keep G as its stock symbol.
Apart from GECIS, Genpact has also been known as GECSI and GECIBS in its initial days of operation.
Locations:
Genpact operates from Asia, Eastern Europe, Northern America, Latin America, Australia and Africa.
In India
Genpact, Uppal Hyderabad
In India it operates from Gurgaon, Noida, Delhi, Hyderabad, Jaipur, Kolkata, Bangalore and Dehradun.
The operations in India are Finance and Accounting, Sales and Marketing Analytics, Customer Services,
Financial Services Collections, Supply chain, Information Technology and Actuarial & Other Insurance

35. Services with Learning Content Development. Genpact has got an approval to open its SEZ center in
Bhubaneshwar.II
Genpact has a 50:50 joint venture with NDTV in NGEN Media Services. Also has tied up with NIIT for
training related services.
In México
Genpact Mexico provides bilingual English and Spanish-language based business services, near-shore
services to North America and a significant document management capability. The Mexico operations
have 2200 people in three sites – two sites in Ciudad, Juarez (sister city to El Paso, TX) and one site in
Caborca. The core business competencies of Genpact Mexico lie in the areas of Customer Service,
Finance and Accounting, Collections, Document Management. Mexico is a Strategic Site to handle
Bilingual Call Centre and Non Voice Capabilities – mainly English and Spanish.
In USA
Genpact has assumed several accounting processes of Walgreens, the largest drugstore chain in the
United States. It has acquired a former Walgreens facility in Danville, Illinois to accommodate these
functions.
Through its wholly owned subsidiary formerly known as Creditek LLC, with facilities in Wilkes Barre, PA,
Nashville, TN, and Parsippany, NJ, Genpact provides Finance & Accounting solutions Revenue Cycle
Management services in such processes as order-to-cash, procure-to-pay and forecast-to-fulfill.
Genpact Mortgage Services, formerly MoneyLine Lending Services, provides private-label, outsourced
mortgage origination and fulfillment services and complex business process outsourcing for financial
institutions and other mortgage lenders from its centers in Irvine, CA, and Salt Lake City, UT.
In Guatemala
Genpact's facility in Guatemala was opened in 2008 and provides business process services in English
as well as in Spanish. The delivery center will initially accommodate more than 700 workers and has the
capacity to grow to approximately to 1,000. The facility's close proximity to the region's largest public
university is a major advantage in terms of attracting key talent.[12]
In Hungary
Genpact Hungary, founded in 2002, operates in Budapest and has established itself as one of Europe‘s
premier business services and technology solutions providers.[citation needed] It currently employs staff
from more than two dozen countries serving customers across Europe in over 15 languages.
In Romania
Genpact Romania, founded in 2006, operates in Bucharest and in Cluj.
In Netherlands & Spain
With the strategic acquisition in 2007 of Dutch and Spanish entities of ICE Enterprise Solutions, Genpact
provides SAP solutions via centers in the Netherlands and Spain. ICE is an SAP Services Partner,

36. Utilities Partner, and BW/SEM Partner in the Netherlands, and an SAP Partner and StreamServe Partner
in Spain.
In Poland
In June 2008, Genpact opened a new center in the Polish city of Lublin.
Genpact Operations Centre located in city of Lublin is a finance and accounting operations centre which
offers services to customers from Slovakia, Czech and Poland.[13]
Decision about starting the centre in Lublin results first of all with good city location, close to other states
in Centre and Eastern Europe. What is more Lublin – the largest city in eastern Poland - is known as a
strong academic centre. Lublin is home to 14 universities, approximately 100 000 students and about 22
000 university graduates.[14] Therefore Lublin can assure suitable personnel backup and offers
professional and experienced staff in finances and accounting, and also in management.
We are pleased with expansion our company in Poland. Opening of new centre is a large step in
systematic enlarging our European operating possibilities‖ - said Patrick Cogny CEO Genpact Europe.
First employees of new Centre became officially take on in June 2008 r. Centre in Lublin functions
already in 100% and it develops continually.
In Africa
In 2008, Genpact set foot in the North African city of Rabat, Morocco.
In 2009, Genpact entered into a partnership with South African Breweries Ltd (SAB) assuming
responsibility for its Shared Services Centre in Johannesburg, South Africa.
In China
Genpact in China, known as Jianbaite (in Chinese: 简柏特), has Service delivery centers in Dalian,
Changchun and Shanghai. Among them, the center in Dalian is the largest, located in Dalian Software
Park, employing about 3,000 people, and focusing on the Japanese business.
In Philippines
Genpact in the Phillppines has a BPO/Call Center branch located at Northgate Cyberzone, Filinvest
Corporate City, Alabang, Muntinlupa City.
The leadership team:
Pramod Bhasin is the Non-Executive Vice Chairman and former President and CEO of Genpact.
Foundation of GENPACT:
Pramod started GE Capital International Services (GECIS) in 1997 as the in-house BPO division of
General Electric (GE) when K.P. Singh convinced Jack Welch, the former CEO of GE, to outsource
certain services to India at Gurgaon. It was under Pramod that GE hired Raman Roy, pioneered business
process outsourcing in India, and expanded its operations from India to countries like China, Hungary,
Guatemala, Poland, Mexico, Morocco, the Philippines, Romania, South Africa and the United States.

37. GENPACT began in 1997 as a business unit within GE and this lineage has contributed to our deep
understanding of process. Starting first with the business of GE Capital and then expanding scope across
GE businesses, to providing business process management capabilities that delivered outstanding
business impact for the company.
Over a sustained 14-year period, Genpact has been the key provider of business process and technology
management services to GE and they continue to be a significant Genpact client. In January 2005,
Genpact became an independent company to bring our process expertise and unique DNA in Lean Six
Sigma to clients outside the GE family. In August 2007, Genpact was listed on the NYSE under the
symbol ‗G‘.
Driven by a passion for process innovation and operational excellence built on its Lean and Six Sigma
DNA and the legacy of serving GE for more than 14 years, the company‘s professionals around the globe
deliver services every day to its more than 600 clients from a network of 18 countries, 67 delivery centers
supporting more than 25 languages.
Genpact has been an early mover in the industry and a pioneer in many of the areas that have given
strength to the concept of Business Process Management. From the first to introduce Six Sigma for
Process Transitions to the first to build a Science of Process Management (SEPSM), Genpact has always
led the way, and in the process helped our clients outperform.
Innovation:
Genpact‘s successful and incessant efforts in challenging the status quo and bringing innovation to our
clients are demonstrated by continuous process solutions advances, such as those in analytics (e.g.,
inventory optimization or investor listening services based on social media methods), risk management
(e.g., anti money laundering, or simulation of the impact of commodity costs) or business collaboration
(through better platforms such as Genpact-Unified -Collaboration-Engagement).
Genpact is uniquely positioned to deliver business process innovation because of:
Its diverse yet cohesive client, partner and internal ecosystem. Like any great process, real innovation
doesn‘t happen in a silo and our approach benefits from a vast network of intelligence: in-depth
collaborative development work with some of our best clients, select consultants and advisors; joint
research with leading academia like the MIT Center for Collective Intelligence; our web-based
SolutionXchange collaboration network of ―crowd sourced‖ experts; our SEP innovation group, and our
deep analytics bench; Genpact‘s active Board of Directors; acquisitions such as Akritiv and EmPower
Research.

38. Its unique innovation process with dedicated senior management. Our ―innovation factory‖ consistently
harnesses the power of our ecosystem, extracts needs and insights and combines Genpact capabilities to
create repeatable, cost effective, configurable yet standardized innovative solutions to old and new
challenges.
The Genpact DNA of Lean Six Sigma
Genpact is proud of its heritage of Lean Six Sigma—it is the way we work, a part of our DNA! Lean Six
Sigma is a tool, a methodology for quality improvement that has been around for many years. So the
difference is not the tool but how a company embraces it and puts it to work.
As a part of GE, Genpact was in an initial beta site under Jack Welch, who became known worldwide as
a leading proponent of Lean Six Sigma. Lean Six Sigma was common in manufacturing but GE was an
early innovator in its application to services and made this a tremendous success.
There are two types of companies when it comes to embracing Six Sigma. Those where it is simply a
function and others where Lean Six Sigma is driven through the organization, which is true of GE and is
clearly true for Genpact. It permeates what we do and is highly visible in our operations, our people
processes, and our leadership direction.
Genpact’s offerings: (Solutions)
Aftermarket Services
Analytics and Research
BPaas (Business Process as a Service)
Collections
Contact Center
Direct Procurement
Engineering Services
Enterprise Application Services
Finance and Accounting
Human Resource Services
Indirect Source to Pay
IT- Infrastructure Services
Learning and Marcomm Services
Legal Services
Media Services

39. Re-engineering
Risk Management Services
Genpact’s offerings: (Industries)
Aerospace
Automotive
Banking and Financial Services
Capital Markets
Chemicals
Consumer Goods
Energy
Healthcare- Payer
Healthcare- Provider
Hi- Tech
Hospitality
Insurance
Life Sciences
Retail
Telecommunications
Transportation and logistics
We have mentioned about the solutions and industries which GENPACT supports because GENPACT
has not divided the company as technologies, BPO etc. They have divided as per ‗‘Solutions‘‘ and
‗‘Industries‘‘ and they do high end work in the services space. Since it all comes under the big umbrella of
IT Enabled Services, we thought of including it in the company profile.

40. The management team
Genpact is managed by an experienced and cohesive leadership team. Many members of the leadership
team developed their management skills working within GE and were involved in building Genpact. Our
business leaders combine strategic, operational and financial experience with extensive relationships and
expertise within target industries. Senior leaders have, on average, over 20 years of relevant experience.
7. ANZ Services/BPO
ANZ in India:
ANZ's operations in India are an integral part of ANZ‘s global network comprising:
Australia and New Zealand Banking Group Limited (ANZ) in Mumbai

41. ANZ commenced banking operations in India with the opening of its first branch in Mumbai in
June 2011. This follows the receipt of the banking licence from the Reserve Bank of India in
October 2010.
ANZ is one of the 25 largest banks globally by market capitalisation1 and holds a long-term credit
rating of Aa2/stable from Moody‘s and AA-/stable from S&P.
The India branch supports Corporate and Institutional clients in India and provides greater access
to the Indian markets for our global network customers.
ANZ offers clients a full range of rupee and foreign currency products and services, working
capital and term financing, cash management and trade products, foreign exchange and interest
rate solutions, as well as deposits and advisory services.
ANZ Operations and Technology and ANZ Support Services India, Bangalore.
ANZ Operations and Technology Pvt. Ltd. and ANZ Support Services India Pvt. Ltd. in Bangalore
are an integral part of ANZ‘s Global Services & Operations and Technology divisions.
In Bangalore, ANZ currently employs close to 5000 people in technology development,
operations and shared services roles. The group has been servicing ANZ‘s technology needs for
more than 21 years and has in recent years extended its capabilities to include operations and
support functions.
This division is led by Leanne Lazarus.
Company Profile:
ANZ‘s history dates back over 175 years. We are committed to building lasting partnerships with
our customers, shareholders and communities in 32 countries in Australia, New Zealand,
throughout Asia and the Pacific, and in the Middle East, Europe and America.
Business strategy:
We aim to become a super regional bank. This involves growing our presence in the Asia Pacific
region and source 25-30% of earnings from our Asia Pacific Europe and America Division by
2017, while also being very focused on growth in our core domestic businesses in Australia and
New Zealand.

42. ANZ Executive
ANZ executive is made up of the Board of Directors and Management team.
In relation to corporate governance, ANZ's Board seeks to:

43. Embrace principles and practices it considers to be best practice internationally;
Be an 'early adopter', where appropriate, by complying before a published law or
recommendation takes effect; and
Take an active role in discussions of corporate governance best practice and associated
regulation in Australia and overseas.
As a company listed on the Australian Securities Exchange (ASX), ANZ is required to disclose
how it has applied the ASX Corporate Governance Council's Corporate Governance Principles
and Recommendations (ASX Governance Principles) during the financial year, explaining any
departures from them.
ANZ has complied with each of the ASX Governance Principles throughout the 2011 financial
year.
Codes of Conduct and Ethics
ANZ has two main Codes of Conduct and Ethics which provide employees and Directors with a
practical set of guiding principles to help them make decisions in their day to day work. The
Codes embody honesty, integrity, quality and trust, and employees and Directors are required to
demonstrate these behaviours and comply with the Codes whenever they are identified as
representatives of ANZ.

44. ANZ Management comprises the Chief Executive Officer and ANZ's most senior executives. It meets
monthly to discuss performance, to review shared initiatives and to build collaboration across ANZ.
Chief Executive Officer
Michael Smith has been Chief Executive Officer of Australia and New Zealand Banking Group Limited
(ANZ) since October 2007.
Until June 2007, Mr Smith was President and Chief Executive Officer, The Hongkong and Shanghai
Banking Corporation Limited; Chairman, Hang Seng Bank Limited; Global Head of Commercial Banking
for the HSBC Group and Chairman, HSBC Bank Malaysia Berhad. Previously, Mr Smith was Chief
Executive Officer of HSBC Argentina Holdings SA and was subsequently appointed Chairman of HSBC in
Argentina in 2000.
Mr Smith joined the HSBC Group in 1978 and during his 29-year career he held a wide variety of posts in
Hong Kong and the Asia-Pacific region, the United Kingdom, Australia, the Middle East and South
America, including appointments in Commercial, Institutional and Investment Banking, Planning and
Strategy, Operations and General Management.
Mr Smith graduated with honours in Economic Sciences in 1978 from City University of London.

45. 8. KPMG
KPMG in India is one of the leading providers of risk, financial services and business advisory, internal
audit, corporate governance, and tax and regulatory services.
KPMG Global Services
KPMG Global Services is a joint venture between KPMG International, KPMG in the UK & US
and KPMG in India. Set-up in 2008 as a global capability center, KGS provides professional
services to KPMG member firms.
With its broad portfolio of services and cross-functional capabilities, KPMG Global Services
delivers on both immediate and long-term business imperatives for the global member firms by
harmonizing its core Advisory services with the various Centers of Excellence to provide
services using a flexible delivery model. Over 1300 high performing individuals work together to

46. respond to complex business challenges facing our clients by offering informed perspectives,
and delivering clear solutions.
By working with us, member firms have successfully driven business value through acquisition
of new capabilities, increased competitive strength, and an expanded global footprint.
Services range from highly complex and diverse advisory engagements like shared services
design, financial transformation, sourcing strategy, financial due diligence and information
protection, to research based solutions like benchmarking and competitive landscape analysis,
and advisory support activities like project management, bid and administrative support.
Types of Services offered:
Advisory
Our practice teams are fully integrated with member firms‘ professionals and assist clients in
managing their business challenges. Advisory services span -
Management Consulting:
Our professionals combine deep functional expertise with industry knowledge to help clients
address their business challenges. We work with clients to understand their key value drivers
and assist them in achieving tangible improvements in performance. Our services lines include:
Business Effectiveness: Help clients to enhance operational efficiency by reducing operating
cost, increase revenue and better manage their business assets.
Financial Management: Provide financial advice to enhance finance organizations‘ performance
and increase its business value associated with large transformation projects.
IT Advisory: Deep and varied experience from IT strategy and blueprinting to data analytics.
People & Change: Work with HR organizations to achieve and deal with change by change
through dealing with people issues associated with large transformation projects.
Benchmarking: We add value to client engagements across the advisory practices by providing
insights on how client performance compares against leading industry practices or global best
practices. Once the performance gaps are identified, we identify potential areas where value can

47. be realized to optimize business performance both in terms of efficiency and effectiveness for the
client.
Transaction and Restructuring
Mergers and Acquisitions (M&A) are amongst the most significant transformational events at a company
and they form the life blood of investors such as private equity firms and other financial investors. To help
our clients execute M&A transactions, KGS provides valuation, due diligence, and a variety of other
services related to transaction execution, on both the buy side and sell side.
Corporate Finance: Advise clients in assessing strategic and financial alternatives. This entails
preparation of an information memorandum, identifying potential targets and bidders, arriving at
deal value and thus helping the client in achieving the synergies or returns expected through the
transaction.
Restructuring: Identifying problem areas which can enable the clients to implement solutions
precisely and quickly. Solutions include providing assistance to stressed and distressed
companies, identifying under-performing businesses, and helping manage the receivership and
bankruptcy processes.
Transaction Services: Analyze financial statements, conduct due diligence and make
recommendations on investment risks and opportunities.
Business Modeling Group: We provide services across our advisory practices that include
building, validating and developing documentation on complex financial models used across
various sectors and end users.
Risk Consulting
We combine our deep service line skills and sector expertise to address our clients‘ most complex challenges in the
fast changing risk and regulatory landscape and to turn risk to advantage. Risk Consulting brings together Advisory‘s
Financial Risk Management, Forensic, and Internal Audit, Risk & Compliance service (IARCS) service lines as well
as the risk and compliance components of IT Advisory. Current services include:
IARCS:
Internal Audit & Sarbanes Oxley Assistance Services (SOAS): We monitor the management response to
business risks and improve an organization‘s effectiveness through audits of key business processes
and controls.
Contract Compliance Services: We help clients across a wide range of industries in identifying,
recovering lost revenues and reducing costs in areas such as royalties, licensing, distribution
agreements, conditional pricing arrangements and intellectual property protection.
Regulatory Compliance: We leverage industry knowledge and regulatory capabilities to assist regulators,
boards, and management in evaluating an entity‘s compliance with applicable rules and regulations.
IT Advisory:
Information Protection & Business Resilience: We work with clients to assess, design, embed and
manage controls to protect corporate information assets, align controls and business strategies and
improve business resilience.
IT Attestation - IRMea: We help external audit professionals in assessing controls risk and in dealing with
complex technology topics in support of financial statement audits and integrated audits.
IT Attestation - SAS70: We examine internal controls of outsourcing services providers and report out the
state of controls against the Statement on Auditing Standards (SAS) No. 70, and other country

48. equivalents.
IT Internal Audit: We provide advice over the risks and controls in the area of internet security, business
application controls, project risk, and business continuity.
Tax Professional Services
The KGS Tax Professional Services team has specialists with experience in Transfer Pricing, M&A Tax,
Valuation, Global Compliance Management Services (GCMS), and Insurance premium tax.
Transfer Pricing
As the global economy expands, national fiscal authorities are seeking effective ways to protect their tax
bases. This has translated into increased challenges for global companies who are looking for advice in
dealing with the increased regulation and associated scrutiny.
The Transfer Pricing practice helps companies develop and implement economically supportable transfer
prices, document policies and outcomes, and respond to tax authority challenges.
Our Transfer Pricing professionals provide a wide range of services including benchmarking studies,
company overviews, industry analyses and a variety of other services related to transfer pricing.
Benchmarking studies are a necessary element of documentation confirming that the prices established
by the taxpayer are in the range of the market prices. Benchmarking helps verify the prices and margins
that are applied by related entities. Verification is aimed at checking if the controlled transactions‘
conditions conform to the conditions of comparable transactions entered into by non-affiliated entities.
M&A Tax
The global corporate environment is a highly competitive landscape. To help our clients execute M&A
deals, we provide Tax Due Diligence (Data Management and Report Writing), E&P studies (Data
Collection & Analysis and IRS & Federal Tax management), Stock Basis studies, and Transaction Cost
Analysis (TCA).
A Tax Due Diligence report involves financial analysis of a merging company by using advanced
analytical tools to dig deep into the client‘s financial information like P&L, Balance Sheet, Capital