9. HINDUJA TMT: Actions Speak Louder…

FACT FILE CEO R Mohan POSITIONING Back-office and contact-center services STARTED IN 2000 OWNERSHIP Hinduja Group REVENUE (2002-03) $20 million NO OF PEOPLE 1465 (31 Oct 2003) CORPORATE ADDRESS HTMT House No. 614, Vajpayee Nagar, Bommanahalli Hosur Road, Bangalore—560068 WEBSITE www.hindujatmt.com NO OF CLIENTS 5

ISO 9001:2000 SEI CMM Level 4 (IT Division) BS 7799 (Implementation phase) Six Sigma (Ongoing initiative)

LOCATION

FACILITIES: 4 (Bangalore—1, Mumbai—1, Manila—1) SALES & MARKETING: New York, London

Surprising as it may sound, but there is just one Bangalore-based company
that features in bpOrbit Top 15. And that is Hinduja TMT (HTMT). The company is
also the only one promoted by a major old economy group to feature in this list.

A fairly low-profile company, Hinduja TMT has built strong operational skills
and an extremely good organizational culture, which has helped in being voted as
the second best employee friendly company in the recently released Dataquest-IDC
BPO Employee Satisfaction Survey, next only to the first name of India
offshoring, GE Capital.

The company is fairly focused with all its revenue coming from just two
verticals–telecom and insurance. Aetna, the no. 1 healthcare insurance company
that chose India fairly early to offshore its processes, has outsourced its
healthcare claims-processing work to HTMT.

However, the company has a dangerous level of client concentration with the
top three clients providing almost 80 percent of revenues. It had just five
clients in 2002-03. While it expects the share of the top client to
significantly come down to 33 per cent by the end of the current financial year,
it expects the share of the top three clients to go down only marginally by 5
percent.

However, its acquisition of the Philippines company C3 would mean that its
portfolio would get widened. Interestingly, however, the company does not see
revenues from new verticals in the current year–by March 2004. HTMT focuses on
both back-office processing and inbound contact-center services. It has no
presence in telemarketing. The company also has a client in the workers
compensation, auto and property insurance space. In the telecom space, it
provides call-center services to a few UK- and US-based clients.

Recording an impressive growth of 121 percent, HTMT recorded a revenue of $20
million from its BPO operations in 2002-03, which is almost 90 percent of its
total revenue from technology services (HTMT also has an IT services arm). That
makes it probably the only almost pure-play third party BPO company listed in
Indian stock markets.

The company expects to grow by about 60 percent, thanks to the new contracts.
After Manila, HTMT is now looking for a presence in Mauritius, primarily as part
of its risk-mitigation and disaster-recovery strategy. In fact, the Mauritius
move has been propelled by the desire of its insurance customer for geographical
diversity.

The company, however, does fairly routine jobs though its quality levels are
excellent. The company needs to balance between volume and value to have a
healthy and sustainable growth.