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Rethinking Workforce Strategies and Employee Innovation in Turbulent Times June 2009 An Overview Founded: December 2001 FY09 Revenue / FY03-09 CAGR Rs. 17,493.7 million($ 376.5 Mn) / 69% Employees (Mar 2009): 21,570 Global Presence: 43 delivery centers across five countries (India, US, UK, Argentina and Philippines) Service Offerings: Full range of business process management services across customer life cycle in the BFSI, Telecoms and Media, and Healthcare verticals Fortune 500 & FTSE 100 companies Client Profile: -3 of the 5 largest US Banks -5 of 10 largest credit card companies in the US -2 of the world’s top 10 telecom companies -3 of the leading Indian telecom service providers -3 “Fortune 100” healthcare companies and over 800 US hospitals Firstsource © 2007 | confidential | July 17, 2015 | 2 External Environment • Developed economies are in a recession - • • • This obviously impacts on the export sector Growth rates have decelerated - The Indian growth rate is down to 6-7% - Lot of companies projecting flat to low teens in growth Many small IT & BPO companies have shut down; the larger companies have slowed down hiring - Unemployment is rising - Large numbers of campus pass outs are idle Pressure from clients - On pricing - Value adding to clients beyond SLA Firstsource © 2007 | confidential | July 17, 2015 | 3 Internal Environment • Companies under pressure to maintain profits at current levels - - • Focus on improving productivity • Longer working hours • Increasing span of control Bring down costs • Low single digit salary increases/ salary freeze • Reduction in travel & other expenses Huge focus on controlling headcount; reducing bench - Getting rid of non-performers - Virtual bench - Getting rid of one or two layers/levels in the organization structure Firstsource © 2007 | confidential | July 17, 2015 | 4 Rethinking Workforce Strategies…….. • • • Communicate, communicate, communicate………. - Openly share data on company performance & financials - Talk openly about challenges ahead - Share the plan ahead Involve employees in decisions being made - Ask for suggestions - Form teams (functional/cross functional) to come up with solutions This is the time for companies to show their human side - Would shareholders be willing to accept a lower profit this year for hopefully a better return in the years ahead? - Virtual bench, Sabbaticals, training, generous severance packages etc Firstsource © 2007 | confidential | July 17, 2015 | 5 Rethinking Workforce Strategies…….. • • Opportunity to take measures that will strengthen the company for the future - Restructuring the company - Increase investment in Sales & Marketing & reduce G&A expenses - Change policies & make changes to the grade structure - Continue to invest in training - Strengthen processes Focus on building the innovation culture and domain expertise in the company - Stay committed to the Innovation road map - Think through on ways of improving domain expertise and implement the same Firstsource © 2007 | confidential | July 17, 2015 | 6 THANK YOU Firstsource (NSE: FSL, BSE: 532809, Reuters: FISO.BO, Bloomberg: FSOL@IN) is a global provider of BPO (business process outsourcing) services headquartered in India. Firstsource provides customized business process management to global leaders in the Banking & Financial Services, Telecom & Media and Healthcare sectors. Its clients include Fortune 500 Financial Services, Telecommunications and Healthcare companies. Firstsource has a global delivery model with operations in India, US, UK, Argentina and Philippines. (www.firstsource.com)