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 QUALITY 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.