Notes from AGM
Three main segments of company:
BPO: offshore and domestic
Global HRO: Strong growth. increased our offering and added geographies.
- onshore in US
- Major customers are large banks in US
- Sales cycles are long
- Growth can be substantial
- Done onsite in US - so no major impact of political uncertainty
About losses in past:
It was the customers that were facing problems in their businesses. The problems were never Allsec's delivery.
2 major turning points:
- HR business: we are 2nd position in India. ADP are global giant. They are not as large in India. We are bigger than ADP in India
- Offshore business of Standard Chartered for Anti Money Laundering.
About AML Business:
- It is a process outsourcing business
- Have around 250 employees dedicated to it in US
- High customer concentration
- Has been a major growth contributor over last 2 years
- It is linear, i.e. would require more employees for more revenue
- The contracts are 1 to 3 year contracts
- If contracts are not renewed, then it can bring back old revenues. We can’t pre-empt this.
- In talk with various other banks for such process outsourcing.
- No subsidiary is focused on any particular thing.
- Subsidiaries are structured to take advantage of various tax-benefits (primarily on why using Retreat for AML).
- All the past acquisitions have been successful with full recovery.
- Mortgage business acquired through Retreat is ended.
- There has been a 40% growth in this.
- This is mostly domestic business. Hope to explore new territories.
- Customers such as Accenture, Kotak, HSBC.
- Very positive about it.
- It is non-linear, i.e. it won’t require as many employees for increase in revenue.
- Almost no attrition in middle and senior management.
- Margins should be similar. Not much increase, nor decrease expected. Depends on contracts too.
- Too early to plan about cash deployments and allocations. Much of the profits have come over last 1 year.
- Will try to start investor conferences soon.