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INTERNAL ANALYSIS STRENGTHS 1.

. Acquisition Acquisition is a Better Way to Grow It's quite simple--the way to expand your business is through hard work. Keep your customers happy and market aggressively. In the end it comes down to old fashioned sales and marketing, and plenty of hard work. This is what most consultants, professors, and businessmen will insist. You'll hear a lot of slogans and truisms like "there are no shortcuts to success." We're certainly not about to claim that hard work isn't a key ingredient of success in growing a business. But, in contrast to the traditional wisdom, there is a short cut to growth. Growth through acquisition, too often considered the exclusive domain of the largest of companies, is also quite appropriate for the small and midsize company looking to achieve rapid expansion. Synergies through Acquisition. The key to growth by acquisitions is taking a advantages of synergies: making 2+2=5. Growth through acquisition is a quicker, cheaper, and far less risky proposition than the tried and true methods of expanded marketing and sales efforts. Further, acquisition offers a myriad of other advantages such as easier financing and instant economies of scale. The competitive advantages too are formidable, ranging from catching one's competition off guard, to instant market penetration even in areas where you may currently be weak, to the elimination of a competitor(s) through its acquisition. Convergys acquired the following companies: a. Wiztec Solutions (January 2000) This acquisition augments Convergys' leadership position in providing full-service billing and customer management solutions for Pay TV and broadband operators including cable television, high-speed data, and cable telephony, DBS, Direct-to-Home (DTH), Digital Terrestrial Television (DTT), and Multi-point Multi-channel Distribution System (MMDS). Convergys' WIZARD solution fully integrates advanced Pay TV and broadband services including digital and interactive offerings such as

pay-per-view (PPV), video-on-demand (VOD), Internet access, home shopping, games, and others. b. Ottawas Taima Corp. (Sept. 1, 2000) Convergys Corporation announced the acquisition of Taima Corporation, a privately-held, Ottawa, Ontario-based company that operates world-class, integrated, technical help desk support services for Internet Service Providers (ISPs) and other Internet-based clients. Taima and its approximately 800 employees will become part of Convergys Corporation). Taima adds to Convergys' technical support capabilities in the highgrowth ISP sector. It utilizes the dynamics of technical help desk support and contact center management to structure and engineer effective single point of contact services that meet the specific needs of its Internet-based clients. c. Geneva (March 7,2001) Geneva's sole product is a carrier grade-rating and billing system that manages customer and third-party transactions in the E-commerce, telecom, and utility markets. In addition to expanding its product line and potentially offering an integrated product, Geneva gives Convergys an edge in the telecom market, Convergys president Jim Orr said in a conference call. "We don't have rating and billing for the CLEC market," Orr says. "This deal strengthens our position to handle any kind of communication transaction, and we can be competitive in more places." d. TelesensKSCL (July 2002) Convergys recently purchased the UK-based assets of bankrupt billing and customer care competitor, TelesensKSCL, at what appeared to be a bargain price. This acquisition provides tactical benefits and takes the acquired products off the market for competitors and new entrants. However, as Convergys intends to retire these products, it is uncertain how it can benefit quickly from the deal. e. Avaya Developer Connection Program (June 24, 2003) - Avaya Inc. designs, builds, and manages communications networks for more than 1 million businesses worldwide, including 90 percent of the FORTUNE 500. Focused on businesses large to small, Avaya is a world leader in secure

and reliable Internet Protocol (IP) telephony systems and communications software applications and services. Driving the convergence of voice and data communications with business applications - and distinguished by comprehensive worldwide services - Avaya helps customers leverage existing and new networks to achieve superior business results. f. ALLTELL Communications Inc. (December 31, 2003) - ALLTEL is a customerfocused communications company with more than 12 million customers and nearly $8 billion in annual revenues. ALLTEL provides wireless, local telephone, long-distance, Internet, and high-speed data services to residential and business customers in 26 states. g. Outsmart and I-Benefits (April 26, 2004) Out-Smart and i-Benefits have a diverse group of more than 100 clients covering all industry segments throughout the Asia Pacific region with offices in Singapore, Malaysia, and Hong Kong. Their combined client list includes some of the world's largest corporations such as American Express, Citibank, Dell, Ericcson, JP Morgan, Microsoft, Pfizer Pharmaceuticals, Prudential Financial, Unilever, and UPS. h. Encore Receivable Mgt., Inc. (May 4, 2004) Encore is a well respected, nationally licensed, privately held company with about 1,100 employees. It is a full service firm supporting both the pre- and post-charge off markets and specializing in the collection of past due or delinquent accounts mainly for large clients in the bank card, telecommunications, retail, and automotive industries. Encore's clients include 9 of the top 10 bankcard issuers in the United States. i. Finali (November 4, 2004) Convergys has acquired a leading contact center analytics firm that specializes in customer-driven business transformation and addresses the specific needs of the $130 billion in-house contact center market. Convergys closed the purchase of Finali Corporation for $25 million in cash, representing less than two times expected 2005 revenue. Finali transforms customer care operations into business intelligence centers through a unique blend of analytics, consulting, and automation.

Finali uses call segmentation and enterprise-specific categorization tools to produce data that explains the causes of customer contacts. This business intelligence enables companies to optimize their business processes both inside and outside the customer care center. Using this intelligence, companies can treat the causes of the contacts at the source and automate transactions more successfully. Clients experience dramatic reductions in cost and measurable improvements in customer satisfaction. Finali also provides patented virtual agent technology that helps its clients' customers effectively navigate their web sites. This results in more completed web transactions and fewer telephone calls. It enables Convergys to create unmatched, industry-specific benchmark data on customer interactions to help clients identify and address gaps in business performance more quickly and effectively. j. DigitalThink (March 25, 2005) - DigitalThink was an electronic learning (eLearning) enterprise solutions company that strove to address the entire range of a corporations training and education needs. Founded in 1996 by Umberto Milletti, Pete Goettner and Steve Zahm At one time it was termed a Business Solution Provider (BSP) but would likely be viewed in modern terms as a software-as-a-service (SaaS) model. DigitalThink was one of the first eLearning companies to incorporate online mentors and tutors into their offering. A notable accomplishment of the company was to secure a deal with McDonalds corporation to provide McDonalds with a global, web-based training program. k. Delloitte Financial and Accounting BPO (August 10, 2005) Convergys increased its staff strength during 2005-2006, but did not add any new centers. It acquired Deloitte Consulting Outsourcing and ventured into the finance and accounting domain. The company's revenues from India grew from 20 percent in 2004- 2005 to 30 percent in 2005-2006. For the future, Convergys proposes to set up four new centers in India, US and the Philippines, with the largest one planned for India.

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Shanghai Hong Xun Software Co., Ltd. (March 13, 2008) Shanghai Hong Xun Software Co., Ltd. is a software technology company that develops solutions for the telecom service providers. The companys products, marketed under the name BMI Asia [sm], include Business Management System (BMS) that assist in order entry, service provisioning, workflow processing, resource management, customer management, workforce scheduling and inventory reservation. In addition, it offers technical support and specialized training services. The company is based in Shanghai, China.

m. Intervoice (September 04, 2008) - Convergys Corporation, a global leader in relationship management, announces the successful closing of its acquisition of Intervoice, Inc., for $335 million in cash or $8.25 per share. Both companies are recognized leaders in their respective domains. This combination provides clients with a suite of solutions, from a single source, that enhances customer and employee interactions and simplifies operations. With Intervoice, Convergys is extending its leadership position in relationship management adding additional strengths in the software-based interactive voice response, contact center, and mobile messaging technology and applications markets. This strong leadership position is supported by combining the innovative technology and large, global client base of both companies. Convergys is already addressing strategic methods of bringing the two companies together in a way that best serves all clients, ensuring they receive the superior levels of service they have come to expect from both companies. Here are the strategic and financial benefits of the acquisition: Comprehensive product and services offering - By integrating Intervoices complementary speech automation, Web self-service, and mobile applications, Convergys will offer a comprehensive array of automated and live agent services coming from a single source. Expanded client base and growth opportunities in global market Intervoice currently serves thousands of enterprises and network service providers across multiple industries. Cross-selling opportunities will accelerate Convergys revenue growth in 2009 and beyond. Predictable revenue with attractive contribution margins Intervoice revenues for its fiscal year ended February 28, 2008, were

approximately $202 million. Slightly more than fifty percent of these revenues are maintenance and hosted services revenues that are predictable and recurring. These revenues should generate attractive margin contributions. n. CEON ( October 6, 2008) Convergys has acquired CEON Corp. to help service providers better manage how they bring new products and services to market. Ceon fits broadly in the market sector called PLM, or product lifecycle management. PLM systems play an important role in most manufacturing-based industries, where companies must optimize the processes by which they create and assemble new services. PLM has made less of a splash in the carrier arena often focusing on the creation of more flexible and dynamic service catalogs -- in large part due to the complexity and custom-built nature of most new carrier services. Convergys is initially integrating the new product catalog with its billing/charging and customer manager products -- and believes that preintegration will make it easier for service providers to get started with more centralized product management. o. Datacom Asia Contact Center (April 3, 2013) - Datacom is one of the largest Australasian-owned professional information technology services companies, with operations in New Zealand, Australia, Malaysia, Philippines, and China.
2. Asset Leverage

Business Assets: Leverage all of your assets An intangible asset is something that typically is reflected in the line item of goodwill when evaluating a business. The basic assumption is that an intangible asset could be anything that reflects value in a non-material form. Some examples of intangible assets are under-utilized employee skills, referral source relationships, client databases, operational infrastructure production capacity and community presence to name a few. Identifying intangible assets can benefit your company. In today's Convergys market transition is the key to survival. It is essential that Convergys

companies embrace this transition with a think out-of-the box mentality. The first step in leveraging your current asset values is a full assessment of your organization's tangible and non-tangible assets. Conduct an assessment There is no established procedure for conducting a value assessment of intangible assets; however, what I suggest is to actually look at a financial goal first and then identify components of your business that would help you get to that goal. You would start by identifying a new market or product, and the potential returns, and then look back at your current operation and seek out underutilized platforms to launch into this segment such as your database, your retail walk-in and your community relationships. The benefit of identifying intangible assets is that the value to be derived from these assets have unlimited value potential, whereas tangible assets have real defined value and cost. Tangible assets typically can be reflected in book values often calculated by market values and have a fixed ceiling. However, intangible values such as client databases have an unlimited value potential based on a company's ability to leverage intangible assets utilizing new marketing techniques and channeling new products and services to a client database.
3. High Sales Growth / Strong Financial Capability

The BPO industry is doing so well in the country that there are currently thousands of BPO jobs for countless jobseekers out there. With so many choices, however, how do you know which companies offer have the strongest financial capabilities for good compensation and rewards and job security? Convergys is the right place to work on for it has strong financial capabilities. It has surpassed some of the BPO companies such as Sitel, Sykes Asia, Teletech and many more. It incurred total revenue of Php. 11.901 billion last year and the first and second quarter has already surpassed the 2012 financial result on first and second quarter. Accenture (Revenue: 17.433 billion pesos)

Accenture is one of the biggest BPO companies today employing over 261,000 people in 120 countries. In 2012, the company generated global revenues of $27.9 billion with 89 of its clients belonging to Fortune 500 companies. Filipinos choose to work for Accenture because it offers great benefits, career growth, and excellent training. In fact, its common for Accenture employees, especially the ones in the IT field, to work on international projects abroad. The company also subsidizes different social clubs such as basketball, football, running, and even photography to help its employees improve their work-life balance. Convergys Philippines (Revenue: 11.901 billion pesos) Convergys is one of the top companies offering call center jobs in the Philippines for years, employing over 35,000 people in different locations in the country. Just like other top organizations, Convergys offers career development, health benefits, above-industry compensation, and a diverse work culture. Apart from that, the company has won prestigious awards such as the Fortune Most Admired Company (nine consecutive years), BPO Company of the Year (2010), and PEZA Company of the Year (hall of fame). Teletech Customer Care Management Philippines (9.413 billion pesos) Teletech currently employs over 40,000 employees in 17 countries in different industries such as communications, media, finance, healthcare, technology, transportation, and retail. Teletech is one of the top customercare companies in the Philippines for over a decade. JPMorgan Chase Bank Philippines (8.931 billion pesos) JPMorgan Chase Bank is one the leading financial providers in the world. It has assets worth $2.3 trillion with operations located in 60 countries. It currently serves millions of customers in the United States alone. In 2005, it established its Manila office, which opened hundreds of job openings right away. In just eight years in the country, JPMorgan became of one of the most successful BPO companies. Its headquarters in the Philippines are located in Makati, Taguig, and Cebu.
4. High Performance Culture

Convergys have almost 80,000 employees all over the world and 35,000 of these are employed in the Philippines. Unlike any other companies, Convergys strengthen their relationship between and among each other to have a high performance whether they do not have the same culture. As the Executive in the Philippines, Marife B. Zamora says,

At Convergys, building a high-performance culture is integral to our Vision and Strategy. It empowers everything we do as a company. Our strategy is to create superior shareholder returns by developing a highperformance culture that delivers differentiated value in attractive markets. This involves two things: People. We organize and align people to successfully execute strategy, commit to the development of people, align incentives to performance, and focus the organization on client benefits and competitive advantage. They say that computers are magnificent tools for the realization of our dreams, but no machine can replace the human spark of spirit, compassion, love and understanding. Performance. We enhance leadership to drive fast and effective decisions, strengthen project management, drive personal accountability, and institute a metrics-based management approach. Now, it is one thing to pay lip service to this strategy, and it is another thing to translate this strategy into reality. At Convergys, three success factors have led to the development of our high-performance culture. This high-performance culture has fueled the rapid growth of Convergys in the Philippinesfrom one employee to nearly 10,000 in three short yearsdare I say the fastest growth seen in the Philippine contact center industry. If life was so easy that you could just buy success, there would be lots of successful companies in the world. Successful enterprises are built from the ground up. The first success factor that has contributed to our highperformance culture is a critical, enterprise-wide strategic initiative called the Performance Transformation. Why did Convergys need to change? Benjamin Franklin once said The definition of insanity is doing the same thing over and over and expecting different results. To see our vision become reality, we cannot be satisfied with the status quo. The ultimate barometer of a publicly-traded companys success is how it performs against its financial measures, namely, revenue growth, operating income, and earnings per share. Because we wanted to improve our financial performance relative to competition, change was necessary.

Thus, the Performance Transformation Initiative was born. The Performance Transformation Initiative is a discipline program to improve Convergyss performance through focused business metrics and increased accountability. The program helps us fundamentally change the way we operate as a company with the goal of producing the following results: 1. Improved growth, profitability and overall performance of the business; 2. Clear alignment across the organization regarding our strategy and operating model; 3. Tighter linkage of individual performance accountability to operating plans and our strategic plan; and

4. And greater focus on development of the talent we need to lead the business; Through the performance transformation, we are moving the business from its current state to a more competitive results-oriented future state. To do this, Convergys must change: 1. From a slow-moving reactive company to a responsive, forward-thinking company; 2. From working in bureaucratic silos to One Convergys working in collaboration and communication; 3. From a company which lacked clear consistent direction to one with a clear strategy translating to role clarity at the individual level; 4. From a company which lacks accountability to one in which rewards and consequences are performance-based; 5. And from one which is wanting in leadership to one in which visible, decisive leadership and action can be seen from all levels of the company. The second success factor in our high-performance culture is our unique approach to Strategic Talent Management.

To sustain competitive advantage, it is of prime importance to develop your talent. There are three reasons why talent development is critical. First, in a rapidly growing industry such as the call center industry, there is not enough fully developed management talent around. There is not only a war for the agent workforce, but also a war for supervisory and management talent. Second, career development is critical to attracting and retaining talent. In Convergys, career advancement is one of the top drivers for retention. In fact, many of our employees came to Convergys for opportunities in career development. Third, we need to develop people quickly and effectively to increase their competencies. In other industries, managers are typically in their mid-thirties. In our industry, we cannot wait that long to develop our talent. At Convergys, we have high-performing managers as young as 24 years old, an indication of the lightning-speed career development we provide. An organization-wide strategic talent management plan is necessary. At Convergys, we define Strategic Talent Management as: A process of managing employees, especially those identified as having leadership talent, along the entire employee life cycle from recruitment to retirement. Strategic Talent Management is a process of selecting, developing, and advancing key talent to build a high-performance culture. The initiative provides a means for improving, on a sustained basis, the overall talent profile and management process across Convergys. It also provides career opportunities for talented personnel. The objectives of this initiative are:

Clearer assessments of individuals Better management of development plans and progress Better succession planning Definitive goals and accountability Deeper talent pool Improve short- and long-term organizational performance Improve satisfaction levels of clients, employees, and stockholders The Convergys Performance Management system is crucial to developing our high-performance culture. We at Convergys believe that performance management processes are business processes, not HR

processes. While the goal is to enhance employee performance, ultimately we want that enhanced employee performance to increase our ability to achieve business results that are in alignment with our business strategy.
5. Growing Market Share

Market share is the percentage of a market (defined in terms of either units or revenue) accounted for by a specific entity. Market share is a key indicator of market competitivenessthat is, how well a firm is doing against its competitors. "This metric, supplemented by changes in sales revenue, helps managers evaluate both primary and selective demand in their market. That is, it enables them to judge not only total market growth or decline but also trends in customers selections among competitors. Generally, sales growth resulting from primary demand (total market growth) is less costly and more profitable than that achieved by capturing share from competitors. Conversely, losses in market share can signal serious long-term problems that require strategic adjustments. Firms with market shares below a certain level may not be viable. Similarly, within a firms product line, market share trends for individual products are considered early indicators of future opportunities or problems."

Top 10 accounted 43% share of the US Market The growing market share simply means that Convergys is becoming more and more competitive in their each day of operations. It

surpasses some big BPO companies such as Sykes, Teletech, Sitel and many more as shown in the illustration above.
6. Corporate Social Responsibility

Convergys is committed to improving the quality of life in communities around the world where our employees live and work. Corporate citizenship is one of our core values that is proudly embraced by our employees. Convergys' Community Action Network promotes employee volunteerism around the world, and the company funds select charitable programs annually through its Convergys Foundation. We have been internationally recognized for our strong commitment to social responsibility. Convergys supports specific, localized giving programs in every country in which we operate globally. We support a wide range of educational initiatives that promote accessibility, sustainability, and self-sufficiency such as building schools and libraries, supporting teacher training, literacy, and mentoring programs, and enabling technical learning environments. We build relationships with and create a lasting impact on the diverse communities in which we live, work, and serve around the world. We foster a sincere spirit of giving and volunteerism and challenge our employees to lead civic efforts that shape the future of our communities. Our employees dedicate countless volunteer hours, in kind donations, and financial contributions giving back to our communities, both individually and through our Community Action Teams. The Convergys Foundations targeted investments enhance community stability and prosperity by improving literacy and enabling workforce readiness as well as supporting arts and culture. In the Philippines, Convergys had already helped them in making their community more knowledgeable about the happenings of the business process outsourcing and globalization. Some of the following programs, seminars and training that were conducted by Convergys were the following:

Department of Education Teachers Training

The Purpose of the training is to share Convergys best practices with public school mentor teachers, school administrators, and supervisors in the area of English proficiency and training methodologies. The goal is to increase the quality of education the teachers impart to their students. And the impact is that 950 teachers have been trained since 2006. Sa Aklat Sisikat Foundation The purpose of the foundation is that to promote the love and habit of reading in Filipino children. Its goal is to have a 31-day intensive Read-A-Thon during which teachers and students have a daily reading experience and children are encouraged to read as many books as possible during the timeframe. The impact in the community is that it provides funding for nine Filipino public schools, four schools in the Pasig area, and three schools in the Quezon City area. Cebu Youth Centers The purpose is through a donation made by Convergys in 2006, two youth centers were completed: one in Bacolod, and the other in Cebu in the proximity of the Convergys centers located in the area. Several book drives were also conducted at Metro Manila and Cebu sites to build a library of reading material for the youth center. The goal is to create a place for the children of the community to congregate, where educational programs can be conducted to benefit the youth. It will also provide a venue for Convergys employees to volunteer their time leading and participating in these outreach programs. Its impact in the community is that more than 200 children have benefited from the two youth centers. Oral Communication Skills Training for Public School Teachers The purpose of the training is to provide public high school teachers two-day training on English in order to enhance their communication skills.

The goal of Convergys aims to start a ripple effect which will redound to the increased quality of education these teachers impart to their students. And more than 1300 teachers have gone through this training since 2005. Convergys Philippines Services Its purpose is to enable employees to choose to care for their own well being, that helps optimize performance whilst engaging themselves in making Convergys the best place to work. The Goal: Increase employee productivity: Help achieve optimal performance, reduced absenteeism, and employee commitment/retention. Instill a mindset of disease and stress prevention Reduce healthcare costs (long-term)

Its impact: All three dimensions of wellness- physical, mental/emotional, and social (i.e.-financial) have been committed. There are many programs and initiatives of Convergys in different countries. The following that were given were only exclusive in the Philippines.
7. Good Compensation and Rewards

Total Rewards is designed to enhance your employment experience with Convergys. The program highlights four key areas identified by YOU as key to work place satisfaction: Financial, Lifestyle, Work Environment and Learning & Development. Financial Rewards

Competitive compensation rewards employees based on individual performance Compensation structure designed to maximize net salary Performance driven annual salary increases Provident fund with matching contribution from Convergys Gratuity after 5 years of continuous service with Convergys

Lifestyle Benefits

Comprehensive medical coverage for you and your direct dependents (Coverage includes short/long term disability and maternity benefits) Group Medical Insurance & Personal Accident Policy Highly subsidized meals, snacks and beverages during shifts Transport facility to and from the office

Work Environment

Shared vision, mission and values guide actions and behaviors Informal dress code Dynamic corporate culture that is, well, FUN Rewards & Recognition programs, employee activities and unique platforms to interact with the senior management Employee helpdesk for payroll and banking queries, tax planning and much more Secure and comfortable work environment. Employee hotline to share feedback and internet kiosks for net access. Work/life balance provided with time off(holidays and leave)

Learning & Development


Convergys communication and culture training - learn from the Global Customer Care Leader Program training that makes you an effective team member supporting our world-class client Self-development through instructor and the latest computer based training methods Education Assistance Program (eligibility on confirmation) Personal and professional development

WORKING AT CONVERGYS IS A "REWARDING" EXPERIENCE. Total Rewards Program Convergys is an equal opportunity employer and practices fair wage concepts. Salaries are based on job type, specific skill level requirements, geographic location of the business center, and employee experience. Convergys offers high-quality, comprehensive employee benefits that go beyond the usual venturing just not yours but your family's well being too. Our employee benefits are designed to enhance the employment experience at Convergys. We strive to ensure a healthy and secure life for our employees through benefits programs spanning from Family Health Care, Life Insurance, Home Pick

up and drop, Stock Options, accommodation assistance, Vacation Programs, Education Assistance, Medical Assistance amongst others. EMPLOYEE BENEFITS

MEDICAL BENEFITS o Group Mediclaim Insurance (Hospitalization) o Group personal accident insurance o Employee Deposit Linked Insurance (EDLI) o Employee State Insurance TRANSPORT EMPLOYEE STOCK PURCHASE PLAN LEAVES at HOLIDAYS EDUCATIONAL ASSISTANCE PLAN GRATUITY MEAL VOUCHER EMPLOYEE ENGAGEMENT ACTIVITIES

Eligibility - Convergys provides comprehensive list of benefits to their regular and full time employees. All the following benefits are provided at no additional cost to the employee and this cost is over and above employees compensation. MEDICAL BENEFITS

GROUP MEDICLAIM INSURANCE (HOSPITALIZATION) Convergys provides the mediclaim insurance cover for Php 100,000 expenses incurred towards hospitalization of a regular, full-time employee and their family. Family includes spouse and dependent children up to 2. The coverage starts from the date of joining of the employee. The Insurance policy provides for pre-existing disease cover and waiting period waiver. Maternity related hospitalization is also covered under this Insurance. Group Personal Accident Insurance: Employees are provided insurance cover of Php 500,000 against death or disablement resulting solely and directly from accident caused by external violent and visible means. The cover provided is for all the twenty-four hours and all over the world.

The coverage starts from the date of joining of the employee. The payment will be made to the nominee of employee in the event of death (as mentioned in the Form-)
o o

Employee Deposit Linked Insurance (EDLI) Employee State Insurance

TRANSPORT The Company provides home pick up and drop facility to all its employees through the company transport services within the company defined transport zones. Escort guards are provided to ensure safety of our female employees traveling alone during night shifts between 5:30 pm to 9:00am. EMPLOYEE STOCK PURCHASE PLAN Employee Stock Purchase Plan ESPP is designed to enable the employees to invest in Convergys stock. Under this program, employees have the opportunity to own Convergys stocks through a payroll deduction-based stock purchase plan. The organization matches 15% of the employees contribution. The stocks are purchased through treasury share purchase and have no lock-in period, i.e., they can be sold and purchased at any time. The employee contribution is subject to a cap at a certain percentage (20%) of empl oyees monthly fixed salary. Convergys ESPP is open to all employees who have completed six months of service with Convergys India Services Pvt. Ltd. LEAVES at HOLIDAYS The Company provides following leaves to its employees:

22 earned leaves i.e. 0.83 days for every completed month. Accrual up to March 31st (15 months) of next year. 10 paid Regular Holidays as (RH) per year 7 days of sick leave Maternity leave as per the law Vacations are typically taken as earned, whenever work schedules permit Convergys recognizes value in the personal and professional development of employees and support employees who want to develop their skill and knowledge.

EDUCATIONAL ASSISTANCE PLAN Covers all confirmed employees who have completed 6 months of service with CIS. This benefit covers any degree/diploma or certification course of minimum 12 months duration from a recognized/accredited college/university/Institute that pertains to the employees current position or a reasonable attainable position within Convergys and deemed suitable/recommended and approved by the Reporting Manager. ANNUAL ENTITLEMENT OF THIS SCHEME GRATUITY Convergys pays Gratuity as per the Payment of the Gratuity Act, Republic Act No. 6683. Employees become eligible for gratuity on completion of five years of continuous service with the company; the gratuity is paid only at the time of separation. In case of demise, the gratuity will be paid on completion of 240 days of service with the company. EMPLOYEE ENGAGEMENT ACTIVITIES Convergys Philippines is a very lively place to work. There are many exciting events & competitions on various occasions that one can participate in & win prizes. There are all-Philippine competitions aimed at driving customer satisfaction index (WOW' Customer Experience Challenge), adopting English as the first language (WOW" English First Challenge), & more, that give an opportunity to all employees to participate & earn reward points & redeem those points in exchange for a variety of goodies. Weaknesses 1. High Cost Maintenance / Expenses Many different factors contribute to the cost of a business process outsourcing (BPO) engagement. Among them, IT, especially software, is a key cost determinant that is often underestimated. While software licenses and maintenance typically represent no more than 3% to 5% of a BPO providers total cost, they directly drive process automation that immediately impacts the cost of operations. Technology drives the BPO cost structure in three ways: it enables economies of scale, supports sustainable process optimization, and makes labor arbitrage possible by connecting and controlling remote location workflows. With the right software, organizations can balance their needs for personalization and standardization of outsourced processes by creating the capacity to

design process and IT implementation jointly. In addition, software is the key enabler for integration between buyer and service provider, both on process and IT levels. Finally, the software choice has a substantial longterm impact on cost as it influences the organizations flexibility to accommodate changes in scope including process coverage and regional scope, or scale; allow for organizational developments, such as reorganization or merger and acquisition activities; and cater for potential changes in sourcing strategy. Process Operations Once operations have been transferred to the BPO provider, the company takes over complete execution and managerial responsibilities of the respective processes. Since BPO today is mostly applied to labor intensive, back-office processes such as finance and accounting, HR, and procurement, the largest cost block to the provider is clearly personnel related. Cost items typically considered include the following: Labor to run the outsourced processes; many BPO contracts today contain a clause that provides for a reduction of this cost item over the duration of the contract Expense to monitor business performance, as well as quality and efficiency of the employee interaction Cost for associated general and administration overhead including respective general and administrative charges, process operations account for up to 80% of the providers total cost base. Accordingly, these costs are mainly driven by the providers cost of labor and the staffing levels needed to run the processes. Providers operating mainly onshore will see proportionately higher labor costs than those who use offshore resources. This situation is becoming increasingly relevant to nearshore operators as well. As a result, it is becoming more important to automate processes that reduce staffing levels. Like any other BPO companies, Convergys has also high expenses in the process operations in which the three factors said awhile ago was used 80% of the total expenses. Convergys has maintenance because of too high technology, too costly maintenance for their system, labor compensation and rewards and the too expensive general administration such as the maintenance of the infrastructure, and top managements compensation which are truly high. 2. Turnover Rate It has been said that business processing outsourcing has the highest turnover rate in any industries all around the world and Convergys

is one of them. Though Convergys has a large pool of labor supply on its labor, it is also high in turn over rate. Its customer representatives are the highest rated in terms of turnover according to the HR department of Convergys. But what is good about it is that they are not the one who finances it such as the hiring costs, advertising cost, training cost and the like because their clients are the one who provide for them and one of them is Microsoft. However the effect of it is that more and more time will be consumed in hiring, recruiting and training for new employees. 3. Work-Life Balance Work-life balance is about effectively managing the juggling act between paid work and other activities that are important to us including spending time with family, taking part in sport and recreation, volunteering or undertaking further study. Thats what Convergys lacks on because they are too much driven with the satisfaction of their clients and sometimes not even thinking the feelings and motivation of employees. Convergys must consider the consequences of poor work-life balance. They must the following indicators of being poorly having worklife balance. First, fatigue it is when you're tired, your ability to work productively and think clearly might suffer which could take a toll on your professional reputation or lead to dangerous or costly mistakes. Second, lost time with friends and loved ones - If you're working too much, you might miss important family events or milestones. This can leave you feeling left out and might harm relationships with your loved ones. It's also difficult to nurture friendships if you're always working. Third, increased expectations -- If you regularly work extra hours, you might be given more responsibility which could lead to additional concerns and challenges.

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