WNS

Overview

The company started in 1996 with the help of British airways .the BPO out fit mainly attracted
ticket processing, customer addressable and had a focus on voice based systems for airline
industry later on it transformed into a multi service BPO catering to many other industry verticals

A Leading BPO based out in India, has its stock listed in NYSE and is 60% hold by Warburg and
Pincus
The company follows 3-point principle focus

1. Industry knowledge and functional capabilities

2. Operational excellence
3. Depth and breadth of management

Revenue- $202mn
MCAP –$1.1 bn sources: market watch

Human Capital

• WNS has the lowest attrition rate as they claimed to be in the industry of ITES, The
ratio of Man/Woman is 55/45. The company stresses on Career growth through
development centers, skill mapping, and skill enhancements etc.
• The company has 10000+ workforces that are working round the clock.

Management:

• Ramesh Shah · Chairman

• Neeraj Bhargava · Group Chief Executive Officer
• Zubin Dubash · Group Chief Financial Officer
• David Tibble · Co-founder and Chairman, WNS UK
• Lyndon Rodrigues · Group Chief Information Officer
• Anup Gupta · CEO, WNS Travel Services
• Amit Bhatia · CEO, WNS Knowledge Services
• Edwin Harrell · CEO, WNS Assistance
• Steve Dunning · Managing Director, WNS UK

Acquisition

• Town and Country assistance (Ipswich, UK)

• Greensnow
• Trinity partners

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Milestones:
• 1996, British Airways sets up WNS in Mumbai, India
• 1999, Opens second delivery center in Pune, India

Increases number of processes to more than 100

• 2002, Warburg Pincus acquires majority stake

• 2003, Acquires healthcare business of GreenSnow Inc. (Nashik, India) and also
launched knowledge based services

• 2004, Launches Colombo (Sri Lanka) and Gurgaon (India) delivery centers

• 2005, Acquires Trinity Partners

NASSCOMM ranked it Number One BPO Company

• 2006, Completes initial public offering on the New York Stock Exchange on July 26

Investors

• Warburg Pincus
• Retail investors of USA

Key clients:
• Air lines: British Airways, Air Canada, Virgin Atlantic
• Insurance: AVIVA
• Traveling Management: Travelocity, SITA
• Retail Chain: Tesco
• Logistics: Fed EX
• Financial Services: First Magnus Financials, Indymac Bancorp, MARSH, Royal & Sun
alliance , Country wide Home Loans ( Trinity client)
• Market Research: WPP Group

Industry Domains:

• Travel
• Insurance
• Financial services

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 • Healthcare
• Logistics
• Professional services
• Manufacturing Retail

Functional specialization
Finance, research, Customer care

• Airline
WNS does ticket booking, Lost baggage recovery, Process engineering, Reporting of
various tasks, Reservation, Bookings
For customers they do the relationship management programs, loyalty programs,
Inventory management, and cargo operations

Reporting the MIS, Sales, PNR processing, Schedule changes, Help desk support,
Correspondence management etc.

• Insurance

WNS focuses on P&C insurance, life insurance, healthcare insurance, Annuities in

this it does the functions of underwriting, policy servicing, Customer
support, Claims processing, Sales customer inquiries, Claim processing, payouts,
CRM support, Document Management, Govt compliance and audit, Mail room
management

• Professional services:

The company provides – Business research , marketing research and knowledge

center management services

• Manufacturing and Retail

WNS performs various functions in this vertical such as – CRM support, SCM support
Sales, Telemarketing, Finance and accounting, Analytics other functions such as
service delivery, fault management, Presales, Pricing, Contract administration, Order
processing, Order management, Database management, Billing, debt collection etc.

How do they differentiate?

• Leadership, Industry expertise, Potential Competence, Execution capabilities,

Transformation client relationships, customized risk management

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 • They have a Offshore Onsite model
• In the onsite they do the Relationship management, Engagement Management,
Project management, Technology management, Migration team
• Delivery center, operations and execution is taken care in India
• Applying a flexible transition model and approaches

Infrastructure:

• Locations and Capacity: Our 10,000-plus professionals work on a world-class

5,000-workstation infrastructure spread across Mumbai, Pune, Gurgaon, and Nasik in
India, Colombo in Sri Lanka and Ipswich and Thanet in U.K.

• Technology infrastructure: Our proprietary network called WNSnet is a plug-and-

play network that offers 99.99% uptime and full redundancy. We have three co-
locations in the U.S. and two Points of Presence (PoPs) in the U.K.

• Risk management: The company follows the BS7799 guidelines in all our
operations centers it also meets regulatory requirements imposed by the FSA
guidelines for insurance and financial services in the U.K. adhers to global standards
such as HIPAA for healthcare processing and Sarbanes-Oxley for accounting
processes.

• Business Continuity Planning: Dedicated team of risk management specialists.

Certification:

• BS7799
• IATA
• HIPAA

Competitors- EXL, 24*7, Genpact, V customer, Convergys, Wipro spectramind etc

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Past year performance

Its five largest clients accounted for 41% of revenue and its 20 largest clients represented 73% of
its revenue in the most recent fiscal year
Capital expenditure is expected to reach $26mn by the end of 2006
 Airline business was accounting 40% 0f the revenue till 2002. sources VnD
 65% revenues comes from Insurance sector, 30 % revenues comes from Travel and
transportation. Sources Business Today ‘04

The reason for low growth in quarter revenues reflected in the balance sheet which are :
a) Higher Administrative cost which directly affects the revenues
b) Deferred Tax liabilities (Balance sheet)
c) Other Current Tax liabilities (Balance sheet)

The company also claims the following reason:

 Significant Increase in the number of new hires who underwent training and could not be
billed at full rates in the WNS global services and Auto claim BPO , the employees are
expected to be billed at full rates in subsequent quarters

 Additional of three new facilities which resulted in increased infrastructure costs

 Incremental salary increase effective from April 1’2006

A typical BPO outfit invest $6000- $12000 per seat depending on the capability they need to
develop that is why the investment required to open more centers is huge which explains the
lower growth in

The company has followed a captive spin off starting with British airways is similar to many
major players in INDIA many organizations have followed it (Swiss air – TCS), (Conceco
-EXL), (GECIS)
The growth seen here is in Captive centers of various major organizations like – DELL,
AVIVA, Tesco etc are not able to provide sufficient services demanded hence the work is
transferred to other BPO like – WNS, 24*7, Wipro, SITEL etc.

Strategy
WNS as a company looks for acquiring competencies as its general trend to structure
businesses in any domain, past example has shown that the company has shown keen
interests in acquisition inside and outside India to attain skills and competencies for the same
The trend is quiet normal considering the urge of BPO industry to scale up as soon as
possible because developing competencies by themselves will take a lot of time .