CHAPTER-1 INTRODUCTION

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General introduction Outsourcing is the practice of hiring an external organization to perform

some business functions in a country other than the one where the products or services are actually developed or manufactured. It can be contrasted with offshoring, in which the functions are performed in a foreign country by a foreign subsidiary. Opponents point out that the practice of sending work overseas by countries with higher wages reduces their own domestic employment and domestic investment. Many customer service jobs as well as jobs in the information technology sectors (data processing, computer programming, and technical support) in countries such as the United States and the United Kingdom - have been or are potentially affected There are four basic types outsourcing:

ITO Information Technology Outsourcing BPO Business Process Outsourcing covers things like running call centers, processing insurance claims. Software R&D offshore software development KPO - Knowledge Process Outsourcing covers things that require a higher skill set such as reading X-Rays, performing investment research on stocks and bonds, handling the accounting functions for a business or executing engineering design projects. Marketing Outsourcing - Marketing Outsourcing is the process of contracting an external marketing agency to develop and carry out marketing campaigns.

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The driving factor behind the development of offshore outsourcing has been the need to cut costs while the enabling factor has been the global electronic internet network that allows digital data to be accessed and delivered instantly, from and to almost anywhere in the world. One of the main factors influencing the beginnings of the offshore outsourcing movement were a combination of pressures to reduce labor costs, save on operational cost such as payroll, administrative cost, utilities and to improve productivity, and an expanding, economical labor in other countries. When companies outsource the idea is to save money if they can keep the prices of their product lower than competitors.

Objectives of the study

The study is based on the following objectives: To be familiar with the organizational environment
To have the general awareness of the functioning and management of

the organization. To make an analyses of the organizations performance. To know the organizational structure of the company. To learn the functioning of various department for fulfilling overall organizational objective To find out the strength and weakness of the organization and departments. To propose the opportunities and threats of the organization To critically examine the performance of the organization

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Scope of the study

The scope of study is limited to the extent of time and the information collected during the internship in the organization. It is done as a part of Academic study. The scope of study is limited to information supplied by the organization, different website of related field and information collected by standing orders and settlement copies of the company. The information Collection is limited to academic knowledge gained by me during the study of course concerned.

Limitation of the study:

The study is not proposed to be an Expert study as is done by a student for the purpose of partial fulfillment of the course in Internship Training, which is an integral part, is completion and reward of MBA (Master of Business Administration). The study is conducted in a short period of one month (4 weeks) and so the findings cannot be generalized for all times. Some of informations being confidential was not included in the report. The scope of the study by and large is very vast. It is difficult to satisfy all area therefore an attempt is made to cover as much as possible.

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Industry profile Background/history

In the recent times there has been lots of speculations and negative criticisms against outsourcing to offshore destinations. But it has to be noted that outsourcing as a phenomena is not new but has been going on since ages. If one looks at the outsourcing history one can realize that since ancient times companies in developed countries have outsourced services to nearby less developed countries. Before the IT revolution, many companies in the US outsourced manufacturing jobs to counties like Canada, Mexico and South America in order to cut costs. Many even set up separate workstations and factories in these regions. The only difference between then and now can be seen in the frantic pace at which things are happening. Also as manufacturing jobs involved solid goods they needed to be transported that gave rise to a different kind of employment opportunity. IT outsourcing does not involved any transportation from the manufacturing destination to the client's place. Apart from these differences outsourcing history seems to be quite an old thing.

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Current and present status of the industry in India

Outsourcing in India has increased by leaps and bounds in the recent years. More and more big as well as small corporations are outsourcing their low end as well as high end services to India owing to the relative benefits involved in terms of cheap labor, better infrastructure and stable government. Benefits of outsourcing in India

Availability of cheap and efficient workforce Computer savvy and English speaking workforce Better infrastructure in terms of communications Quality certified software firms Relatively stable government Investor friendly laws

These are the factors that make India stand out of the rest as one of the best destinations to outsource services. Outsourcing in India can be done in cities like Bangalore, Chennai, Mumbai, Pune, Delhi and Kolkatta. Outsourcing services Delhi holds huge potential as the government is actively involved in improving the infrastructure. The government has also implemented some investor friendly laws and made sure that processes take place faster. Outsourcing only is meaningful if it is measured for the ROI. There are many top service providers in countries like India who offer outsourcing software measurements services.

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Future of the industry

outsourcing expenditure will continue to rise
More countries will find outsourcing attractive, creating a multi-polar

world 1.. Following the lead of the US and UK, the European Union markets will expand their offshoring programs, while japan will increasingly look to china for its needs. clients will take greater control in driving and designing deals. The interlinking of the supply chains brought about because of outsourcing will create stability as companies will put pressure on governments to avoid wars. Risk factors and unexpected occurrences like war, terrorism, disease, natural disasters and economic upheavals can throw a wrench in the works.
The rising price of oil will put increasing pressure on companies to

both utilize technology and outsource to remain profitable. The raising price of oil will cause oil consuming countries like the USA to be less competitive resulting in more outsourcing to India and china. India will show excellence in Services that require advanced English like knowledge process outsourcing(kpo), Content and Medicine. political backlash over oursourcing is likely to lessen over time as economies strengthen and companies continue to reap the bebefits of offshoring.
Technological power will shift from the West to the East as India and

China emerge as big players in the global outsourcing market. The RICM BANGALORE -7-

two countries have the size weight to transform the 21 st global economy. By 2015 china will be No.1 India No.2 in the global top five outsourcing destinations. Vendor focus will shift from basic skills, costs and processes to domain knowledge, transition challenges, change management, HR issues and governance. Regional outsourcing hubs will develop as companies will take strategic near-shoring initiatives to minimize risk and leverage culture and linguistic compatibility. The supplier countries are in the same time zone as their clients. The large diverse Indian companies will face stiff competition from new focused smaller companies. Because these companies are able to focus and become excellent in one are they will be able to provide a higher level of service. In 2006 there will be a food of companies targeting niche services.

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CHAPTER-2 COMPANY PROFILE

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BACKGROUND OF THE COMPANY Xchanging is a fast growing international, pure play business Processor Company with blue chip customers. It provide a range of complex industry specific processing services to the banking and insurance industries and procurement, finance and accounting, and human resources services to customers across industries.

At the heart of Xchanging's business strategy is a unique partnering approach. Xchanging takes over a customer's back office and creates a jointly owned business with its customer called an "Enterprise Partnership". Enterprise Partnerships provide Xchanging with scalable platforms with which it can also offer its services to other customers.

Established in 1998, Xchanging has established a strong reputation in fast growing global BPO Market. In our short history of rapid growth, Xchanging listed on the London Stock Exchange, and 0069s a FTSE 250 company. Xchanging has over 9000 employees servicing customers in 47 countries. Xchanging provides information technology services which includes Implementation, Testing and production support Services. Xchanging provides software development and support services through Global Delivery Model which implements our continuous improvement methods, tools and techniques and performance measurement approach. The 1700 RICM BANGALORE - 10 -

member strong team of Information Technology Group provides services in Insurance, Financial, Manufacturing, Retail and other Business Lines domains across wide range of technologies.

Xchanging has successfully developed technology products like GENIUS which provides Integrated and complete insurance solution for general lines (P&C); Brokasure which is a comprehensive solution for wholesale broking organizations; IRIS which is international insurance and reinsurance solution; ELGAR; People portal are the other internationally acclaimed solutions in the series.

Xchanging has established a strong reputation in the fast growing global business processing market. With a strong position in Europe, Xchanging is now on its journey to establish a firm base in the US and Asia Pacific. With global presence and local expertise, the Company aims to drive forward its ambition to be the global business processor.

Our prestigious clientele includes Deutsche Bank, Lloyds of London Market U.K; Sal Oppenheim; Sparda; Allianz, AON, Metzler, United Biscuits, Boots. Xchanging India is a centre of excellence; be it in technology development with its highly skilled technology talent pool - or business processing services - with a capable team of domain experts Xchanging in India has been assessed at SEI-CMMI Level 5, as well as being an ISO 9001:2000 certified company. The company ethos is based on building long-term business relationships with its customers. This is RICM BANGALORE - 11 -

achieved by maintaining the highest quality of service and visible accountability in delivering the promised value. Xchanging experienced 19% revenue growth in the year 2008 & we are well positioned for continued growth in 2009. In today's world of recession exchanging is a silver lining! In October, 2008, Xchanging proposed acquisition of Cambridge Solutions Ltd. The addition of Cambridge Solutions to Xchanging delivers greater scale, broader international reach and a number of platforms, positioning us well to deliver cost and efficiency benefits to our customers.

Area of operation

Xchanging operates in 47 countries. Its main headquarter is in London.

The Company operates in six segments: United Kingdom, Americas, Continental Europe, Asia Pacific, Global Procurement and Central. United Kingdom provides insurance business process outsourcing. Xchanging operates a global production model through its nine principal office locations in Australia, France, Germany, India, Japan, Malaysia, Singapore, the UK and USA.

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Xchanging in India

Xchanging in India, registered as Xchanging Technology Services (India) Pvt. Ltd., is a key element of the technology and global delivery arm of Xchanging. It provides strategic IT solutions as well as business processing services to global customers. It has two primary areas of operation: Insurance Software - developing state-of-the-art technology solutions and Business Processing Services - providing world class business processing services for some of the best known brands in the world. Xchanging India is a centre of excellence - be it in technology development with its highly skilled technology talent pool - or business processing services - with a capable team of domain experts.

Xchanging in India has been assessed at SEI-CMMI Level 5, as well as being an ISO 9001:2000 certified company. The aim for 2007 is ISO 27001 (formerly BS7799) standard certification. Maintaining customer satisfaction is the primary goal and the Quality Management System (QMS) of RICM BANGALORE - 13 -

Xchanging incorporates global best practice to set the highest standards of delivery that can be achieved in the most cost-efficient and effective manner.

The company principle is based on building long-term business relationships with its customers. This is achieved by maintaining the highest quality of service and visible accountability in delivering the promised value.

History of the company

2009 Xchanging becomes title sponsor of the Boat Race Xchanging has become the first title sponsor of the event ahead of the 156th Race next April. From 19 November 2009 the Race that traces its history back more than 180 years will be known as The Xchanging Boat Race. Cambridge Solutions Limited Xchanging plc takes controlling stake in Cambridge Solutions 2008 Limited giving company reach Acquisition of Mercuris Xchanging announces international expansion of procurement outsourcing services with acquisition of Mercuris in France. Aon Benfield Aon Benfield confirms it will transfer further operational work for seven years and is an extension to Aon's existing contract with Xchanging for insurance broking services. Cooper Gay RICM BANGALORE - 14 -

2007

Cooper Gay signs outsourcing contract with Xchanging. London Stock Exchange Xchanging Ltd floats on the London Stock Exchange entering the FTSE 250 and becoming Xchanging plc. BAE Systems Australia appoints Xchanging for a $300 (202.70) million, fiveyear outsourcing arrangement to provide procurement services. Xchanging will manage spend, Information Technology, Travel, Facilities Management, Maintenance, Repair and overhaul, Office Supplies and Fleet. Allianz Global Investors Seventh Enterprise Partnership is launched with Allianz Global Investors and Xchanging plc announce a Retail Investment. Fondsdepot Bank Xchanging takes operational control of Fondsdepot Bank. Offerings Our five distinctive offerings are defined - Partnering, Outsourcing, Product, Straight Through Processing and Business Support. AON Sixth Enterprise Partnership is launched with Aon to provide claims processing, accounting and settlement services. Boat Race Xchanging signs up as a sponsor of the Oxford and Cambridge University Boat Race. Deutsche Bank (etb) Fifth Enterprise Partnership created in Germany for securities processing services worth over 1.2 billion over 12 years.

2006

2005

2004

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2003

Germany and France offices International expansion Offices open in Frankfurt, Germany and Paris, France. Claims Office of the Future The Claims Office of the Future is opened by Lord Leverne in Lloyds Gallery 6. Lloyd's Fourth Enterprise Partnership is launched for Lloyd's claims worth 100 million over 10 years. Lloyd's and the IUA Second Enterprise Partnership is launched for London Market back-office systems worth 360 million over 10 years. BAE Systems First Enterprise Partnership is launched for HR services worth 250 million over 10 years. Xchanging The concept behind Xchanging is born. David Andrews raises $50 (33.78) million from General Atlantic in the USA.

2002

2001

2000

1999

Mission
Xchanging mission is the cultural and operational re-invention of its customers' non-core processing.

Vision
Xchanging have the same vision as when it launched 10 years ago to be the global business processor of choice.

values
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Xchanging values encourage employees to be entrepreneurial, service orientated, rigorous and reliable, and farsighted in relationships. By stating its values, it tell everyone what the company stand for and what people can expect from them. The company want its people to regard Xchanging as an exceptional company to work for a company that stays true to its principles. These are the values upon which the business was founded and which have guided the company development to date. They are the values upon which the company want to build its future.

Xchanging strategy

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To realize the vision and mission, company continue to follow its simple three-pronged strategy aimed at accelerating growth and becoming the global business processor of choice. Grow existing platforms
1. Develop its existing customer relationships in new geographies and

service offerings. 2. Add processing volumes to the functional and industry-specific platforms.
3. Extend the scope and service capabilities of its processing platforms.

Add new platforms 1. Add new customers and develop new platforms, or significantly extend existing platforms through open-book gain-share agreements. 2. Make acquisitions which add international scale and market access through new customer relationships and functional and industry-specific platforms. 3. Exploit existing infrastructure and use domain expertise to create new platforms. Lean processor 1. Develop a standard operating model that is repeatable across the regions, to provide services at internationally competitive prices. 2. Create a globally integrated infrastructure of processing centers which are operated on a consistent basis. Move workloads between centers to take advantage of spare capacity and arbitrage benefits.
3. Drive quality throughout Xchanging.

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Present status of the company

Xchanging operates a globally balanced production model through ten principal office locations in Australia, France, Germany, Italy, India, Japan, Malaysia, Singapore, the UK and USA. Xchanging has over 9000 employees servicing customers in 47 countries worldwide including India, Malaysia, Thailand, Australia, Japan, UK, Germany, France, Netherlands, Belgium, Spain, Portugal, USA and Bermuda etc. Xchanging has signed an agreement with the State Government of Karnataka to lease and jointly develop six acres of land in a new SEZ that is being developed in Shimoga a tier 3 town north-west of Bangalore. Xchanging will build a state-of-the-art processing centre on this land, making it one of the first multinational companies to set up a centre in a tier

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3 location in India. The new centre in Shimoga will be Xchangings fourth major processing centre in India. Xchanging employs over 3,400 people in India and has three of its top ten global processing hubs in Bangalore, Gurgaon and Chennai.

Xchanging service
Xchanging`s core business is re-inventing and operating its customers noncore or back- office activities. It provide business processing services across a broad range of functions and industries. The company`s areas of expertise include:

Finance & Accounting (F&A) Human resources (HR)

Immigration services Resource services Graduated on demand services Talent management services Learning and development managed services Reward Absence management services Exit management

Technology Procurement Customer Administration

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Finance and administration(f&A)

Xchanging process approximately US$5.8 billion (3.5 billion) of payables and receivables accounts and complex orders and invoices each year for its customers across a range of industries. It provide general payables and receivables accounting from its Oracle-based P2P (Procure to Pay) platform. The company provide complex payments and settlement processing solutions of an industry-specific nature for the banking, funds administration and insurance industries. It process and clear securities processing transactions for German equities with a daily total value of up to US$3 billion (1.8 billion). It also process annually the withholding tax payments. The company process and settle funds purchases and sales on behalf of retail customers with the funds managers and on behalf of the brokers. It settle insurance premiums and claims payments for the London Insurance market. The value of the claims it process on behalf of the market participants is approximately US$70 million (42.4 million) a year.

Human resources
The company offers a complete set of employment services. These services cover the entire employment life cycle from recruitment through to payroll and pensions payments. The aim is to provide an integrated approach that uses the underlying employment data in the wide variety of HR tasks and activities. The company have a track record of maintaining the highest standard of employment data integrity, which is crucial to delivering reliable, high-quality HR services.

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The company undertake the administrative processing and manage the supply chain for HR-related categories of spend such as resourcing, car schemes, medical assurance, travel and training. It offer expert advice on the various facets of HR, is it pensions calculations, learning and development, performance measurement or international recruitment, relocation, immigration and tax compliance. Xchanging delivers HR and payroll services to 1.25 million employees and pensioners and their dependents. Xchanging run a number of back-to-work and medical compensation schemes for a wide variety of customers in the USA, the UK and Australia. For example in Australia, the company manage the end-to-end process in placing employees back into the workforce. It manage this for 37,500 employers in a government-managed scheme. In 2009, the company successfully returned 7,940 injured workers back to work.

Immigration services Xgms services Associated services Xchanging global mobility services
Xchanging provide global mobility services to individuals and companies enabling their employees to work in other countries. These services support companies global operations and ensure compliance with stringent immigration laws. Ferguson Snell & Associates, an Xchanging company, has provided immigration processing and advice since 1985 and has since built an extensive international capability for other countries. RICM BANGALORE - 23 -

Under the Ferguson Snell brand, Xchanging Global Mobility Services (XGMS), provides professional immigration services enabling individuals and employees to move to and work in other countries, supporting companies global operations and ensuring compliance with relevant immigration laws (thereby avoiding the risk of financial or other penalties). Over the last 25 years Ferguson Snell has successfully managed over 80,000 cases for high net worth and highly skilled individuals and some of the worlds largest banks, finance houses, manufacturers, IT outsourcers, law firms and management consultancies. Xchanging provide services for over 50 major immigration countries e.g. USA, UK, China, Germany, Brazil, and India; and have the facility to service less frequented immigration destinations e.g. South Korea, Angola, and Russia, thereby offering its customers a one-stop shop for their immigration needs. UK Visas, Work Permit and Immigration Services and US Visas Here at Xchanging Global Mobility Services (XGMS) the company offer UK visa, work permit, immigration services and US Visas through a single interface for Assignment Management that drives all processing and records management. Immigration is delivered by the international network of consultants that Xchanging has developed from its acquisition of market leaders Ferguson Snell & Associates in 2006.

Assignee Management
o

Co-ordination of the international assignments process ensuring

that all third party providers are involved as appropriate for thier companys policies.

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Expatriation
o

Project management of the outbound process for employees and

families (where appropriate) in conjunction with Host Country HR and Line Management ensuring tax, legal and immigration compliance on a global basis.

In-Country Support
o

Destination services and management of assignment-related

support activities in the host location during the assignment period.

Repatriation
o

Management of assignment activities relating to the return of

the employee from assignment to their home location.

Corporate Services
Xchanging represent a wide variety of international companies in the financial services, insurance, retail sales, engineering, technology, education, pharmaceuticals, the legal profession. It offers application, audit, and advisory services. Ferguson Snell prepares applications on customers behalf, and takes you through the necessary legal processes. They specialize in all aspects of immigration to the United Kingdom and can assist with the following applications: telecommunications, management consultancy, construction, manufacturing, media, sports and entertainment industries and

International services
The company process applications for the immigration of people of any nationality from any source to any destination in the world using in-country RICM BANGALORE - 25 -

resources as shown. The immigration service is complemented by the Xchanging International Assignments team who can provide mobility support such as tax advice, international payroll and relocation services.
Asia Pacific Australia China Hong Kong India Indonesia Japan Malaysia Mauritius New Zealand Peru Phillipines Singapore South Korea Thailand Vietnam EMEA Abu Dhabi Angola Belgium Burundi Cape Verde Czech Republic DRC Dubai Eire Eygpt Finland France Germany Hungary Israel Italy Jordan Kenya Mozambique Netherlands Nigeria North & South America Argentina Brazil Canada Mexico United States

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Poland Portugal Qatar Russia South Africa Southern Sudan Spain Sweden Switzerland Tanzania Turkey Uganda United Kingdom

Individual services
The company assist in a variety of immigration applications, and liaise closely with the relevant government departments to ensure applications are resolved quickly. The company keep customers involvement to a minimum to save their time and will handle legal documentation on thier behalf, but also offer them one off or ongoing specialist advice. Should they require advice on a case that has been refused; company can also provide support for appeals.

Associated services
In todays challenging and rapidly changing environment, business needs access to an HR resource with scale, expertise and flexibility to compliment RICM BANGALORE - 27 -

the in-house capability and give the tailored support that need, when and where we need it. Xchanging is that resource. Thier offerings focus on the full employee lifecycle and incorporate the following services in addition to Global Mobility;

Xchanging Resource Services Graduate on Demand Service Xchanging Talent Management Services (XTMS) Reward Xchanging Absence Management Services (XAMS) Exit Management

Xchanging resource services Having the right people is the key to unlocking the potential of any organization. Xchanging Resources Services proactively identifies and attracts high achieving, high caliber professionals. XRS consultants have extensive industry specific knowledge and considerable recruitment experience. Through discrete approaches and network referrals it can build talent pools and deliver candidates exactly matching the customers' business needs. It work hard to ensure they have fully satisfied customers' requirements, who consistently return for their next requirement.

Graduate on demand services

Xchanging Graduate on Demand is designed to centralize recruitment processes, improve brand, increase online candidate experience, and better integrate them with their social networking activity and recruitment partners. By using Xchanging Graduate On Demand for the entire recruitment RICM BANGALORE - 28 -

process, organizations can reduce their costs, time, resources and the risk of the graduate recruitment process. The Xchanging Graduate Recruitment on Demand Service offers a full managed service or an unbundled service including;

Attraction Response Handling Selection On-boarding Graduate development programs

Xchanging Talent Management Service(XTMS)

XTMS offers customers the management of key HR processes combined with Advisory and Support Services in a modular and flexible package supported by a best of breed online platform. The service offering is delivered in the following groupings:

Talent Management Service

o o o o o

Objectives / Goals Cascade Performance Management Succession and Talent Planning Social networking and knowledge sharing Line Manager and Employee Support and Advice Strategic Training Planning Funded Learning Programs Training Access and Administration Line Manager and Learner Support and Advice Recertification and compliance management - 29 -

Learning and Development Managed Service

o o o o o

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Supplier negotiation and management Spend management and invoice consolidation

E-enablement of the service through technology

Learning and development managed service

Xchanging Learning and Development Managed Service include the following features;

Strategic Training Planning Funded Learning Programs Training Access and Administration Line Manager and Learner Support and Advice Recertification and compliance management Supplier negotiation and management Spend management and invoice consolidation

Reward
A fully integrated advisory and administrative service covers all aspects of reward and remuneration: salary and benefits, pension administration, and payroll provision. Their comprehensive range of operational services is delivered costeffectively and to the highest quality standards. Their advisory service involves working closely with local HR and reward teams to understand their needs and deliver bespoke advice and guidance in the interpretation and application of salary and benefits policy and procedures. The company also undertake a range of specialist reward management projects, often with colleagues from other HR Services, from delivering specialist job evaluation

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skills training to designing a job family structure for a finance function, linked to a career progression and competency framework. Services include:

Fully Managed and Bureau Payroll managing all aspects of salary increases and adjustments undertaking surveys to reveal current pay trends and practices advising on and helping develop new reward arrangements using proprietary schemes to undertake job evaluations and analysis managing third party suppliers of non-cash benefits such as share providing a relocation support service covering all aspects of

schemes, private healthcare and company cars

reimbursement of expenses for relocated/seconded staff

Absence Management(XAMS)
XAMS is a medical-led process that has an integrated communication system for employers and employees, with an accurate and measurable tracking system delivering guaranteed business savings. The Core XAMS Services are:

Day one medical intervention Management of absence calls and query resolution through a Accurate and real-time data for Line Managers Guidance for managers through absence policy Monitoring of compliance with policy Training on managing sickness absence effectively covering Provision of mediation services Pandemic planning and advice - 31 -

dedicated customer branded helpline

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Occupational health services and health-related pre-employment Formal absence capability routed via the Exit Management and HR

screening

Advisory services.

Exit Management
Whether the exit of an employee is the result of resignation, dismissal, retirement, redundancy or Transfer of Undertakings Protection of Employment (TUPE), they relieve organisations of one of the more onerous corporate responsibilities. Xchanging gives its customers the assurance of a service which efficiently ensures that a potentially negative experience is, as far as possible, turned into a positive one for all concerned. The services that they can provide include;

Leaver Administration Redundancy Retirement Resignation TUPE Exit Management Information

TECHNOLOGY It design, build and run a range of business processing solutions. The company embed its Intellectual Property (IP) to create a solution faster and more cost-effectively than customers can themselves. The company have a range of software products and re-useable assets that support rapid and reliable re-invention of its customers non-core processing. RICM BANGALORE - 32 -

It embed these solutions in its own processing centers and implement them in its customers centers. They built and now operate one of the most comprehensive suites of insurance-related document management services in the world. These are employed by the global participants of the London insurance market. The host the software and hardware to run systems and provide the extensive data warehousing facilities needed by its customers. They are the largest processor of ACORD messages with 3.5 million message interchanges a year for the insurance industry.

PROCUREMENT Xchanging source in excess of US$1.65 billion (1 billion) of indirect procurement spend on behalf of its customers. By leveraging its supplier relationships and applying its trading expertise and buying power, it drive savings to its customers bottom lines. Xchangings top categories of indirect spend are associated with HR and environment spend and include contract labour, travel, telecoms, facilities, IT, marketing and professional services, and office supplies. The company can act either as an agent between the customer and the supplier, or it can deliver a fully-managed service where they contract directly with suppliers, on-selling their goods or services to our customers. They bring a methodology and operating model to maximize the efficiency and effectiveness of their procurement activities. The methodology covers base-lining and then trading, through to the delivery and payment procured services.

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CUSTOMER ADMINISTRATION Xchanging provide a range of B2B and B2C services that support its customer's customer. Typically this is on a "white label" basis on behalf of of its business customer. They settle claims and collect premiums on behalf of their customers across the world. A major part of these customer administration services is electronic document management and electronic payments. They operate advisory centers on behalf of their customers to deal with queries, complaints and claims. This might relate to payroll processing, pensions calculation and payment, medical and warranties claims processing, through to investment accounting. Increasingly, the company operate web-based transaction services for investment funds buying and selling, through our "funds supermarket" gateway. And they provide web-based services for end-customers as part of their employment services portal.

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How they contract

The company offer services through a range of partnering and Outsourcing contracting mechanisms to meet the varying needs of customers for outsourced services.

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Xchanging offerings
Xchangings Go to Market Strategy is to provide a range of offerings to meet the varying needs of customers for outsourced services. Thier unique offering for dealing with complexity and scale is Partnering. On top of this they provide four offerings: Outsourcing, Products, Straight Through Processing and Business Support, for customer flexibility and repeatability. In short, a distinctive 1+4 Go to Market Strategy.
PARTNERING .

The value proposition... Xchanging share the profits and capital upside from productivity improvement and scale advantage with its Partners. Xchanging bears the implementation investment and deploys its reusable assets. They create a valuable processing platform and sustainable continuous improvement. Xchanging addresses complex industry specific business processing and cross-industry processing in human resources, finance and accounting, technology infrastructure and large-scale procurement. Thier Partnering offering is open book with profit sharing so that thier interests are aligned with thier partners. Appilicability Partnering handles large-scale and complex mission-critical processing and procurement spend. They apply the full range of thier productivity,

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performance and programme control from Preparation Re-alignment, through Streamlining to Continuous Improvement. The company aim for economies of scale and service quality.
OUTSORCING .

The value proposition... They deliver improved performance at lower cost. Xchanging provides services to an agreed specification and price or manages spend against a cost baseline with share of savings. They offer customers an upside for additional revenue or superior savings on a case by case basis. Xchanging takes on business processes or categories of spend where it already have platforms proving thier capability and credibility. Through Outsourcing they scale up thier platforms and deliver services to an agreed specification and usage charge or cost baseline. Appicability outsourcing swaps a fixed cost of resources to a more variable use of a priced service for non-core functions, business processes and specific spend categories. The company offer economies of scale and service quality advantages beyond the reach of the customer internally.

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products

The value proposition... They supply software and other solutions for complex business processes. Thier product solutions are based on a price book comprising licence, installation, support and maintenance fees. They listen to customers' needs and prioritize enhancements through thier product user groups.

Xchanging supports essential parts of the business processing value chain with application software, such as Genius for international insurance carriers. Thier Products are long-term strategic assets that can be tailored for Customers specific needs. Products enable them to extend thier reach both geographically and across the value chain.

Applicability Products support essential parts of the value chain. They strive to be the supplier of choice with attractive solutions to maximize value for money to thier customers in the sectors, functions or processes covered by their platforms, re-useable assets and products.

straight through processing

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The value proposition... They extend the nature, scope and quality of services we provide to our customers to optimize processing and spend efficiencies for the customer and Xchanging. Our Straight Through Processing services are based on an agreed cost base-line and gain-share that becomes the agreed service price. Xchanging extends the scope of the services delivered to customers, reducing the number of interfaces and where possible automating them. These additional services extend the process flow that Xchanging is already operating, to maximise the efficiency of the process as a whole. Applicability Straight Through Processing optimizes the potential for a process or category of spend that Xchanging is part of as operator or supplier, also meeting new and changing customer processing needs. We strive over time to simplify, aggregate and automate for best in class non-core business processes.

Business support

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The value proposition... They deploy thier experts to support specific operational activities or provide specialist services for our customers. They charge based on the level of expertise or the achievement of agreed results. For the Customer it gives flexibility by having access to these experts on an as and when needed basis. Xchanging offers experts to support specific business activities and customer improvement projects. Through Business Support, customers have access to Xchangings capabilities and re-usable assets. Business Support includes services such as corporate immigration support, resourcing, programme management and process improvement and Six Sigma training and support. Applicability Business Support embraces the functions business processes, spend categories and industry sectors that Xchanging operates in. It works in any activity or segment of the chain for a particular business process. It improves the efficient operation and quality of service delivery.

How they are structured

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The company vision is to be the global business processor of choice. To provide global coverage, they have structured themselves into four regions with strong management teams in the UK, the Americas, Continental Europe and Asia Pacific. To ensure that they operate in a standard way globally, they have a supporting global performance infrastructure and operating model. The manage its procurement business across regions to benefit from trading synergies and the sharing of know-how.

ORGANIZATION STRUCTURE The organizational structure is the formal network by which jobs or tasks are divided. Grouped and co-ordinated. It reflects the formal relationships among in the groups and individual in the organization. The structure provides guidelines for effective performance and overall organizational

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Managing director

Head of operation

Programme manager

Head of finance Healthcare Head of the dept. AVP Senior manager manager Assistant manager Team co-ordinator Team leader Senior associate Associates HR VP AVP Senior manager Manager Assistant manager Team co-ordinate Team leader Senior associates Associates VP Senior manager Manager Assistant manager Team Co-ordinate Team leader Senior associates Associates

Head of support

Insurance Head of the dept. AVP Senior manager Manager Assistant manager Team coordinator Senior associate Associates

Finance Head of the dept. AVP Senior manager manager Assistant manager Team co0ordinator Team leader Senior associate Associates

Administrati on facilities VP AVP Senior manager Manager Team Co-ordinate Team leader Senior associates Assistant manager Associates

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Board of directors
Nigel rich David Andrews Richard Houghton Stephen Brennikmeijer Johnaaes Maret Dennis Millard Pat ODriscoll Michel Paulin

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CHAPTER-3 DEPARTMENTS

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Human resource department Introduction

The importance of human resource management is being increasingly realized in industrial organizations both in India and abroad. This is because of increasingly complexity of task of managers and administrators. In most organization, the problem of getting the component and relevant persons, retaining them, keeping up their motivation and helping them to both continuously grow and contribute their best to the organization are now as the most critical problem. The employees who join the organization today have different values and norms, their exceptions are different and they are more competent and more informed than employees in the past. While this can be a great asset to the organization, they become problems if the organization is not able to manage Human resource properly. This is the reason that all the organizations consider their employees as asset and calculate their value on the basis of qualification, experience. Performance and motivation level, and commitment towards the organization. The company offer a complete set of employment services. These services cover the entire employment life cycle from recruitment through to payroll and pensions payments. The company have a track record of maintaining the highest standard of employment data integrity, which is crucial to delivering reliable, high-quality HR services. The company undertake the administrative processing and manage the supply chain for HR-related categories of spend such as resourcing, car schemes, medical assurance, travel and training.

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The company offer expert advice on the various facets of HR, be it pensions calculations, learning and development, performance measurement or international recruitment, relocation, immigration and tax compliance. Xchanging delivers HR and payroll services to 1.25 million employees and pensioners and their dependents. The company run a number of back-to-work and medical compensation schemes for a wide variety of customers in the USA, the UK and Australia. For example in Australia, The company manage the end-to-end process in placing employees back into the workforce. We manage this for 37,500 employers in a government-managed scheme. Function of HR department Recruitment:- The recruitment process take place between B1 to B8 i.e associates, senior associates, team leader, team co ordinator, assistant manager, manager, senior manager etc. levels of employees. For the freshers the company ask 60% in any graduation and they should be good in communication. The candidates are ready to work in shifts and the candidate should be 20 km from the plant. For the senior manager the company ask the experience in any international bpo Induction:- All new employees must be given timely induction training. This training is regarded as a vital part of staff recruitment and integration into the working environment. This policy, associated procedures and guidelines define the Companys commitment to ensure that all staff are supported during the period of induction, to the benefit of the employee and Company alike.

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Procurement department
Procurement is the acquisition of appropriate goods and/or services at the best possible total cost of ownership to meet the needs of the purchaser in terms of quality and quantity, time, and location. Procurement generally involves making buying decisions under conditions of scarcity. If good data is available, it is good practice to make use of economic analysis methods such as cost-benefit analysis or cost-utility analysis. It involves: Vendor management Negotiation Land equipments Xchanging operates in two levels i.e internal procurement and external procurement. Internal procurement include the acquisition of equipments which is required for the company. The company can act either as an agent between the customer and the supplier, or it can deliver a fully-managed service where they contract directly with suppliers, on-selling their goods or services to our customers. They bring a methodology and operating model to maximize the efficiency and effectiveness of their procurement activities. The methodology covers base-lining and then trading, through to the delivery and payment procured services. goods or

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Administration department
Administration department is the part of the procurement department. Admin/facility department managing administrative activities involving purchase of equipments, maintenance of procurement, housekeeping, safety, security, employee induction etc. The function of admin/facility department of the company involves: Front office/desk Housekeeping Office canteen and cafeteria facility Managing etc., Vendor management- Oversee acquisition, installation and commissioning of equipments that are required for the facility IT Systems, air conditioning etc. Processes, Documentation, Business Control checks, audits etc. Event Management, organizing meetings, conferences, making travel arrangements and hotel reservations for guests & foreign delegates. Upkeep of office administrative facilities and ensure availability of daily miscellaneous requirements to provide harmonious work culture to employees. Acting as info-hub for providing administration related information and supervising administrative activities like general repair, maintenance & replacement of office equipments, appliances, furniture, furnishings, vehicles, building,

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admin, verification of stationery stock, petty cash, courier, florist, pest control, housekeeping, etc. Specialization in handling back office operations, inter-office correspondence, confidential mails, quotations, monthly billing, cheques, etc.

Internal system department

Internal Systems is the department responsible for developing, installing, maintaining the system in the organization. The function of internal system department include:Security policies:-It adopts the security pocilies according to the hierarchical level in the company. The employees are not allowed to reveal the internal matters of the company through internet. It will be maintained by the internal department. The employees are restricted to access the websites in the system. It is more restricted to the b1 and b2 category. And for the top hierarchical levels of the employees it is free from such restrictions The employees are restricted o use some software and such software will be controlled by the company internal system department. If such things happened the employee will be sacked out of the company The company employees are not allowed to send bulk mails. All these functions will be controlled by the internal system department.

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CHAPTER-4
CERTIFICATIONS/RECORDS/ ACHIEVEMENTS

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CERTIFICATION, AWARDS Xchanging has a number of certifications and recognitions which illustrate the importance we place on delivering services at the highest quality. Non industry specific certifications and recognitions SAS 70 An auditing standard designed to enable an independent auditor to evaluate and issue an opinion on a service organisations controls. A number of our operations in India, Europe and the U.S.A undergo SAS 70 audits on an annual basis. These audits cover the control environment, control activities, processes, risk assessment and information

communication processes and ISO ISO developes voluntary technical standards which serve to safeguard consumers and general users of products and servises. CMMI Capability Maturity Model Integration(cmmi) helps integrate traditionally separate organisational functions, set process improvement goals and priorities, provide monitoring processes. Xchanging has ISO 9001, ISO 9001:2008, ISO 27001 and ISO 27001:2005 9001:2000, in ISO india;ISO 27001:2005

and ISO 9001:2008 in europe Xchanging has achieved cmmi(v1.2)Level 3 and cmmi(v1.1) level 5 in a number of our indian operations and has achieved cmmi (v1.2) level 3 in a singapore.

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guidance for quality process and provide a point of reference for appraising current process.

Industry-specific certifications and recognitions ACORD ACORD different standards companies will allow to transact Xchanging processor messages. ACORD certifications include: technical financial movement accounts accounts, messages, and claim and is of the largest ACORD

business electronically with agents brokers and other data partners in the insurance reinsurance and related financial services industries. They serve as a common communication method for use by multiple parties, thereby increasing the efficiency of the entire industry. OTHERS

document trasmission.

Xchanging Xchanging

has was

two

full voted

banking licenses in germany. Technology provider of the year in 2009 by global broker and underwriter, one of the leading magazines for the international insurance and reinsurance market. In the U.S.A Xchanging has

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283 adjusters licensed in 39 states, resulting in 2994 individual adjuster licenses. Xchangings solon(USA) site obtained Industry for a Payment Card PCI) certification management,

which include requirements security policies and procedures.

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CHAPTER-5
STUDY OF SPECIFIC MANAGEMENT PROBLEM

Making paperless insurance a reality

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Xchanging has been driving forward the move from paper-based processing to standard electronic processing, working collaboratively with thier customers in the London insurance market. Companys standardised production approach and technology infrastructure allow them to deliver the efficiencies our customers expect. A single standard electronic platform for the entire London insurance value chain meant standardising processes across processing centres and eliminating manual work. The company Production teams achieved this by implementing Workflow Control one of thier standard production approaches. It has delivered end-to-end electronic processing for the whole insurance value chain. Processing for thier customers was enhanced with instant access to records, easier tracking of customer requests and management of team productivity. By managing the workflows electronically, the company employed its Global Balancing model and migrated 40% of work to nearshore and offshore facilities. This maximised the benefits of aggregating processes and of arbitrage through lower cost resources. It synchronised the use of lower cost locations with critical processes being near to the customer. All of this raised service levels and met thier customers expectations. Furthermore, the transparency of operational performance made productivity much more effective. Using thier Global Balancing approach and investing in modern infrastructure, they continue to make a paperless insurance market a reality.

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CHAPTER-6
FINDINGS/SUGGESTIONS AND CONCLUSIONS

SWOT ANALYSIS

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Strength of the company

Global footprint:-serve multinational customers in 42 countries across

a broad range of industries.

Breadth of services:- offer a range of business processing services

across multiple industries and geographies.

Functional and industry:-provide a combination of functional business

processing expertise and deep industry domain knowledge.

Flexible contracting mechanisms:-provide thier customers with the

flexibility to engage with exchanging in ways that suit their short or long term requirements.
Track record of quality:-have received industry awards and world

class certifications demonstrating thier focus on quality.

Stable supplier:-have a 10 year track record of continued reliable

service and responsiveness to thier customers needs.

Strong management:-have experienced senior management teams with

access to a vast pool of global talent both within xchanging and in the external market.

Weakness of the company

1.

Brand in Indian market is not visible.-The Company has not a good brand in the Indian market.

Opportunities in the company

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1.

Domestic BPO market:-A great portion of Indian market is remains untapped for the outsourcing business.

Threats of the company Business moving to Philippines, Egypt, and china:-with growing expertise and services available at a more economical, Indian BPO market is exposed to loosing its business to other developing nations.

1.

Findings
Companies operating internationally require a consistent standard of service - globally. Xchanging is one of only a handful of BPO providers able to meet these requirements through our global delivery capabilities
The company earns customer respect and loyalty by

consistently providing the highest quality and value.

The company achieve sufficient profit to finance growth, create

value for our shareholders and achieve our corporate objectives.

The company recognizes and seize opportunities for growth

that builds upon the strengths and competencies.

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 The company demonstrate their commitment to employees by promoting and rewarding based on performance and by creating a work environment that reflects their values.

SUGGESTIONS AND CONCLUSION

The company should come out with good brand in the domestic and international market. Xchanging is one of the fast growing service provider. Through its well built infrastructure the company managed to get business from its competitors who have been dominant in national and international market.

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ANNEXURE

Annual report

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Group income statement

2005 '000

2006 '000

2007 '000

2008 '000

2009 '000

Revenue Operating profit pre exceptionals Exceptionals Finance income/ (expense) Finance income/ (expense)exceptionals Profit before taxation Taxation Profit after taxation

349,968 393,495 468,160 557,763 750,416 34,187 (289) 31,063 (6,906) 763 37,871 (6,200) 1,519 46,459 2,707 53,919 (29,160) (5,301)

(719)

33,898 (11,287) 22,611

24,920 (7,476) 17,444

32,417

49,166

19,458 (6,517) 12,941

(11,946) (13,621) 20,525 35,545

Attribtuable to minority interests Attribtuable to Xchanging equity shareholders Underlying basic earnings per share Weighted average

10,771

6,726

5,189

6,390

5,551

11,840

10,718

15,336

29,155

7,390

6.4

11.00

11.50

14.40

15.40

195,428 216,447 235,547

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basic shares Group Balance Sheet 2005 '000 Non-current assets Current assets Total assets Liabilities Provision for liabilities and charges 68,918 Capital and reserves Minority interests 51,692 17,226 68,918 85,630 73,852 11,778 85,630 221,918 258,380 289,814 206,582 242,588 274,296 15,336 15,792 15,518 221,918 258,380 289,814 (24,165) (18,167) (21,516) (19,305) (48,451) 2006 '000 2007 '000 2008 '000 2009 '000

100,888 115,802 193,834 231,340 421,438 134,783 133,660 199,221 230,249 213,814 235,671 249,462 393,055 461,589 635,252 (142,588 (145,665 (149,621 (183,904 (296,987 ) ) ) ) )

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BIBLIOGRAPHY

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Websites
www.wikipedia.com www.exchanging .com www.cambridgeworldwide.com RICM BANGALORE - 64 -

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