Businesses globally are outsourcing a growing proportion of their business processes to streamline their organizations, focus on core operations, create flexibility, benefit from best-in-class process execution and thereby increase shareholder returns. More significantly, many of these businesses are outsourcing to offshore locations such as India to access a high quality and cost-effective workforce.

The global business process outsourcing industry is large and growing rapidly. According to International Data Corporation, or IDC, the global business process outsourcing market was $422 billion in 2005 and is projected to grow at a 10.9% compound annual growth rate from 2004 through 2009 to $641 billion. In comparison, IDC forecasts the information technology services market (excluding business process outsourcing) to grow at a compound annual growth rate of 6.0% over this same period, from $417 billion to $553 billion. This data implies that the business process outsourcing market is not only growing at nearly twice the rate of that of information technology services, but also is projected to surpass it in size by 2006.

The offshore business process outsourcing industry is growing at a significantly faster rate than the overall global business process outsourcing industry. The NASSCOM-McKinsey report estimates that the offshore business process outsourcing market will grow at a 37.0% compound annual growth rate, from $11.4 billion in revenue in fiscal 2005 to $55.0 billion in revenue in fiscal 2010. The same report estimates that the total value of business processes that could have been provided by offshore business process outsourcing providers in fiscal 2005 represents an addressable market of approximately $120 billion to $150 billion. NASSCOM has identified retail banking, insurance, travel and hospitality and automobile manufacturing as the industries with the greatest potential for offshore outsourcing.

In addition to industry-specific services, the Company offers a range of services across multiple industries, in areas such as finance and accounting, human resources and supply chain management, which it collectively refers to as enterprise services, and in the areas of market, business and financial research and analytical services, which it refer to as knowledge services.

The Company’s service portfolio includes processes that support air, car, hotel, marine and packaged travel services offered by its clients. The key travel industry sectors the Company serves include airlines travel intermediaries and others such as global distribution systems and network providers.

The key BFSI industry sectors the Company serves are integrated financial institutions; mortgage banks and investors in mortgage-backed securities; financial advisory service providers; life, property and casualty, and health insurers; insurance brokers and loss assessors; and self-insured auto fleet owners.

In the areas of retail and mortgage banking, the Company offers an integrated service delivery solution called Digital Loan Management, or DLM, which combines automated mortgage processing with offshore delivery. The Company’s BFSI business unit also includes its auto claims business, branded Assistance, which is comprised of its Auto Claims BPO segment. The Company offers comprehensive accident management services to its clients where it arranges for repair of automobiles through a network of repair centers. The Company also offers claims management services where it process accident insurance claims for its clients. The Company also provides third party claims handling services including the administration and settlement of property and bodily injury claims while providing repair management and rehabilitation services to its insured and self-insured fleet clients and the end-customers of its insurance company clients.

The Company was engaged by a leading US residential mortgage lender, measured by volume, to develop and execute its long-term offshore business process outsourcing strategy, based on its domain expertise and specific focus on mortgage banking.

Cost of revenue in fiscal year ended March 31, 2006 was $145.7 million, an increase of 3.9% over cost of revenue of $140.3 million in fiscal year ended March 31, 2005.

Gross profit in fiscal year ended March 31, 2006 was $57.1 million as compared to $21.9 million in fiscal year ended March 31, 2005.

Interest expense in fiscal year ended March 31, 2006 was $0.4 million, a decrease from $0.5 million in fiscal year ended March 31, 2005.

Net income in fiscal year ended March 31, 2006 was $18.3 million compared to a net loss of $(5.8) million in fiscal year ended March 31, 2005.