Macroescala: Neuropsicología

The Indian BPO industry has developed a reputation for being a cost effective provider of quality service and processes. NASSCOM has projected the size of the BPO industry in 2010 to be approximately US$25 billion. However, while several positive factors drive the growth of the BPO industry in India, there are certain challenges and hurdles, which need to be overcome. Some of these challenges include:

● Increased competition. ● Employee intensive industry.

BUSINESS

Unless stated otherwise, the financial and other data herein is derived from the historical financial statements of the Company and the Subsidiaries and pro forma combined financial statements starting on page 98 of this Red Herring Prospectus. Unless the context otherwise requires, the use of “we”, “us” or the “Company” in this section refers to HOV Services Limited and its Subsidiaries on a combined basis.

Overview

HOV Services Limited (“HOVS”), a company incorporated under the laws of the Republic of India, provides business process outsourcing (“BPO”) services to the finance and accounting business sector with operations in India and the U.S. We have strategically positioned ourselves to service our clients by developing and acquiring skills common across many industries. This has enabled us to transform our business and service across a broad array of customers. We provide a variety of finance and accounting services to our U.S.-based corporate clients through our three main operating business divisions: Accounts Receivable Management (“ARM”), Enterprise Management Tools and Services (“EMTS”) and Insurance and Tax Services (“ITS”). Our clients include some of the largest companies in the healthcare, telecommunications, banking and finance, and insurance industries. Our senior management along with the head of each of our three business divisions directs our combined group strategy, direction and administration.

The following chart shows HOVS and its six major Subsidiaries arranged by business line that form a part of our operating business divisions:

HOV Services Limited

Accounts Receivable Management Enterprise Management Tools and Insurance and Tax Services Services

Bay Area Credit Service, LLC Savant Consulting Group, Inc. Meridian Consulting Group, LLC

Bay Area Credit Service (I) Pvt. Ltd. Complex Property Advisors

Corporation Imperial Collection Service

Our ARM division provides accounts receivable management services to clients in the telecommunications, health care and financial services industries. We provide three basic services to our credit grantor clients: customer care outsourcing, early and late stage bad debt collections and insurance eligibility verification, billing and follow-up.

Our EMTS division develops proprietary software products for use by our clients and by our other operating business divisions. EMTS directs the deployment of a suite of web-based enterprise management and productivity software tools to compile, report, analyze and manage accounts placed for collection or claims in the insurance sector. To date, EMTS has deployed three major software products which assign and manage accounts placed for outside debt collection, compare the progress of competing outside debt collectors, and verify and enhance customer data collection.

Our ITS division provides consulting and project management services to the surety industry focused primarily in the construction sector and property tax assessment management and consulting to the health care and other industries. ITS provides the following services to its large insurance company clients: contract payment and performance bond claim investigations, property and casualty damage claim evaluations, technical support of construction-related litigation and construction project management. ITS also provides analysis, appraisal, expert testimony and appeals management of property tax assessments for our health care and entertainment corporate clients.

We have focused our business in the finance and accounting (“F&A”) sector, which involves providing services associated with a client’s need to manage the flow of money into and out of their organization. This includes segments such as transaction management, general accounting, finance, treasury and risk management and tax management. HOV Services has positioned itself in the F&A community by providing practical solutions to core-level business management functions. By developing core-competencies to serve the needs of FORTUNE 500® companies and deploying our unique skill set via a global service

Our established presence across our service offerings uniquely positions us to bid for large projects from clients and service significant parts of their F&A functions. Presently, we perform services in one or more of our three business lines for large FORTUNE 500® clients. Our goal is to leverage our existing customer relationships to cross sell our other service offerings. We have achieved improved financial performance over the past several years. Based on the proforma combined summarised income statement, our revenues have grown from Rs. 947.87 million in the fiscal year ended March 31, 2003 to Rs. 1,638.42 million in the fiscal year ended March 31, 2006. Our profit before interest, depreciation and taxation has also grown from Rs. 20.60 million in the fiscal year ended March 31, 2003 to a profit of Rs. 209.99 million in the fiscal year ended March 31, 2006.

Competitive Strengths

We believe that the following are our principal competitive strengths, which differentiate us from other BPO service providers: Premier Customer Base: We have a premier customer base that includes large companies with a healthy demand for our services in the telecommunications, health care, financial services and insurance sectors. We derive a substantial portion of our revenue from companies that are leaders in their fields and are also in the process of leveraging our existing client successes to garner new customers. In addition, we have been largely successful in maintaining our existing customer base. We believe that our ability to provide high quality services in a timely and cost effective manner has made us the vendor of choice to our clients.

Experienced Management Team: Our seasoned management team and our skilled employees have led us through rapid, profitable growth. Our team brings decades of experience in the accounts receivable management industry, surety insurance and product offerings in the related vertical markets. In particular, management in our ARM segment has critical knowledge of and experience in dealing with the complex laws and regulations governing the collections industry in the U.S.

Strong Relationships with our Clients: In the F&A segment of the BPO industry, we feel that customers place great value on experience and existing relationships with providers when awarding business to BPO providers. We target customers with whom we can enter into long business relationships. Most of our clients have been our customers for at least five years. We are able to leverage our longstanding existing relationships when seeking to win new business from our customers.

Customized Technology Solutions: We have invested heavily in technology, both by acquiring technology hardware and software from third parties and by developing specialised technology solutions internally, to offer a higher level of service to our clients and thereby ensure greater client loyalty through a differentiated offering. We offer a suite of proprietary software solutions that are provided to clients as part of our total client service objective. We believe that these software solutions improve customer satisfaction through better productivity, results, ease of use and scalability, which differentiates us from our competitors.

Current Position in the Large and Growing BPO Market with Limited Competitors: Driven by recent economic growth, easier access to credit and the resulting increase in consumer debt, and favourable climate in the insurance and tax sector, our specific markets are projected to grow at a healthy rate. Management believes that our current position in the industry and the current timing of the industry cycle enables us to win new clients in new markets and begin to offer additional services, including additional customized software-driven solutions, to existing and new customers. In addition, since many customers select a BPO provider based on experience and existing client relationships, new competitors may face difficulties in winning new customers that we, with our history of experience and existing customer relationships, do not face.