eClerx Services

I want to start by thanking you for all your support during our first
 full year as a public company, a year, ironically, that has also been
 one of the most challenging in decades for our industry. But what a
 year its been for eClerx - in the midst of a global recession, we have
 grown revenues by 51% and profits by 39% - whilst maintaining margins.
 A great year by any measure, and a testament to the dedicated team at
 eClerx, our deep relationships with clients and the core and strategic
 nature of our work.
 
 It has been an eventful year. We lost two customers to mergers and one
 to bankruptcy and still grew business year-on-year. In all instances
 our contracts and services have been taken by the successor companies.
 This was so even in the case of the bankruptcy - where most vendors
 stood in line with creditors to get paid, our contracts were taken by
 the purchasing company to ensure continuity of service. If there was
 ever proof needed of how critical and core our services are considered
 by our customers, this would surely be it.
 
 The year also saw us win a place on Forbes Magazines prestigious Top
 200 Under a Billion list - a list of the top 200 listed companies in
 Asia-Pacific. We were selected from an eligible group of over 24,000
 contenders, and we were one of only 22 Indian companies chosen, and the
 only one from our industry. Indeed a fantastic achievement! The
 Economic Times also ranked us as one of the 100 fastest growing
 companies in India. Great accolades, and we are very proud to have
 received them.
 
 We added 446 employees in the year, and our 73,000 sq ft
 state-of-the-art Pune SEZ facility became operational, a critical
 milestone for our growth. The softer talent market has also been a boon
 for us - we have been able to hire and retain excellent talent at all
 levels in the firm. Whilst companies have retrenched, we have invested.
 We have doubled our senior management strength and selectively added
 strong talent throughout our team. In our onshore locations, we have
 significantly ramped up our sales and marketing presence by hiring
 senior, experienced leaders with substantial industry experience.
 
 These investments help us broaden and deepen our specialization and
 skill sets so that we can devise innovative and relevant solutions that
 address common pain points for our chosen industries. Our customers
 therefore view us as partners in their enterprise. In an economy such
 as at present, where risk tolerance is low and cost pressures are
 urgent,
 
 customers have turned to us even more to implement proven solutions,
 quickly and at low cost. They do not have the appetite to train and
 teach and try and wait - our customers need partners with established
 expertise, thought leadership and execution capability, and they need
 quick results. And thats where eClerx has benefited. We understand our
 clients businesses, and our services impact them intimately and
 immediately, and that helps us develop long term, meaningful
 relationships with them.
 
 What is really interesting about eClerx, though, is the way we have
 made an inherently niche, high-end, KPO data analytics business
 scalable - by combining people, process re-engineering and automation
 in a potent mix to build proprietary, platform- based services.
 
 People are our strongest asset, and we have invested heavily in our
 processes for hiring, training and nurturing talent, Today, we run over
 a thousand courses imparting critical industry, product and process
 training that are customized for each of our programmes. The best
 compliment we receive about our training is from our clients, who often
 want to use our training materials to train their internal staff.
 
 We also focus on automation and process re-engineering to eliminate
 wasteful steps, and to automate repetitive ones, so we minimize the
 need for human intervention and present our clients costs savings which
 exceed those from simple wage arbitrage. This also reduces the need for
 costly, high skilled resources and gives us the ability to scale
 solutions quickly, both for existing clients and also for new ones.
 
 So this is the company that you support. A leading, third party data
 analytics KPO service provider, based in India, but supporting global
 clients on a real-time basis across their complex businesses.
 
 We feel that our specialization, our services and our client base
 uniquely position us to grow further in our chosen markets. We have
 invested heavily in our business in 2008, and we are the strongest
 company that we have ever been. We are excellently positioned to
 benefit as the markets stabilize again.
 
 Once again, I thank you for your support.
 
                                                    Sincerely,
                                                 V K. Mundhra
                                                     Chairman