Volume 18, July 2009
Aegis - Revenue Scaling

  

In this section of Best and the Rest, we showcase Aegis’ spectacular growth over the last five years. With 11 successful acquisitions (and another in the pipeline as we go to press), the company went on to win this year’s NASSCOM IT Innovation Award for its E2C and Five Nines Principle-based Integration Methodology.

bestAegis, a leading BPO services provider, has grown at an incredible pace - from a 2,500 to a 30,000- employee organization - in a short span of five years. This tremendous growth has been achieved through 11 successful acquisitions in this period. The company’s revenue has increased from $60 million to $450 million – a whopping 650% jump, accompanied by a spectacular 1092% rise in the number of clients.

The outstanding success of Aegis may be attributed to the integration strategies adopted by the management to merge the acquired companies. This is quite an achievement considering that, globally, the success rate of M&As is lower than 30%. More importantly, Aegis has bucked the trend of commoditization in the BPO industry and actually shown an increase in profitability of $100 million from a loss of $15 million over this period.

Not surprisingly, NASSCOM recently conferred the IT Innovation Award on Aegis for its E2C and the Five Nines Principle integration methodology.

   
   
Aegis has bucked the trend of commoditization and actually shown increase in profitability of $100 million from a loss of $15 million over this period.
 


E2C Model

The Economic & Emotional Collaboration (E2C) model strikes the right balance by bringing together both the emotional drivers and economic drivers for the purpose of value creation. The model focuses on Leadership Integration and Collaboration between the entities, both of which are vital for value creation.

Hence, people are deployed full time in this activity. Thus, the underpinning of the E2C model meets the emotional needs of employees to create a collaborative atmosphere.


Five Nines Principle

Complementing the E2C model is the Five 9s principle, a framework adopted by Aegis to eliminate ambiguity and construct a positive environment after an acquisition. The Five 9s principle alludes to setting and achieving benchmarks or goals within prescribed timeframes of nine hours, nine days, nine weeks, or 99 days. The Five 9s principle focuses on setting economic goals, standardization of practices and policies, modifications in the organization structure, systems integration, defining a combined value system, language, and principles, reinforcing the brand identity and communication of the same.


   
   
"The 5 Nines principle alludes to setting and achieving benchmarks or goals within prescribed timeframes of nine hours, nine days, nine weeks, or 99 days."
 


The Aegis ViEW Model Framework

While the E2C Model and Five 9s Principle are instruments for ensuring a successful integration, the proprietary Aegis ViEW Model enables the organization to operate effectively. It has now become a rulebook of sorts to manage the organization through its acquisition led journey.
  • Vision
  • Innovation
  • Execution
  • Wealth
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An acronym for Vision, Innovation, Execution and Wealth, the Framework encapsulates the raison d’etre of Aegis succinctly.

Attaining ambitious business goals needs a clear vision and strong leadership. In addition, to translate this vision into reality, a company needs a laser focus on execution. Aegis’ vision is to be a risk-smart cost leader, and a master at speedy implementation. And it believes that with a strong vision backed by flawless execution, wealth creation will be a logical outcome.

Aegis is also committed to continuous innovation. By innovating with these models and frameworks, Aegis has achieved excellent results in several areas including retention management and collections, and thus has made a successful entry into the Indian market.

Aegis is an outstanding and rare example of a company that has practiced innovation at different levels – strategically in pursuit of its acquisition strategy and tactically in improving different functional areas. The results are there for all to see.