Firstsource Chairman Speech

Message from the Chairman

Dear Shareholders,

Over the last few years, the Company has consistently reinvented itself and achieved the dual goals of staying relevant and creating sustainable value for stakeholders. The Company has effectively instituted a culture of innovation that nudges people to push boundaries and explore their potential. Proven domain expertise in transforming customers'' businesses and processes, coupled with the ability to stay agile, has given the Company a competitive advantage. Improved macro-environment

The global economy witnessed broad-based recovery in FY17 on the back of improving investments, strong global trade, favorable monetary policies and healthy traction in corporate earnings. This trend resonated in the technology spends made by corporate -particularly in the digital business. As per Nasscom estimates, the Indian Business Process Management (BPM) industry is set to attain a size of USD 50-55 billion by the end of 2025, compared to USD 29.8 billion in FY17. Rising adoption of digital technologies like Artificial Intelligence (AI) and Machine Learning (ML), among others, will drive growth in these segments. First source has strong expertise in these segments and we implement solutions across the spectrum of digitization capabilities.

Getting future-ready

Digital technologies have made traditional business models less relevant. This has created a tremendous opportunity as companies see the need to upgrade their legacy systems or require assistance with analyzing consumer behavior. We are focused on servicing these companies on the strength of our technology-led capabilities and by augmenting our teams to develop niche skills.

In this fiercely competitive world, your Company will continue to set new benchmarks. Extending the high-performance philosophy, a bit further, we are committed to make winning our default behavior. That''s because we understand that ''average'' is officially over. Likewise, to enable our people to perform at their optimum, we consistently invest in their learning and development because a continuously learning organization is what will make us fit to lead in the future.

Road ahead

Our future growth will be driven by a healthy mix of organic and inorganic initiatives. We will have to innovate at a faster pace to keep up with the rapidly changing business needs and customer expectations. Our biggest challenge is to develop a thinking organization that is a pulsating mass of employees who are well-informed, attuned to technology trends and as domain experts engage customers in enriching conversations that translate into memorable experiences.

I have great pleasure in informing you that we declared our maiden dividend this year. This is truly a milestone for your Company. I would like to extend heartfelt thanks to every member of our global team for bringing the Company this far. We extend our gratitude to all our stakeholders and seek their continued support in our journey.

Regards,

Sanjiv Goenka

Chairman, RP-Sanjiv Goenka Group and First source Solutions Ltd.