BPO House: Your Link to Lithuania

November, 2011 Tomas Milaknis, Founder and Chairman of the Board

Customers and success stories

Why Lithuania?

BPO Services

Who we are

Content

Who We Are

BPO Services

Customers and success stories

Why Lithuania?

BPO Services

Who we are

Content

Success story -

Success story

In 2007 one of the largest IT companies in the world Computer

Science Corporation (CSC) came into Lithuania through

partnership with Alna. Full outsource model of around 15 people

was selected.

Later in 2007 CSC decided to expand their business in the Baltic

States and to establish their subsidiary company CSC Baltics.

Alna helped with establishment, finding of the premises and right

people (nearly 70 employees were employed) at the same time

providing other back office operations.

Until the company was registered, the employees of CSC Baltics

were employed at Alna and their physical working places were

also at Alna, until CSC Baltics premises were equipped according

their requirements.

Success story -

Success story – cont’d

CSC Baltics is one of the largest new comers into Lithuanian

market in the few last years.

The Company is outsourcing from BPO House office

management & supply, recruitment, HR documentation

administration, accounting and payroll calculation services until

now and is one of our golden customers.

We are proud – we met very high CSC quality requirements!

Success story

In 2009 1ClickFactory started operations in Lithuania. The company

has chosen Lithuania as a main outsourcing development center for

Microsoft partners and plans to employ around 100 employees

during 3 year-period.

1ClickFactory is the development services provider for Microsoft

Dynamics.

The company outsourced from BPO House office management &

supply, recruitment, HR documentation administration, accounting

and payroll calculation, IT rent and maintenance services.

We are proud – 1ClickFactory became one of our golden customers

with the full package of proposed services.

Success story -

Success story

In recent years one large international financial institution of the

world came into Lithuania and established shared service center (the

name is not mentioned to strict confidentiality requirements in the

agreement).

The company outsourced from BPO House HR administration,

backgroud screening and facility management services.

Although the agreements were signed for a short establishment

period, the customer was satisfied with the quality of the services

provided and the agreement for both services was prolonged several

times. The cooperation continues until now.

Success story – large international new comer

We are proud to serve highly reputable clients

Content

Who We Are

BPO Services

Customers and success stories

Why Lithuania?

BPO services

Who we are

Positive attitude towards foreign investments from government side;

Possibility to get supporting financing from EU money;

Protected IP (laws reflects EU standards);

Western culture;

Very skilled and motivated potential employees;

Positive attitude of potential employees to business, innovations and

work;

Good language skills;

High work ethics;

Favorable macro economical situation;

Good value for money ratio.

Why Lithuania:

At the latest A.T. Kearney Global Services Location Index 2009 Lithuania ranked 21st globally (climbing up by 8 places);

40% of the population with higher education, 23 universities and 23 colleges;

90% of Lithuanians speak at least one foreign language, 50% speak two foreign languages;

Labour pool: in finance and insurance of 22,000, IT and communication almost 25,000 (Y2009);

Global leadership in mobile e-signature;

World’s fastest upload Internet (2009);

World’s 5th and Europe’s No.1 fiber broadband penetration, Europe’s highest fiber optic density, EU’s 1st greatest GSM penetration;

26 out of 183 world’s economies on the easy of doing business and outpacing Latvia, Slovakia, Slovenia, Poland and Russia (World Bank Doing Business 2010 Report);

Low costs – among Top 10 least expensive European countries (Eurostat);

Financial incentives packages offered by the Government to cover wage and personnel training costs, office rent, purchase of equipment, etc. and EU Structural Funds support – enterprises may apply for between 43,000 and 5.8 million EUR in support for development of their business projects and personnel training (conditions apply).

Source: Invest Lithuania

Why Lithuania – some numbers:

“Lithuania (Vilnius) was selected as an attractive location because of its strong talent pool of highly-skilled, well educated and multilingual professionals, its stable political and improving economic climate and world-class infrastructure as well as the Government’s policy in attracting foreign direct investments” – Western Union

“CSC chose Lithuania to offshore from Denmark base because we found here very skilled IT specialists and Scandinavian languages speakers” – CSC

“We chose Lithuania because of the high quality of education here, which has resulted in the development of world-class IT professionals, many of whom are multilingual, and because of the quality of Lithuania’s technology and connectivity. We will show the world the talent that exists in Lithuania” – Barclays Global Retail and Commercial Banking

Source: Invest Lithuania

Why Lithuania – some feedbacks:

Content

Who We Are

BPO Services

Customers and success stories

Why Lithuania?

BPO services

Who we are

Five key differentiators set BPO House – apart from competition

Superior

Service

Wide

Range of

Services

Innovative

IT technol. People

Customer

Centric

Services

Range

Payroll

Accounting

HR

Administration

Recruitment

Procurement

Full

Accounting

We have a vast range of services

No worries related to the access of

primary information points (e.g.

databases);

Only few selected candidates instead

of lot of CVs;

Comments from interviews, summary

of major information;

Checking of English language skills, IT

skills, accounting skills and etc. in

practical situations; psychological

tests.

Recruitment

Recruitment

Recruitment

HR Admin.

No need to understand Lithuanian laws

specifics;

No need to adapt / acquire the software

to correspond local legislation;

Assurance that not only legislation

requirements are met, but also internal

Company’s policies are applied;

Criminal records and / or financial history

(defaults on payments) checking at

employment, if needed;

360 evaluation process management

according the Company’s corporate

structure.

P.S. even the birthdays of your employees

are monitored and you are reminded

about this

HR administration

Recruitment

HR Admin.

Procurement

Market knowledge;

Help in selecting the location of office

premises;

Negotiations on behalf of the

customer with service providers;

Full service – from furniture, cleaning

services to coffee, tee supply;

Possibility to integrate IT part – from

rent of IT hardware to full IT

administration and support;

Flexible pricing – equal monthly pre-

agreed amount or “cost plus”;

Full administration of agreements with

providers.

Procurement / facilities management

Recruitment

HR Admin.

Procurement

Payroll

Accounting

No need to invest into payroll

software;

Knowledge of legal requirements;

Help in matching legal requirements

with Company’s international policies;

No unnecessary capacities due to

intention to grow;

No need to care if there are changes

in legislation;

Includes electronic pay slips to

employees and answers related to

calculation of salaries;

Benefits administration.

Payroll accounting

Recruitment

HR Admin.

Procurement

Payroll

Accounting

Full

Accounting

No need to take care of local legislation

requirements;

No need to invest into adoption /

acquisition of ERP;

Preparation of financial statements

according the Lithuanian legislation, tax

reporting, reporting according customer’s

accounting policies;

Help in understanding the tax system’s

implications on daily business tasks and

internal rules;

Statutory, tax and management reporting

preparation;

Various reconciliations – statutory to

management reporting, tax to statutory

reporting, tax to management reporting.

Full accounting

Recruitment

HR Admin.

Procurement

Payroll

Accounting

Full

Accounting

No need to understand Lithuanian laws

specifics;

One provider for all back-office services;

One invoice – easy budgeting, easy

controlling;

Lower risk, if provider selected carefully;

One contact person for all back-office

questions;

Easy to grow;

No integration between different providers

issue;

Much less headaches related to back-

office: software, people, places,

innovations, etc.

All in one

Assistance in the Company’s set-up process, including, but not limited to:

Assistance of registration of the legal entity;

Full accounting and tax calculation from the registration;

Recruitment of employees according the Company’s requirements;

Temporary employment of employees at our company until the

registration of legal entity will be completed, than – transfer to the

Company;

HR administration – helping out with templates of employment

documents and understanding the legal requirements;

Payroll calculation and benefits administration;

Helping to find out and rent the needed premises;

Company’s set-up

Assistance in the Company’s set-up process, including, but not limited to

(cont’d):

Equipping the premises according the requirements of the Company,

including the rent of furniture, computers and other IT equipment,

kitchen equipment and everything else needed for functioning of the

office;

Until selected premises are ready, providing our own premises for work

of the Company’s employees;

IT administration.

Company’s set-up (cont’d)

One of the major advantages – we can provide the back office

outsource at the beginning and at each point of the Company’s

growth.

Technology is seen as the main competitive advantage driver

TECHNOLOGY

Alna.HR.Office:

Human Resource, Time

Tracking and Payroll

Management System is

officially registered Microsoft

Dynamics NAV Add-On. The

solution using Microsoft

Dynamics NAV technologies

assures the system runs

reliably and continuously.

Alna Service Management:

cc@bpohouse.lt receives all

customer inquires and

automatically registers it in

Alna Service Management

application. The user

receives an automatic

notification. The incident is

assigned according to a

consultant responsible for the

account. SLA is monitored.

BPO House currently is creating own IT system Alna.BPO.bis-ON which:

Takes care on our social responsibility and social responsibility of our

customers – integrated electronic signature adopted in accordance

with the EU and Lithuanian legal requirements will significantly

decrease the number of paper used. Furthermore, it will decrease not

only the costs of the paper, but also the costs of archiving as

documents with original signatures are needed to be kept from 5 to

75 years (some of them for unlimited time period).

Helps to provide the superior quality of service and ensures the

safety and confidentiality of the data.

Helps to the client to control the level of service provided through

various reporting, which can be easily modified.

Integrates simple documents approval scheme for the customer.

Alna.BPO.bis-ON system is planned to be introduced to the

customers on 1 January 2012.

Alna.BPO.bis-ON

Disaster recovery and business continuity is ensured using different partnerships

BPO House has outsourced the major part of data centre function to

UAB Hostex.

UAB Hostex has the obligations to make back-ups every day and its

data centre is equipped according to all today's security

requirements.

Alna Intelligence, the sister company, helps to supervise the IT

related issues, when necessary.

Major technology tools used are created by Alna Business

Solutions, sister company, thus full consulting and help is available

when needed.

Possible cooperation models

Service outsource without local presence of the customer

(acquisition of services from BPO House);

Local presence of the customer (affiliate, subsidiary, etc), some

functions outsourced from BPO House;

Joint venture - BPO House and the customer - for shared service

center establishment;

Pass-through model: service outsource from BPO House for the trial

period, transfer of resources to the customers afterwards. Under this

model the customer starts operations in the market without any risk.

If the model does not prove to be successful, easy step-out.

Possible functions for shared service center

IT (IT administration & support, software development & support,

etc);

Service desk;

Accounting and finance;

HR administration;

Daily operations (e.g. account management);

Call center;

Marketing;

Other.

Who We Are

BPO Services

Customers and success stories

Why Lithuania

BPO services

Who we are

Content

Business Process Outsourcing at Alna Group

BPO at Alna Group started in

2007

Beginning

1

Service portfolio

extended in 2008

Portfolio Expansion

2

UAB BPT Paslaugos

business was acquired

to strengthen client

portfolio and team at

the beginning of 2009

Business Expansion

3

BPO pan-Baltic operations

started to provide widest

back-office services for

international customers in all

Baltic countries at the end of

2009

One stop for back office

4

Tomas Milaknis – more than 20 years experience in technology

industry, from which more than 15 years in management

positions (various Alna Group companies);

Rasa Bumblienė – 13 years experience in different finance

fields (Arthur Andersen, Ernst&Young, Alna Group);

Darius Jonaitis – more than 17 years experience in IT service

sector at sales and management positions (Elsis, Alna

Software);

Dalia Tautvydienė – near 20 years of experience in accounting

(PWC external accounting department, BPT paslaugos);

Aušra Delonaitė – 12 years experiance in recruitment ad HR

management (ISM, Prime People (subsidiary of BPO House)).

Highly experienced management team

Strategy and Vision: Our Ultimate Aim is to Add Value to Customer

Adds Value to Customer – by application of software

reduces complexity of administration burden

Sets standards – serves as a benchmark reference for

other companies operating in a field

Is well-defined – focuses only on areas where can

provide unique and worth contribution

Is sustainable long run – ensures fair profit and pursues

long term opportunities

Rewards – the success is shared among key

contributors via compensation scheme

Honors – is a part of corporate citizenship and Alna

group identity

Our Culture is Driven by Highly Embedded Company Values

Passion

Innovation

Growth Commitment

Passion Driven by an initiative

to be the best,

we believe that the passion

is the biggest contributor

to the success

Growth Financial and geographical

expansion is not a goal

itself but a part of the

desired growth in the

number of our employees

and our expertise

Commitment We recognize the value

of commitment to our

Employees, to our Partners

and, particularly,

to our Customers

Innovation IP creation is a key element

of Alna strategy.

The company actively

invests and encourages

innovations and unique

solutions

…Acting in a Socially Responsible Way

As the whole Alna Group, BPO House is socially responsible company

The company ensures proper equality and diversity policies and takes

care on employees health and security

BPO House participates in social activities – promotes donation of blood

(donation days in the company), takes care on Raguvėlės children daily

care center (association Save the Children) and other…

Alna Group is the founding member of several associations, such as

Knowledge Economy Forum, Infobalt, Sunrise valley, BSA, Window to the

Future Alliance

We are actively participating in the education processes – participating at

the boards of universities, teaching at universities and colleges, supporting

various scientific researches

We serve more than 30 local

and international companies

We employ more than 37 professionals

and manage more than 4200 m2 office space

We calculate wages for more than 1600 employees

Annual wage amount calculated on behalf of clients is around

97 M Litas

We provide widest BPO services in Lithuania – full back-office operations

outsourcing

BPO House

In 22 years Alna Group Emerged as a Leading IT Industry Player in Baltic States

Key facts:

Founded in 1989

400 professionals

Served markets – Poland, Lithuania, Latvia, Estonia;

Founding member of Infobalt, Knowledge Economy Forum, Sunrise Valley

Active supporter of culture and youth education projects

Alna Group

Y’09 Revenue

above 20 M

EUR

Privately owned company