Outsourcing and the Technology

Business

Presented by: Soufi Fazai Syed Khurshid Alex Lai Christie Martinez

Organizational Background

History Industry Services Structure Financial Situation Competition Customers

                                                                                                                                          

                                                                                             

History

Founded in 1995 Privately Held Filed S-1 on February

12,2007 to become public The largest independent

screening providers focusing on employment background screenings for large and mid-sized organizations

Delivering more than 50 service offerings in more than 200 countries and territories

Developed the first Internet-based background screening solutions for its customers

Comprehensive domestic and international coverage

Industry

The background screening market estimated to be $4 billion in size and to consist of more than 1,000 screening firms.

Reasons behind the growing demand for background screening solutions

Increasing public awareness of potential security threats

Laws and regulations that governments and other regulatory bodies have established to identify and minimize potential threats.

Services

Background Screening Drug & Health Screening Pre-Integrated Solutions Employment Application Solutions Industry Solutions Global Verifications

                                                         

Source for Employment Screening Services Criminal Records Searches Sex Offender Registry Searches Social Security Number Trace Social Security Number Validation Employment Verifications Education Verifications Credit History Examination Motor Vehicle Records Checks

(MVR/DMV) Professional License Verification Professional Credential Verification Professional Reference Checks OFAC / Prohibited Parties Searches

FDIC and Financial Industry Searches

Civil Court Records Searches Military Record Verification Workers' Compensation History International Background Checks Volunteer Background Checks Industry-Specific Searches Drug and Health Screening

Global Verifications

HireRight Global Services

Criminal historyEducation and credential verificationsEmployment verificationsLocal-language media/public domain searches and integrity checkingDriving records checksCredit reportingDue diligence checkingProhibited PartiesIndustry- and country-specific verifications

Other Services

Policy Development • Collection Site Identification • On-site Collection Training • Medical Review Officer (MRO) • DOT Controlled Substance Abuse and Alcohol Form • DOT Pre-Audits • DOT Audit Assistance • Expert Witness Testimony

Structure Corporate Headquarters: Irvine, CA,

USA Major Shareholders: Robert W.

Baird & Co., DCM - Doll Capital Management, Goldman Sachs, Split Rock Partners

Notable Individual Investors: David Duffield, founding CEO and Chairman of PeopleSoft; Peggy Taylor, co-founder of PeopleSoft

Management Team:Eric Boden - President and CEOJeff Wahba - Chief Financial Officer Lisa Gallagher - Vice President, Operations

                                                                                                                            

                                                  

Financial Situation HireRight ranked number 169 on Deloitte’s 2006 Technology Fast 500, a

ranking of the 500 fastest growing technology, media, telecommunications and life sciences companies in North America.

From 2001-2005. HireRight grew 1,034 percent Significant revenue growth over the past five years HireRight ranked 7th on the 2006 Technology Fast 50, which is a regional

ranking of the 50 fastest growing technology firms based in Orange County, CA

Competition

Other Employee Background Screening Firms

Competitive Advantage

Reasons for Hire Right's success among competitors

Industry-leading employment screening solutions developed in direct response to market needs

Real-time access to all background screening reports via the Internet anytime, from anywhere.

Competitive Advantage Single web-based order interface

Consolidated user-friendly reportsPrivacy and consent forms in the local language where requiredAround-the-clock multi-lingual verifications staffWorldwide research networkCompliance expertise in verifications and employment law as well as European Union and Asia-Pacific data privacy requirements

24x5 customer service

Customers and Partners

Health Care Financial Services Transportation Education

Oracle

PeopleSoft Vurv VirtualEdgePeopleAdminDeploy SolutionsTaleoPeopleclickPrevisorHewitt DDIVisaNow

                                                                                                                                                                                   

The Interview Wednesday, March 7th, 2007 Lisa Gallagher, Vice President of Operations Joined the company October 2000 Responsible for all aspects of Hire Right’s

operations, including occupational health services, background verification and customer service departments

Cal State Fullerton Alumnus After she began working with the Indian market, she

joined the Hunger Project to end chronic hunger in Bangladesh, Sub-Saharan Africa, and the smaller villages in Latin America.

Outsourcing Activities

HireRight, Inc. strongly believes in offshoring and outsourcing and has activities in Estonia Russia India

Estonia

Production – parts of software production is sent to Estonia to be produced but more security related software production is sent back to the US for finalization. Does product development and testing Over 50 employees

Moscow, Russia

Builds software solutions Mostly does modular pieces of production to

keep intellectual property in the US Equivalent to 10 full time employees working

for Hire Right, Inc.

India

This is the largest part of Hire Right’s outsourcing and requires the most attention

Subcontract to company in India which has approximately 150 full-time employees working for Hire Right

Majority of Hire Right’s entry-level work-load is done in India

India works to verify employment & education through the internet and will handle other screening processes for Hire Right

United States

Screeners in U.S. handle the calling for verifications (due to Indian accents which might turn off customers and applicants)

All server information stays in the U.S. Production of intellectual property and

sensitive aspects of software done in the U.S. All administration takes place in U.S. U.S. provides specs to Estonia and Moscow

for production

Outsourcing by Competitors Less than 10% of the competitors outsource Reasons for not outsourcing:

Lack of control Cultural issues Fear of what customers will think Fear of the unknown Takes a great deal of work to outsource

Companies have experienced problems with outsourcing sometimes because they do not take careful, measured approach

Hire Right, Inc. made a partnership with their subcontractor so all are committed to success

Benefits of Outsourcing

Substantial financial benefits and cost savings

Has brought down the cost of doing business significantly

High quality of output Outsourcing has allowed Hire Right, Inc. to

increase their customer base in other countries.

Started with 42 countries but now providing services in over 200 nations.

Benefits of Outsourcing

Able to get college graduates who will work for less Cannot find this in U.S. very easily – most

graduates do not work for that little of money or the turnover is very high

More aligns with what the customer is willing to pay and what Hire Right is willing to spend

Culture in India is to follow directions thoroughly To ensure this, Hire Right created processes

Issues with Outsourcing in India

Original CEO of the subcontractor is Indian but has worked in the U.S. before therefore he understands the issues faced by the U.S. firms and is easy to deal with.

Production issues led to renegotiation of the work contract. Workers wanted to reduce the production quota New contract allows for payment per piece of output

This secures the profitability of Hire Right, Inc. Factored in incentives and penalties

Issues with Outsourcing in India

Lower production output Seems to not do as well with problem solving

or thinking for themselves High turnover, especially for woman who are

unmarried and still live at home Work hours contribute to this: they work US

business hours

Impact of U.S. Economy

Believes that there is a positive impact Most US multinationals are outsourcing now Lowers costs to businesses are passed on to

consumers More purchasing power

Unemployment is at an all-time low Many positions available in growing retail

sector for those displaced by outsourcing Most outsourcing affects entry-level workers

Thank you!

Source www.hireright.comFor more information, visit the

company's web site at: www.hireright.com