Securitas Annual Report 2007

Safety and Security in India
In November, 2007, Securitas entered the Indian market by partnering with the fourth largest security services company in the country, Walsons Services. With a strong, national foothold, particularly among the new age economy businesses, the company now stands even more prepared to meet the growth and needs of its customers.
The second-fastest growing economy in the world, India, has become the global corporations’ favorite acquisition and outsourcing arena. Over the past four years, the GDP growth has been around 9 percent annually. This is primarily driven by industries such as finance, IT and infrastructure, in which the growth rate is significantly higher than in other sectors.
A typical example of this development is the joint venture between AIG (American International Group, Inc.), the second largest insurance company in the world, and Tata Group, one of India’s largest corporations. Together they formed Tata AIG Life in 2001, only two years after the life insurance market was privatized. Today, only 3–4 percent of the Indian population is insured. Naturally, this offers an enormous growth potential for companies such as Tata AIG, and they have seized that opportunity: In 2006, the company hired Walsons Services to provide security for 85 offices. By the end of 2007, there were 250 offices across the country, and the by the end of 2008, there will be approximately 500.
“Being a multinational company, we were really looking for a multinational security company,” says Vice President of Facilities & Projects, Captain Suman Banerjee. “At the time, Walsons was a domestic company, but we felt that their management was very good. Our rationale was that outsourcing our security would ensure a professional standard, including providing the necessary manpow- er, but also conducting drills and inspections. I also expect that the company will advise me from time to time about certain areas, such as personnel issues or improving efficiency. In addition, when hiring a larger national player, it would also ensure faster deployment of security staff, which a smaller firm would not be able to do.”
Captain Banerjee believes that one of the many challenges for security companies today in India is to maintain a consistent level of training, an issue also addressed by the government. In 2006, the Private Security Agencies Regulation Act (PSAR) was passed and includes a strict mandatory basic training period for security officers of 21 days, a much appreciated step in raising industry standards.
“Another client of Walsons, the EDS company Mphasis with its corporate head office in India’s IT center Bangalore, agrees with Banerjee. “It’s imperative that the security companies invest in training and the training has to be tailored to the industry,” says Captain K. Srinivas, Head of Supply Chain and Real Estate at Mphasis. He explains that it is imperative for private security firms to deliver specialized security services in line with industry requirements. This often needs to be standardized for a particular sector or line of businesses. Mphasis is a large player in technology and business process outsourcing. Captain Srinivas explains: “We have client contracts which are very sensitive with high compliance and stringent requirements, which could involve drug testing or background screening in addition to surveillance and physical guarding requirements. Providing security services at these sites is a challenging task. Not having many organized players in the security sector adds to the challenge. Our demands on our security supplier are high.”
Walsons provides access control, system maintenance, mobile patrols for workplace safety and evacuation drills for EDS Mpha-sis. The access control at the sites is stringent and the security officers are trained in physical guarding duties specific to the needs of multiple clients.”
Multinational companies outsource a range of processes, such as accounting, customer service, insurance handling and IT infrastructure to the specialized business processing operations (BPO) companies. Genpact India – previously the India-based business process services operations of GE Capital – specializes in back-office work for the insurance and financial sector, such as claims handling and settlements, medical assessments, transactions, taxations, and payroll. Explains Vice President Infrastructure & Logistics Vibhu Narayan: “A lot of people think BPOs are all about call centers, but we are not in the calling business. In fact, only about 15 percent of our business is call center services. Our employees are young and highly educated, most have post-graduate degrees. For example, we have 600 doctors on our payroll for the insurance sector and US law trained lawyers providing legal services for air carriers.”
Common for most BPOs, be it a call center or highly sophisticated back-office services, is the 24/7 office hours and the constant need for staff. The country is not suffering from a labor shortage, but it can be difficult to find people with the appropriate education. Companies need to provide a good package of benefits and services to their employees in order to attract and retain the right people. In the case of Genpact and many others with similar working hours, the company offers employees transportation to and from work. Being complicated logistically, transportation poses not only an administrative challenge, but a security one too. Genpact has had to offer transportation that includes a security escort service to ensure that female employees would not be harassed or attacked late at night if they were the last one in the taxi on a route.
“The safety and security of our employees is a priority, not only when they are on site, but also commuting here. In the Delhi/Gur-gaon area alone, we have seven sites, and each night 1,000 taxis transport employees to and from work,” continues Vibhu Narayan. “I would say we are partners with Walsons. Security is not my core business – it is a specialist business, like everything we do for our clients at Genpact. We started our partnership with Walsons eight years ago with seven officers guarding a small site. Today, we have about 500 security officers nationwide. I feel it is a flexible pool of security personnel, because whenever we need to upgrade or upscale, I just talk to Walsons, and they are interactive both with me as well as our staff.”
“I would say we are partners with Walsons. Security is not my core business – it is a specialist business, like everything we do for our clients at Genpact.”
Vibhu Narayan, Vice President Infrastructure & Logistics, Genpact.
Safety and Security in India
 
In November, 2007, Securitas entered the Indian market by partnering with the fourth largest security services company in the country, Walsons Services. With a strong, national foothold, particularly among the new age economy businesses, the company now stands even more prepared to meet the growth and needs of its customers.
 
The second-fastest growing economy in the world, India, has become the global corporations’ favorite acquisition and outsourcing arena. Over the past four years, the GDP growth has been around 9 percent annually. This is primarily driven by industries such as finance, IT and infrastructure, in which the growth rate is significantly higher than in other sectors.
 
A typical example of this development is the joint venture between AIG (American International Group, Inc.), the second largest insurance company in the world, and Tata Group, one of India’s largest corporations. Together they formed Tata AIG Life in 2001, only two years after the life insurance market was privatized. Today, only 3–4 percent of the Indian population is insured. Naturally, this offers an enormous growth potential for companies such as Tata AIG, and they have seized that opportunity: In 2006, the company hired Walsons Services to provide security for 85 offices. By the end of 2007, there were 250 offices across the country, and the by the end of 2008, there will be approximately 500.
 
“Being a multinational company, we were really looking for a multinational security company,” says Vice President of Facilities & Projects, Captain Suman Banerjee. “At the time, Walsons was a domestic company, but we felt that their management was very good. Our rationale was that outsourcing our security would ensure a professional standard, including providing the necessary manpow- er, but also conducting drills and inspections. I also expect that the company will advise me from time to time about certain areas, such as personnel issues or improving efficiency. In addition, when hiring a larger national player, it would also ensure faster deployment of security staff, which a smaller firm would not be able to do.”
 
Captain Banerjee believes that one of the many challenges for security companies today in India is to maintain a consistent level of training, an issue also addressed by the government. In 2006, the Private Security Agencies Regulation Act (PSAR) was passed and includes a strict mandatory basic training period for security officers of 21 days, a much appreciated step in raising industry standards.

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“Another client of Walsons, the EDS company Mphasis with its corporate head office in India’s IT center Bangalore, agrees with Banerjee. “It’s imperative that the security companies invest in training and the training has to be tailored to the industry,” says Captain K. Srinivas, Head of Supply Chain and Real Estate at Mphasis. He explains that it is imperative for private security firms to deliver specialized security services in line with industry requirements. This often needs to be standardized for a particular sector or line of businesses. Mphasis is a large player in technology and business process outsourcing. Captain Srinivas explains: “We have client contracts which are very sensitive with high compliance and stringent requirements, which could involve drug testing or background screening in addition to surveillance and physical guarding requirements. Providing security services at these sites is a challenging task. Not having many organized players in the security sector adds to the challenge. Our demands on our security supplier are high.”
 
Walsons provides access control, system maintenance, mobile patrols for workplace safety and evacuation drills for EDS Mpha-sis. The access control at the sites is stringent and the security officers are trained in physical guarding duties specific to the needs of multiple clients.”
 
Multinational companies outsource a range of processes, such as accounting, customer service, insurance handling and IT infrastructure to the specialized business processing operations (BPO) companies. Genpact India – previously the India-based business process services operations of GE Capital – specializes in back-office work for the insurance and financial sector, such as claims handling and settlements, medical assessments, transactions, taxations, and payroll. Explains Vice President Infrastructure & Logistics Vibhu Narayan: “A lot of people think BPOs are all about call centers, but we are not in the calling business. In fact, only about 15 percent of our business is call center services. Our employees are young and highly educated, most have post-graduate degrees. For example, we have 600 doctors on our payroll for the insurance sector and US law trained lawyers providing legal services for air carriers.”
 
Common for most BPOs, be it a call center or highly sophisticated back-office services, is the 24/7 office hours and the constant need for staff. The country is not suffering from a labor shortage, but it can be difficult to find people with the appropriate education. Companies need to provide a good package of benefits and services to their employees in order to attract and retain the right people. In the case of Genpact and many others with similar working hours, the company offers employees transportation to and from work. Being complicated logistically, transportation poses not only an administrative challenge, but a security one too. Genpact has had to offer transportation that includes a security escort service to ensure that female employees would not be harassed or attacked late at night if they were the last one in the taxi on a route.
 
“The safety and security of our employees is a priority, not only when they are on site, but also commuting here. In the Delhi/Gur-gaon area alone, we have seven sites, and each night 1,000 taxis transport employees to and from work,” continues Vibhu Narayan. “I would say we are partners with Walsons. Security is not my core business – it is a specialist business, like everything we do for our clients at Genpact. We started our partnership with Walsons eight years ago with seven officers guarding a small site. Today, we have about 500 security officers nationwide. I feel it is a flexible pool of security personnel, because whenever we need to upgrade or upscale, I just talk to Walsons, and they are interactive both with me as well as our staff.”