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Q2FY26 Firstsource Solutions Earnings Presentation
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Copyright © 2025 Firstsource. All rights reserved. 2 Disclaimer Certain statements in this presentation concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in BPS market including those factors which may affect our cost advantage, wage increases, our ability to attract and retain highly skilled professionals, time and cost overruns on client contracts, client concentration, our ability to manage ramp-ups and growth, our ability to manage our international operations, reduced demand in our key focus verticals, disruptions in telecom infrastructure and technology, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, performance of our subsidiaries, withdrawal of government fiscal incentives, political instability, legal restrictions on raising capital and acquiring companies outside India, unauthorized use of our intellectual property and general economic conditions affecting our industry. Firstsource may, from time to time, make additional written and oral forward-looking statements, including our reports to shareholders. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the company.
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Copyright © 2025 Firstsource. All rights reserved. 3 About Us #For clients with trailing 12-months revenue over US$0.25m *As on 30th September 2025 Established in 2001 Public listing in 2007 Revenues of INR 79.8 Billion (US$944 Million) in FY25 Specialized BPS partner Hyper-focused, domain-centric teams with cutting-edge tech, data, and analytics Deep partnerships with clients Average tenure of top 5 clients is over 20 years Leader in chosen verticals Banking & Financial Services, Healthcare, Communications, Media & Technology, Retail and Utilities Part of RP-Sanjiv Goenka Group Since 2012 35,997* Firstsourcers Across US, UK, India, Philippines, South Africa, Australia, Mexico, Romania, Trinidad & Turkey 200+ global clients# including Several Fortune 500, FTSE 100 and ASX200 companies
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Copyright © 2025 Firstsource. All rights reserved. 4 We are a part of RP-Sanjiv Goenka Group India’s first fully integrated utility company, serving 4.7 Mn consumers across 7 locations An entertainment Company with IP at its core having diverse portfolio of 170k+ songs, 70+ films, 10k+ hrs TV serials, 45+ web series, artist management & live events. India’s finest gourmet and multi-format organized retailer with varied assortments Too Yumm, a flavorful & better-for-you snacking Innovating in the personal care category through new-age brands Naturali and Within Beauty LSG is a premier IPL franchisee focused on nurturing the future of Indian cricket Eastern India’s definitive destination for luxury, style, and curated lifestyle experiences India’s largest producer of rubber & South India’s second largest cultivator of tea Delivering sharp journalism, bold storytelling, and immersive experiences across print, digital, and video—shaping conversations in business, culture, lifestyle and current affairs One of India’s new-age and fastest growing Conglomerates Presence in 60+ countries Strong workforce of 55,000+ employees, belonging to different nationalities *All figures are for FY25 or as on 31st March 2025 Group turnover of ~US$5 Bn* EBITDA of ~US$930 Mn* Asset base of >US$8 Bn* Over 1.2 Mn* Shareholders A global leader in BPS, transforming operations across industries through its UnBPO approach - delivering transformative, AI-powered solutions at speed and scale A Global Specialty Chemical company and India’s Largest Carbon Black player 100+ offices worldwide
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Copyright © 2025 Firstsource. All rights reserved. 5 14 of Top 20 Mortgage lenders & servicers in the US BANKING & FINANCIAL SERVICES COMMUNICATION, MEDIA & TECHNOLOGY HEALTHCARE DIVERSIFIED INDUSTRIES *US$ revenue and % revenue contribution, on TTM basis 7 of Top 10 Credit card issuers in the US 3 of Top 6 Retail banks in the UK 1 of Top 2 Media companies in the UK 3 of Top 5 Telecom & media companies in the US 4 of Top 5 Consumer Tech companies in the US 12 of Top 15 Health plans in the US 300+ Health systems in the US 2 of Top 5 Energy providers in the UK Retailers in the UK 2 of Top 10 33%US$336m* 34%US$345m* US$219m* US$124m* 12% 21% Our Verticals
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Copyright © 2025 Firstsource. All rights reserved. 6 Sundara Sukavanam Head – Enterprise Transformation Office Ritesh Idnani MD & CEO Shamita Mukherjee Chief Human Resources Officer Rajiv Malhotra Head – Europe, Middle East & Africa Arjun Mitra Head – Collections Ashish Chawla Head – CX and Consulting Vivek Sharma Head – CMT, BFS and Emerging Geos Venkatgiri Vandali Head – Healthcare & Lifesciences Hasit Trivedi Chief Digital & AI Officer Sohit Brahmawar Chief Operating Officer Aniket Maindarkar Chief Marketing Officer Dinesh Jain Chief Financial Officer Our Leadership Team
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Performance Highlights Q2FY26
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Copyright © 2025 Firstsource. All rights reserved. 8 Performance Summary | Q2FY26 ₹ 23,122 Million (US$ 265 Million) REVENUE YoY growth of 20.1% YoY constant currency growth of 13.8% QoQ constant currency growth of 2.0% EBIT PROFIT AFTER TAX ₹ 2.54 per share EARNINGS PER SHARE (Diluted) ₹ 2,665 Million (Margin 11.5%) YoY growth of 28.1% YoY margin expansion of 70bps QoQ margin expansion of 20bps ₹ 1,795 Million (Margin 7.8%) YoY growth of 29.9% QoQ growth of 6.0% Q1FY26 at ₹ 2.40 per share Q2FY25 at ₹ 1.96 per share
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Copyright © 2025 Firstsource. All rights reserved. 9 Performance Summary | H1FY26 ₹ 45,299 Million (US$ 524 Million) REVENUE YoY growth of 21.9% YoY constant currency growth of 16.4% EBIT PROFIT AFTER TAX ₹ 4.95 per share EARNINGS PER SHARE (Diluted) ₹ 5,163 Million (Margin 11.4%) YoY growth of 27.4% YoY margin expansion of 50bps ₹ 3,488 Million (Margin 7.7%) YoY growth of 27.6% H1FY25 at ₹ 3.88 per share TTM at ₹ 9.50 per share
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Copyright © 2025 Firstsource. All rights reserved. 10 Key Deal Wins | Q2FY26 • Expanded our footprint into collection services at a top retail bank in the UK, one of our long-standing clients. This is our largest deal for collection services in the UK • Selected by one of the Top10 healthcare payer in North America, an existing client, for claims data capture services using Sympraxis, our proprietary digital intake platform • One of the leading loan subservicing providers in the US selected us for providing first-party collections services • Won additional business from one of the largest communications and media companies in the UK for customer onboarding and account services processes that are currently managed by in-house teams • One of the leading proptech firm in the US selected us for customer support services • Selected by one of the leading health insurers in the US for benefits configuration and downstream documentation generation • Expanded relationship with one of the Top10 national health plan in the US for provider network operations, automation, and data management • Selected by one of the leading BCBS plans in the US to improve claims and customer experience • One of the largest global consumer tech companies selected us for customer support and content moderation services • Won additional business from a leading telecom player in Australia & New Zealand
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Copyright © 2025 Firstsource. All rights reserved. 11 • Total headcount of 35,997 employees • QoQ net headcount increase of 1,502 • YoY net headcount addition of 3,099 • TTM employee attrition at 28.0% • 47.4% of employees are women Firstsource won Gold for ‘Use of Tech & Analytics in Talent Acquisition’ category at the People Matters Infini-T Awards 2025 Firstsource recognized among the Top 50 India’s Best Workplace for Women 2025 by Great Place to Work Total headcount Attrition* *For employees in employment for more than 180 days 32,898 34,144 34,651 34,495 35,997 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 30.6% 31.4% 29.8% 28.9% 28.0% Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Employee Base | Q2FY26 GOLD INFI IN USE OF TECH & ANALYTICS IN TA
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Copyright © 2025 Firstsource. All rights reserved. 12 Firstsource named as Horizon 3 Market Leader in Mortgage Reinvention by HFS Research Firstsource was one of the top 5 market leaders driving growth through ecosystem transformation from the 15 services providers assessed Firstsource earned HFS recognition for transforming the mortgage lifecycle with GenAI-driven solutions, proprietary Mortgage LLM, and its UnBPO approach Firstsource recognized as Leader in Mortgage Business Process Transformation by Avasant Firstsource was one of the top 6 leaders from 18 top-tier providers offering mortgage business process transformation services featured in Avasant’s 2025 RadarView® Firstsource was rated high on practice maturity, domain ecosystem, and investments and innovation Awards & Recognitions | Q2FY26 Firstsource recognized as ‘Major Contender’ & ‘Star Performer’ in FCC Operations by Everest Group Firstsource was rated among 36 Financial Crime and Compliance (FCC) operations providers assessed in the Peak Matrix® Assessment 2025 Acknowledged for AI-powered BPaaS model and FCC capabilities, delivering end-to-end coverage across AML, KYC, and fraud management Firstsource recognized at 3rd Prithvi Awards 2025 by ESG Research Foundation
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Copyright © 2025 Firstsource. All rights reserved. 13 Our FY26 guidance 13-15%* Constant currency revenue growth *Does not include the proposed acquisition of Pastdue Credit Solutions 11.25-12.0% EBIT margin
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Factsheet
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Copyright © 2025 Firstsource. All rights reserved. 15 Cons. IndAS financials | Profit & Loss Statement *include one-time charges In ₹ million FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 FY25 Q1FY26 Q2FY26 QoQ YoY Income from services 63,325 17,839 19,326 20,879 21,678 79,721 22,209 23,147 4.2% 19.8% Other operating income 37 72 (72) 145 (63) 82 (33) (25) -24.4% -65.7% Revenue from operations 63,362 17,911 19,254 21,024 21,615 79,803 22,177 23,122 4.3% 20.1% Revenue from operations (US$m) $765 $215 $230 $249 $250 $944 $259 $265 2.3% 15.2% QoQ growth % - constant currency - 6.5% 6.9% 7.6% 2.1% - 1.6% 2.0% - - YoY growth % - constant currency 1.1% 14.8% 22.7% 27.7% 25.0% 22.6% 19.2% 13.8% - - Manpower expenses 39,093 11,268 12,104 13,070 13,515 49,958 13,207 13,618 3.1% 12.5% Operating expenses 14,705 3,944 4,277* 4,777 4,771 17,769 5,499 5,744 4.5% 34.3% EBITDA 9,564 2,699 2,873 3,177 3,328 12,076 3,471 3,760 8.3% 30.9% EBITDA margin 15.1% 15.1% 14.9% 15.1% 15.4% 15.1% 15.7% 16.3% 60bp 140bp Depreciation & amortization 2,602 729 792 844 906 3,270 972 1,096 12.7% 38.4% EBIT 6,962 1,970 2,081* 2,333 2,422 8,806 2,498 2,665 6.7% 28.1% EBIT margin 11.0% 11.0% 10.8% 11.1% 11.2% 11.0% 11.3% 11.5% 20bp 70bp Finance cost 1,034 316 343 393 426 1,479 434 428 -1.6% 24.5% Other income, net 368 18 (27) (21) 21 (9) 68 (13) - - Exceptional items, net - - - 88 - 88 - 19 - - Profit before taxes 6,297 1,673 1,710 2,007 2,017 7,407 2,132 2,243 5.2% 31.2% Taxes and minority interest 1,150 320 328 404 410 1,462 439 448 2.1% 36.6% Profit after tax 5,147 1,353 1,382 1,603 1,607 5,945 1,693 1,795 6.0% 29.9% Net margin 8.1% 7.6% 7.2% 7.6% 7.4% 7.4% 7.6% 7.8% 20bp 60bp Diluted EPS (₹/share) 7.34 1.92 1.96 2.27 2.28 8.42 2.40 2.54 5.8% 29.6%
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Copyright © 2025 Firstsource. All rights reserved. 16 Cons. IndAS financials | Balance Sheet In ₹ million As on Mar 31, 2025 As on Sep 30, 2025 Equity and liabilities Shareholder's Funds Equity share capital 6,970 6,970 Reserve and surplus 34,006 36,687 Non-controlling interest 4 4 Total equity 40,980 43,660 Non-current liabilities Financial liabilities Long-term borrowings 3,419 3,552 Lease liabilities 8,070 7,378 Other financial liabilities 580 1,592 Provisions 241 297 Deferred tax liabilities 1,645 1,708 Total non-current liabilities 13,955 14,527 Current liabilities Financial liabilities Short-term and other borrowings 11,908 10,217 Trade payables 3,976 4,586 Lease liabilities 2,296 2,542 Other financial liabilities 4,209 5,133 Other current liabilities 1,106 1,183 Provisions 643 750 Provision for tax, net 149 613 Total current liabilities 24,287 25,023 Total liabilities 79,222 83,211 In ₹ million As on Mar 31, 2025 As on Sep 30, 2025 Assets Non-current assets Fixed assets 3,254 3,199 Right-of-use assets 9,126 8,710 Goodwill on consolidation 36,799 38,243 Other intangible assets 1,248 788 Intangible assets under development - 95 Investment in associates 0 0 Financial assets Investments 115 337 Other financial assets 1,026 899 Deferred tax assets 2,735 3,202 Income tax assets, net 714 907 Other non-current assets 1,965 2,483 Total non-current assets 56,982 58,864 Current assets Financial assets Current investments 616 694 Trade receivables 16,860 17,744 Cash and cash equivalents 1,542 2,255 Other bank balances 128 73 Other financial assets 206 319 Other current assets 2,888 3,263 Total current assets 22,240 24,348 Total assets 79,222 83,211
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Copyright © 2025 Firstsource. All rights reserved. 17 Cons. IndAS financials | Cash Flow Statement In ₹ million 6 Months ended Sep 30, 2024 6 Months ended Sep 30, 2025 Cash flow from operating activities Net profit before taxation and non-controlling interest 3,383 4,376 Depreciation and amortization 1,520 2,068 Finance costs (for borrowings & lease liabilities) 659 862 Non-cash expense 482 353 Non-operating items (13) (22) Exceptional items, net - (19) Working capital changes (3,220) (1,004) Income taxes paid (601) (688) Net cash generated from/(used in) operating activities (A) 2,211 5,927 Cash flow from investing activities Capital expenditure, net (1,413) (503) Interest income received 5 15 (Increase)/decrease in current investments 190 (50) Investment in short-term fixed deposits - (4) Acquisition of business (5,018) - Purchase of non-current investment - (221) Earmarked balances with banks 4 58 Payment of contingent consideration towards acquisition - (27) Net cash generated from/(used in) investing activities (B) (6,232) (731) Cash Flow from financing activities Net change in borrowings 6,188 (2,232) Net interest paid (764) (851) Payment of lease liabilities (755) (1,298) Purchase of treasury shares, net (152) (134) Purchase of non controlling interest in subsidiary (225) - Net cash generated from/(used in) financing activities (C) 4,292 (4,516) Net increase/(decrease) in cash and cash equivalents (A+B+C) 271 680 Cash and cash equivalents at the beginning of the period 1,748 1,542 Foreign exchange (loss)/gain on translating cash and cash equivalents 5 33 Closing cash and cash equivalents 2,024 2,255 Current investments 235 694 Cash and cash equivalents including investments 2,258 2,949
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Copyright © 2025 Firstsource. All rights reserved. 18 Operating Metrices | Q2FY26 * For employees in continuous employment for more than 180 days Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Revenue by Vertical Banking & Financial Services 40.8% 38.3% 37.3% 36.4% 34.4% 32.4% 33.4% 32.5% 33.2% Healthcare 32.7% 33.5% 32.9% 35.7% 36.3% 34.0% 33.8% 33.4% 33.5% Communications, Media & Tech 21.2% 22.5% 23.6% 22.3% 21.3% 20.3% 21.0% 22.4% 21.7% Diverse Industries 5.3% 5.7% 6.2% 5.6% 8.0% 13.3% 11.8% 11.7% 11.6% Revenue by Geography North America 65.1% 65.4% 65.0% 68.2% 68.5% 66.3% 67.7% 68.7% 69.4% Europe, Middle East, and Africa 34.8% 34.5% 34.9% 31.8% 31.4% 33.4% 31.5% 30.1% 29.4% Rest of World 0.1% 0.1% 0.1% 0.0% 0.1% 0.3% 0.8% 1.2% 1.2% Revenue by Delivery Offshore & Nearshore 26.7% 30.3% 31.4% 35.0% 35.8% 40.1% 37.8% 41.2% 41.6% Onshore 73.3% 69.7% 68.6% 65.0% 64.2% 59.9% 62.2% 58.8% 58.4% Client Addition New logos (added during the quarter) 12 10 9 10 13 13 7 17 10 Strategic logos (added during the quarter) 4 7 3 2 3 5 2 9 4 Client Concentration Top 5 clients (share of total revenues) 35.0% 35.8% 36.7% 34.6% 32.5% 29.0% 29.3% 29.6% 28.9% Top 10 clients (share of total revenues) 51.3% 52.0% 52.6% 51.5% 48.6% 43.4% 43.7% 42.6% 42.3% Client Distribution US$ 1m+ clients (nos.) 101 104 103 100 105 107 116 141 142 US$ 5m+ clients (nos.) 24 25 25 25 26 28 30 38 39 US$ 10m+ clients (nos.) 13 13 13 13 13 14 15 17 17 US$ 20m+ clients (nos.) 8 8 8 9 11 10 10 11 9 US$ 50m+ clients (nos.) 2 2 2 2 2 2 2 2 2 Revenue by Currency USD 65.0% 64.9% 64.8% 67.9% 68.2% 64.9% 65.7% 67.9% 68.5% GBP 34.3% 34.4% 34.4% 31.4% 30.9% 34.2% 32.7% 30.1% 29.2% Others 0.7% 0.7% 0.8% 0.7% 0.9% 0.9% 1.6% 2.0% 2.3% Employee Metrices Total employees (period-end) 23,953 25,947 27,940 29,231 32,898 34,144 34,651 34,495 35,997 Net addition 1,569 1,994 1,993 1,291 3,667 1,246 507 (156) 1,502 Attrition* (TTM) 39.8% 37.7% 35.4% 31.8% 30.6% 31.4% 29.8% 28.9% 28.0%
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Annexure
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Copyright © 2025 Firstsource. All rights reserved. 20 Financial performance snapshot | H1FY26 Revenue Revenue (in ₹ million) (in $ million) EBIT and Margin (%) PAT and Margin (%) 3,397 3,617 5,374 5,137 5,147 5,945 3,488 8.3% 7.1% 9.1% 8.5% 8.1% 7.4% 7.7% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 FY20 FY21 FY22 FY23 FY24 FY25 H1FY26 PAT PAT Margin (%) 2.0% 1.1% 578 685 795 750 765 944 524 FY20 FY21 FY22 FY23 FY24 FY25 H1FY26 YoY constant currency revenue growth YoY US$ revenue growth (in ₹ million) (in ₹ million) 17.9% 18.5% 14.6% 16.0% -1.1% -5.7% 21.9%23.9% 16.6% 1.7% 5.2% 40,986 50,780 59,212 60,223 63,362 79,803 45,299 FY20 FY21 FY22 FY23 FY24 FY25 H1FY26 4,437 5,979 7,105 5,633 6,962 8,806 5,163 10.8% 11.8% 12.0% 9.4% 11.0% 11.0% 11.4% 0.0 % 2.0 % 4.0 % 6.0 % 8.0 % 10. 0% 12. 0% - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 FY20 FY21 FY22 FY23 FY24 FY25 H1FY26 EBIT EBIT Margin (%) YoY INR revenue growth 23.3% 22.6% 25.9% 16.4% 17.8%
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Copyright © 2025 Firstsource. All rights reserved. 21 Key performance indicators | H1FY26 6,526 3,903 8,083 6,159 6,001 13,169 10,820 4,104 9,756 7,036 7,950 6,441 7,011 5,927 3,158 8,060 6,307 7,436 5,590 4,775 5,424 FY20 FY21 FY22 FY23 FY24 FY25 H1FY26 12.3% 12.9% 17.7% 15.3% 13.9% 14.5% 16.0% FY20 FY21 FY22 FY23 FY24 FY25 H1FY26* 12.3% 17.6% 17.6% 13.4% 15.4% 15.6% 18.0% FY20 FY21 FY22 FY23 FY24 FY25 H1FY26* Long term Debt Short term Debt Net DebtOperating Cash Flow Free Cash Flow (in ₹ million) (in ₹ million) Return on Equity (%) Return on Capital Employed (%) Cash Flow Debt Position 28 846 2,733 1,394 3,419 3,552 8,406 5,199 7,364 6,876 8,049 11,908 10,217 FY21 FY22 FY23 FY24 FY25FY20 H1FY26 *Annualised
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Copyright © 2025 Firstsource. All rights reserved. 22 Strategy refresh & impact Creating strong shareholder returns Oct-20 Apr-21 Oct-21 Apr-22 Oct-22 Apr-23 Oct-23 Apr-24 Oct-24 Apr-25 Oct-25 FSL;406% 406% 235% 4% 25% 10% 1% 5 Year return 3 Year return 1 Year return Share price return Dividend yield Promoter 54% FII 9% DII 25% Public & Others 12% Key institutional shareholders HDFC Mutual Fund Life Insurance Corporation SBI Mutual Fund Tata Mutual Fund Vanguard Group Blackrock HSBC Mutual Fund Dimensional Fund White Oak Aditya Birla Sun Life Mutual Fund Total Shareholder Return^ Shareholding Pattern* ^Till 31st October 2025 *As on 30th September 2025 NiftyIT;71% Nifty50;121% Stock performance: Last 5 years^ NSE: FSL | BSE: 532809 | Reuters: FISO.BO| Bloomberg: FSOL:IN Market Capitalisation: US$2.8bn Average daily trading volume (TTM): US$11.4mn
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Firstsource is a specialized global leader providing business process services and an RP-Sanjiv Goenka Group company. Spanning the customer lifecycle across Healthcare, Banking and Financial Services, Communications, Media and Technology, Retail, and other diverse industries, we ‘make it happen’ for our clients, solving their biggest challenges with hyper-focused, domain-centered teams and cutting-edge tech, data, and analytics. With a global footprint across US, UK, India, Philippines, Mexico, Romania, Turkey, Trinidad & Tobago, South Africa, and Australia, our inch-wide, mile-deep practitioners work collaboratively, leveraging UnBPOTM - our differentiated approach to reimagining traditional outsourcing - to deliver real-world, future-focused solutions that drive speed, scale, and smarter decision, turning transformation into tangible results for our clients. Copyright © 2025 Firstsource. All rights reserved. www.firstsource.com