Multinational companies that opened captive centers in India since early Value of research conducted by Indian captives of multinationals in $800 million to $1 billion Value of research conducted by Indian captives of multinationals in 2008 (projected) $11 billion Call center seats 96,000 in 2003; 158,000 in 2004 Source: NASSCOM Strategic Review 2005 Evalueserve (2004) IT offshore revenue worldwide, April 2003-March 2004 $17 billion (almost half from India, almost onequarter from Ireland) (includes IT products shipped from Ireland) UN Conference on Trade and Development (2004) (as quoted on TurkishPress.com) percentage of world’s largest 1000 companies offshoring business process outsourcing 30 Value growth in offshore business process outsourcing worldwide (projected) $1.3 billion in 2002 to $24 billion in 2007 Perot CSC Sales (Date: 2003)

Opportunity for Growth in OffshoringValue IT offshore revenue worldwide April 2003-March 2004 $17 billion (half from India) % of Fortune 500 Companies Offshoring45% Market value for OffShoring of IT Services.$32 billion Multinational companies that opened in India since early Source: UN (2004), Evalueserve (2004), Scholl World Investment Report (2003), McKinsey & Co. (2003)

1.Offshoring to India Will Substantially Lower Direct Costs 2.Offshoring Requires Effective Management of Indirect Costs 3.Offshoring Requires Local Leadership and Sound Execution

Cost Savings $168 Source: CIO, Harvard Business School,. “Offshoring at Global Information Systems., Inc

Total Domestic Labor Costs Per Year ($336) Time Period Considered 10 Years Total NPV ($2,400.57) Tax Savings (34%) $ Total NPV After Tax ($1,584.38) Source: CIO, Harvard Business School,. “Offshoring at Global Information Systems., Inc

Total Offshore Labor Costs Per Year ($75) Costs Noted by GIS ($280)$221 Turnover – High Attrition ($9.82)($2.32) Language/Cultural Differences ($22.92)($5.41) Decrease in Productivity ($6.53) Total NPV After Tax ($1,584.38) Source: CIO, Harvard Business School,. “Offshoring at Global Information Systems., Inc

Source: CIO, Harvard Business School,. “Offshoring at Global Information Systems., Inc

1.Offshoring to India Will Substantially Lower Direct Costs 2.Offshoring Requires Effective Management of Indirect Costs 3.Offshoring Requires Local Leadership and Sound Execution

Upper Control Limit = Lower Control Limit =

Functional Program Common Program Languages Rare Program Languages Strategic Programming

1.Offshoring to India Will Substantially Lower Direct Costs 2.Offshoring Requires Effective Management of Indirect Costs 3.Offshoring Requires Local Leadership and Sound Execution

Communicate Vision & Objectives Select Manager to Oversee the Operation Develop Quarterly Monitoring Processes

Transition Period Create Strong Bond Between Employees in India and the U.S. Data Install Encryption Software Keep Military and Government Work in the U.S. Allies Protect From Unjustified Regulatory Fines and Governmental Fees

Implement a Disaster Recovery Plan Daily Work Back-ups Train Employees in Documentation

1.Offshoring to India Will Substantially Lower Direct Costs 2.Offshoring Requires Effective Management of Indirect Costs 3.Offshoring Requires Local Leadership and Sound Execution