Thinking About India Brian Valentine Senior VP Windows Division Microsoft Corp.

Times Are Changing… The World Gets Smaller Everyday –60% of Microsoft products are sold outside the US You need to ‘think global’ across the board –Today we develop locally and market globally –The next step is Global Delivery: developing and marketing our technologies everywhere You CAN do it outside of Redmond –Trying to do it all on campus just doesn’t scale –Outsourcing is not just for non-critical work –Redmond is not the center of the universe Infosys Development Center, India

Going Global Gets You Development Leverage Reduced time to market –Distributing your developers across multiple time zones –Extend the effective work-day to about hours Opportunity for FTEs to focus on core activities –Shift non-core and low-risk tasks out of Microsoft –Frees Microsoft resources to focus on maintaining the technology edge Lower cost of ownership –Reduce total project time with resource scale-out –Leverage the Indian economy’s lower cost structure Flexibility with resource loading –Virtually any technical resource can be had –Easily add and subtract resources for ramp-ups and ramp-downs Satyam Development Center, India

Why Think About India Now Large and technically qualified talent pool –450,000 software engineers (+ 70k each year) Quality work at 50-60% of the cost –That’s 2 heads for the price of 1 IP protection policies are built into the model –Preferred India vendors are source licensed Secure physical & network resources –Project teams are 100% dedicated –Secured physical and network resources Flexible contractor terms –Very short engagements, remote or on-site Exploitable time zone advantage –Check in code tonight and it’s tested by morning TCS Development Center, India

Call To Action Ask yourself some hard questions: –Did you get the headcount you needed? –What did you pay for CSGs last year? –What if you could double your talent/$? Look at your short-term project list –Pick something to move off-shore today Look at your long-term project list –What has the biggest CSG budget? –Evaluate the cost advantage of adding off-shore talent Look at your talent pool –Where do you need more depth/breadth? WIPRO Development Center, India