1. Vincent Nair Managing Principal, Australia & New Zealand
WIPRO Infotech
CIO Executive Council

2. AUSTRALIAN CIO DIALOGUES Will Outsourcing and Off Shoring do it for your Business? Vincent Nair Managing Principal WIPRO Infotech Australia/NZ

3. The Agenda 1 2 3 4 5 6 7 Outsourcing Overview Trends in Outsourcing
Evolution of GDM 4
India as a Pivot in GDM 5
India’s Competitive Tool – Why India? 6
Indian IT Industry – Best Practices 7
Future Evolution of Global Outsourcing

4. Differences – Insource/Outsource/Off Shore
$ Savings & Technology Savvy
Up to 50% Budget Savings
Future
Off Shore
Future
Near Shore /Off Shore
Outsourced but on Shore
Future
Future
Co Sourced Infrastructure
Current
In Sourced Infrastructure
Time (Years) 1 2 3 4 5

5. The CIO Noise in Australia
Peter Mahlar - CIO Coles Myer
“ I want to know what is over the horizon. Don’t talk to me about bits and bytes. If I am going to invest millions with your company, you need to talk to me about the Future…”
Peter Holland - Knowledge and Information Systems General Manager Toyota, Australia
“ The days of an enterprise resource planning system sitting in the backroom churning away are gone… reducing day-to-day costs of running an IT shop will be the priority…”
Michelle Tredenick – CIO National Australia Bank
“ Skills shortage in some hot technology areas are looming….we have to choose to outsource or off shore some of the work

6. Global Trends in Outsourcing
IT Services & Offshore Market
$ Bn
2004
2009 (E)
Total IT Services
Offshored %
Offshored to India
United States
252.1
7.5
3.0%
5.5
74.0%
355.0
14.6
4.1%
Western Europe
191.6
1.7
0.9%
1.4
84.3%
258.1
3.7
1.5%
Asia Pacific
84.6
0.2
0.3%
0.1
62.1%
121.5
0.9
0.8%
Offshoring is a key element of outsourcing strategy in US and Western Europe
India – A pivot of the offshoring strategy – Is a cost, quality, value based destination
Trends indicate increasing momentum towards utilizing Indian capabilities in the future
Can Australia leverage offshoring more?
Has Australia explored Indian opportunities enough?
Source: IDC

7. Outsourcing Trends in Australia
For the most recent infrastructure services for which you have offshored, please select the
types of services you have purchased 5 10 15 20 25 30 35 40
others
Don’t know
New Zealand
Japan
Malaysia
Singapore
Phillipines
China
India
(% of responses) 5 10 15 20 25
more than 30%
20-24%
15-19%
10-14%
5-9%
1-4%
(% of responses)
% OF COST SAVINGS EXPERIENCED
Preference for countries
Source, IDC Australia Offshore Outsourcing Survey, 2005

8. The CIO Journey

9. Leading to 2nd Generation Outsourcing

10. Potential Drawbacks in
Benefits & Drawbacks
Offshore Outsourcing
Cost Savings
Quality of Services
Access to IT Skills
Flexibility in Resourcing
Potential Benefits in
Offshore Delivery
51%
37%
30%
12%
Client Interface
Indirect
On-site
Physical Proximity
to Client
Off-site
Nearshore
Offshore
Near
Remote
Direct
Potential Cost Savings
Client
Security, Privacy
Language Barriers
Unrealized Cost Savings
HR Backlash
Cultural fit
Potential Drawbacks in
Offshore Delivery
40%
28%
21%
19%
16%

11. Evolution of Global Delivery Paradigm
Future of Global Delivery
Integrated Delivery
Unified Processes
for Customer Centricity
Geo – Agnostic virtual delivery
Source: Forrester

12. India as a Pivot in GDM
Worldwide Offshore IT Services Share by Region, 2004
Low Cost Global Delivery Player
75.5%
6.8%
4.5%
2.1%
3.3%
3.8%
1.7%
2.3%
India
CEE
Philippines
Latin America
China
Canada
MEA
Others
Total = $9.8 Bn.
India well established on the Global Outsourcing Stage
Source: IDC and Forrester

13. ICT = India’s Competitive Tool – Why?
Performance
Highlights
India has 28% of suitable talent among all cost competitive offshore locations
Key stakeholders are taking initiatives to further enhance India’s talent proposition
Abundant Talent 1
Significant primary infrastructure is being built in leading centres
~ 25 million sq feet of Class A real estate was available in 2005
End-to-end network uptime for India and other offshore locations vis-à-vis US levels (~99.95%)
Quality & Scaleable Infrastructure 2
Critical Ingredients of India’s success
Operational Excellence
India based players have managed to maintain quality and cost leadership vis-à-vis other countries 3
India’s business environment is competitive with those in other countries
Key government policy interventions have catalyzed growth
Conducive Business Environment 4
Growing Domestic IT/ BPO Market
Increase in domestic spending on IT 5
= Low
= High
Source: Nasscom-McKinsey Report 2005, Wipro Estimates

14. Indian IT Industry – Innovating Constantly (1/2)
Building complete services portfolio
Pioneering the Global Delivery Model
Indian IT Industry: Value added Offshoring
Leading IT companies have transformed into Full Service Providers
India pioneered the Global Delivery Model
Talent Development – A critical success factor
Wipro Example: Strong 360º Portfolio
Wipro Example: Global Delivery Capabilities
Package
Implementation
12%
Infrastructure Services
10%
Vertical Focus
IT Enabled Services / BPO
Consulting 5%
Custom
App Dev & Maintenance
30%
R&D Services 26%
Testing Services 7%

15. Indian IT Industry – Innovating Constantly (2/2)
Quality Leadership
Differentiation through Innovation
80 of the world’s 117 SEI CMM Level 5 companies are based in India
R&D centers by GE, Microsoft, IBM, DELL, CISCO, Intel etc. set up in India
1. New Service Lines
2. IP / Point Solutions based on deep domain understanding
Non linear Business Models
Business Impact SLA Delivery
Wipro Example: The Wipro Way
Wipro Example: Innovative Delivery
Process
Excellence
People
Management
Customer
Centricity
Personal
Change
Business Excellence

16. Future Evolution of Global Outsourcing
Service
Oriented
Architecture
Standards
Based
Components
Virtualised
Resource
Model
End to end
Management
Flexible
Operating
Cost Models
Flexible
Sourcing
Models
Driving Business Agility

17. Our Preparedness thru Integrated Delivery Framework
PMO – Managed Services
Cob IT Framework
People
Process
Technology
Transition Phase
Life-cycle Management
Initiation Phase
Plan
Monitor
KAP
& Planning Phase
Implementation
Phase
Acquire
Deliver
Hand over to
Sustenance
Continual Improvement
(Six Sigma)
IT Infrastructure
(ITIL Practice)
Application Services
(SEI CMMi)
Human Resources
(PCMM)
Projects
(PMI)
Project management
I PAT
Knowledge Management
K Net
Customer
Extranet
COCOON
Defect
Reduction
Six
Sigma
Quality
Management
Veloci-Q

18. 1 2 3 Wipro Blueprint : Getting it right the first time
Outsourcing - What to and How to
How to manage what is outsourced 3 2
How to outsource 1
What to outsource
What to
outsource
How to
outsource
How to manage
what is outsourced 1 2 3
Application Assessment
Sequencing plan
Engagement approach
Application sequencing plan
SLA’s
Risk mitigation
Performance metrics
Governance Model
Questionnaires/interviews
Study application inventory, documentation status, demonstrations of applications
Offshoreability of applications
Engagement plan
Timelines for transition
Change management
Cost savings analysis
Cultural synchronization

19. Conclusion Vincent.Nair@wipro.com Questions to:
CIO key competency today is Strategic Thinking and Planning vs
operational management.
Outsourcing and Off Shoring is no longer an option but an enterprise
wide business strategy.
India is the destination of choice for outsourcing and off shoring
All surveys point to ‘integration’ as the top most technology priority
Questions to: