1. Outsourcing Models Build Operate Transfer Outsourcing Models Build Operate Transfer

2. Three primary reasons for offshore operations 1.Reduce cost of doing business –Labor costs, Infrastructure Costs –Management Overhead –Focus on Core Competence 2.Increase speed –Global delivery model –Professional Services 3.Tap & Service new markets –Sell & Service Asia PAC markets –Tap global talent pool 4.Risk Factors –Organization risk factors  Geographical, Political –Delivery risk factors  Distributed Delivery expertise

3. Which offshore model is best for you? Project Based Dedicated DC Joint Venture Captive Center BOT Start-Up Time Short Long Short Term & Commitment Short 1-3 years Medium 4-8 years Long 8+ years Long 8+ years Flexible ControlSupplier JointClientJoint ProcessMinimalSupplierSupplier/ Integrated ClientIntegrated ROILow MediumHigh LeverageLow MediumHigh

4. Captive Centers - DIY can hurt Leadership –Balance between client culture + local nuances –Local laws – e.g. tax breaks Attracting Talent –Strong brand needed to attract talent –Relationships with universities Retaining Talent –HR policies –Career growth opportunities –Visa logistics –Handling churn Delivery –Global delivery is a different ball game!

5. BOT is Low Risk & Low Cost BOT is Low Cost & Low Risk Faster start-up time Most leverage with best ROI Captive works well when numbers are >400 Dedicated DC is good for medium term, mid-size JV provides medium leverage & control at a cost BOT Vs. Captive Center High initial costs for Captive Center Higher delivery risks Delivery model not proven to work offshore Understanding of local market Talent acquisition & retention not proven $2 - 2.5 Million Savings Over 3 Years Ideal Transfer Point Number of People Cost in $\Hour Risk Cost

6. BOT Setup & Transition Model Init iat e BOT Prog ram Pla n Bu ild Ope rate Tra nsf er Organization structure Infrastructure, Security, BCP Tailor policies - HR, Hiring & Delivery Organization structure Infrastructure, Security, BCP Tailor policies - HR, Hiring & Delivery Monitor & report metrics Delivery Reviews Establish Process Audits Establish client’s Indian subsidiary Monitor & report metrics Delivery Reviews Establish Process Audits Establish client’s Indian subsidiary Hire & Train Knowledge Transfer Transition projects Hire & Train Knowledge Transfer Transition projects Months 13612 36 Co-locate Leadership Plan Financial Transfer Plan HR Transfer Plan Facility Transfer Co-locate Leadership Plan Financial Transfer Plan HR Transfer Plan Facility Transfer PMO & Governance Shared Services Align LOB & GDC Objectives PMO & Governance Shared Services Align LOB & GDC Objectives Program Management Office HR & Communications Metrics Change Management Project Oversight Metrics Change Management Project Oversight Tailor HR Policies Communication Cultural Alignment Separation Support Tailor HR Policies Communication Cultural Alignment Separation Support